the wise leader presentation
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The Wise Leader PresentationIkujiro NonakaTRANSCRIPT
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The Wise Leader -Communitarian Theory of Sustainable Innovation
Ikujiro Nonaka Professor Emeritus, Hitotsubashi University
Xerox Distinguished Faculty Scholar, UC Berkeley
The First Distinguished Drucker Scholar,
Claremont Graduate University
Chairman, Economic Research Center, FRI
August 30, 2012
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Knowledge-based View
of Strategic Leadership
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Drucker: We Need Innovation, and We Need a New Theory
Knowledge is the only meaningful resource today.
How knowledge behaves as an economic resource, we do not yet fully understand []
We need an economic theory that puts knowledge into the center of the wealth-producing process. It alone can
explain innovation. P. F. Drucker. (1993) Post Capitalist Society p.183
(1993)
P.F. Drucker
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Schumpeters Innovation The Theory of Economic Development (1912)
Creative Destruction: Innovation is merely the destruction of an equilibrium. No dynamic equilibrium exists and innovation is essentially a
disturbance of the existing static equilibrium.
New Combinations: Innovation is a commercial or industrial application of something new. A new product, process, or method of production; a new market or
source of supply; new form of commercial, business, or financial organization.
Mutation: Innovation incessantly revolutionizes the economic structure from within. An essential feature of innovation that it is something that is
carried into practice.
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Knowledge Needs to be Discovered H.A. Hayek
Importance of context-specific knowledge there is beyond question a body of very important but unorganized knowledge which cannot possibly be called
scientific in the sense of knowledge of general rules: the
knowledge of the particular circumstances of time and
space (p.214). SourceHayek, F.A. Use of Knowledge in Society. In C.Nishiyama and K.R. Leube (Eds.). The Essence of Hayek. Stanford, CA: Hoover Press.
Competition as a discovery procedure Economist usually ascribe the order which competition
produces as equilibrium a somewhat unfortunate term, because such an equilibrium presupposes that the facts
have already all been discovered and competition therefore
has ceased (p.259). Heyek. F.A. (1978). Competition as a discovery procedure. In The essence of Hayek. C.Nishiyama, K.R. Leube (Eds.). The Essence of Hayek.
Stanford, CA: Hoover Press. 5 Copyright. Nonaka, I. 2012
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Process Philosophy of Whitehead
Process is Reality There is no such thing as substance. World is made up of occasions, particular and
concrete events.
Events flows in relationship with other various events.
Substance is the state of a noun, cut from the continuum of events in the state of a verb.
Process towards creativity It is the becoming rather than being. Present is a state which stand on the past and
is opened to the future.
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Propositions of The Knowledge-Creating
Company and Managing Flow
A firm is a knowledge
creating entity (1995).
A firm is a relentless process of converting knowledge to wisdom (2008)
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A firm is a prudent
community for sustainable
innovation (2012)
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Strategy is About Creating the Future
The most significant characteristics of knowledge is that Knowledge is created by people in their interactions with each other and the environment.
Knowledge is: Innovation itself is a knowledge creating process. Strategy is an intelligent capability to interpret the current situation and continuously create future in the social context.
A dynamic social process of justifying personal belief towards the truth.
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Net work with
Partner
(re-source)
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Net work with
Community
(customer)
Cost Profit
Knowledge creation (SECI)
Ba-plattforming
Value Proposition
Pursuance for Common Good
Market Value
Leading Business Creating Model
of Sustainable Innovation
Vision -Common Good
Existential
Institutional
Organizational
Financial
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Value Proposition
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An Organization has to Offer a Unique Value - Apple
Not a thing (mono), but an event (koto)
Not iPod, but multimedia experience (easy to
download, easy to manage, easy to carry, can
listen, view, and take video/photo)
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Business Model of iPod
Hardware Software
Development
e-Commerce
Copyright Management of Multimedia
Contents
Contents
Production
Hardware
Production
ProductSoftware Design
Brand
Management
Hardware
Sales
Contents
Delivery
Cost
Structure
iPod
Multimedia
Download
Lifestyle
Brand
Apple Store
Dealer
Network
iTunes
Revenues
from
Hardware Revenues
from Multimedia
High-end
Customer
Organization
al Base Offering Customer
Profit
Source: De Kluyver, C.A. (2009)
Music
Anywhere
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Event (Koto) starts from changing noun to verb.
One phenomenon appears out of combining multiple factors. See the phenomena not by itself, but see as XX-zation, a process to become XX. Search for a subject that caused XX.
Commodity (Mono) is one form of a social relationship.
Marx perceived a commodity as not a visible thing but a social relationship between capitalists exploiting workers. By so doing, he captured reality as not a fixed object but as an active subject.
Capital is not a thing but a process in which money
is perpetually sent in search of more money.
Methodology for Transforming
a Thing (Mono) to an Event (Koto)
Source: Based on Maki, Y. (2003). Kiryu no naru oto (Sound of air current). Tokyo, Chikuma Gakugei Bunko.
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Source: Based on Kariya, T. (1996). Fukuganteki shikouhou (Think multifaceted ). Tokyo, Koudansha.
Source: Harvey,D.(2010 The Enigma of Capital and the Crisis of Capitalism,Oxford,P.40
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SECI Model
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Plato (left) & Aristotle (right) School of Athens: Raphael
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Copyright Nonaka, I. 2011
Attention to Practical Wisdom is Increasing
Synthesis of Idealism and Pragmatism
Practical Wisdom, a contradiction? Plato: Wisdom is theoretical, abstract and for the few
elites; it has nothing to do with practice.
Truth is, only practical wisdom can solve daily issues.
Source: Schwartz, B. & Sharpe, K. (2010). Practical Wisdom. New York: NY. Riverhead Books.
Aristotle: Wisdom is to make judgment in everyday life with deliberation and emotion,
and take the right action. Wisdom is
embedded in practice.
(2010)
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Why Tacit Knowledge?
We can know more than we can tell.
All knowledge is either tacit or rooted in tacit knowledge. M. Polanyi
Unless you believe, you will not understand. St. Augustine
Belief precedes knowing. To free ourselves from the prejudice of considering
only objective, scientific, and explicit knowledge as
the knowledge, we need to restore the perspective
on knowledge which will balance belief and rational,
and art and science, by admitting that knowing requires the commitment of the individual.
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Two Dimensions of Knowledge
Spiral up through dynamic interaction
Analog-Digital Synthesis
Objective and rational knowledge that can be expressed in words, sentences, numbers, or formulas (context-free)
Theoretical approach Problem-solving Manuals Database
Subjective and experiential
knowledge that can not
be expressed in words,
sentences, numbers, or
formulas (context-specific)
Cognitive Skills beliefs
images
perspectives
mental models
Technical Skills craft, know-how
Tacit Knowledge Explicit Knowledge
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Organizational Knowledge Creation Process SECI Model
Sharing and creating tacit knowledge through direct experience (Empathizing)
I = Individual, G = Group, O = Organization, E = Environment
Learning and acquiring new tacit knowledge in practice (Practicing)
1. Perceiving reality as it is from activities 2. Empathizing,
resonating, recognizing and foreseeing
3. Transferring tacit knowledge
9. Embodying explicit knowledge through experimenting, hypothesis testing and reflection
10. Contemplation in action
Articulating tacit knowledge through dialogue and reflection (Conceptualizing)
4. Articulating tacit knowledge using symbolic language 5. Translating tacit knowledge into a concept or prototype
Systemizing and applying explicit knowledge and information (Modeling)
6. Creating relationship and hypothesis among concepts; modeling, prototyping
7. Communicating and sharing explicit knowledge
8. Editing and systemizing explicit knowledge
Ex
plic
it
Explicit
Ta
cit
E
xp
licit
Explicit
Ta
cit
Socialization Externalization
Internalization Combination
O G
E
I
Environment
Individual
I G
G
G
G
Org.
E
I
I
I
I
I
Group
I E O
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Innovation as SECI Spiral
Empathize with reality through actual experience (Socialization), condense the essence of awareness into concepts (Externalization), relate the concepts and systemize (Combination), create value in the form of technology, products, software, services and experiences, and embody the knowledge (Internalization) and, at the same time, stimulate the emergence of new knowledge in the organization, market and environment, and spiral up to the Socialization step. Through continuous and fast spinning of the SECI spiral, a firm can build its synthesizing capability of knowledge to pursue both creativity and efficiency.
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Ba -Platforming for Knowledge Emergence-
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Knowledge is Created in Ba Shared Context in Motion
Intersubjectivity
BaPlatforming
Co-Creating Meaning
Open Close Open Close
Individual contexts are shared at here now context of Ba. Shared context becomes the base of emerging knowledge. Intersubjectivity is established when people accept others as a whole being, resonate and empathize with others, then it becomes our subjectivity.
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Humans Create Meaning in Ba Essence of Analog Thinking
Analytic Thinking Break the whole into parts; when a part is affected, partial action can be taken.
Holistic Thinking The whole is unified and coordinated by fluctuations and functions of the parts.
Meaning resides in the whole: Digital thinking diminishes the meaning.
The Power of Tacit Knowing
When on a bicycle, we can instantly synthesize the handlebars, force on the pedals, angle of the body and the bicycle, response of the muscle, and the view in front.
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Tacit Knowing: From Particular to Comprehensive Entity
Michael Polanyi
The Parthenon
Greek Culture Greek Philosophy
Anti-Government Demonstration
Greece in EU
Crocus at the Parthenon
A process of changing perspective from the lower particular to the upper whole. A whole can become the part. A whole is determined by the purpose.
Greek Crisis
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Ba Promotes Socialization Through Physical and Mental Touching
Interpenetration of the body senses: Intercorporeality (Merleau-Ponty)
Embodied Mind (Francisco Valera) Socialization occurs in the brain by
copying the actions of others:
discovery of the mirror-neurons. Through mirror neurons, we can understand the intentions of othersThe interdependence between self and other that mirror neurons allow shapes the social interactions between people, where the concrete encounter between self and other becomes the shared existential meaning that connects deeply. (Iacoboni, et al:2005, Rizzolatti:2005)
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Boundary Object Ba for Connecting Ba
A boundary object is a symbol, metaphor, concept, organization,
system, culture, and ICT, that resides in the boundary of different
communities or systems; it is an object that connects
communities by creating a new community.
community
community community
community
community community
Boundary Object
Source: Nonaka, I. and Konno, N. (Forthcoming). Kenryo no keiei (Prudence-based Management)
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Knowledge Ecosystem Organic Configuration of Ba
Customer
Firms
Government
Supplier Firms
Competitor
Firm
Universities
Community
Ba
Ba
Ba
Knowledge is created in relationships. Knowledge ecosystem dynamically interacts and evolves the relationships between the stakeholders in the multi-layers of ba; stakeholders compete, collaborate and transcend the organizational boundaries.
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Phronetic Leadership
-Prudence /Practical Wisdom-
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Wise Leader See Through the Context and Realize the Value
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Source:
Nonaka, I., & Takeuchi, H. (2011). The Wise Leader, Harvard Business Review, May, 2011
Nonaka, I., & Takeuchi, H. (2011). Kenryo no Leader [Wise Leader]. Diamond Harvard Business
Review, Sep, 2011
Nonaka, I., & Konno, N., (2007). Bitoku no Keiei [Virtue-based Management]. NTT Shuppan.
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Phronesis by Aristotle Prudence, Practical Wisdom
Phronesis is practical wisdom for exercising
the best judgment for the common good in a
particular context.
Ability to find the right response in a particular context
Ability to synthesize the particular and universal, contemplated rationale and
improvisation on the spot
Contemplation in action
Contextual judgment and timely balancing
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Six Abilities of Phronesis
Phronesis is a virtuous habit of making judgments
and taking actions that serve the common good.
1. Ability to make
judgment on goodness.
2. Ability to
create ba.
3. Ability to see the
reality as it is. 4. Ability to articulate
the essence.
5. Ability to exercise
political power.
6. Ability to foster
phronesis in others.
Source: Nonaka & Takeuchi, HBR May 2011
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Phronetic Leaders: Soichiro Honda, Steve Jobs, and Konosuke Matsushita
Soichiro Honda (1906-1991) Founder of Honda Motor Corporation
Steve Jobs (1955-2011) Co-founder of Apple Computer
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Phronetic Leadership
1. Ability to make a judgment on goodness
Every sort of expert knowledge and every inquiry, and similarly every action and undertaking, seems to seek some good.
Aristotle, Nicomachean Ethics
Example: Self-sufficient values such as happiness and self-actualization.
Internal Good: Realized in the course of trying to achieve those standards of excellence (artisanship).
MacIntyre
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Humans are Purposeful Beings
Optimal results are claimed to be attainable only
by trying for too much by reaching beyond the limits of the possible. Humans are living the
worlds of the reality and the possibility.
(Rescher, 1990)
Ideal can never be achieved, but because we
challenge to achieve, we can go beyond our
limits, that is the source of creativity. What
motivate us is the wish and will for the ideal.
Rescher, N. (1990). Human interests: Reflections on philosophical anthropology. Stanford University Press, Palo Alto: CA.
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Technology Married with Liberal Arts
and Humanity: Steve Jobs
Apples DNA: Technology alone is not enough. Its technology married with the
liberal arts, married with the
humanities, that yields the
results that makes our
hearts sing.
Steve Jobs, Apple
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Need for a Good Theory:
Soichiro Honda Respect for Sound Theory:
Action without philosophy is a lethal weapon; philosophy without action is meaningless.
Just to be hard working has no value. The good theory is the necessary premise for working hard.
Joy of buying determines the value of the product in a most fair way. The person who knows the value of the
product and gives final evaluation is not the
manufacturer or the dealer, but the buyer who will be
using the product in daily basis []
Source Honda Top Talks Passing down the basics
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Phronetic Leadership
2. Ability to create ba
Imaginative capacity to understand and
empathize with others through daily verbal
and nonverbal communication, to read the
situation to judge the best timing for
interaction, and to elicit empathy in return.
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Joking is Difficult
Soichiro Honda
Joking is very difficult. You have to grasp the atmosphere of the occasion and the
opportunity. It exists only for that particular
moment, and not anywhere else. The joke is
in the timing and it doesnt work at any other moment ... to joke is to understand human
emotion.
Soichiro Honda
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Waigaya at Honda The company prepares the ba (good hotel, good food, good spa) away from the daily work environment.
Day 1: Conflict between the individuals
Start with bad mouthing the boss; frustrations and conflicts.
Thorough discussions lead to conflicts but there is no escape.
As time passes, superficial explicit knowledge runs out and individual
barriers disappear.
Day 2: Mutual understanding and acceptance
Accept the differences; understand the beliefs of others.
Accept the opinions of others.
Day 3: Leap of the minds
With constructive thinking, a leap of the minds and concepts happen.
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Magnetic Pull
Steve Jobs
He uses your first name very often. He looks
directly in your eyes with that laser-like
stare. He has these movie-star eyes that are
very hypnotic. But what really gets you is the
way he talks theres something about the rhythm of his speech and the incredible
enthusiasm he conveys for whatever it is
hes talking about that is just infectious.
Source: Gallo, C. (2009). The Presentation Secrets of Steve Jobs: How to Be Insanely Great in Front of Any Audience. McGraw-Hill Professional. P.28.
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Phronetic Leadership
3. Ability to see the reality as it is.
The ability to recognize the constantly
changing situation correctly, and quickly sense
what lies behind phenomena to envision the
future and decide on the action to be taken.
God is in the details.
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Grasp the Essence from the Actual Situations
Picture: Honda Motors Corporation
http://images.businessweek.com/ss/09/09/0929_jobs_presentations/index.htm
Soichiro: Use all five senses
to sharpen the common
sense; it will strengthen the
power of imagination and
judgment.
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Reality and Actuality
Reality (Mono) Actuality (Koto)
Substance: an existing object Action: a situation in progress.
That could be observed. Can only be grasped by those
Can be recognized and committed to and dwelling in
Managed by logic. The actual, situated experience.
with the five senses and
through empathy with others.
To convert mono term (e.g., noun) to koto term (e.g., verb), put apparent preconditions into bracket and directly sense actuality (epoch phenomenological suspension of judging reality).
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Phronetic Leadership
4. Ability to articulate the essence
The ability to conceptualize and articulate
subjective ideas in a clear language, link
these micro concepts to a macro historical context, and convincingly articulate them
as vision and story for the future.
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Harmonize the Concepts in Ba /Make Full Use of Metaphor
Source: Honda Motor Company
http://images.businessweek.com/ss/09/09/0929_jobs_presentations/index.htm
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Phronetic Leadership 5. Ability to exercise political power
The ability to bring people together and
spur them to action, combining and
synthesizing everyones knowledge and efforts in pursuit of the goal, by choosing
and utilizing the means and rhetoric (the art
of effective or persuasive speaking or
writing) suitable to each particular situation
with shrewdness and determination.
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Leadership to Exercise Political Power
Soichiro Honda and Steve Jobs
I address all employees! Let us bring together the full strength of Honda Motor Co. to win through to this glorious achievement. The future of Honda Motor Co. depends on this, and the burden rests on your shoulders. I want you to turn your surging enthusiasm to this task, endure every trial, and press through with all the minute demands of work and research, making this your own chosen path. The advances made by Honda Motor Co. are the growth you achieve as human beings, and your growth is what assures our Honda Motor Co. its future.
Declaring participation in the Isle of Man Tourist Trophy Race
Source Honda Top Talks Passing down the basics
Reality Distortion Field The reality distortion field was a confounding mlange of a charismatic
rhetorical style, and indomitable will, and an eagerness to bend any facts to fit
the purpose at hand. In one line of argument failed to persuade, he would deftly
switch to another. Sometimes, he would throw you off balance and suddenly
adopting your own position as his own, without acknowledging that he ever
thought differently.
Source: Karney, L. (2008). Inside Steves Brain (expanded edition). pp.162-163
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Phronetic Leadership
6. Ability to foster phronesis in others
The ability to create a system of distributed
phronesis by fostering and transferring the
existing phronetic capabilities of individuals
to others to build a resilient organization
which can respond flexibly and creatively to
any situation to pursue its own good.
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Provide Phronetic Examples (Apprenticeship)
Practical Wisdom = Classroom Instruction (most MBAs)PracticeFeedback & Self-Correction
Charan, R. (2008). Leaders at All Levels.
Leadership can only be developed through
practice.
Growth is accelerated by challenging, complex jobs and
by timely and detailed
evaluation and self-reflection
Can expect giant leaps in learning
Progression
Time
A B C
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Practice as Kata
Kata (form) : Way of doing things, core of the ideal action.
Good Kata functions as archetype that
fosters creative routine but provides higher
freedom.
Shu (learn), Ha (break), and Ri (create) steps are critical in continuous self-
renewal processes.
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Creative Routines
3-Gism: Be at the actual place of work (genba), know the actual product (genbutsu) and situation (genjyou), be realistic (genjitsuteki).
Respect sound theory, develop fresh ideas and make the most effective use of them.
A00 -What do you do this for? (Ontological)
A0 - What is your concept? (Conceptual)
A - What is your specification? (Operational)
Apple Honda
Simplify. Strip back, and focus. Say no
When it comes to idea, everything is game. Willing to try new things
Dont compromise. Hash it out, get way down in the details. Seek out the highest quality
Include everyone. Work people hard. Embrace the team
Engage in intellectual combat. Argument and debate foster creative thinking
Find a passion in your work. Insist on the seemingly impossible. Motives make a difference.
Source: Karney, L. (2008/2009). Inside Steves Brain (expanded edition). Portfolio, New York.
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System to Distribute Leadership LPL and PL to nurture Honda DNA
LPL In charge of development
Engineering
PL Test PL Design PL
Engine
Body
Suspension
Rigging
etc
Engine
Wind-tunnel
Crash
Emission
Durability
etc
Layout
Exterior
Interior
Color
Design data
Design model
etc Source: Honda Motor Company internal material
Hondas exemplar is Soichiro Honda.
Honda is not a company in which only top management plays an
important part. Every one at the frontline is very important. Every
worker should be Soichiro Honda. It is important for Honda to create
many Soichiro Honda. -Takeo Fukui, CEO of Honda
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Fractal Organization
Business System Layer
Knowledge Layer
Project Team Layer
Matrix and Fractal organization connects
multiple ba.
Matrix organization cannot convert
knowledge effectively, because matrix tend
to coordinate between project and
business layers.
Business and Project layers create and
accumulate knowledge on their own way.
Fractal organization flexibly combines
various knowledge from each layer; can
maximize the use of resources and energy
in a limited time.
Project team reports directly to top
management; reduces the organizational
hierarchy, communication will be
condensed, dialogue will be deepened,
and promote middle-up-down spiral.
The key of Knowledge Layer is the
boundary object that stimulates the conversion of knowledge; symbol, concept,
system, culture, ICT, etc.
Fractal Organization
Source: Inoue, A. (2012). Game-fication NHK Publishing.
Source: Kikuzawa and Nonaka, (2012). Chishiki base kigyou no kouritsu soshiki design
Knowledge Ecosystem
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DAIHATSU: Mira e:S Polish up the Ecology Power of the Small Cars with Existing Technologies
Facing headwind, but changed to tailwind: Lehman shock and Prius shock In 2009, concept car was presented at the Tokyo Motor Show. But due to
the sudden increase of oil price and the launch of hybrid cars, expectation
for small cars changed drastically.
Keep the target launch timing at 2011 as scheduled, but redo everything from the product planning phase. Changed the concept e:S from energy saving to eco and Smart.
2 innovations led to launch in 17 months Innovation in Organization: from partial to total optimization e:S
optimization; set up a virtual company of 30 experts in planning,
development, procurement, production, and sales. Innovation in Technology: realize 30km/l at JC08 mode, start from 7.95
million yen. Reduced 60kg from Mira, reduced parts for 15%, while
improving fuel efficiency for 40%.
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Reset All the Existing Processes and Minds Questioned the Raison Dtre of a Small Car
The 3rd category of Eco-car Small car needs to be fuel efficient, low price, and ecological
Not extension of the past, but change the way of DAIHATSU
Stop the matrix of vertical and horizontal organizations; transfer members to the project team, share objectives, and unite their actions
Create a sense of surprise with TV ads
http://gazoo.com/G-Blog/tampyou/488549/Article.aspx
Bruce Willis
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Innovation at Organization and Technology:
Self-contained Virtual Company
Transfer members to project teams Set the taskforce under the top management. Create, accumulate,
and utilize knowledge.
Members should not represent their home division (partial optimization), but act for the benefit of the project (total
optimization) in a same vector.
Chief Engineer is given personnel management authority; no place to go back, ticket with no return for the members.
Make judgment on the spot based on the actual situation.
Use new terms for new activities
http://www.sankeibiz.jp/business/news/110926/bsa1109260501000-n2.htm
http://wedge.ismedia.jp/articles/print/1653
Chief Engineer: Toru Ueda
Project Members
Synchronized designing: set an agile scrum so that design, evaluation, and production collaborate
from the early stage.
Budget approach: not cost down approach, but realize maximum feature within the budget.
Material oriented: back to the basics of design and maximize the quality of material for all the parts.
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Agile Scrum Innovation Software Development is a Knowledge Creating Process
Source: Sutherland, J. et al. Scrum: An extension pattern language for hyperproductive software development.
Source: Takeuchi, H. & I. Nonaka. (1986). The new new product development, Harvard Business Review
January-February, 1986.
Agile scrum encourages team members to socialize, externalize, internalize and combine technical knowledge on an ongoing basis, thus allowing technical expertise to become community property for the community of practice [Nonaka 95].
Scrum Meetings are therefore rituals with deep cultural transcendence. Meeting at the same place at the same time and with the same people, enhances a feeling of belonging, and creates the habit of sharing knowledge.
1 2 3 4 5 6
1 2 3 4 5 6
1 2 3 4 5 6
A
(Relay)
B
(Sashimi)
C
(Scrum)
Phase
Phase
Phase
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Human Touch with IT Key Points of Scrum Development
Pair Programming Two developers (roles of a driver and a navigator)
share one PC
Change roles every 5~10 minutes. Change pairs several times a day
Task Kanban (Visualize the tasks) Way to manage ToDo, Doing, and Done.
Everybody can start working on their task autonomously without any instruction
Check every morning at the 15 minutes of Scrum Meeting
Feedback (KPT:Keep/Problem/Try) In a casual atmosphere, everybody share their
ideas on Keep, Problem, Try.
Through the dialogue, socialize tacit knowledge and convert to explicit knowledge (externalize and combine)
Source: Hiranabe, K. (2010). Agile development and scrum. Presentation material at Agile Japan 2010
Keep
Problem
Try
Solution
Experiment,
Worked
Did not work
New problem New Ideas
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Middle-up-down Knowledge-Creation Process
Solving
contradiction
Contradiction Cross-leveling
of Knowledge Reality (What is)
(Top)
Mid-range theory
(Middle)
Grand Theory (What ought to be)
(Front-line)
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Distributed Idea Engine -Ciscos CEO John Chambers-
From a top-down command-and-control company to teamwork and collaboration; connected
communities of distributed leaders, a.k.a.
Distributed Creative Engine.
More than 70,000 employees participated in the intra-company SNS Create ones profile page with information on their expertise and
business know-how. Search allows one to find new contacts.
Remove barriers of divisions, counties, positions, etc. so that wisdom around world can instantly be shared (a ba that unifies the
HR system, and enables the real-time communication)
Nurture agile and proactive employees who exercise timely and just-right judgments.
Source: McGirt, E. (2008). How Ciscos CEO John Chambers is turning the tech giant socialist. Fact Company.com. Retrieved April 8, 2011 from http://www.fastcompany.com/magazine/131/revolution-in-san-jose.html Source: Fryer, B. (2008). Cisco CEO John Chambers on Teamwork and Collaboration. Harvard Business Review blog. Retrieved April 12, 20011 from http://blogs.hbr.org/hbr/hbreditors/2008/10/cisco_ceo_john_chambers_on_tea.html 60 Copyright. Nonaka, I. 2012
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Cisco Japan (Winner of Japan Management Quality Award)
Organization for Continuous Innovation Middle manager who knows top management strategy
as well as whats happening at the frontline An environment where all employees can share, empathize, and
resonate with the vision and the culture, around the middle managers
who are close to the frontline and who understand the management
vision
Hybrid Management with the sense of frontline Human resource system with ICT tools, Company wide strategy
framework
Soccer style organization where individuals can move dynamically An organization that makes timely judgment and balancing while
utilizing the network of proactive individuals.
From an ICT company to BT company From selling products to selling business model
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Communitarian View of
Management
- Idealistic Pragmatism -
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Basis of Phronesis
Humanity/Liberal Arts Philosophy, History, Literature, Psychology, Art,
* Anthropology, Biology, Design, Political Science, Urban
Planning, Theology
Peak and Diverse Experience Pure Experience (sense of awe), Shared-experience with
the exemplar, Success/Failure experience, Cross-cultural
experience
Practice and Tradition Artisanship, Kata, High Standard of Excellence,
Relentless Pursuit for Excellence
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Justice or Good? Prioritizing 2 Views
Libertarianism: People have basic rights of
freedom of choice, provided the choices dont violate anyones rights.
Justice before good: No value judgment on good; justice as logical, universal proposition applicable to all people.
Source: Sandel, M. (2009). Justice: Whats the right thing to do? Farrar, Straus and Giroux
Communitarianism:
People born and live as a member of society; some freedom of choice is restricted
Good before justice: Ask for way of life (value and purpose of good) of the particular context in the social relationship
With the logical, universal and standardized Justice, we cannot judge according to the differences of particular situations.
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In the pluralist societies with diversified religious, political and
moral values, we must question ourselves the duties of the
citizens and the common good of the society, that is, good life in a global viewpoint; by discussing in public and understanding mutually, we can establish respect and realize
a fair society.
Communitarian View
Based on Sandel, M. (2009). Justice: Whats the right thing to do? Farrar, Straus and Giroux
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A Knowledge-Creating
Firm/Organization/Community Phronesis is to synthesize the ontology and epistemology through value and ethics in action
Ontology: How to be; towards common good For what do we live?: the vision to the future and the
commitment to it.
Epistemology: How to know What is the truth?: the SECI spiral which synthesizes
objective and subjective views.
Creation: How one can transform ones self, firm and the environment
Leadership promotes value-driven processes towards common good; i.e. a way of life rather than a tool to make money.
66 Copyright. Nonaka, I. 2012