Balancing act: how to capture knowledge without killing it.

Everyone knows that the way things are formally organized in most companies (their processes) is not the same as the way things are actually done (their practices). The difference between the two creates tension that can be very difficult for managers to handle. Lean too much toward practice and new ideas may bubble up and evaporate for lack of a structure to harness them. Lean too much toward process and you may get no new ideas at all. The goal, then, is to tap into the creativity at work in every layer of an organization with a combination of process and practice. Take, for example, the community of people who fix Xerox machines. Large machines, it turns out, are not as predictable as Xerox's documentation would suggest. So when following the service manual is not enough, the reps come together--over breakfast, at breaks, at the end of the day--and talk about their own best practices. So far so good. But Xerox goes a step further. It has set up a process similar to an academic peer-review system to gather, vet, and share those best practices across the company. The reps get much-welcome recognition for their creativity, and local best practices are deployed companywide. Dot-com companies are a hotbed of innovative practices. But as they mature, they, like Xerox, may find that they need seasoned managers who can harness those practices through the judicious application of constructive processes.