The Importance of Tacit Knowledge and the Mistakes Entrepreneurs Make

The Importance of Tacit Knowledge and the Mistakes Entrepreneurs Make

In the quest for success, knowledge is often seen as the key. However, there are different types of knowledge, and one type that is often overlooked is tacit knowledge. Tacit knowledge refers to knowledge that cannot be captured through words alone. It is the knowledge that is gained through emulation, action, and apprenticeship. Tacit knowledge instruction happens through imitation and blindly copying the actions of a master until the principles behind those actions are internalized.

Why is this type of knowledge so important? Well, if you ever hear someone explaining things in terms of a long list of caveats, chances are you are witnessing tacit knowledge in action. Tacit knowledge allows individuals to make complicated judgments and balance multiple considerations in an instant. It is this ability that is valuable to learn, and it is almost impossible to learn it through explanation alone.

In the past, there was a fad of trying to encode all the knowledge of a human expert into an expert system. However, researchers soon discovered that this approach was extremely difficult. Merely giving people a list of procedures to execute denied them the ability to build expertise and prevented them from engaging in creative problem-solving. It became clear that tacit knowledge could not be made explicit in this way.

So, instead of hoping for some breakthrough to make tacit knowledge explicit, it is more useful to think about ways to gain that tacit knowledge directly. We should act as if tacit knowledge is a fact and focus on finding ways to learn it. This is where the concept of deliberate practice comes into play.

Deliberate practice is defined as only possible in domains with a long history of well-established pedagogy, such as music, math, and chess. In other words, deliberate practice can only exist in fields where there is a clear path to follow. However, the process of learning tacit knowledge looks different. It involves finding a master, working under them for a few years, and learning through emulation, feedback, and osmosis.

This concept of learning tacit knowledge is applicable not only in traditional fields but also in entrepreneurship. Entrepreneurs often make similar mistakes that could be avoided if they had access to tacit knowledge. Guy Kawasaki, in his video "The Top 10 Mistakes of Entrepreneurs," highlights some of these mistakes, including trying to get a small percentage of a big market, hiring too many people too quickly, relying too heavily on patents for defensibility, and disregarding the importance of prototypes over pitches.

To avoid these mistakes, entrepreneurs can look to the field of Naturalistic Decision Making (NDM). NDM focuses on making the process of acquiring tacit knowledge more effective. By keeping an eye out for NDM methods and approaches, entrepreneurs can gain valuable insights into how to navigate the complex world of entrepreneurship.

In conclusion, tacit knowledge is more important than deliberate practice. It is the knowledge gained through emulation, action, and apprenticeship that allows individuals to make complicated judgments and engage in creative problem-solving. Entrepreneurs, in particular, can benefit from acquiring tacit knowledge to avoid common mistakes. To gain this knowledge, it is essential to find a master, work under them, and learn through emulation and feedback. Additionally, keeping an eye on NDM methods can provide valuable insights into the acquisition of tacit knowledge. By focusing on gaining tacit knowledge directly, we can enhance our expertise and achieve greater success in our chosen fields.