Tacit Knowledge
Definition:
One of the complexities of outsourcing, especially in outsourcing knowledge work, is that some processes always remain undocumented. These undocumented processes are often left undocumented because we believe or assume that it is "common knowledge" or "common sense," and therefore, documentation is not required. In reality, these assumptions are almost always untrue.
Instead, the process (the "answer" to a problem) is known to the individuals who currently perform that function.
When that function is outsoured to another group in the same city, different answers may seem correct. When the work is moved into another state or another country, completely different answers and diametrically opposed ideas may seem perfectly correct. As distance grows between the outsourcer and the client, the number of items of these "assumed" bits of knowledge increases significantly. Knowledge that is mutually shared, and assumed to be correct are called "Tacit Knowledge."
Industrial work focuses on performing a set of steps, according to straightforward instructions. For example, "turn the screw one-half rotation to the right." These instructions tend to be less determined by local culture, history and beliefs. Knowledge work, such as the type of work performed by lawyers, accountants, writers, researchers, etc. Documentation of these instructions tends to be b on relative instructions, requiring personal and cultural knowledge in order to make decisions. The most important "processes" happen inside someone's head, and vary from person to person.
Few training departments know how to extract and document a "fuzzy" process that cannot be observed. Ask two lawyers about a legal issue, and get three answers. Maybe we should think twice about replicating our current functions! (But that's an issue for another day.)
Here's an example. An investment Bank in New York has a document center. Bob works for the center, specializing in Technology presentations. When he updates a presentation for John Smith, Bob knows John uses a blue color scheme and no page numbering. The rest of the center doesn't know this, but does know a laundry list of special terminology and standards that is banking specific. Frank, an expert document worker hired from another Bank, is utterly lost when he joins because of different standards and terminology specific to this document center. Sally sits in Fargo North Dakota and receives outsourced work from the center. Sally has been trained for all the documented procedures, but she neither understands (nor agrees with) the way her new client works and communicates (rudely and inaccurately).
As we move work further away from the natural "home" of that work, differences in tacit knowledge create ever denser layers of inefficiency. Much of this can be solved by training and time, but because the extent of tacit knowledge is greatly underestimated the amount of training, and time usually falls far short of what is needed. Even if you do have spectacular training, the terminology, the personal preferences, even the Bankers (in this example) are constantly changing, and the extraction of outsourcing training must remain on continuing program... not a one-time event.
One of the complexities of outsourcing, especially in outsourcing knowledge work, is that some processes always remain undocumented. These undocumented processes are often left undocumented because we believe or assume that it is "common knowledge" or "common sense," and therefore, documentation is not required. In reality, these assumptions are almost always untrue.
Instead, the process (the "answer" to a problem) is known to the individuals who currently perform that function.
When that function is outsoured to another group in the same city, different answers may seem correct. When the work is moved into another state or another country, completely different answers and diametrically opposed ideas may seem perfectly correct. As distance grows between the outsourcer and the client, the number of items of these "assumed" bits of knowledge increases significantly. Knowledge that is mutually shared, and assumed to be correct are called "Tacit Knowledge."
Industrial work focuses on performing a set of steps, according to straightforward instructions. For example, "turn the screw one-half rotation to the right." These instructions tend to be less determined by local culture, history and beliefs. Knowledge work, such as the type of work performed by lawyers, accountants, writers, researchers, etc. Documentation of these instructions tends to be b on relative instructions, requiring personal and cultural knowledge in order to make decisions. The most important "processes" happen inside someone's head, and vary from person to person.
Few training departments know how to extract and document a "fuzzy" process that cannot be observed. Ask two lawyers about a legal issue, and get three answers. Maybe we should think twice about replicating our current functions! (But that's an issue for another day.)
Here's an example. An investment Bank in New York has a document center. Bob works for the center, specializing in Technology presentations. When he updates a presentation for John Smith, Bob knows John uses a blue color scheme and no page numbering. The rest of the center doesn't know this, but does know a laundry list of special terminology and standards that is banking specific. Frank, an expert document worker hired from another Bank, is utterly lost when he joins because of different standards and terminology specific to this document center. Sally sits in Fargo North Dakota and receives outsourced work from the center. Sally has been trained for all the documented procedures, but she neither understands (nor agrees with) the way her new client works and communicates (rudely and inaccurately).
As we move work further away from the natural "home" of that work, differences in tacit knowledge create ever denser layers of inefficiency. Much of this can be solved by training and time, but because the extent of tacit knowledge is greatly underestimated the amount of training, and time usually falls far short of what is needed. Even if you do have spectacular training, the terminology, the personal preferences, even the Bankers (in this example) are constantly changing, and the extraction of outsourcing training must remain on continuing program... not a one-time event.
