In Nobuko Konno’s book ‘Koso-ryoku: Conceptualizing Capability’, I came across a single line that stopped me: “The highest form of tacit knowledge is wisdom.” Nobuko Konno is one of the most highly respected figures in knowledge management and innovation worldwide (Konno, 2024).

It really emphasized for me the vital importance of tacit knowledge. I mapped organisational fragility against each level of knowledge to understand the consequences. The rating is derived from the Bureau of Meteorology’s classification of bushfire risk days from Low to Catastrophic.

Fragility increases as knowledge moves from explicit to tacit — yet organisations invest most in managing the least fragile layers.

It really emphasized for me the vital importance of tacit knowledge. I mapped organisational fragility against each level of knowledge to understand the consequences. The colour coding is derived from the Bureau of Meteorology’s classification of bushfire risk days from Low to Catastrophic.

At the data level, this is a common environment for many IT systems professionals. A Database Administrator manages data security, backups, and proper replication. In well-structured setups, Data Architects ensure a solid design based on proven rules and best practices. Most importantly, I hope we have Data Stewards who ensure the data is fit for purpose. Overall, the system’s fragility is low.

At the Information level, we have proven techniques and tools to process that data and present it in a usable form, such as dashboards and other devices. We may also have stewardship at a level that provides people with an understanding of the data’s provenance, its integrity, and the metadata that enables us to mine and surface key insights. Once again, the fragility remains low.

We codify knowledge by combining insights, interpreting them as models, and incorporating them into procedures to support business operations and establish rules. Medium fragility arises from selective interpretation and potential issues in perception by the ‘interpreter’ as they navigate complexity and uncertainty, which can cause anxiety about making the ‘correct’ decision.

Craft knowledge is the explicit knowledge that is combined with existing skills and experience as people ‘Internalise’ and develop their personal skill set. Fragility is high because internalised skill depends on time, reflection, and space for learning. When these are compressed, the skills developed may be incomplete or compromised.

As Konno says, wisdom is the highest form of tacit knowledge. Fragility here is largely unseen, as it is by definition tacit in nature. Consider Alnis. Alnis is a production supervisor at a manufacturing plant. He has worked his way up from the shop floor, starting as a production line labourer, then a maintenance fitter, a team leader, and now, finally, as a production supervisor. As he walks down the line, he hears a faint noise from the overhead conveyor. It has gone unnoticed by anyone else, and if there is a problem, it will be picked up in the next scheduled maintenance cycle. Alnis looks up and ponders.

• If we stop the line for two hours now, we investigate and fix the issue.
• If we let it run and the conveyor fails, we lose two weeks and face a costly clean-up.

That is wisdom in action. The Chief Operating Officer is aiming to cut costs by reducing FTEs. Alnis is nearing retirement. In this situation, fragility becomes extreme. And it is not just that conveyor held in his tacit knowledge — it is the entire plant.

Konno, N. (2024). Kōsō-ryoku: Conceptualizing Capability. Springer Books.