Proceedings of the 3rd European Conference on Intellectual Capital

John Girard
our belief that many leaders will only embark on this knowledge journey to solve organizational
challenges, present or future.
We <strong>of</strong>ten refer to this expanded hierarchy as <strong>the</strong> Knowledge Edge, which is <strong>the</strong> domain <strong>of</strong> senior
leaders. Compare this element to Knowledge Creation, which is <strong>of</strong>ten <strong>the</strong> area <strong>of</strong> expertise for middle
managers or executive staff. Remember earlier that we described <strong>the</strong> methods for creating
knowledge. We suggested <strong>the</strong>re are five major ways to transform data into information. First, one may
put <strong>the</strong> data into context by communicating <strong>the</strong> reason for ga<strong>the</strong>ring <strong>the</strong> data. Second, one may
categorize <strong>the</strong> data by describing <strong>the</strong> breakdown or <strong>the</strong> essential components <strong>of</strong> <strong>the</strong> data. Third, one
may ma<strong>the</strong>matically or statistically calculate <strong>the</strong> data. Fourth, one may correct errors in previously
reported data. Finally, one may condense <strong>the</strong> data by providing a summary instead <strong>of</strong> <strong>the</strong> entire
collection <strong>of</strong> data. Equally, we argued <strong>the</strong>re are four activities that transform information into <strong>the</strong>
knowledge. First, one may compare information with previous information, primarily to determine what
has changed in a particular situation. Second, one may determine <strong>the</strong> consequences or
repercussions <strong>of</strong> this information on decisions. Third, one may consider how this information connects
or correlates to o<strong>the</strong>r information. Finally, through conversation one may conclude what people think
about <strong>the</strong> information (Davenport & Prusak, 1998).
Without wishing to dwell on definitions, we think it is important to realize that <strong>the</strong>re is much more to
knowledge management than <strong>the</strong> ra<strong>the</strong>r mechanical production <strong>of</strong> knowledge. Knowledge
management, which many agree is a ra<strong>the</strong>r unfortunate term, is much more; it really is about senior
leaders combining <strong>the</strong>ir organizational knowledge with experience to solve challenges. To emphasize
<strong>the</strong> difference, we have adopted a different term for this essential executive function. We use <strong>the</strong> term
sagology to describe our work, which we define as <strong>the</strong> study <strong>of</strong> organizational wisdom in all its forms,
especially with reference to technology, leadership, culture, process, and measurement. The
remainder <strong>of</strong> this chapter focuses on sagology and how leaders may apply <strong>the</strong> idea to <strong>the</strong>ir future
needs.
7. The power <strong>of</strong> <strong>the</strong> people
By far <strong>the</strong> most watched phenomenon <strong>of</strong> <strong>the</strong> 21 st
century surrounds <strong>the</strong> power <strong>of</strong> everyday people.
Executives across <strong>the</strong> board seem surprised by <strong>the</strong> sudden, and sometimes unwanted, knowledge
and resultant power <strong>of</strong> <strong>the</strong> people. In <strong>the</strong>ir book Groundswell: Winning in a World Transformed by
Social Technologies, Forrester analysts Charlene Li and Josh Bern<strong>of</strong>f describe part <strong>of</strong> this
phenomenon as a groundswell, which <strong>the</strong>y define as “a social trend in which people use technologies
to get <strong>the</strong> things <strong>the</strong>y need from each o<strong>the</strong>r, ra<strong>the</strong>r than from traditional institutions like corporations”
(Li & Bern<strong>of</strong>f, 2008, p. 9).
In a 2006 Wired magazine article, Jeff Howe coined <strong>the</strong> term crowd-sourcing to describe “everyday
people using <strong>the</strong>ir spare cycles to create content, solve problems, even do corporate R & D” (Howe,
2006). In his book, Crowdsourcing: Why <strong>the</strong> Power <strong>of</strong> <strong>the</strong> Crowd Is Driving <strong>the</strong> Future <strong>of</strong> Business,
Howe defined crowdsourcing as “<strong>the</strong> act <strong>of</strong> taking a job traditionally performed by a designated agent
(usually an employee) and outsourcing it to an undefined, generally large group <strong>of</strong> people in <strong>the</strong> form
<strong>of</strong> an open call” (Howe, 2008). Howe wrote, “The amount <strong>of</strong> knowledge and talent dispersed among
<strong>the</strong> human race has always outstripped our capacity to harness it. Crowdsourcing corrects that—but
in doing so, it also unleashes <strong>the</strong> forces <strong>of</strong> creative destruction” (Howe, 2008).
Both terms, groundswell and crowdsourcing, are neologisms and as a result many academics may
dismiss <strong>the</strong>m as hype designed to sell books. However, we would caution against a hasty dismissal.
Of course, time will be <strong>the</strong> real test <strong>of</strong> <strong>the</strong>ir relevance. In <strong>the</strong> meantime, we suggest that leaders
should learn about <strong>the</strong> opportunities and threats <strong>of</strong> <strong>the</strong> social revolution. We are most concerned
about <strong>the</strong>se ideas from a knowledge point <strong>of</strong> view and <strong>the</strong>refore we will not consider, in any great
detail, <strong>the</strong> related marketing, public relations, or economic issues.
8. The social revolution
But what has changed to empower <strong>the</strong>se communities with such power? Surely, groups <strong>of</strong> passionate
people have long yearned for <strong>the</strong> opportunity to influence or perhaps even hijack issues. Of course,
<strong>the</strong>re have been many times in history when large groups congregated to spark change. However, <strong>the</strong>
logistics with massing large groups can be very cumbersome, expensive, and difficult to
communicate.
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