Tacit work has no invoice line
I described a service I had shaped around one client's way of working and my partner heard a growth plan. The thing that would actually have to move is the part that has not once made it onto a quote.
von Hippel
Meaning
An economic analysis of information flow identifies why certain types of knowledge are expensive to move between people. The pioneering work of von Hippel introduces the idea that valuable problem solving often happens at the site where the user is experiencing the issue. This research explains why some tasks cannot be centralized.
It highlights the value of local expertise.
User Innovation
Solutions are often developed by the people who actually use a service rather than the manufacturer or the original creator. This discovery is a core part of the scholarship of von Hippel, which shows that users have the strongest incentive to innovate. They modify tools to fit their specific needs.
Information Stickiness
This concept describes the difficulty and cost of moving knowledge to a centralized planner. In the work of von Hippel, stickiness explains why it is often more efficient to move the decision to the user. This reduces the cost of communication.
Decentralized Choice
Giving decision rights to the person closest to the problem is the logical consequence of this dynamic. By doing so, the founder avoids the need to constantly transmit complex data, an approach that aligns with the theories of von Hippel. This arrangement increases the speed of response and reduces the hours spent on administrative oversight.
It ensures that the team remains responsive to the needs of its clients.