Opinion: Tacit understanding

By Colin White, Ortus Professional Search

Law firms have been investing heavily in developing effective knowledge-management systems for some time now. Many have created complex and tightly standardised procedures to address the collection of client data from solicitors and make it available to others via a searchable database. But having gone through huge changes as competition between firms increases, the progressively transient nature of professionals in today’s market means that it is now more important than ever to acquire and share the more esoteric or ‘tacit’ knowledge from client-relationship partners.

Tacit knowledge is not as easy to obtain, store and share as other knowledge because it is often subconscious. We may not even be aware of the true extent of our knowledge on a given subject. Unless there is a productive method of disseminating this information, there is a risk of missing more about a departing partner than just their witty anecdotes.

However, all too often, this is only given serious thought when faced with the prospect of a departing partner and the realisation of what might happen to existing client relationships, and then there is a serious problem. There is no real motive for the person leaving to be totally open, because anything more they share can potentially weaken their starting position in a new firm. It is a problem being addressed more visibly in the larger law firms, where infrastructure to support dedicated KM professionals aims to build a strong system for gathering this more ethereal information.

Andrew Trickett, knowledge manager at Wragge & Co, thinks that the key to addressing the capture of tacit knowledge is to think about it in a very different way to traditional KM. “People are the key to tacit KM and we must therefore develop methods recognising that the overwhelming majority of knowledge in a firm resides in its people rather than its databases,” he says. Everybody absorbs information contextually, however, and that context is not easily repeatable when sharing knowledge.

Berwin Leighton Paisner hopes to address the issue of context by holding regular team meetings to review and reflect on major and unusual transactions. Lucy Dillon, director of knowledge management, explains that such pieces of work finish with “a debrief session to explore what went well and reflect on learning points for the next time”. The familiar context of recent projects can significantly help with understanding of both technical points and the workings of the client.

Another popular method of gaining this insight is to spend time as a team with clients, particularly following the completion of each project. Everybody thinks lunch following a successful outcome is a good idea, but time pressure inevitably means it doesn’t always take place. At a meeting everyone present can get direct feedback – and context – from the client’s perspective.

Trickett also argues that good office design helps in building tacit knowledge by encouraging social networks. “In a knowledge-based economy, talk is work. Overhearing things can help, as can being able to make eye contact with people on the other side of your desk and being able to walk around.” One of the most powerful knowledge-sharing devices is simply space where people can meet and chat about issues, perhaps discovering the best person to connect to. Research has shown that 80 per cent of work conversations are sparked by people just passing desks.

But Ian Rodwell, Linklaters knowledge manager, explains that mentoring already helps transfer of tacit knowledge. “Trainee solicitors gain a range of knowledge through sitting with a supervising lawyer and learning through contact and observation. They learn how to manage clients, delegation and workload management through osmosis as well as more formal methods,” he says. Typically, this mentor relationship disperses as the solicitor gains a better degree of technical knowledge.

Effective CRM is then required to pass this from one to the next in a uniform manner. Ann Halpern, Norton Rose director of practice and organisational management, says: “Addressing tacit knowledge management naturally means we provide a high degree of client care and becomes a useful tool in pitching for new and repeat work as we can demonstrate a much deeper understanding.”

It is clear that steps are being taken to address potential loss of knowledge. As industry captain Andrew Carnegie once said: “The only irreplaceable capital an organisation possesses is the knowledge and ability of its people.” No doubt the headlines will continue to focus on partners, teams and clients, where one side sees a great opportunity and the other expresses regret, wishing the departing people well. But with effective information-gathering procedures, years of experience can be retained even if departing partners can’t be. Perhaps we no longer need to have the same misgivings and will find we can wave goodbye with genuine best wishes.

Colin White is managing director of Ortus Professional Search. He can be contacted at colin.white@ortussearch.com