What will I learn about: why over-relying on explicit data leads to failure, and learn to harness tacit, experience-based knowledge to navigate an unpredictable marketplace?

Discover why over-relying on explicit data leads to failure, and learn to harness tacit, experience-based knowledge to navigate an unpredictable marketplace.

What will I learn about: Learn what the ancient Greek concept of 'phronesis' can teach modern executives about turning raw knowledge into practical, morally responsible business actions?

Learn what the ancient Greek concept of 'phronesis' can teach modern executives about turning raw knowledge into practical, morally responsible business actions.

What will I learn about: the importance of operating your business as a social entity by shifting your core mission from merely beating competitors to making the world a better place?

Understand the importance of operating your business as a social entity by shifting your core mission from merely beating competitors to making the world a better place.

What will I learn about: the art of being fully present in your environment to gain the contextual knowledge necessary to see through your customers' eyes and anticipate future societal needs?

Master the art of being fully present in your environment to gain the contextual knowledge necessary to see through your customers' eyes and anticipate future societal needs.

What will I learn about: why prioritizing short-term shareholder value over societal well-being ultimately harms businesses, and see how sustainable companies thrive by serving the common good?

Find out why prioritizing short-term shareholder value over societal well-being ultimately harms businesses, and see how sustainable companies thrive by serving the common good.

The Wise Company

How Companies Create Continuous Innovation

Ikujiro Nonaka and Hirotaka Takeuchi

★ 4.2 / 5(78 ratings)

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Categories:

Management & Leadership

If You're Curious About These Questions...

You should listen to this audiobook

💡Have you ever wondered why data-driven strategies often fail in a chaotic market, while "wise" companies seem to navigate uncertainty with ease?
💡What if you could master the secret Japanese business practice that transforms ordinary employee knowledge into extraordinary innovation?
💡Are you curious about how the world’s most resilient leaders balance the pursuit of profit with a higher moral purpose to stay ahead in the twenty-first century?

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Key Takeaways from The Wise Company

✓Discover why over-relying on explicit data leads to failure, and learn to harness tacit, experience-based knowledge to navigate an unpredictable marketplace.
✓Learn what the ancient Greek concept of 'phronesis' can teach modern executives about turning raw knowledge into practical, morally responsible business actions.
✓Understand the importance of operating your business as a social entity by shifting your core mission from merely beating competitors to making the world a better place.
✓Master the art of being fully present in your environment to gain the contextual knowledge necessary to see through your customers' eyes and anticipate future societal needs.
✓Find out why prioritizing short-term shareholder value over societal well-being ultimately harms businesses, and see how sustainable companies thrive by serving the common good.

Learning Tools

Reinforce what you learned from The Wise Company

Mind Map

The Wise Company

The Need for Wisdom+

Philosophical Foundations+

Societal Harmony+

Grasping the Essence+

The Concept of 'Ba'+

Communication & Politics+

Distributed Leadership+

Actionable Framework+

Quiz — Test Your Understanding

Question 1 of 8

Why do the authors argue that relying solely on explicit knowledge, like data and statistics, is a problem for modern companies?

A. It is too expensive to gather and analyze accurately in an unpredictable marketplace.
B. It lacks context and cannot help companies navigate complex social phenomena and change.
C. It forces companies to focus too much on long-term sustainability rather than short-term profits.
D. It is easily stolen by competitors, making it a liability in a globalized market.

Question 2 of 8

Which philosophical concept, originally developed by Aristotle, do the authors consider the backbone of knowledge practice and wise leadership?

A. Epistemology
B. Phenomenology
C. Phronesis
D. Pragmatism

Question 3 of 8

According to the book, what is a primary danger of a company focusing exclusively on creating value for shareholders?

A. It often leads to short-term thinking and decisions that may ultimately harm society and the company's longevity.
B. It violates modern international trade laws and regulations regarding corporate social responsibility.
C. It alienates lower-level employees who do not own stock in the company, leading to high turnover.
D. It prevents the company from utilizing explicit knowledge effectively.

Question 4 of 8

What does the story of Gen Terao and the Balmuda toaster illustrate about wise leadership?

A. The importance of undercutting competitors' prices to dominate a niche market.
B. How relying on big data and market research guarantees a successful product launch.
C. The power of using personal experience and attention to detail to grasp the essence of a product.
D. The necessity of using explicit knowledge to solve complex engineering problems.

Question 5 of 8

In the context of the book, what is the purpose of 'ba' in a wise company?

A. It is a financial strategy used to maximize short-term shareholder returns during economic downturns.
B. It is a physical or virtual space where people interact, allowing ideas and tacit knowledge to be shared.
C. It is a strict hierarchical structure that ensures orders are followed without question.
D. It is a Japanese marketing technique focused on emotional storytelling.

Question 6 of 8

How did Ernest Shackleton successfully recruit a crew for his dangerous South Pole voyage, demonstrating effective rhetoric?

A. He promised them high financial compensation and guaranteed safety.
B. He used a sports metaphor to make the journey seem like a series of small, manageable steps.
C. He utilized a 'reality distortion field' to convince them the journey would be effortless.
D. He appealed to logic, emotions, and ethics by being brutally honest about the danger while promising honor.

Question 7 of 8

How does the book reframe the idea of a leader being 'Machiavellian'?

A. It argues that true leaders must be inherently evil and power-hungry to survive in a chaotic market.
B. It claims that cunning and adaptable tactics can be justified if the leader is standing on solid moral ground aiming for a higher good.
C. It suggests that leaders should never use politics, as it destroys company morale and trust.
D. It states that Machiavellianism is only effective when dealing with external competitors, never internal employees.

Question 8 of 8

Why does Toyota utilize a 'ring of power' rather than a traditional chain of command?

A. To concentrate decision-making power solely in the hands of the CEO for faster crisis responses.
B. To reduce the company's reliance on tacit knowledge and focus entirely on explicit data.
C. To distribute leadership and empower thousands of employees to make judgments in a changing world.
D. To prevent lower-level engineers from questioning the decisions of their superiors.

The Wise Company — Full Chapter Overview

1Recommendation
2Three core challenges confront businesses in today’s world.
3Examining past philosophers can show us what true knowledge practice entails.
4To be sustainable, wise companies must focus on whatever is best for society.
5Seizing the essence needs personal experience and attention to detail.
6Human interaction is vital for wise leaders to spark new ideas.
7Wise leaders convey their purpose using stories and metaphors.
8Sometimes a truly wise leader must use politics to rally and motivate the company.
9Wise companies embrace distributed leadership.

The Wise Company Summary & Overview

The Wise Company (2019) is a follow-up to the authors’ influential book The Knowledge-Creating Company. It brings the techniques and practices of running a successful business into the twenty-first century, where a fast-changing and chaotic marketplace is the new normal.

Who Should Listen to The Wise Company?

CEOs and business owners
Executives looking for reliable management tips
Anyone interested in the secrets behind Japanese business practices

About the Author: Ikujiro Nonaka and Hirotaka Takeuchi

Ikujiro Nonaka has been developing influential and game-changing business practices since the 1960s when he initiated new management practices at Fuji Electric. He’s since gone on to become one of the most respected business theorists in the world, with his insights into knowledge management changing the way many companies are run.

Hirotaka Takeuchi is a professor at Harvard Business School and is a frequent contributor to the Harvard Business Review. He’s co-authored many influential works with Ikujiro Nonaka, including The Knowledge-Creating Company and “The New New Product Development Game,” an article that’s credited with inspiring the Scrum framework for software development.

The Wise Company

If You're Curious About These Questions...

Listen to The Wise Company — Free Audiobook

Key Takeaways from The Wise Company

Learning Tools

Mind Map

Quiz — Test Your Understanding

The Wise Company — Full Chapter Overview

The Wise Company Summary & Overview

Who Should Listen to The Wise Company?

About the Author: Ikujiro Nonaka and Hirotaka Takeuchi

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