01 972185 FM.qxd 1/13/04 2:10 PM Page v Leading Organizational Learning Harnessing the Power of Knowledge Marshall Goldsmith Howard Morgan Alexander J. Ogg Editors Forewords by Niall FitzGerald and Frances Hesselbein 01 972185 FM.qxd 1/13/04 2:10 PM Page v 01 972185 FM.qxd 1/13/04 2:10 PM Page i Praise for Leading Organizational Learning “If the great challenge of an information-age economy is to make ideas, knowledge, and learning more and more productive, then this book makes an invaluable contribution. It is a textbook on knowledge management—at once rich in theory and rich in down-to-earth examples.” —Nathaniel Branden, author of The Six Pillars of Self-Esteem andSelf-Esteem at Work “Leading Organizational Learningprovides a fair and comprehensive look at the field that some consider the key to tomorrow’s organizational success— and others call a fad. You’ll come out of reading the book with an opinion much closer to the key-to-success end of the spectrum, but you will also be informed and educated by the honesty of the authors, who go out of their way to acknowledge the faddishness that has sometimes characterized the field of knowledge management. An interesting and a useful book by some very thoughtful people.” —William Bridges, author of Transitions, Managing Transition, andCreating You & Co. “Marshall Goldsmith and his coauthors have assembled a who’s who of experts in organizations and leadership to summarize their latest thoughts in this book. This is an essential book for today’s managers and leaders.” —Subir Chowdhury, chairman and CEO, ASI Consulting Group, and author, The Power of Six Sigma,Design For Six Sigma, and Organization 21C “Leading Organizational Learning is one of those rare books that combines deep wisdom with practical ideas to use on Monday morning!” —Richard J. Leider, founder of The Inventure Group and best-selling author of Repacking Your Bags and Whistle While You Work 01 972185 FM.qxd 1/13/04 2:10 PM Page ii “We all need to share information, learning, and knowledge to be successful, and this book is a must-read for us. People whose organizations have an established knowledge inventory or database but need to create a more effi- cient and/or more realistic process for accessing learning will find this book very helpful as well. This is also a great book for people who are at the fore- front of learning—including consultants, CLOs, and HR heads.” —Quinn Mills, professor of business administration, Harvard Business School “Knowledge, people, and relationships are the critical assets of our time. Leaders who leverage this human side of business will stand above the rest. Leading Organizational Learning will help foster the learning necessary to lead change. This book is just the tool for you.” —Bob Rosen, CEO, Healthy Companies International, and best-selling author of Global Literacies, Leading People, andThe Healthy Company “I found this to be a fascinating and illuminating compilation of points of view and techniques for these mysterious concepts of organizational learn- ing and knowledge management.” —Edgar H. Schein, Sloan Fellows Professor of Management Emeritus, MIT Sloan School of Management “Leading Organizational Learningreflects the reality that effective organiza- tional learning does not just happen—that leaders have to work at making learning an integral value and practice of their culture. This practical hand- book offers frameworks and guidelines for making organizational learning a competitive advantage. Leaders positioning their enterprises for the future definitely will find this book helpful.” —R. Roosevelt Thomas Jr., CEO, Roosevelt Thomas Consulting & Training “Your ability to learn and apply new ideas and information determines the success or failure of your organization. This book equips you with the critical insights and strategies you need to master the twenty-first century!” —Brian Tracy, author, TurboStrategy 01 972185 FM.qxd 1/13/04 2:10 PM Page iii Other Publications from The Leader to Leader Institute Organizational Leadership Resource The Drucker Foundation Self-Assessment Tool The Drucker Foundation Future Series The Leader of the Future, Frances Hesselbein, Marshall Goldsmith, Richard Beckhard, Editors The Organization of the Future, Frances Hesselbein, Marshall Goldsmith, Richard Beckhard, Editors The Community of the Future, Frances Hesselbein, Marshall Goldsmith, Richard Beckhard, Richard F. Schubert, Editors Wisdom to Action Series Leading for Innovation, Frances Hesselbein, Marshall Goldsmith, Iain Somerville, Editors Leading Beyond the Walls, Frances Hesselbein, Marshall Goldsmith, Iain Somerville, Editors Leaderbooks The Collaboration Challenge: How Nonprofits and Businesses Succeed Through Strategic Alliances, James E. Austin Meeting the Collaboration Challenge (workbook and video) Journal and Related Books Leader to Leader Journal Leader to Leader: Enduring Insights on Leadership from the Drucker Foundation’s Award-Winning Journal, Frances Hesselbein, Paul Cohen, Editors On Creativity, Innovation, and Renewal, Frances Hesselbein, Rob Johnston, Editors On High-Performance Organizations, Frances Hesselbein, Rob Johnston, Editors On Leading Change, Frances Hesselbein, Rob Johnston, Editors On Mission and Leadership, Frances Hesselbein, Rob Johnston, Editors Video Training Resources Excellence in Nonprofit Leadership Video, featuring Peter F. Drucker, Max De Pree, Frances Hesselbein, and Michele Hunt. Moderated by Richard F. Schubert Leading in a Time of Change: What It Will Take to Lead Tomorrow, a conversation with Peter F. Drucker and Peter M. Senge, introduction by Frances Hesselbein Lessons in Leadership Video, with Peter F. Drucker Peter Drucker: An Intellectual Journey, interviews with Peter Drucker Online Resources www.leadertoleader.org 01 972185 FM.qxd 1/13/04 2:10 PM Page iv About The Leader to Leader Institute The Leader to Leader Institute has its roots in the social sector and its prede- cessor, the Peter F. Drucker Foundation for Nonprofit Management, which in January 2003 transferred its ongoing activities to the new identity. The Institute furthers its mission “to strengthen the leadership of the social sec- tor” by providing educational opportunities and resources to leaders. The Institute serves as a broker of intellectual capital, bringing together the finest thought leaders, consultants, and authors in the world with the leaders of social sector voluntary organizations. By providing intellectual resources to leaders in the business, government, and social sectors, and by fostering partnerships across these sectors, the Leader to Leader Institute works to strengthen social sector leaders of the United States and of nations around the globe. The Leader to Leader Institute believes that a healthy society requires three vital sectors: a public sector of effective governments; a private sector of effective businesses; and a social sector of effective community organiza- tions. The mission of the social sector is changing lives. It accomplishes this mission by addressing the needs of the spirit, the mind, and the body—of individuals, the community, and society. The social sector also provides a sig- nificant sphere for individuals and corporations to practice effective and responsible citizenship. The Leader to Leader Instituteis a 501(c)3 charitable organization. It does not make financial grants. Its offerings fall in three areas: • Supporting social sector leaders of character and competence • Forging cross-sector partnerships that deliver social sector results • Providing leadership resources that engage and inform social sec- tor leaders For more information, see leadertoleader.org. 01 972185 FM.qxd 1/13/04 2:10 PM Page v Leading Organizational Learning Harnessing the Power of Knowledge Marshall Goldsmith Howard Morgan Alexander J. Ogg Editors Forewords by Niall FitzGerald and Frances Hesselbein 01 972185 FM.qxd 1/13/04 2:10 PM Page vi Copyright © 2004 by John Wiley & Sons, Inc. All rights reserved. Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741 www.josseybass.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, e-mail: [email protected]. Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002. Jossey-Bass also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Cataloging-in-Publication Data Leading organizational learning : harnessing the power of knowledge / by Marshall Goldsmith, Howard Morgan, and Alexander J. Ogg, editors. p. cm. Includes bibliographical references and index. ISBN 0-7879-7218-5 (alk. paper) 1. Organizational learning. 2. Knowledge management. I. Goldsmith, Marshall. II. Morgan, Howard J. III. Ogg, Alexander J., 1954- HD58.82.L37 2004 658.4’038—dc22 2003024738 Printed in the United States of America FIRSTEDITION HB Printing 10 9 8 7 6 5 4 3 2 1 01 972185 FM.qxd 1/13/04 2:10 PM Page vii Contents Figures and Exhibits xi Foreword xiii Niall FitzGerald Foreword xv Frances Hesselbein Preface xvii Acknowledgments xxiii Part One: Challenges and Dilemmas 1 1. Why Aren’t Those Specials Selling Today? 3 Elliott Masie 2. Five Dilemmas of Knowledge Management 13 Fons Trompenaars and Charles Hampden-Turner 3. Effectively Influencing Up: Ensuring That Your Knowledge Makes a Difference 19 Marshall Goldsmith 4. Where “Managing Knowledge” Goes Wrong and What to Do Instead 27 Niko Canner and Jon R. Katzenbach 5. Knowledge Management Involves Neither Knowledge nor Management 39 Marc S. Effron vii