The Knowledge Spiral This page explores how a learning organization moves in a spiral between tacit and explicit knowledge and back again. And, it discusses these transformation processes in terms of people, technology and simulation.

Ikujiro Nonaka and Hirotaka Takeuchi^[1] propose a knowledge spiral (shown below as a Learning Organization Framework) that explores how individuals and groups transform tacit to explicit knowledge, explicit to tacit knowledge and share both tacit and explicit knowledge.

The framework differentiates between tacit and explicit knowledge, explores how they are transformed and the roles of technology and people.

Tacit Knowledge

This is the conceptual knowledge embedded in our minds over time. It is the "wisdom" that combines experience and explicit knowledge. So it includes insights, perceptions, intuition etc.

Explicit Knowledge

This knowledge that can be documented on paper, in databases etc.

Internalization - explicit to tacit

This is learning by doing, sharing models and technical know-how.

Socialization - tacit to tacit

This involves sharing experiences with others.

Externalization - tacit to explicit

This involves transforming tacit knowledge into explicit knowledge. A process that involves dialogue with others.

Combination - explicit to explicit

This involves processing and combining explicit knowledge to integrate it with and update existing document schema.

As tacit knowledge appears in three of the four blocks it is not surprising that people are the key players in these (the purple areas). In contrast, the combinational transformation of explicit knowledge (the blue block) is the only area where technology can play a dominant part.

The Knowledge Spiral and Simulation
We see business simulation as a major tool to help develop tacit knowledge (managerial wisdom). And, as illustrated in the knowledge spiral, the creation and augmenting of tacit knowledge (internalization, socialization and externalization) is a people based process and our team learning approach is necessary for this to take place.

Specifically, internalization involves learning by doing and simulation does this. Socialization involves sharing experiences and this occurs as teams present and negotiate views. Externalization involves dialogue with others and occurs as teams make decisions and receive results.

Also, referring to the "Deep Smarts" article and the possible loss of business wisdom as the baby boomers retire, we see a role for these as people who run simulations or coach individual teams.

[1] Nonaka, Ikujiro, and Hirotaka Takeuchi, The Knowledge Creating Company, New York, Oxford University Press 1995

Most recent update: 06/09/08
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