Rule Three of Strategic Doing, a discipline incubated at Purdue University, refers to uncovering hidden assets to unlock new value. This idea takes on profound meaning when viewed through the lens of the distributed knowledge and expertise embedded across an organization’s people.
Organizations are filled with discrete pockets of knowledge—specialized expertise, lived experiences, and implicit know-how—that, when surfaced and connected, create entirely new possibilities. Yet, the full picture of what is possible remains unknown until these hidden assets come together like pieces of a puzzle, revealing an image we could not have anticipated at the outset.
The Challenge of Distributed Knowledge
Unlike tangible assets, knowledge is inherently fragmented. It resides within individuals, shaped by their backgrounds, disciplines, and experiences. Some of it is explicit—easily documented and transferred. Much of it, however, is tacit knowledge—insights, instincts, and problem-solving abilities that are difficult to articulate and often remain invisible within an organization.
Without intentional leadership, these knowledge assets remain siloed, leaving an organization unaware of the full extent of its capabilities. The challenge, then, is not just to identify knowledge assets but to create the right conditions for them to surface and connect in meaningful ways.
Framing Questions as the Key to Discovering Distributed Knowledge
This is where Rule Two of Strategic Doing—having great framing questions—comes into play. The right framing questions establish the boundaries of what is possible while guiding a structured yet flexible exploration of emerging opportunities. Rather than asking, What do we know?, leaders can pose questions like:
- What expertise exists within our team that hasn’t yet been applied to this challenge?
- What perspectives or experiences could reveal new ways of thinking about this problem?
- What do we suspect might be possible, even if we’re not sure how to get there yet?
These kinds of framing questions create a structured environment for discovery, allowing leaders to surface knowledge that might otherwise remain hidden.
Leadership Skills for Uncovering Hidden Assets of Distributed Knowledge
Identifying and integrating hidden knowledge assets requires a specific set of leadership skills:
- Curiosity and Active Listening – Leaders must cultivate a deep curiosity about their teams, actively listening for expertise and insights that may not be immediately apparent.
- Facilitation and Inquiry – Effective leaders use strategic facilitation techniques to surface unspoken knowledge, creating the conditions for knowledge-sharing and collaboration.
- Connecting the Dots – The real power of uncovering hidden assets comes from making unexpected connections. Leaders must recognize patterns and possibilities that emerge when knowledge is combined in novel ways.
- Psychological Safety and Inclusivity – People will only share their implicit knowledge if they feel valued and heard. Leaders must foster an environment where team members feel safe contributing their unique insights.
- Iterative Experimentation – Since the full picture of possibilities is not known in advance, leaders must embrace an iterative approach—testing hypotheses, learning from small wins, and refining as new knowledge emerges.
Creating the Conditions for Emergent Possibilities
Leaders need a disciplined yet adaptive practice for surfacing and leveraging hidden assets. By setting clear framing questions and engaging in structured collaboration, organizations can:
- Discover new ways to apply existing expertise.
- Identify unconventional solutions to complex challenges.
- Create cross-functional connections that lead to breakthrough innovations.
- Prototype and test solutions that align with newly revealed capabilities.
The knowledge required to shape the future already exists within organizations—it is simply waiting to be surfaced, connected, and activated.
The Real Challenge of Unlocking Distributed Knowledge
The real challenge of uncovering hidden assets is not just recognizing what people know, but recognizing the patterns and connections between their knowledge. Leaders who master the art of framing questions, facilitating dialogue, and fostering an environment of trust and experimentation will unlock the full potential of their organizations. By applying these rules, they can navigate the adjacent possible and design strategies and solutions that might otherwise remain undiscovered.