AgileJapan2010 Keynote by Ikujiro Nonaka: Phronetic Leadership

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Cultivating Leaders with Practical Wisdom- Scrum and Ba Building -Ikujiro NonakaProfessor Emeritus, Hitotsubashi UniversityXerox Distinguished Faculty Scholar, UC BerkeleyThe First Distinguished Drucker Scholar, Claremont Graduate University Visiting Professor of Center for Knowledge and Innovation Research (CKIR), Helsinki School of EconomicsMarch 6, 2010Copyright © 2009 Nonaka, I The Knowledge-Creating Company and Managing FlowCopyright © 2010 Nonaka, ICultivating Leaders with Practical Wisdom- Scrum and Ba Building -Ikujiro NonakaProfessor Emeritus, Hitotsubashi UniversityXerox Distinguished Faculty Scholar, UC BerkeleyThe First Distinguished Drucker Scholar, Claremont Graduate University Visiting Professor of Center for Knowledge and Innovation Research (CKIR), Helsinki School of EconomicsMarch 6, 2010Knowledge SocietyKnowledge is the only meaningful resource today.How knowledge behaves as an economic resource, we do not yet fully understand; we have not had enough experience to formulate a theory and to test it. We can only say so far that we need such a theory. We need an economic theory that puts knowledge into the center of the wealth-producing process. Such a theory alone can explain the present economy. It alone can explain economic growth. It alone can explain innovation. It alone can explain how the Japanese economy works and, above all, why it works.P. F. Drucker “Post Economist Society” (1993)Copyright Nonaka I. 2010Knowledge is ■ SubjectiveBased on belief, context-specific■ Process-relational Created in social interactions ■ AestheticRelentless pursuit of truth, goodness, and beauty■ Created through practiceHence, we define Knowledge as:“A dynamic human process of justifying personal belief towards the truth.”Copyright © 2009 Nonaka, I Two Types of KnowledgeTacit KnowledgeExplicit KnowledgeSubjective and experiential knowledge that can not Objective and rational knowledge be expressed in words, that can be expressed in words, sentences, numbers, or sentences, numbers, or formulas Formulas (Context-specific)(context-free)Cognitive SkillsbeliefsTheoretical approachimagesProblem solvingperspectivesManualsmental modelsDatabaseTechnical Skillscraftknow-howSpiral up through dynamic interactionAnalog-Digital SynthesisCopyright Nonaka I. 2010Tacit and Explicit Knowledge- A metaphor: Iceberg -Explicit~~~~~~~~~~~TacitEssence of the metaphor is to understand and experience an event/thing from the view of an different event/thing. (Source: Lakoff, G., & Johnson, M. (1980). Metaphors we live by. Univ. of Chicago)Tacit – Explicit Spiral- Toyota Way -(Manual can only provide explicit knowledge; at the base, there is the invisible tacit knowledge such as hunch or knack.)With IT, more tacit knowledge may be converted to explicit knowledge. While the conversion occurs, new tacit knowledge continue to emerge. President Watanabe says, “with the spiral-up of tacit and explicit knowledge, things go well.”Hiroshi Okuda, Former Chairman of ToyotaSource: Okuda, H & Zhu, J.R. (2007). Chikyu kigyo Toyota ha chugoku de naniwo mezasunoka; Okuda Hiroshi no Toyota-ism [What global-company Toyota aims at in China: Toyota-ism of Hiroshi Okuda]. Tokyo: KadokawaGakugei Shuppan.Organizational Knowledge CreationSECI ModelSharing and creating TacitTacitArticulating tacit tacit knowledge knowledge through through direct dialogue and SocializationExternalizationexperiencereflectionE1. Perceiving reality 4. Articulating tacitEnvironmentEO Ixitas it ispknowledge usingcaIIl2. Sensing and isymbolic languageGroupcTEmpathizing withIIndividuali5. Translating tacit tIIothers and theknowledge into a Ienvironmentconcept or prototype3. Transferring ofSystemizing and tacit knowledge applying explicit InternalizationCombinationknowledge and EitinformationcxLearning and aOEGpacquiring new tacit TGl6. Gathering and iknowledge in cintegrating explicit practiceOrg. GiIGtknowledge7. Breaking down theEG9. Embodying explicit concept and findingknowledge throughrelationships among action and reflectionthe concepts10. Using simulation andExplicitExplicit8. Editing and experimentssystemizing explicit I = Individual, G = Group, O = Organization, E = Environmentknowledge