The hidden cost of not managing knowledge only becomes apparent when the people who hold that knowledge are no longer around. More subtly, it shows up without warning through suboptimal processes—caused by dependence on specific individuals or the lack of proper documentation that would allow quick access to the information needed to take action or make decisions.
Knowledge has unique characteristics. It is conditional and contextual—knowing when to use information is just as important as using it correctly. It is "sticky": it exists at both the individual and collective levels, and as a cognitive event, it is difficult to “transfer” once it has taken root. It comes in different forms: it can be tacit (held in our minds) or explicit (the one we found documented).
Yet one aspect that is often overlooked—despite being equally important—is that knowledge is an organizational asset and as such, it must be protected, maintained, and positively leveraged to generate value.
Knowledge follows a cycle of transfer and preservation, as described by Nonaka and Takeuchi in 1995. This cycle is based on the two forms of knowledge, tacit and explicit, and focuses on how to continuously convert one into the other in order to help organizations manage knowledge in a structured and effective way.
During the Socialization phase of knowledge, it is transferred between individuals—for example, when someone joins a team and another person teaches them the tasks related to their new role. This type of knowledge resides only in people, which creates an unhealthy dependency on specific individuals within the organization. Thus it becomes necessary to Externalizeit—meaning, to document it in some form, whether through written files, videos, audio recordings, or any medium that allows it to be accessed later.
Many organizations manage to reach this point, but... how do we ensure that others actually consume this knowledge and benefit from it? This is where collaboration tools come into play to Combine knowledge—that is, to proactively, effectively, and efficiently deliver it to those who can use it in their work. Tools like Wikis, cloud-based repositories, Teams, and others help fulfill this purpose.
However, if individuals choose not to engage with the available information and Internalizeit, they won’t generate new knowledge for themselves. As a result, they won’t be able to apply it within the organization or pass it on to others. This is where motivational actions promoted by the organization become crucial—such as rewards for achieving certain technical milestones, promotions, and similar incentives.
Finally, it’s essential to highlight that according to the study presented in the book Management Information Systems by Laudon (used in university programs), effective knowledge management is 80% managerial and organizational, and only 20% technological. In other words, it requires commitment from upper management, embedding knowledge practices as part of the culture.
If these conditions are not met, knowledge and its management take a back seat, lose relevance amid daily tasks, and eventually end up sealed in the final sarcophagus.