Knowledge Leadership: The Art and Science of the Knowledge-based Organization Working Knowledge for Business Leaders (on-line Harvard Business School journal, August 8, 2005) Knowledge management is a tad passé if all we imagine is managing the brainpower of our colleagues. More important these days, according to this book, is for individuals to actually lead the creation of knowledge in their organizations in a systematic and pragmatic way: That's how innovation and competitive advantage take hold. This serious book offers a comprehensive framework in that direction, helping you first to evaluate your own “knowledge leadership” style and then see the big picture within the company. In a non-gimmicky way, the authors—specialists in learning organizations and management—serve up the Yogi and Commissar figures once described by Arthur Koestler, the late novelist, philosopher, and political activist. As used here, the Yogi is someone who challenges others to question their assumptions and beliefs in order to forge a new path for learning. Commissar leaders prefer to focus on action and changing the outward behavior of others.

“The message for knowledge leaders from Arthur Koestler's book, The Yogi and the Commissar, is that any rigidly held worldview, although seductive on the surface, is inherently limited and likely to cause leaders their own demise. Although it is no small task, becoming a knowledge leader requires you to become aware of—then reduce the dysfunctional effects of—your own worldview and perpetual blocks,” they write.

The book is divided into six parts: Why Should You Care About Knowledge?; Becoming a Knowledge Leader; Putting Knowledge into Action; Developing Pragmatic Knowledge; Leading Fast Knowledge-Based Organizations; and Putting it All Together. Plenty of examples, illustrations, and executive summaries help to clarify what can be a difficult and unwieldy challenge for a fast-paced company.

“Starting change efforts by increasing self-knowledge may not be the most comfortable for business leaders, but it is where knowledge leaders have to begin—and we think it will be a differentiating trait between good and great leaders in the future,” the authors conclude.

Organizational Learning Journal (Volume 12, #3 page 299 – 301)
Roger Collins, Book Reviews Editor
Department of Management, Australian Graduate School of Management

Cavaleri, S. and Seivert,.S. with Lee,L.W. (2005) Knowledge Leadership: The Art and Science of the Knowledge-based Organization. Burlington, MA, KMCI Press, Butterworth-Heinemann, Elsevier Inc.

Let me begin with a declaration that the lead author, Steve Cavaleri is former editor of this journal. . Having made that transparent, I hasten to add that his editorial (and other) experience positions him superbly to tackle the ambitious goals that these authors have set for themselves in this new book. For as Karl Wiig (1993) pioneered the area of knowledge management (KM), these authors seek to open a door to the second decade of development of what is becoming an increasingly important source of competitive advantage for organizations. Their point of departure is to reframe our approach to knowledge from the task of managing knowledge to that of knowledgeably managing. A key to this distinction is their observation that earlier KM approaches invested heavily in technologies without addressing the more fundamental question of how knowledge can provide sustainable competitive advantage. This reflects a predominantly mechanistic approach that cast knowledge as a commodity or resource to be gathered, stored and transmitted. The emergent approach seeks to integrate knowledge with a range of organisational initiatives, practices and processes, such that it becomes a more integral part of how people in a company think, act, and learn. In this context, knowledge is allowed to perform a function that much more organic and dynamic. But I am getting ahead of myself! Let me provide an outline of the book and some comments on its style before we consider its contributions and utility.

The book is divided into six parts. Part I seeks to address the question: Why should you care about knowledge? The authors argue that on the basis of changes in how value is created and other factors knowledge and knowledge leadership are becoming more central to organisational performance and the longer-term success of organizations. They argue, with support from Henry Mintzberg, that managers have evolved their roles such that their work is often characterised by “busyness”, and often fails to recognise that knowledge derives form reflection, experimentation, and model-building -- activities that are either undervalued, squeezed out by more urgent demands or overwhelmed by analysis. Thus, Cavaleri and Seivert argue that all leaders must address their ability to contribute knowledgeably through the benefits that , can emerge when leaders learn to become more knowledge-focused and helping their employees to do the same. This point was once put more bluntly by Red Ken, onetime mayor of London, when he observed “leaders are paid to think, not just be busy!” According to the authors, leadership is posited as the foundation for creating an effective knowledge-based organization. However, such leaders must first understand the process of creating-knowledge from their own experiences through what is known as Pragmatic knowledge-creation. Pragmatic knowledge creation links action learning with Pragmatic precepts, such as using multiple forms of reasoning and semiotic interpretation of situations. This role also requires leaders to design systems to enable employees to connect knowledge to performance as an integral part of their own daily contributions. In essence, this helps to create a dynamic system that leads to sustainable innovation.

Part II expands on how readers can become Pragmatic knowledge leaders. They provide questionnaires that enable readers to document and explore their own knowledge leadership style. Their approach uses a framework that draws effectively form Arthur Koestler’s distinction between two types of leaders -- Commissars and Yogis. The author’s primary conclusion is that effective knowledge leadership requires us to balance the tensions between two profoundly different, and often conflicting, worldviews . In chapter five the authors provide ways for the reader to reframe her/his approach to problem solving and decision making. These ideas are further developed with the support of findings on cross-cultural research that distinguishes between contextual and more universal aspects knowledge leadership style.

Part III moves quickly to apply the authors’ ideas and findings to your organisation. It begins in Chapter 7 by demonstrating how Pragmatic knowledge strategies can be aligned with you company’s goals and strategies. Chapter eight takes a developmental approach to organisational strategy formulation and application and draws out implications for different types of knowledge -- developing and knowledge managing processes that enable readers to match their approach to opportunities in their particular context.

Part IV explores how pragmatic knowledge can be used as a source of competitive advantage, how such pragmatic knowledge can be identified, given purpose and meaning that ensures its application.

Part V provides and expounds on four criteria for effective Knowledge-based organisations; functionality, adaptiveness, sustainability and timeliness. Chapters also address the need to balance knowledge creating and knowledge managing for both the design and development of effective knowledge infrastructures.

Part VI seeks to integrate the frameworks, ideas and tools introduced by the authors. This is a very pragmatic chapter that provides readers with the opportunity to apply their learning to their own organisation.

Overall, this is a user-friendly book that seeks to break new ground and provide both substantively new ideas for becoming knowledge leaders and creating knowledge-based organizations as well as the means to apply them. The writing style is very approachable. Despite a lengthy introduction, the book gains momentum and finishes with a comprehensive integration of a plethora of ideas and tools. On one hand, the authors have generated numerous new terms that can initially be somewhat overwhelming; on the other hand any attempt to provide some breakthrough perspectives requires the generation of new ideas and terms. Don’t let this deter you!

Why should you seek out this book? First, it is easily digestible because it is essentially conversational: after several chapters you begin to feel as if you are in a dialogue with the authors. So the reading of this book can be a very personal experience that is quite engaging. Second, the book provides an integrated approach to new directions in this critical area. The authors have conceived of and produced a framework that flows logically: as one idea is introduced its application is explained and the next idea appears the obvious “next step” in the journey of understanding and transfer. Third, the book is essentially practical. It is directed at knowledge- practitioners, organisation leaders and managers who seek to add more value through new ways of attaining levels of higher performance. The authors provide numerous examples that illustrate the power of their ideas. If I have a criticism, it is that the introduction of new terminology may deter the very readers who would benefit most. As with many attempts to carve out new directions, application, testing, research and constructive controversy will enable us ultimately to judge the value created by the authors. It is refreshing to see such an ambitious attempt to provide breakthrough thinking in such a critical area of organisational performance. For given the challenges that we face in both our organisations and our wider communities, few would doubt the future impact of knowledge, its creation, validation and application on achieving higher performance.

Wiig,K. ( 1993) Knowledge Management Foundations : Thinking about Thinking- How People and Organisations Create, Represent, and Use Knowledge. Volume 1 of Knowledge Management Series. Arlington,TX: Schema Press

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