The Concept of Tacit Knowledge in Business

Tacit knowledge in business refers to knowledge that is acquired through experience and practice, rather than just through words. One cannot learn certain skills, like riding a bike, simply by being told how to do it, but by actually doing it. In businesses, many tasks involve tacit knowledge, where solutions are not easily transferable or replicable because each situation is unique. Successful business people often rely on mental models, analogies, and examples rather than first principles to tackle such knowledge work, as every situation presents a new challenge. Consequently, in areas where exceptions are the norm rather than the exception, like customer support, human intervention is crucial for handling unique and unanticipated situations.