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We have moved beyond the knowledge economy into one in which the
key differentiator is the application and extension of knowledge to deliver
wisdom. You do not have to take it on trust. You know from your own expe-
rience. Consideration of the right questions by the right people at the right
time and application of the answers is the key to wisdom, and with the
business cycle spinning ever faster, the survival of the fittest has become
the survival of the wisest.

The knowledge organization

Many thinkers have been concerning themselves with the growth and
application of knowledge. Along with the great names of business thought,
even a humble contributor has his or her place. So I offer some brief
thoughts on the work of Nonaka, Tacheuchi, de Geus, Lambert, du Toit,
Peters and Drucker and many others.

n The knowledge age is already past. Knowledge is no longer enough.

n The sole lasting competitive edge is wisdom.

n Wisdom comes initially from asking the right questions of data.

n Data is raw information.

n Information is data considered in the context of a meaningful
strategic plan that is consistent with the existing and developing
strengths, competencies and culture of the organization.

n Knowledge is information applied to the achievement of the
strategic plan.

n Wisdom is knowledge reconsidered and tested in a changing
environment to instil appropriate flexibility into the strategic plan.

(Perhaps sagacity is the implementation of wisdom such that the organi-
zation is increasingly able to shape the future of the sector(s) in which it
competes such that others have no choice other than to play by the new
rules and, in their efforts to merely catch up, lose money or withdraw – in
a couple of words dominance strategy.)

n Knowledge in an organization is of two types: Explicit knowledge
which is the effective and efficient application of data based
knowledge – facts, measurements, observable behaviours, skills,
shared, communicated values and norms.

n Tacit or implicit knowledge consists of the hunches, creativity,
ideas, beliefs of the committed people who are employed in the
business at every level. As Tom Peters said a short while ago “the
challenge we now face is how to manage the imagination of our
people”. Imagination can only be directed by those who are ready
to pose the right questions.

xiv Introduction