Exploring the Knowns and Unknowns of Business: The Four Quadrants of Knowledge Management

Inspired by this quote from Donald Rumsfeld that touches on something all Knowledge Managers know, we have the quadrants of knowledge management. It gives an interesting framework to think about organizational knowledge and knowledge.

“There are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns—the ones we don't know we don't know.”

I ask all of my clients who are seeking Knowledge Management services to take some time attempting to “brain dump” all of their organizational knowledge onto a quadrant loosely based on the quote. I also ask key stakeholders, employees. and SME’s to do the same. The variety of their answers within a single organization can give me key insights to what knowledge is available and to whom. All of the insights I derive from this simple exercise are often key drivers in how I help organizations design and execute their knowledge management strategy.


Known Knowns

Known knowns are the facts, data, information and knowledge that the company has about its environment, customers, competitors, products, processes and performance. These are the things that the company knows that it knows.

Examples

  • The name and contact information of our customers.

  • The price and quality of our products or services.

  • The revenue and expenses of our business.

  • The strengths and weaknesses of our competitors.

  • The laws and regulations that affect our industry.

What to do with them

  • Analyze them to identify strengths, weaknesses, opportunities and threats (SWOT analysis).

  • Use them to set goals, strategies, plans and actions that are aligned with its vision, mission and values.

  • Communicate them to its stakeholders, such as employees, customers, investors and partners, to build trust, loyalty and engagement.

  • Monitor them to measure progress, performance and impact, and to identify gaps, errors and risks.

  • Update them to reflect changes in the internal and external environment, and to incorporate new learning and feedback.

  • Share them with other companies or organizations that have common interests or goals, to create synergies and collaborations.

  • Protect them from unauthorized access, use or disclosure, to prevent loss, damage or harm.


Known Unknowns

Known unknowns are the uncertainties that a company is aware of but cannot predict or control. For example, a company may know that its competitors are developing new products, but it does not know what they are or when they will be launched. Or a company may know that there is a possibility of a natural disaster, a regulatory change, or a customer complaint, but it does not know when or how they will happen. These are the risks that a company can anticipate and prepare for, by conducting market research, scenario planning, contingency planning, and risk mitigation.

Examples

  • The hidden talents and skills of our employees.

  • The implicit preferences and needs of our customers.

  • The emerging trends and opportunities in our market.

  • The best practices and innovations in our field.

  • The feedback and suggestions from our stakeholders.

What to do with them

  • Identifying the sources and impacts of uncertainty on its objectives and strategies

  • Prioritizing the most critical and urgent unknowns that need to be resolved

  • Developing scenarios and contingency plans for different possible outcomes

  • Seeking information and feedback from relevant stakeholders and experts

  • Monitoring the changes and trends in the external and internal environment

  • Adapting and learning from the new information and experience


Unknown Knowns

Unknown knowns are things that we don't know that we know. They are hidden assumptions, biases, blind spots, or forgotten knowledge that can affect our decisions and actions.

Examples

  • The hidden talents and skills of our employees.

  • The implicit preferences and needs of our customers.

  • The emerging trends and opportunities in our market.

  • The best practices and innovations in our field.

  • The feedback and suggestions from our stakeholders.

What to do with them

  • Identify them using tools such as surveys, feedback, interviews, brainstorming, or audits to uncover the unknown knowns in the organization. Ask questions such as: What are we assuming? What are we ignoring? What are we forgetting? What are we taking for granted?

  • Assess the impact and relevance of the unknown knowns on the company's goals, strategies, processes, and culture. Ask questions such as: How do they affect our performance? How do they align with our vision? How do they influence our behavior? How do they shape our culture?

  • Decide whether to accept, reject, or modify the unknown knowns based on their evaluation. Ask questions such as: How can we leverage them? How can we mitigate them? How can we change them? How can we communicate them?


Unknown Unknowns

Unknown unknowns are the uncertainties that a company is not aware of, and cannot foresee or prevent. For example, a company may not know that there is a new technology, a new customer segment, a new social trend, or a new competitor that will disrupt its industry. Or a company may not know that there is a hidden flaw, a security breach, a legal issue, or an ethical dilemma that will damage its reputation or performance. These are the risks that a company cannot anticipate or prepare for, and can only react to after they occur.

Examples

  • The unforeseen events and crises that might occur.

  • The hidden threats and opportunities that might emerge.

  • The unknown competitors and collaborators that might appear.

  • The unexpected changes and disruptions that might happen.

  • The new ideas and solutions that might be discovered.

What to do with them

  • A company should be aware of the different types of knowledge and uncertainty that affect its decision making and performance.

  • A company should try to reduce its unknown unknowns by conducting research, gathering data, seeking feedback, learning from mistakes, and being open to new ideas and perspectives.

  • A company should also be prepared to deal with unexpected events and challenges that arise from unknown unknowns by being flexible, adaptable, resilient, and innovative.

  • A company should not ignore or dismiss its unknown unknowns as irrelevant or impossible, but rather embrace them as opportunities for learning and growth.


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