As a boy, Soichiro Honda, the eventual founder of Honda Motor Co., was infatuated with airplanes. At age 10 he biked 20 kilometers to see American pilots performing aerobatics near his home in Japan, climbing a tree to watch the show.
It would take about 70 more years, but Hondas namesake company eventually evolved from manufacturing motorcycles to inventing a revolutionary light business jetfulfilling a lifelong dream to improve mobility and exemplifying the longevity and continuous innovation that characterizes so many Japanese businesses today.
What is the secret recipe that has sustained the roughly 700 Japanese companies that are still in business after more than 300 years? How do they survive and adapt?
These are the questions Harvard Business School Professor Hirotaka Takeuchi and coauthor Ikujiro Nonaka set out to answer with their classic 1995 management tome, The Knowledge-Creating Company. Now, the books recently published sequel, The Wise Company: How Companies Create Continuous Innovation, elevates their original ideas, outlining six practices that enable leaders to steer their companies through the ceaseless process of creating and applying knowledge in pursuit of innovation.
When you peel back the layers of these companies, you find that these six qualities are practiced, and often they have family edicts that are passed down from one generation to the next, says Takeuchi, a professor of management practice in the Strategy Unit.
The book expandson the authors original theory that companies build organizational knowledge by turning tacit knowledge, which people learn through personal experience, into explicit knowledge that companies can document and codify, and vice versa. They describe this as a process of socialization, externalization, combination, and internalization (SECI) that takes place in progressive phases to generate innovations over time.
Published in October by Oxford University Press, The Wise Company offers a framework for knowledge practiceapplying SECI more dynamically. The book also presents the concept of phronesis, a kind of practical wisdom that benefits not only the organization, but also society at large.
From ancient Greek, phronesis is translated as practical knowledge, so its a higher level of tacit knowledge, Takeuchi explains. It has two components, one of which is doing things for the common good. The other is the here and nowmaking judgment calls and taking action here and now.
Based on the authors study of more than 20 Japanese companies, the following six practices can help business leaders get unstuck during the SECI process and broaden their leadership and purpose beyond traditional business borders. Takeuchi uses Hondas founder as an example to explain how each practice can be applied toward the goal of continuous innovation.
1. Learn to judge goodness, not only for the company but for society.
Hondas purpose was always to improve mobility, and he did so through his companys engine innovations. After coming up with the companys trademarked CVCC engine, Honda declared that his company had pulled ahead of the top three car companies, but his engineers said, 'We didnt do it to beat the competition; we did it for our children,' Takeuchi says. When he heard this, thats when Honda himself decided it was time for him to retire.
2. Rely on intuition tograsp the essence of people, things, and events.
3. Create informal andformal shared contextcalled ba in Japanconstantly in order to construct new meaning through human interactions.
Takeuchi likens the Japanese concept of ba to a pub in the United Kingdom. Its open and interactive, he says. Leaders should be conscious about creating these contexts to foster a wise company. Honda knew how to create this kind of buzz. In the old days, Takeuchi says, it was OKto have drinks after work, and he would create ba everywhere he would go and let people fight with each other verbally over sake At Honda, they called this waigaya.
4. Use metaphors and stories to helppeoplewith different experiencesunderstandthe essence of thebusiness strategy.
5. Use all possible means, including Machiavellian ones, if necessary, to bring together people with conflicting goals and spur them into action.
6. Encourage the development of practical wisdom in others, especially employees on the front line, through apprenticeship and mentoring.
Takeuchi and Nonaka use many other examples to illustrate the application of these practices in The Wise Company. They conclude the book by examining the future of innovation, in light of their contentions about the importance of knowledge creation and practice.
Takeuchi says hes hopeful that Japanese firms will start to take advantage of machine learning and other technologies that Western companies are embracing. But as large companies begin to take greater social responsibility, he also sees a place for the practical, human wisdom that has enabled Japanese firms to endure.
In this day and age, people are so in love with machines and thinking that machines are going to take over the world, he says. The fundamental message here is that humans are still at the center of innovation. Humans have tacit knowledge and the higher order of tacit knowledge, which is wisdom. Lets dont forget mothers wisdom and use it to our advantage.
Kristen Senz is a writer and social media editor for Harvard Business School Working Knowledge.[Image: iStockphoto]
Share your insights below.
Continue reading here:
6 Skills That Wise Companies Harness for World-Changing Innovation - Harvard Business School Working Knowledge
- Morning Medical Update: Gut bacteria and longevity; People with ... - Medical Economics - June 12th, 2023 [June 12th, 2023]
- Artificial Intelligence and the Aging Process: A Match Made for ... - Down to Game - June 12th, 2023 [June 12th, 2023]
- Saint Bernard Lifespan: How Long Do Saint Bernards Live? - AZ Animals - June 12th, 2023 [June 12th, 2023]
- 'Human Resources' Was Poised to Be Netflix's Longest-Running ... - PRIMETIMER - June 12th, 2023 [June 12th, 2023]
- Early Life Adversity Doesn't Affect Gorillas Like Other Species - The Good Men Project - June 12th, 2023 [June 12th, 2023]
- Wellness luminaries, experts to meet in KK - The Borneo Post - June 12th, 2023 [June 12th, 2023]
- I grew up with hazardous smoke from forest fires in Asia. Here's what ... - Morningstar - June 12th, 2023 [June 12th, 2023]
- Workplace Networks Are More Important than Promotions to Engage ... - GlobeNewswire - June 12th, 2023 [June 12th, 2023]
- Accenture staff working at Google training AI move to unionise - The Australian Financial Review - June 12th, 2023 [June 12th, 2023]
- Hair Wigs and Extension Market Size to Grow by USD 5.26 billion from 2021 to 2026, Growth Driven by Technologi - Black Enterprise - April 10th, 2023 [April 10th, 2023]
- Want to age like a fine wine? Here are some tips for longevity and feeling younger - The Indian Express - February 18th, 2023 [February 18th, 2023]
- Human body | Organs, Systems, Structure, Diagram, & Facts - January 27th, 2023 [January 27th, 2023]
- Human | Avatar Wiki | Fandom - January 27th, 2023 [January 27th, 2023]
- Calorie Restriction and Fasting Diets: What Do We Know? - January 4th, 2023 [January 4th, 2023]
- Emma Thompson On Longevity Of Holiday Fave Love Actually But It Is SEX Actually That Is Earning Her Awards Buzz In Leo Grande - Deadline - December 26th, 2022 [December 26th, 2022]
- Heads or tails: What statistical models tell us about the probability of living beyond 110 - The Conversation - December 12th, 2022 [December 12th, 2022]
- LinkedIn founder and VC Reid Hoffman says human amplification via A.I. will revolutionize large enterprises in the next five years - Fortune - December 12th, 2022 [December 12th, 2022]
- Human hibernation is possible and could boost longevity | New Scientist - December 2nd, 2022 [December 2nd, 2022]
- Home - Human Longevity Institute - October 23rd, 2022 [October 23rd, 2022]
- Exercise: 7 benefits of regular physical activity - Mayo Clinic - October 23rd, 2022 [October 23rd, 2022]
- Life expectancy - Wikipedia - October 13th, 2022 [October 13th, 2022]
- Life Expectancy - Our World in Data - October 13th, 2022 [October 13th, 2022]
- The Longevity Investors Conference Gstaad brought together longevity experts and deep-pocketed investors - Cointelegraph - October 13th, 2022 [October 13th, 2022]
- The Search for a Pill That Can Help Dogsand HumansLive Longer - WIRED - October 13th, 2022 [October 13th, 2022]
- Aging of the Heart Correlates With a Poor Gut Microbiome - Lifespan.io News - October 13th, 2022 [October 13th, 2022]
- Aditxt, Inc. (Nasdaq: ADTX) Announces Development and Publication of a Mathematical Model for Predicting Longevity and Variations of Immune Response... - October 13th, 2022 [October 13th, 2022]
- FOXO Technologies Announces First Distribution Partner and Begins Product Rollout in California; Expands Executive Team With Insurance Industry Talent... - October 13th, 2022 [October 13th, 2022]
- A conversation with Holocaust scholar Dr. Irving Berkowitz - South Florida Sun Sentinel - October 13th, 2022 [October 13th, 2022]
- Nine postdoctoral fellowships in aging research awarded by the Glenn Foundation for Medical Research and AFAR - EurekAlert - October 13th, 2022 [October 13th, 2022]
- The 5 Wellness Habits That Slow Down Aging, Science Reveals Eat This Not That - Eat This, Not That - October 13th, 2022 [October 13th, 2022]
- Winning Federal Contracts on the Top 20 Contract Vehicles - Bloomberg Government - October 13th, 2022 [October 13th, 2022]
- Lawrence Austin promoted to rank of colonel - Winona Times - October 13th, 2022 [October 13th, 2022]
- The longevity dividend: Work in an era of 100-year lives - October 2nd, 2022 [October 2nd, 2022]
- Retirement Savings Calculator - Northwestern Mutual - October 2nd, 2022 [October 2nd, 2022]
- Clues to Human Longevity Unearthed in Largescale Mouse Genetic Study - Genetic Engineering & Biotechnology News - October 2nd, 2022 [October 2nd, 2022]
- Can we find ways to live beyond 100? Millionaires are betting on it. - MIT Technology Review - October 2nd, 2022 [October 2nd, 2022]
- Restrict Calories to Boost Immune Function - The Epoch Times - October 2nd, 2022 [October 2nd, 2022]
- The Black Progress Index: Examining the social factors that influence Black well-being - Brookings Institution - October 2nd, 2022 [October 2nd, 2022]
- Kevin Williamson on Scream 6 and Franchise Longevity - Bleeding Cool News - October 2nd, 2022 [October 2nd, 2022]
- 507-Year-Old Clam May Be the World's Oldest Living Being - History of Yesterday - October 2nd, 2022 [October 2nd, 2022]
- I should look forward to early retirement, but I think I'm dreading it - CBC.ca - October 2nd, 2022 [October 2nd, 2022]
- International Coffee Day 2022: How The Beloved Brew Helps Fight Cancer, Kidney Disease And Depression - ABP Live - October 2nd, 2022 [October 2nd, 2022]
- Corey Feldman And Jamison Newlander Talk The Lost Boys And The Birth Of The Two Coreys - Forbes - October 2nd, 2022 [October 2nd, 2022]
- Proven Levels of Human Longevity | NextBigFuture.com - September 11th, 2022 [September 11th, 2022]
- Prolonging healthspan by delaying ageing -- NUHS opens Singapore's first Centre for Healthy Longevity to increase healthy lifespan of Singapore... - September 11th, 2022 [September 11th, 2022]
- What is the Secret to Longevity in Real Estate? - CandysDirt.com - Candy's Dirt - September 11th, 2022 [September 11th, 2022]
- Jeff Stukey & Jay Olshansky, Ph.D with Wealthspan Advisors, Interviewed on the Influential Entrepreneurs Podcast Discussing How Aging Science... - September 11th, 2022 [September 11th, 2022]
- The Queen of the World - The Atlantic - September 11th, 2022 [September 11th, 2022]
- THR Icon: At 100, Norman Lear Looks Back (And Ahead) at Whats Changed Since the Maude Abortion Episode - Hollywood Reporter - September 11th, 2022 [September 11th, 2022]
- TIFF 2022: The Colour of Ink Review - ThatShelf.com - September 11th, 2022 [September 11th, 2022]
- Should Age Be on the Ballot? - Next Avenue - September 11th, 2022 [September 11th, 2022]
- Was The Spring Water At Balmoral Castle The Secret To Elizabeth II's Longevity? - Nation World News - September 11th, 2022 [September 11th, 2022]
- A complete guide to the health benefits of nuts europeantimes.news - The European Times - September 11th, 2022 [September 11th, 2022]
- Debut Launches its Bio2Consumer Platform to Become the Leader in Vertically Integrated Synthetic Biology - PR Web - September 11th, 2022 [September 11th, 2022]
- Rapamycin Drug Used in Cancer Therapy Found to Increase Human Lifespan [Study] - Nature World News - August 30th, 2022 [August 30th, 2022]
- Eating Healthy: Why Eating Grapes Would Increase Lifespan | The Guardian Nigeria News - Nigeria and World News Guardian Life The Guardian Nigeria... - August 30th, 2022 [August 30th, 2022]
- Beauty Bets on Longevity WWD - WWD - August 30th, 2022 [August 30th, 2022]
- Analysis of the impact of success on three dimensions of sustainability in 173 countries | Scientific Reports - Nature.com - August 30th, 2022 [August 30th, 2022]
- You might have glowing skin in no time by making few easy changes to your skincare routine - TDPel Media - August 30th, 2022 [August 30th, 2022]
- Nucleai Appoints New Head of Pathology to Support Expansion in Biopharmaceutical and Clinical Markets - Business Wire - August 8th, 2022 [August 8th, 2022]
- Daily AI Roundup: Biggest Machine Learning, Robotic And Automation Updates - AiThority - August 8th, 2022 [August 8th, 2022]
- Prolonged and intense heatwave affecting parts of western and northern Europe breaks temperature records; globally, July 2022 was one of three warmest... - August 8th, 2022 [August 8th, 2022]
- YLEM: Augmenting sustainable futures through material exploration and testing - STIRworld - August 8th, 2022 [August 8th, 2022]
- Do you want to live forever? Big Tech and the quest for eternal youth - The New Statesman - August 6th, 2022 [August 6th, 2022]
- This startup wants to copy you into an embryo for organ harvesting - MIT Technology Review - August 6th, 2022 [August 6th, 2022]
- Renewal Bio Acquires Breakthrough Stem Cell Technology With Applications in Infertility and Longevity - Benzinga - August 6th, 2022 [August 6th, 2022]
- Get married or get a degree to live longer says study, debunking theories of womens longevity over men - Times Now - August 6th, 2022 [August 6th, 2022]
- Nucleai Appoints New Head of Pathology to Support Expansion in Biopharmaceutical and Clinical Markets - StreetInsider.com - August 6th, 2022 [August 6th, 2022]
- Some species are immortal but dying of old age is humanity's secret weapon - The Telegraph - August 6th, 2022 [August 6th, 2022]
- Opinion: Changing When and How Much We Eat May Extend Health Span - The Scientist - August 6th, 2022 [August 6th, 2022]
- Vieroots uses genome testing to win over a growing tribe of wellness enthusiasts - YourStory - August 6th, 2022 [August 6th, 2022]
- Herbs radiate and give you youthful skin - The Hans India - August 6th, 2022 [August 6th, 2022]
- How Pop Culture, Politics, Science, and Business Got So Old - The Atlantic - August 6th, 2022 [August 6th, 2022]
- John Hood: How to read this column | Columnists | journalnow.com - Winston-Salem Journal - August 6th, 2022 [August 6th, 2022]
- How Long Is The Human Lifespan? Here's What Studies Have Found | mindbodygreen - mindbodygreen - July 31st, 2022 [July 31st, 2022]
- Employees are livingand workinglonger. CEOs are introducing initiatives like phased retirements to harness the longevity economy - Fortune - July 31st, 2022 [July 31st, 2022]
- Why Do We Get Old, and Can Aging Be Reversed? - Quanta Magazine - July 31st, 2022 [July 31st, 2022]
- The Secret to Longevity? Here Are 7 Health Tech Gadgets That Can Help - The Recursive - July 31st, 2022 [July 31st, 2022]
- Four Fitness Facts to Fuel Your Workout - The New York Times - July 31st, 2022 [July 31st, 2022]
- Chris Reed: Has the Fountain of Youth been found just west of Interstate 5? - The San Diego Union-Tribune - July 31st, 2022 [July 31st, 2022]