Knowledge Strata
Pillar 01 · The Audit

Audit your knowledge.

Four layers of knowledge work. A way to see where your knowledge actually sits. From there you can decide what moves to AI, what stays with your people, and where your real advantage is.

Grounded in sixty years of labour economics and knowledge-management theory. See Origins →

See the four layers
The four layers · one activity

Sorted by who could do each part.

value ascends
At the top · L3b tacit
Things only specific people know
Above your industry · L3a
Things only your company knows
In your sector · L2
Things your industry knows
At the bottom · L1
Things anyone qualified could do
The model · four layers

Your knowledge has structure.

Read it from the ground up. The base layers are portable work AI copies first. The summit is the work that’s hardest to copy, where your people make the difference. Each layer calls for a different response.

L3

Organisational Knowledge

Specific to your company. Your competitive advantage, in two forms.
L3b

Tacit

Not yet written down. AI can't learn what isn't there.
Why we lost that dealWhich stakeholders actually decideThe unwritten rules
ExtractStays human
The Codification Gap
L3a

Documented

Written down. AI can learn it if you feed it.
Pricing modelsProject playbooksClient history
TeachFeed the AI
L2

Industry Knowledge

Travels within one industry or jurisdiction, not across them.
Healthcare procurement complianceTelco revenue recognitionRetail-bank AML
AugmentAI + people
L1

Transferable Knowledge

General work anyone qualified can do. Portable, not simple.
Writing an executive briefRunning a structured interviewAnalysing a competitive landscape
AutomateAI does it
The Codification Gap

The line where knowledge stops being written down.

Below it, AI can use what you’ve captured. Above it is what your people just know and never wrote down, and AI can’t touch that until someone writes it down. It’s the same edge where the reasoning stopped: the work above the line is yours alone.

L3bTacit
ExtractStays human
Why we lost that dealWho really decides
The gap
L3aDocumentedpricing models, playbooksTeach
L2Industrytravels within your fieldAugment
L1Transferableanyone qualified can do itAutomate

Below the line, it’s captured. Above it, it stays with your people.

Most organisations assume their people work at Layer 3.How much of their time is actually spent at Layer 1?

The split · L1 → L2

General method, or industry time?

The test: who could do this without asking anyone in your industry for help? Any qualified professional → L1. Only someone with years in the industry → L2. Same method, different classification.

Financial analysis
Layer 1 · general

Discounted cash-flow models, variance analysis, scenario modelling.

Layer 2 · industry

Specialist tax planning across multiple jurisdictions.

Writing a report
Layer 1 · general

A stakeholder briefing, an executive summary, a competitive analysis.

Layer 2 · industry

A regulatory submission in a licensed industry.

Structured interviewing
Layer 1 · general

Hiring interviews, user research, stakeholder discovery.

Layer 2 · industry

A legal deposition or expert-witness interview.

Layer 1 goes first. Generic methods are the easiest for AI to copy. Layer 2 follows later, once models have seen enough industry-specific data.

The split · inside L3

Does the document do the work?

The test: could a competent insider use the written material alone to make the same call reliably? Yes → L3a, AI can learn it. No → L3b, the judgement still depends on specific people. That’s the layer AI can’t copy.

Pricing & discount decisions
L3a · documented

Published price list, discount-authority matrix, approval thresholds, revenue targets.

L3b · judgement

When to concede on price versus hold the line. Which customers will walk. When a dropped margin wins loyalty, and when it signals weakness.

Vendor & supplier selection
L3a · documented

RFP scoring matrix, approval workflow, contract templates, reference-check protocol.

L3b · judgement

Which vendors deliver versus impress in pitches. Which sales teams over-promise. Relationship history that isn't in the procurement record.

Hiring decisions
L3a · documented

Role specification, interview rubric, competency framework, reference-check template.

L3b · judgement

Reading cultural fit. When a credentialed candidate is the wrong bet for this team. When the borderline candidate is the right long-term choice.

Watch for hollow codification

The trap

What looks like L3a, written down and on file, is still L3b if the words alone can’t produce the same decision. Having it documented isn’t enough. When you classify, keep the why, not just the what.

The line shows up in the data

Every large AI rollout eventually hits the L3a / L3b line.

~⅓ more for novices

Brynjolfsson’s study of 5,179 support agents: AI lifted novices, barely moved experts. It pulled the L3a patterns that could be written down out of the experts’ chat logs. The unwritten judgement stayed with the experts.

Brynjolfsson et al. · 2023
82% 46%

Radiologists’ accuracy fell when the AI was wrong. They trusted it past the point their own judgement should have taken over. The L3b judgement is still there. What changes is how easily the AI overrides it.

Dratsch et al. · 2023

The pattern is measurable, not theoretical. Organisations that know where their line sits can roll out AI with confidence. Those that don’t are taking on risk they can’t see.

One decision, four layers

A pricing call, traced through.

One enterprise deal moves through all four layers before you get to the right number. This is the shape of real work.

L1

Commercial negotiation craft

Discount trading, concession sequencing, walk-away discipline. Any qualified salesperson carries these between companies.

L2

Enterprise pricing economics

CAC payback, margin floors, what a precedent-setting concession costs the pipeline. Requires sector experience to read.

L3a

This company's discount matrix

Approval thresholds by deal size, named deal-desk approvers, terms requiring CFO sign-off. Written down. On file.

L3b

How the VP actually decides

Which customer will expand from a small landing deal. When to trade price for a reference. Which concessions quietly set precedent. Unwritten. Held in the VP.

AI can do the top two layers today. It can read the third if you feed it the right documents. The fourth is where the work stays human.

What the audit gives you

From intuition to three answerable questions.

01

Which layer is this for?

02

What does it need?

03

Where will the value build over time?

Next in the chain · Pillar 02

Continue to Activate.

Take the four layers to your own systems. See where each one sits, and where AI fits.

Activate
The five forcing functions: the disciplines AI made essential.Read →