The Wise Company: How Companies Create Continuous Innovation

by Ikujiro Nonaka, Hirotaka Takeuchi

High-velocity change is the fundamental challenge facing companies today. Few companies, however, are prepared to continuously innovate-because they focus on the short-term and do not emphasize the wisdom needed to make sure that their interests are aligned with those of society.

Practical wisdom is the bases of continuous innovation, where companies ceaselessly and repeatedly creating new knowledge, disseminating it throughout the organization, and converting knowledge to action over time. In The Wise Company, legendary management experts Ikujiro Nonaka and Hirotaka Takeuchi highlight how various companies have confronted the challenge of rapid change to create new products and new ways of doing business that benefit employees, consumers, and society. The key: a relentless self-renewal process where companies realize the future they envisions, rather than only responding to changes in the environment. Nonaka and Takeuchi argue that while knowledge-creating companies focusing on tacit and explicit knowledge can generate innovation, they cannot create it on a continuous and ongoing basis without having wisdom about human interactions and how they influence organizational structures and practices.

Companies that have resilience, longevity, and sustainability share a number of characteristics, Nonaka and Takeuchi show. Strategies are based on alignment of organizational and societal benefits. Leaders grasp the core of any situation or problem quickly, and intuitively comprehend the nature and meaning of people, things, and events. But wise leadership is not enough: wisdom must infuse the organization through informal as well as formal shared interactions and communications that focus on metaphors and stories that convey the essence and meaning of strategies and actions. In short, Nonaka and Takeuchi demonstrate how continuous innovation results from companies ceaselessly and repeatedly creating new knowledge, disseminating knowledge throughout the organization, and converting that knowledge to action.

The Wise Company presents a new model of knowledge-creation and practice for the twenty-first century.

Genres: Professional Development, Business

304 pages, Hardcover

Published October 21, 2019

About the author

Ikujiro Nonaka was a Japanese organizational theorist and Professor Emeritus at the Graduate School of International Corporate Strategy of the Hitotsubashi University, best known for his study of knowledge management.

Reviews

[Synthia Salomon · Rating 3 out of 5]

Wise companies practice distributed leadership.

[Zhivko Kabaivanov · Rating 4 out of 5]

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.