Knowledge

Two blog readers reminded me today about my lack of posting in the last few weeks. Thanks James and Jerry!

According to Thomas Sowell in his book Basic Economics, knowledge is the most secrete resource there is. The book is about economics and well written. The gist of the book is about demystifying many of the misunderstandings of economics that abound. The author goes to great length pointing out the fallacies of the media and politicians when it comes to economics.

One particular area of interests to me is efficiency in organizations, not wasting recourses. This can be anything but in particular human talents. Sowell says that is what economics is all about. “Economics is the study of the use of scarce resources which have alternative uses” he says. But just like everything else economics is just one of many perspectives to look at life.

It would indeed help many of the undeveloped countries to raise the living standards of its individuals if the principles of economics where understood by the politicians and individuals in general. Even thought we in the western culture have high living standards it would also help to have a better understanding of economics. Not as much as to raise our living standards but at an intellectual level. A great deal of cynicism is the norm today in our western culture. It goes far and beyond understanding economics. Donald Kanter and Philip Mirvis in their book “The Cynical Americans” point out how different groups of people portray cynicism in different ways. One example of this how blue color workers compare to professionals individuals are cynical in different ways. The Oxford English Dictionary defines cynicism as "a disposition to disbelieve in the sincerity or goodness of human motives and actions" and "to express this by sneers and sarcasms".

It is now a fact that the intellect is not valued in our western culture and it is reflected in many ways. This holds huge implications in the corporate world and in management.

Organizational Hype and Courage

Much time in spent in maintaining cooperate glossy images in organizations today. One of the reasons is that people are not real and authentic. It is a vicious cycle and the rules of rugged individualism contribute mightily to it!

Cooperation’s will not start to report their internal problems without being attacked by the media. In the attempt to present glossy unrealistic expectation of perfection organizations are compel to go round and round and create even more glossier images to feed those expectations. It is a problem that must be solved but how?

To solve the problem of organizational hype is by organizational courage. It is a giant step forward and is taken by individuals who risk speaking with authenticity and vulnerability. It begins with one person and if done persistently soon others will follow. It will generate a culture shift. I must remind myself and others that we have a long way to go and it will not necessarily be an easy journey.

Cost Effectiveness

One reason (perhaps the main) executives will consider bringing community in their organization is cost effectiveness. In general so far executives are not preoccupied with the growth of the individual. Even though executives are often found to think that the people in their organizations work on a consensual decision making level, the truth is that most executives don’t even understand what consensus means.

Japanese businesses work on a much more communal level and it goes to show when looking at the cost effectiveness when comparing the automobile industry bottom line results. Thomas Sowell in his book, “Basic Economics” says while GM made $300 for every vehicle sold and Ford loss $240. Toyota on the other hand made $1800. Forbes magazine reported “It [Toyota] makes a net profit far bigger than the combined total for Detroit’s Big Three.”

Mary Walton in her book “The Deming Management Method” gives a model in “total quality management.” Not an easy model to follow and I’m suggesting that to revitalize leadership in organizations and for it to have a long term effect leaders will need to learn about consensus decision making. The best way to learn about consensus decision making is by learning how to communicate. Learning communication rules is accomplish by experiential learning.