Transfer of knowledge and experience in retirement situations

The impending loss of knowledge and experience due to the imminent retirement of the baby boomer generation: challenges and solutions for the IT industry

With the impending retirement of the baby boomer generation, companies, including those in the IT industry, are facing a formidable challenge: the impending loss of knowledge and experience built up over decades. While the focus is often on the development of new technologies and ways of working, the transition of this generation into retirement poses an underestimated danger – knowledge gaps that can significantly affect the stability and efficiency of IT systems.

In this article, I would like to analyse the specific problems of knowledge transfer in the IT industry and then present a possible solution that is not only applicable in the IT industry but also in other industries.

The importance of tacit knowledge in the IT industry

The IT industry has changed dramatically in recent decades. Nevertheless, there are numerous systems, technologies and processes whose roots go back well into the last millennium. In particular, older programming languages such as COBOL and Fortran, which are still used in many industries in mission-critical applications, are the focus here. With the impending retirement of experienced developers, knowledge of these ‘old’ technologies is rapidly dwindling – an area that often seems neither relevant nor attractive to younger generations.

The situation is similar with so-called legacy IT systems: large companies, especially in the finance, insurance and public sectors, often still run central applications on mainframe systems. Knowledge about their maintenance, further development and troubleshooting is often concentrated in the heads of a few long-standing employees.

However, this challenge is not limited to software development. Over the years, specific knowledge has also accumulated in the areas of operations and service, for example in the administration of networks, servers and security systems. Much of this knowledge is not formally documented, but exists as ‘tacit knowledge’ in the minds of experienced employees.

Challenges in knowledge transfer

Transferring knowledge and experience is particularly challenging in the IT industry due to the high level of complexity and specialisation. The following factors further complicate the process:

1. Unconscious knowledge: Much of what experienced employees know has been accumulated over years of practical work and is hardly formalised. Transferring this knowledge requires conscious reflection and structuring.
2. Complexity of the systems: IT systems are often nested within one another and the interactions between different components are rarely fully documented.
3. Missing documentation: Knowledge that has been acquired over time is often not documented in detail – whether due to a lack of time or because it was taken for granted.
4. Fluctuation and time pressure: In addition to the age pyramid, there is a high fluctuation rate in the IT industry. Knowledge is often lost even before retirement because employees leave the company without their knowledge having been passed on.

Consequences of knowledge loss

The loss of critical knowledge has far-reaching consequences:

• Loss of efficiency: Without detailed knowledge, processes can falter. It takes longer to solve problems or implement new functions.
• Increased costs: A lack of know-how leads to expensive external consulting and support services, e.g. for legacy systems.
• Security risks: poorly maintained or poorly understood systems are more prone to security vulnerabilities.
• Dependency on individuals: when only a few employees understand a system or process, an unhealthy dependency on these key individuals arises.

Strategies for safeguarding and transferring knowledge and experience

In the face of these challenges, a structured approach to knowledge retention and transfer is of crucial importance. A proven system that has been successfully used in various industries is Training Within Industry (TWI), in particular Job Instruction Training (JIT). Don’t be fooled by the term ‘industry’; the principles are universally applicable, even for IT industries and activities.

Training Within Industry (TWI) – a proven approach

TWI and Job Instruction Training were originally developed in the United States in the 1940s to quickly introduce new populations to industries and industrial work processes that were previously completely foreign to them. From 1945, it also spread in Europe and Asia. In Germany, the training of master craftsmen and industrial foremen with their four-stage method of work instruction is essentially based on job instructions. In Japan, Training Within Industry at Toyota formed the basis for their production system and thus also for lean management, as it became widespread in the Western economy from the 1980s and 1990s.

Job Instruction Training (JIT)

This module focuses on creating clear and concise work instructions and thus on establishing and promoting work standards. In the IT industry, these could be detailed step-by-step procedures for

• maintaining legacy systems,
• troubleshooting specific applications, or
• configuring networks and servers.

Of particular importance is the documentation of ‘why questions’ – why a particular step is necessary or what the effects of errors and deviations can be. This background not only makes knowledge comprehensible, but also helps to apply it in new contexts. Through targeted reflection based on specific questions, experts are able to bring even unconscious skills back to a conscious level, which is a necessary prerequisite for transfer.

Job Transfer Training (JTT)

JTT is my further development of job instruction and promotes skills transfer through targeted tandem work and mentoring. In this process, an experienced employee works closely with a successor in order to convey practical knowledge directly at the workplace. In the IT sector, for example, administrators or developers could work together on complex systems, with the experienced employee explaining not only the ‘what’ and ‘how’ but also the ‘why’.

Implementation in practice

The application of TWI and its elements in itself represents a structured approach that can be very well integrated into the daily work routine due to its industrial origin, since the training forms and times are ‘compatible’ and take effect after only a short time without alienating the experts from their daily work.

The job transfer training takes into account the special requirements of the transfer of knowledge and experience of subject matter experts. At the same time, the coupling with the job instructions also promotes standards in the provision of services and prevents a rude awakening when these experts, in the foreseeable future, will be entering their well-deserved retirement and will no longer be available.

Incidentally, the challenges and solutions described are by no means limited to the IT industry. Similar scenarios can be found in all sectors of the manufacturing industry, in construction and trade, and in healthcare. Wherever expert knowledge and practical experience play a central role, the impending loss of knowledge poses a risk.

One example is the manufacturing industry, where older skilled workers have decades of experience with specific machines and production processes. Here, too, TWI approaches such as JIT and JTT can help to systematically secure this knowledge and pass it on to the next generation.

Conclusion

The impending loss of knowledge and experience due to the retirement of the baby boomer generation is one of the biggest challenges for companies – including those in the IT industry. With methods such as training within industry, job instructions and job transfer training, companies can cushion this loss in a targeted manner and ensure their long-term competitiveness.

By consciously focusing on securing and sharing knowledge and experience, not only is continuity created, but the foundation is also laid for a culture of learning and collaboration. The transition to retirement is not a risk, but an opportunity to pass on valuable knowledge to future generations.

Notes:

Here you will find more information about Training Within Industry (TWI), including the needs of managers, principles and a self-test (in German). In addition, Goetz Mueller offers a TWI programme with JIT, JRT and JMT (Job Methods Training). Definitely worth a look if you are in danger of losing knowledge and experience.

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Goetz Mueller has published more posts on the t2informatik Blog: