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May 8th 2003
From The Economist Global Executive
－－－－－－－－－－－－－－－－－－－－－－－－－－－－－ Knowledge is power But only if you know how to acquire it In business, if not politics, the world has quietened down a bit: the number of spectacular bankruptcies, indictments, scandals, and implosions is not as high as it was in 2001 and 2002. Although executives still have to face a global slowdown, the uncertain effects of the war in Iraq, and the still fresh confusion over SARS, they might now be excused a deep breath and a look at aspects of their businesses that may have been neglected in the scramble to stay on top of new accounting laws and restated earnings. One area to start catching up on is knowledge. This is true both personally, as executives work out whether or not they are staying on top of internal or external developments, but also at the level of companies. A survey of knowledge management, “Knowledge Unplugged”, published in 2001 by McKinsey, found that the best-performing companies were far more likely than the worst-performing ones to use creative techniques for acquiring, processing and distributing knowledge—everything from emphasizing teamwork in product development to holding “idea contests” and trying to avoid boring daily routines. Creating an atmosphere in which knowledge can be shared can be almost as challenging as obtaining it in the first place But creating an atmosphere in which knowledge can be shared can be almost as challenging as obtaining it in the first place. This is the potential prisoner’s dilemma of knowledge: the more valued it becomes, the less incentive employees have to share it with one another, at the risk of losing the competitive advantage of what they know—or, worse, seeing another profit at their expense. This proves to be even more true at the company level. While firms might turn to external partners to enhance their knowledge base, the sharing will be incomplete without mutual trust. Since “knowledge” is such a vague term, it helps to have specific goals in mind when looking to gain more of it. Are you looking for information about your company, or industry in particular? Despite the general slowdown in executive education, there are still a number of courses devoted specifically to helping managers in given industries—technology, for example, or health care. Are you more concerned with acquiring more knowledge, or putting it to better use? Do you need to move quickly, or is this a subject that needs to be explored in greater depth? And bear in mind that styles of learning vary. Some people will profit most from informal networking; some enjoy learning in a classroom; others will be able to take advantage of the company intranet. Be flexible in the pursuit of knowledge; it is better to set performance targets, concentrate on meeting them, and allow individuals and their teams to explore their own solutions. Sometimes the best way to generate knowledge is simply a bit of brainstorming. The edition of Executive Education Outlook looks at the options available to executives in gaining knowledge, and enhancing what they already have. It includes a look at the state of distance learning—neither the revolution the hype claimed it would be in the late 1990s, nor completely dismissable—as a possible conduit of knowledge, the best place to go for new programmes in knowledge management, and a consideration of the demand for the best sources of knowledge: business-school academics. Coming in June, Global Executive will also feature a series of Executive Dialogue interviews with prominent CIOs, further exploring the themes of information and knowledge gathering. Concentrating on knowledge now may be the best way to be prepared for the next challenges facing the business world. |