This document discusses the shift from knowledge stocks to knowledge flows. It argues that as tacit knowledge becomes more important, access to tacit knowledge through trust-based relationships will be key. Three forms of trust are important: personal trust based on shared purpose, vulnerability, and passion; skill and reputation trust; and institutional trust. Enabling knowledge flows will require a focus on learning, search, and serendipity rather than knowledge capture and storage. New metrics should measure knowledge flows rather than just stocks.

1. From Knowledge Stocks to Knowledge Flows:
Opportunities and Challenges Ahead
John Hagel
Co-Chairman, Center for the Edge

2. The Big Shift
Foundations Flows Exponential Learning
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3. The Challenge
Return on Assets for the U.S. Economy (1965-2010)
6.00%
5.00%
4.00%
Return on Assets (%)
4.2%
3.00%
2.00%
1.00%
0.6%
0.00%
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Economy ROA
Source: Deloitte Shift Index
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4. Where’s The Value?
Ecosystem
Enterprise
Knowledge Knowledge
Stocks Flows
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5. Explicit vs. Tacit Knowledge
Explicit
Percent
of Total
Knowledge
Tacit
New 10 Years
Experience Later
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6. Rate of Knowledge Depreciation
High
20th Century
Value
21st Century
Low
Start 5 Years
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7. Challenge
Tacit Knowledge Doesn’t Flow –
It Is Sticky
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8. What’s Required to Access Tacit Knowledge?
Trust Based Relationships
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9. Multiple Forms of Trust
Person
Skill
Institution
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10. The Foundation of Personal Trust
Shared
Purpose
Vulnerability
Passion
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11. Scaling Access to Tacit Knowledge
Team
Collaboration
Reputation and
Relationships
Individual
Problem-solving
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12. Enabling Knowledge Flows
Learning
Search Serendipity
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13. Potential Implications for Knowledge Management
1) Knowledge People
2) Contribute Capture
3) Objects Environments
4) Search Serendipity
5) Transfer Create
6) Firm Beyond
7) Leverage Through Passion
8) Stock Metrics Flow Metrics
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14. Stay In Touch
jhagel@deloitte.com – email
@jhagel - twitter
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