From the SECI Model to Organisational Wisdom

The SECI Model: Converting Tacit and Explicit Knowledge

The Nonaka SECI model is a knowledge generation model that demonstrates how to convert tacit and explicit knowledge into organisational knowledge [1,2]. Explicit knowledge is simple to explain and share, such as through manuals. Tacit knowledge, such as skills, is knowledge gained by applying explicit knowledge.

Methods of Knowledge Transfer

The SECI model categorises knowledge transfer into four stages: Socialisation, Externalisation, Combination, and Internalisation. The first letters of these approaches combine to form the acronym SECI.

• Socialisation is the process by which tacit information is kept tacit. Methods of socialising knowledge include practice, coaching, debate, imitation, and observation.
• Externalisation is the process of converting tacit knowledge into explicit knowledge. This critical conversion is regarded as especially difficult because tacit information might be difficult to describe. Metaphors are frequently used as examples of this technique. However, Symbio6 argues that most of an organisation's hidden intellectual capital may be externalised with a clear aim, data, and the correct decision technique.
• Combination is the most basic form of knowledge creation since it converts explicit information into explicit knowledge. A well-known example is the combination of internet knowledge.
• Internalisation is the process by which explicit knowledge is transformed into implicit knowledge.

The explicit knowledge is derived from sources and learnt through acquired knowledge processing. This knowledge is then immortalised, which means that the previously learnt knowledge is erased.

According to the SECI model, knowledge within an organisation is not a static entity but is constantly created, transferred, and converted via these four modes. To improve an organisation's ability to innovate, learn, and adapt, effective knowledge management entails facilitating and optimising various knowledge conversion processes.

Relationship with Learning Organisation

The SECI model and organisational learning are inextricably linked. The model describes how information is created and disseminated in organisations, which is important for learning and adapting. It emphasises the significance of translating personal knowledge into formal knowledge and vice versa, sharing knowledge, creating a learning culture, and stimulating creativity.

Why is Externalisation so Difficult?

Externalisation is difficult since it entails transforming personal, difficult-to-explain knowledge into clear information. This is challenging since such knowledge is frequently related to specific experiences, and people may be unwilling to share it or find it difficult to put into words. To make it work, organisations should foster a culture of sharing, provide training and rewards, and employ a variety of approaches to successfully capture this knowledge.

Examples of Externalisation of Knowledge

While these organisations may not expressly follow the SECI model, they share the concept's intrinsic ideals of information exchange, creation, and innovation. Here are a couple such examples:

• IBM is well-known for its effective use of the externalisation phase of the SECI model to capture and distribute information. The organisation has a strong knowledge management system in place that encourages staff to document their experiences, best practices, and lessons learnt.
• Google is well-known for its '20% time' policy, which allows employees to spend a part of their work hours exploring initiatives and interests outside of the workplace. By allowing employees to work on projects outside of their regular roles, this approach encourages them to externalise their tacit knowledge and fosters creativity.
• IDEO, a design and innovation consultancy, emphasises a culture of knowledge sharing and learning. They actively employ tactics like brainstorming, prototyping, and collaborative workshops to externalise and combine tacit knowledge, which is critical to their design and innovation processes.

Limitations and Critiques

The SECI approach has had an impact on knowledge management, although it is not without limitations and challenges. Here are some of the model's possible limitations:

• Oversimplification: It oversimplifies the complex nature of organisational knowledge processes, potentially missing all nuances.

• Tacit knowledge: It may not fully account for the difficulties in externalising tacit knowledge, which is difficult to express verbally or in writing.

• Cultural differences: It may fail to take cultural and contextual differences into account in knowledge management practices.

• Implementation difficulties: Opposition to change, technological restrictions, and cultural barriers might hamper the successful implementation of the model.

• Excessive emphasis on explicit knowledge: It may place an excessive emphasis on explicit knowledge, thereby overlooking the richness of tacit knowledge and informal interactions.

Organisations should modify the model to meet their specific needs, recognise the complexity of knowledge processes, and promote a balanced approach to knowledge management to meet these limits.

How the SECI Model Improves Decision-Making

The SECI framework, which focuses on knowledge conversion within organisations, has a strong association with decision-making. The SECI model and decision-making are linked as follows:

• Knowledge as a foundation: Knowledge is at the heart of organisational processes in the SECI model. Decision-making is strongly reliant on knowledge, both implicit and explicit. Individuals or teams must have access to relevant knowledge about the problem, context, prospective solutions, and past experiences before making educated judgements.

• Socialisation: This phase is critical for decision-making since it frequently involves team members discussing, brainstorming, and sharing knowledge. By tapping into the collective expertise of the organisation, these exchanges can lead to better-informed decisions.

• Externalisation: Documents, reports, and instructions are examples of explicit knowledge. Having access to well-documented explicit knowledge when making judgements can lead to more informed and consistent choices.

• Combination is the process of organising and categorising explicit knowledge. This organisation can help decision-makers swiftly find essential information. Effective knowledge classification and retrieval can improve decision-making efficiency.

• Individuals internalise explicit knowledge by incorporating it back into tacit knowledge through practice and experience. As individuals get a greater understanding of their organisation's knowledge assets, this phase leads to individual and group learning, which can lead to improved decision-making over time.

• Organisations that continuously learn and adapt depending on their experiences and knowledge can make better judgements as they progress.

The SECI model's emphasis on knowledge development and conversion drives organisational innovation. Making innovative decisions frequently entails combining existing knowledge in new and creative ways. Knowledge conversion activities under the SECI model can stimulate creativity by offering a disciplined strategy for acquiring and combining knowledge.

Symbio6 & This Framework

To summarise, the SECI model is a useful organisational tool. It enables them to effectively share and apply knowledge, stimulate learning and innovation, and make better decisions. It is a wonderful resource for organisations seeking to thrive in a rapidly changing world. With this strategy, we are delighted to assist you in improving decision-making inside your organisation.

References

[1] Nonaka, I & Takeuchi, H 1995, The knowledge creating company. How Japanese companies create the dynamics of innovation, Oxford University Press, New York.

[2] Nonaka, I., & Takeuchi, H. (2007). The knowledge-creating company. Harvard business review, 85(7/8), 162.