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Leadership in Knowledge- based Organization - A New Frontier of The Knowledge-Creating Theory - Ikujiro Nonaka Professor Emeritus, Hitotsubashi University Xerox Distinguished Faculty Scholar, UC Berkeley The First Distinguished Drucker Scholar, Claremont Graduate University President, JAIMS June 26, 2012

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Page 1: Leadership in Knowledge- based Organization - World …siteresources.worldbank.org/PROJECTS/Resources/... · Leadership in Knowledge-based Organization ... Inside Steve’s Brain

Leadership in Knowledge-

based Organization- A New Frontier of

The Knowledge-Creating Theory -

Ikujiro NonakaProfessor Emeritus, Hitotsubashi University

Xerox Distinguished Faculty Scholar, UC Berkeley

The First Distinguished Drucker Scholar,

Claremont Graduate University

President, JAIMS

June 26, 2012

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Drucker: We Need Innovation, and We Need a New Theory

� “Knowledge is the only meaningful resource today.”

� “How knowledge behaves as an economic resource, we do not yet fully understand […]

P.F. Drucker

understand […]

� We need an economic theory that puts knowledge into the center of the wealth-producing process. It alone can

explain innovation.”P. F. Drucker. (1993) “Post Capitalist Society” p.183

(1993)

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Strategy is About Creating the Future

Strategy is an intelligent capability to interpret the current situation and continuously create future in the social contexts.

Knowledge is: Knowledge is:

Knowledge is created by people in their interactions with each other and the environment.

A dynamic human/social process of justifying personal belief towards the truth.

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Two Dimensions of Knowledge

Objective and rational knowledge that can be expressed in words, sentences, numbers, or formulas (context-free)

Subjective and experiential knowledge that can not be expressed in words, sentences, numbers, or formulas (context-specific)

Tacit Knowledge Explicit Knowledge

Spiral up through dynamic interaction

Analog-Digital Synthesis

formulas (context-free)

Theoretical approachProblem-solvingManualsDatabase

formulas (context-specific)Cognitive Skills

beliefs

images

perspectives

mental models

Technical Skillscraft, know-how

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Long History of Dualism in the West:Long History of Dualism in the West:

Since the Greek Philosopher PlatoSince the Greek Philosopher Plato

� Idealism

� Separation of

the mind and

the body

�Mind > Body

Plato Aristotle

� Pragmatism

� Synthesis of

the mind and

the body

� Mind < Body�Mind > Body

� Origin of the

Western

scientific

method

�Deduction

� Mind < Body

� Common with

the Eastern

thinking

� Induction

� Abduction

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Why Tacit Knowledge?

�We can know more than we can tell.

�All knowledge is either tacit or rooted in tacit knowledge.

– M. Polanyi

�Unless you believe, you will not understand.

– St. Augustine– St. Augustine

�Belief precedes knowing.

�To free ourselves from the prejudice of considering only

objective, scientific, and explicit knowledge as the knowledge,

we need to restore the perspective on knowledge which will

balance belief and rational, and art and science, by admitting

that “knowing” requires the commitment of the individual.

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Tacit Knowing: From Particular to Comprehensive Entity

Michael Polanyi

Greece in EU

A process of changing perspective from the lower particular to the upper whole.A whole can become the part. A whole is determined by the purpose.

The Parthenon

Greek Culture Greek Philosophy

Anti-Government Demonstration

Crocus at the Parthenon

Greek Crisis

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Organizational Knowledge Creation ProcessSECI Model

Sharing and creating tacit knowledge through direct experience (Empathizing)

1. Perceiving reality as it is from activities

2. Empathizing, resonating, recognizing and foreseeing

3. Transferring

Articulating tacit knowledge through dialogue and reflection(Conceptualizing)

4. Articulating tacitknowledge usingsymbolic language

5. Translating tacit knowledge into a concept or prototype

Ex

plic

itTa

cit

SocializationSocialization ExternalizationExternalization

I

Environment

Individual

I

I

I

I

IGroup

IE O

I = Individual, G = Group, O = Organization, E = Environment

Learning and acquiring new tacit knowledge in practice(Practicing)

3. Transferringtacit knowledge

9. Embodying explicit knowledge through experimenting, hypothesis testing and reflection

10. Contemplation in action

Systemizing and applying explicit knowledge and information (Modeling)

6. Creating relationship and hypothesis among concepts; analyzing, modeling

7. Communicating and sharing explicit knowledge

8. Editing and systemizing explicit knowledge

Explicit

Ex

plic

it

Explicit

Ta

cit

InternalizationInternalization CombinationCombination

OG

E

I G

G

G

G

Org.

E

ⒸⒸⒸⒸ Nonaka I., H. Takeuchi & N. Konno

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Innovation as SECI Spiral

Empathize with reality through actual experience (Socialization), condense the essence of awareness into concepts (Externalization), relate the concepts and systemize (Combination), create value in the form of technology, products, software, services and experiences, and embody software, services and experiences, and embody the knowledge (Internalization) and, at the same time, stimulate the emergence of new knowledge in the organization, market and environment, and spiral up to the Socialization step.

Through continuous and fast spinning of the SECI spiral, a firm can build its synthesizing capability of knowledge to pursue both creativity and efficiency.

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Knowledge is Created in BaShared Context in Motion

Co-Creating Meaning

IntersubjectivityIntersubjectivity

Ba((((Platforming))))

Open Close OpenClose

Individual contexts are shared at “here now” context of Ba.Shared context becomes the base of emerging knowledge.Intersubjectivity is established when people accept others as a whole being, resonate and empathize with others, then it becomes our subjectivity.

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Ba Promotes SocializationThrough Physical and Mental Touching

� Interpenetration of the body senses: Intercorporeality (Merleau-Ponty)

� Embodied Mind (Francisco Valera)� Socialization occurs in the brain by

copying the actions of others: copying the actions of others: discovery of the mirror-neurons. Through mirror neurons, we can understand the intentions of others…The interdependence between self and other that mirror neurons allow shapes the social interactions between people, where the concrete encounter between self and other becomes the shared existential meaning that connects deeply. (Iacoboni, et al:2005, Rizzolatti:2005)

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Boundary ObjectBa for Connecting Ba

A boundary object is a symbol, metaphor, concept, organization,

system, culture, and ICT, that resides in the boundary of different

communities or systems; it is an object that connects

communities by creating a new community.

community

community community

community

community community

Boundary

Object

Source: Nonaka, I. and Konno, N. (Forthcoming). Kenryo no keiei (Prudence-based Management)

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Knowledge Ecosystem- Organic Configuration of Ba --

Customer Firms

GovernmentUniversities

Knowledge ecosystem dynamically interacts and evolves the relationships between the stakeholders in the multi-layers of ba; stakeholders compete, collaborate and transcend the organizational boundaries

Supplier Firms

Competitor

City/

Region

Community

Ba

Ba

Ba

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Knowledge Leadership…

� Drives the dynamic process of knowledge creation

by:

�Providing the knowledge vision and driving objective

�Developing and promoting the sharing of knowledge

assets

�Creating, energizing, and connecting ba

�Enabling and promoting the continuous spiral of

knowledge creation through dialog and practice

At the base of such leadership is phronesis.

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Three Types of Knowledge

� Episteme (Scientific Knowledge)

Universal, context-free and objective knowledge (explicit)

� Techne (Skills and Crafts Knowledge)

Practical and context-specific technical know-how (tacit)Practical and context-specific technical know-how (tacit)

� Phronesis (Practical Wisdom)

Experiential knowledge to make context-specific decisions

based on one’s own value/ethics

(synthesis: explicit + tacit)

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Phronesis by AristotlePrudence, Practical Wisdom

Phronesis is practical wisdom for exercising the best judgment for the common good in a particular context.

� Ability to find the right response in a� Ability to find the right response in a

particular context

� Ability to synthesize the particular and

universal, contemplated rationale and

improvisation on the spot

� Contemplation in action

� Contextual judgment and timely balancing

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Wise LeaderSee Through the Context and Realize the Value

Copyright Nonaka, I. 2012Source: Nonaka, I., & Takeuchi, H. (2011). The Wise Leader, Harvard Business Review, May, 2011Nonaka, I., & Takeuchi, H. (2011). Kenryo no Leader [Wise Leader]. Diamond Harvard Business Review, Sep, 2011Nonaka, I., & Konno, N., (2007). Bitoku no Keiei [Virtue-based Management]. NTT Shuppan.

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Six Abilities to Foster Phronesis

Phronesis is the virtuous habit of making decisions and taking actions that serve the common good

1. Ability to make judgment on goodness.

6. Ability to foster phronesis in others.

2. Ability to create ba.

3. Ability to grasp the essence of particular situations/things.

4. Ability to articulate the essence.

5. Ability to exercise political power.

Source: Nonaka & Takeuchi, HBR May 2011

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Phronetic Leaders:Soichiro Honda, Steve Jobs, and Konosuke Matsushita

� Soichiro Honda (1906-1991)

Founder of Honda Motor Corporation

� Konosuke Matsushita (1894-1989)� Konosuke Matsushita (1894-1989)

Founder of Panasonic Corporation

� Steve Jobs (1955-2011)

Co-founder of Apple Computer

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Phronetic Leadership

1. Ability to make a judgment on goodness

Every sort of expert knowledge and every inquiry, and similarly every action and undertaking, seems to seek some good.

Aristotle, Nicomachean EthicsAristotle, Nicomachean Ethics

Example: Self-sufficient values such as happiness and self-actualization.

Internal Good: Realized in the course of trying to achieve those standards of excellence (artisanship).

MacIntyre

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Technology Married with Liberal Arts

and Humanity: Steve Jobs

Apple’s DNA: “Technology alone is not enough. It’s technology married with the liberal arts, married with the humanities, that yields the humanities, that yields the results that makes our hearts sing.”

Steve Jobs, Apple

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Phronetic Leadership

2. Ability to create ba

Imaginative capacity to understand and

empathize with others through daily verbal

and nonverbal communication, to read the and nonverbal communication, to read the

situation to judge the best timing for

interaction, and to elicit empathy in return.

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Joking is Difficult

Soichiro Honda

“Joking is very difficult. You have to grasp the atmosphere of the occasion and the opportunity. It exists only for that particular moment, and not anywhere else. The joke is in the timing and it doesn’t work at any other moment ... to joke is to understand human emotion.”

Soichiro Honda

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Phronetic Leadership

3. Ability to grasp the essence

The ability to recognize the constantly

changing situation correctly, and quickly sense

what lies behind phenomena to envision the

future and decide on the action to be taken.

God is in the details.

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Grasp the Essence: Contemplation in Action

Soichiro Honda“I can see many things when I see a

machine. How can we maneuver through

that curve? We should do this, we should

do that.... Then I think about the next

machine. We can make a faster machine if

we think like this, and so on. It’s a natural

progress into the next step.”

- Soichiro Honda- Soichiro Honda

Source: Honda Motor Corporation

(Picture at the Automobile Hall of Fame, Detroit)

“it (a mouse) was the best thing I’d ever seen in my life.... within ten minutes it was obvious to me that all computers would work like this some day.”Source: Kahney, L. (2008). Inside Steve’s Brain. Portfolio, NY: New York.

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Phronetic Leadership

4. Ability to articulate the essence

The ability to conceptualize and articulate

subjective ideas in a clear language, link subjective ideas in a clear language, link

these ‘micro’ concepts to a macro historical

context, and convincingly articulate them

as vision and story for the future.

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Harmonize the Concepts in Ba/Make Full Use of Metaphor

Soichiro Honda and Steve Jobs

Source: Honda Motor Company

http://images.businessweek.com/ss/09/09/0929_jobs_presentations/index.htm

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Phronetic Leadership5. Ability to exercise political power

The ability to bring people together and

spur them to action, combining and

synthesizing everyone’s knowledge and synthesizing everyone’s knowledge and

efforts in pursuit of the goal, by choosing

and utilizing the means and rhetoric (the art

of effective or persuasive speaking or

writing) suitable to each particular situation

with shrewdness and determination.

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Leadership to Exercise Political PowerSoichiro Honda and Steve Jobs

I address all employees!Let us bring together the full strength of Honda Motor Co. to win through to this glorious achievement. The future of Honda Motor Co. depends on this, and the burden rests on your shoulders. I want you to turn your surging enthusiasm to this task, endure every trial, and press through with all the minute demands of work and research, making this your own chosen path. The advances made by

Declaring participation in the Isle of Man Tourist Trophy Race

work and research, making this your own chosen path. The advances made by Honda Motor Co. are the growth you achieve as human beings, and your growth is what assures our Honda Motor Co. its future.

Source: Honda Top Talks “Passing down the basics”

Reality Distortion FieldThe reality distortion field was a confounding mélange of a charismatic

rhetorical style, and indomitable will, and an eagerness to bend any facts to fit

the purpose at hand. In one line of argument failed to persuade, he would deftly

switch to another. Sometimes, he would throw you off balance and suddenly

adopting your own position as his own, without acknowledging that he ever

thought differently.

Source: Karney, L. (2008). Inside Steve’s Brain (expanded edition). pp.162-16329

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To CommunicateKonosuke Matsushita

� If you are communicating your idea to your

subordinates, you have to remember to do three

things; communicate with passion, communicate

repeatedly, and explain why. Source: Katsuhiko Eguchi. (1992). “Keiei Hiden”. PHP Publishing.

� Good ideas or great plans have no value if they are

not accepted by others and executed. You need to

persuade. To persuade, you must talk in a way that

is appropriate to others. Depending on who you are

facing, you may talk about justice, profit, or emotion,

or logic; using an appropriate approach is important.Source: Konosuke Matsushita. (1989). “Shidousha no joken”. PHP Publishing, P.185 .30

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Phronetic Leadership

6. Ability to foster phronesis in others

The ability to create a system of distributed

phronesis by fostering and transferring the

existing phronetic capabilities of individuals existing phronetic capabilities of individuals

to others to build a resilient organization

which can respond flexibly and creatively to

any situation to pursue its own good.

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Managing with Collective Wisdom:Managing with Collective Wisdom:Everyone is a Manager with ideasEveryone is a Manager with ideas

Konosuke MatsushitaKonosuke Matsushita

This company is not managed solely by Konosuke

Matsushita alone, or anyone else. Everyone need

to gather and manage. Manage with collective

wisdom. If we succeed, then the future of this wisdom. If we succeed, then the future of this

company is determined. Thus, every one of you is

a manager with ideas. We must all think about it.

Source; Konosuke Matsushita talks, Vlume 23 “Showa 35 nen no hatsugen”

http://panasonic.co.jp/rekishikan/tokubetsuten/2007/cnr01/cnr01_01.html

32

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Provide Phronetic Examples (Apprenticeship)

� Practical Wisdom = Classroom Instruction (most

MBAs)+Practice+Feedback & Self-Correction

� Leadership can only be

developed through

Charan, R. (2008). Leaders at All Levels.

developed through

practice.

�Growth is accelerated by

challenging, complex jobs and

by timely and detailed

evaluation and self-reflection

�Can expect giant leaps in

learning

Progression

Time

AAAA BBBB CCCC

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Practice as Kata

Kata 型 (form) : “Way of doing things,” core of the ideal action.

Good Kata functions as archetype that Good Kata functions as archetype that fosters creative routine but provides higher freedom.

Shu 守 (learn), Ha 破 (break), and Ri 離(create) steps are critical in continuous self-renewal processes.

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System to Distribute Leadership-- LPL and PL to nurture Honda DNA LPL and PL to nurture Honda DNA --

LPLIn charge of

Honda’s exemplar is Soichiro Honda.Honda is not a company in which only top management plays an important part. Every one at the frontline is very important. Every worker should be Soichiro Honda. It is important for Honda to create many Soichiro Honda. -Takeo Fukui, CEO of Honda

In charge of development

EngineeringPL

Test PL Design PL

●●●●Engine

●●●●Body

●●●●Suspension

●●●●Rigging… etc

●●●●Engine

●●●●Wind-tunnel

●●●●Crash

●●●●Emission

●●●●Durability… etc

●●●● Layout

●●●● Exterior

●●●● Interior

●●●● Color

●●●● Design data

●●●● Design model… etc

Source: Honda Motor Company internal materialSource: Honda Motor Company internal materialSource: Honda Motor Company internal materialSource: Honda Motor Company internal material

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Hyper Text Organization

Knowledge Layer

Project Team Layer

� Matrix and Hyper text organization

connects multiple ba.

� Matrix organization cannot convert

knowledge effectively, because matrix tend

to coordinate between project and

business layers.

� Business and Project layers create and

accumulate knowledge on their own way.

Hyper text organization flexibly combines

Hyper Text Organization

Business System LayerBusiness System Layer

Hyper text organization flexibly combines

various knowledge from each layer; can

maximize the use of resources and energy

in a limited time.

� Project team reports directly to top

management; reduces the organizational

hierarchy, communication will be

condensed, dialogue will be deepened,

and promote middle-up-down spiral.

� The key of Knowledge Layer is the

“boundary object” that stimulates the

conversion of knowledge; symbol, concept,

system, culture, ICT, etc.

Source: Inoue, A. (2012). “Game-fication” NHK Publishing.

Source: Kikuzawa and Nonaka, (2012). “Chishiki base kigyou no

kouritsu soshiki design”

Knowledge Ecosystem

Copyright 2012 Nonaka, I.36

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DAIHATSU: Mira e:S“Polish up the Ecology Power of the Small Cars with Existing Technologies”

� Facing headwind, but changed to tailwind: Lehman

shock and Prius shock� In 2009, concept car was presented at the Tokyo Motor Show. But due to

the sudden increase of oil price and the launch of hybrid cars, expectation for small cars changed drastically.

� Keep the target launch timing at 2011 as scheduled, but redo everything � Keep the target launch timing at 2011 as scheduled, but redo everything from the product planning phase. Changed the concept “e:S” from “energy saving” to “eco and Smart”.

� 2 innovations led to launch in 17 months� Innovation in Organization: from partial to total optimization “e:S

optimization”; set up a virtual company of 30 experts in planning,

development, procurement, production, and sales.� Innovation in Technology: realize 30km/l at JC08 mode, start from 7.95

million yen. Reduced 60kg from Mira, reduced parts for 15%, while improving fuel efficiency for 40%.

37 Copyright 2012 Nonaka, I.

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Reset All the Existing Processes and MindsQuestioned the Raison Détre of a Small Car

� The 3rd category of Eco-car�Small car needs to be fuel efficient, low price, and ecological

�Not extension of the past, but change the way of DAIHATSU

�Stop the matrix of vertical and horizontal organizations; transfer members to the project team, share objectives, and unite their actions

�Create a sense of surprise with TV ads�Create a sense of surprise with TV ads

�http://gazoo.com/Ghttp://gazoo.com/Ghttp://gazoo.com/Ghttp://gazoo.com/G----Blog/tampyou/488549/Article.aspxBlog/tampyou/488549/Article.aspxBlog/tampyou/488549/Article.aspxBlog/tampyou/488549/Article.aspx

Bruce Willis

Copyright 2012 Nonaka, I.38

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Innovation at Organization and Technology:Self-contained Virtual Company

� Transfer members to project teams�Set the taskforce under the top management. Create, accumulate,

and utilize knowledge.

�Members should not represent their home division (partial

optimization), but act for the benefit of the project (total

optimization) in a same vector.

�Chief Engineer is given personnel management authority; “no

place to go back”, “ticket with no return” for the members.

�Make judgment on the spot based on the actual situation.

� Use new terms for new activities

http://www.sankeibiz.jp/business/news/110926/bsa1109260501000http://www.sankeibiz.jp/business/news/110926/bsa1109260501000http://www.sankeibiz.jp/business/news/110926/bsa1109260501000http://www.sankeibiz.jp/business/news/110926/bsa1109260501000----n2.htmn2.htmn2.htmn2.htm

http://wedge.ismedia.jp/articles/print/1653http://wedge.ismedia.jp/articles/print/1653http://wedge.ismedia.jp/articles/print/1653http://wedge.ismedia.jp/articles/print/1653Chief Engineer: Toru Ueda

Project Members

�Synchronized designing: set an agile scrum so that

design, evaluation, and production collaborate

from the early stage.

�Budget approach: not cost down approach, but

realize maximum feature within the budget.

�Material oriented: back to the basics of design and

maximize the quality of material for all the parts.

39 Copyright 2012 Nonaka, I.

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Agile Scrum Innovation - Software Development is a Knowledge Creating Process -

“Agile scrum encourages team members to socialize, externalize, internalize and combine technical knowledge on an ongoing basis, thus allowing technical expertise to become community property for the community of practice [Nonaka 95].

Scrum Meetings are therefore A

Source: Sutherland, J. et al. Scrum: An extension pattern language for hyperproductive software development.

Source: Takeuchi, H. & I. Nonaka. (1986). The new new product development, Harvard Business Review

January-February, 1986.

Scrum Meetings are therefore rituals with deep cultural transcendence. Meeting at the same place at the same time and with the same people, enhances a feeling of belonging, and creates the habit of sharing knowledge.”

1111 2222 3333 4444 5555 6666

1111 2222 3333 4444 5555 6666

1111 2222 3333 4444 5555 6666

A

(Relay)

B

(Sashimi)

C

(Scrum)

PhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhaseCopyright 2012 Nonaka, I.40

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Human Touch with ITKey Points of Scrum Development

� Pair Programming� Two developers (roles of a driver and a navigator)

share one PC

� Change roles every 5~10 minutes. Change pairs several times a day

� Task “Kanban” (Visualize the tasks)� Way to manage “ToDo”, “Doing”, and “Done.” � Way to manage “ToDo”, “Doing”, and “Done.”

� Everybody can start working on their task autonomously without any instruction

� Check every morning at the 15 minutes of Scrum Meeting

� Feedback (KPT:Keep/Problem/Try)� In a casual atmosphere, everybody share their

ideas on “Keep”, “Problem”, “Try.”

� Through the dialogue, socialize tacit knowledge and convert to explicit knowledge (externalize and combine)

Source: Hiranabe, K. (2010). Agile development and scrum. Presentation material at Agile Japan 2010

Keep

Problem

Try

Solution

Experiment,

Worked

Did not work

New problem New Ideas

Copyright 2012 Nonaka, I.41

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Process of Scrum Development

Agile Value CreationScrum development consists of multiple sprints – a cycle of feature definition, development and testing

Daily Meeting

Pair Programming

Task kanban

Feedback

Source: Schwaber, K. (XXXX). Scrum Development Process.

Scrum Master leads the daily meeting every day at same time

Scrum members act autonomously (task kanban) and collaborate with

each other (pair programming)

Copyright 2012 Nonaka, I.42

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Middle-up-down Knowledge-Creation Process

Solvingcontradiction

(Top)

Mid-range theory

(Middle)

Grand Theory (What ought to be)

Contradiction Cross-leveling of Knowledge

Reality (What is)

(Middle)

(Front-line)Copyright Nonaka I. & H.Takeuchi 2010Copyright Nonaka I. & H.Takeuchi 2010Copyright Nonaka I. & H.Takeuchi 2010Copyright Nonaka I. & H.Takeuchi 2010

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Distributed Idea Engine-Cisco’s CEO John Chambers-

� From a top-down command-and-control company

to the teamwork and collaboration; connected

communities of the distributed leaders.

"Leading from the middle is the biggest change in the

management of the company ever." management of the company ever."

“You won’t have to depend on the CEO anymore. We now

have a whole pool of talent who can lead these working

groups, like mini CEOs and COOs. We’re growing ideas,

but we are growing people as well… where I might have

had two potential successors, I now have 500.”

Source: McGirt, E. (2008). How Cisco’s CEO John Chambers is turning the tech giant socialist. Fact Company.com. Retrieved April 8, 2011 from http://www.fastcompany.com/magazine/131/revolution-in-san-jose.html Source: Fryer, B. (2008). Cisco CEO John Chambers on Teamwork and Collaboration. Harvard Business Review blog. Retrieved April 12, 20011 from http://blogs.hbr.org/hbr/hbreditors/2008/10/cisco_ceo_john_chambers_on_tea.html44 Copyright 2012 Nonaka, I.

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Cisco Japan (Winner of Japan Management Quality Award)

Organization for Continuous Innovation�Middle manager who knows top management strategy

as well as what’s happening at the frontlineAn environment where all employees can share, empathize, and resonate with the vision and the culture, around the middle managers who are close to the frontline and who understand the management visionvision

�Hybrid Management with the sense of frontlineHuman resource system with ICT tools, Company wide strategy framework

�“Soccer” style organization where individuals can move dynamicallyAn organization that makes timely judgment and balancing while utilizing the network of proactive individuals.

�From an ICT company to BT companyFrom selling products to selling business model

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Basis of Phronesis

� Humanity/Liberal ArtsPhilosophy, History, Literature, Psychology, Art,

* Anthropology, Biology, Design, Political Science, Urban

Planning, Theology

� Peak and Diverse Experience� Peak and Diverse ExperiencePure Experience (sense of awe), Shared-experience with

the exemplar, Success/Failure experience, Cross-cultural

experience …

� Practice and TraditionArtisanship, Kata, High Standard of Excellence,

Relentless Pursuit for Excellence

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A Knowledge-Creating

Firm/Organization/Community …

�Innovates with idealistic pragmatism which synthesizes:

• Ontology: How to be� “For what do we live?”: the vision to the future and the

commitment to it.

• Epistemology: How to know• Epistemology: How to know� “What is the truth?”: the SECI spiral which synthesizes

objective and subjective views.

• Creation: How one can change one’s self and the environment

�Management is viewed as “a way of life” rather than a tool to make money.

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Idealistic Pragmatist: PhronimosContemplation in Action

MindDeep Thinker

BodyDoer

Embodied Mind

Phronimos is the producer of new value propositions and collective practices

“Intellectual Muscle”Relentless Pursuit of

Common GoodCopyright Nonaka, I. 2011