The Knowledge-Creating Company: The Science of Forgetting and the Impact on Organizational Knowledge

The Knowledge-Creating Company: The Science of Forgetting and the Impact on Organizational Knowledge

In today's rapidly changing economy, where uncertainty is the only certainty, companies are constantly seeking ways to gain a competitive advantage. One of the surest sources of lasting competitive advantage is knowledge. Successful companies are those that consistently create new knowledge, disseminate it throughout the organization, and quickly turn it into new technologies and products. But how do companies create and maintain this knowledge in a world where forgetting is the default?

Just as individuals have a sense of identity and purpose, companies can also have a collective sense of identity and fundamental purpose. This shared understanding is what we call the organizational equivalent of self-knowledge. It involves knowing what the company stands for, where it is headed, the kind of world it wants to live in, and most importantly, how to make that world a reality. Personal commitment from employees plays a crucial role in this process. When employees have a strong sense of identity with the enterprise and its mission, they become the driving force behind innovation and knowledge creation.

The process of creating new knowledge starts with individuals. It could be a brilliant researcher who has a breakthrough idea that leads to a new patent. It could be a middle manager who intuitively senses market trends and comes up with an important new product concept. It could even be a shop-floor worker drawing on years of experience to develop a new process innovation. The key is making personal knowledge available to others within the organization.

But what happens when it comes to remembering this knowledge? The science of forgetting tells us that our brains are wired to forget. Encoding, consolidation, and retrieval are the three phases of memory. When we encounter new information, our brains encode it with changes in neurons in the hippocampus and other memory centers. However, much of this information is lost unless it is stored during memory consolidation, which often occurs during sleep. This consolidation process makes memories more stable and long-term.

However, even with consolidation, memories are not immune to forgetting. New memories, simply by living more life, can interfere with the memories of older events. Our memories are centered on our life stories and the events that have personally affected us the most. The more life experiences we have, the more difficult it becomes to capture and recall all of them. Furthermore, when events are uniform and lack distinctiveness, they become harder to recall. This is why the specific memories of certain years, such as those during the COVID-19 pandemic, may become unclear over time.

As a society, we tend to view the future more positively than the past. This future-oriented positivity bias occurs because we can imagine many possibilities for the future, whereas the past is fixed. Remembering the past is a present activity influenced by our current emotions, knowledge, and attitudes. This bias has direct implications for how we look back on the COVID-19 pandemic and how we shape our future.

In order to preserve autobiographical memories into history, history itself needs to take our lives and turn them upside down. Without cultural artifacts like books, movies, statues, and museums, memories of the COVID-19 pandemic may be consigned to the entropic dustbin of history. Just as communicative memories passed down from parents to offspring only last for a few generations, the same may happen to our memories of the pandemic without tangible reminders.

In conclusion, the creation and retention of knowledge in organizations is a complex process that requires personal commitment and a shared sense of identity. Companies must understand that forgetting is the default, and they must actively work to preserve and disseminate knowledge. Here are three actionable pieces of advice for companies:

1. Foster a culture of knowledge sharing: Encourage employees to share their personal knowledge and experiences with others in the organization. This can be done through regular meetings, workshops, or even an internal knowledge-sharing platform.

2. Embrace diversity: Different perspectives and experiences can fuel innovation and knowledge creation. Create a diverse and inclusive work environment where employees feel comfortable sharing their unique insights and ideas.

3. Preserve institutional memory: Take steps to document and preserve important knowledge within the organization. This can be done through knowledge management systems, mentorship programs, or even the creation of a company archive.

By following these actions, companies can enhance their ability to create and retain knowledge, even in a world where forgetting is the default. Remember, knowledge is the key to lasting competitive advantage, and it is up to companies to actively cultivate and nurture it.