How Stories Transfer Organisational Knowledge

Any fool can know. The point is to understand.- Albert Einstein

In organisational contexts, ‘knowledge’ is frequently defined as “the capacity for effective action” (Nonaka 1994; Senge 1997; Spender 1996). The ultimate purpose of knowledge sharing in organisations is to promote and disseminate ‘effective action’ that enhances performance and/or influences behaviours.

Is there place for storytelling in knowledge-driven organisations? If the case for storytelling as a device for creating emotional connection is uncontested, is it any effective for transferring prized tacit knowledge?

A fascinating paper by Deborah L. Soule (Northeastern University) and Daniel Gray Wilson (Harvard University), “Storytelling in Organisations: The power and traps of using stories to share knowledge in organisations” explores such questions. I would like to share, and reflect upon, some of the key ideas Soule and Wilson discuss in their paper.

The authors explain how organisations use storytelling to:

Share norms and values

A key leadership role is to offer a robust vision and this can be accomplished through “stories that emphasise the more empowering aspects of an organisation’s past and place them in context for the future, thus facilitating the identification of future opportunities.” The familiarity of employees with the dominant organisational story reflects their level of adaptation to established norms and values.

?Develop trust and commitment

Stories not only communicate individual competencies and commitments but also signal trust and a willingness to be vulnerable. Furthermore, stories about the organisation and its management convey information about the organisation’s trustworthiness vis-à-vis its employees, which can reinforce or undermine employee commitment.

Share tacit knowledge

Stories provide a more efficient means of exchanging highly contextual and experiential knowledge that can aid in solving complex problems quickly. The Institute for Knowledge Management (1999) describes a story as “a tiny fuse that detonates tacit understanding in the mind of the listener.” Canonical knowledge management processes are often “insufficient to meet the needs of problems that arise in the real world.” In such circumstances, tacit knowledge built on practical experience becomes invaluable.?

Facilitate unlearning

Soule and Wilson argue that “(organisations) need to unlearn practices and mental frames that we don’t even realise we rely on but which shape our whole perspective.” This is why unlearning is extremely difficult. Stories have the capacity to accelerate unlearning, an essential aspect of organisational transformation. Rational arguments alone often fall short in driving change; an emotional or intuitive element is necessary to challenge ingrained practices and mental frames.

Generate emotional connection

The paper claims that “stories have the inherent capacity to engage our emotions because they are about the irregularities in our lives, about things and situations that catch our attention by being different from what is expected.” This characteristic makes the knowledge conveyed in stories more "sticky" and easily retrievable in future situations.

The Essence of a Knowledge-Sharing Story

First, effective knowledge-sharing stories offer a “streamlined experience.” Like fables and anecdotes, they are stripped of excessive information, allowing the central idea to shine through.

Second, a knowledge-sharing story offers a “surrogate experience.” The audience can experience, in a surrogate fashion, the situation described by the storyteller. “It must be possible, even probable, that the listener could experience a similar situation.”

How-Tos?

Soule and Wilson claim that, when designing and telling stories, it is crucial to be clear on the goals of knowledge sharing and perpetuation within the organisation. Stories should align with the desired messages and values of the organisation, reinforcing the intended subtext.

A storyteller must also be a storylistener. By actively listening to the underlying messages, leaders can uncover the guiding principles of the collective narrative. “Sharpening one’s story-listening skills can translate into a more accurate map of the collective understandings and commitments of organisational players.”

Organisations should put in place multiple mediums for storytelling, e.g. visual aids, interactive elements, or multimedia platforms. Monitoring the reception and dissemination of organisational stories is crucial to reinforce positive responses and address negative outcomes.

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Preferred Forms of Knowledge

The strategic use of storytelling for sharing knowledge in organisational settings is not new, but only until recently has it begun to become popular.?However, many companies use storytelling more as a team building exercise or as a tool for sourcing success stories. These applications, while valuable, do not unfold the full spectrum of possibilities that storytelling offers, as explained by Soule and Wilson in their brief.

A factor that still drags storytelling as a tool to share knowledge, is that in organisations “what is most explicitly valued are harder forms of knowledge that can be classified, categorised, calculated and analysed.”

This begs the question: How do stories stack up? After all, there are different strategies or modes of knowledge sharing; and some can accomplish similar outcomes. We’ll explore different scenarios in our next article.

If you think I can help you and your team become better storytellers, contact me. I’d love to hear your story.