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Harvard Business Review
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Fair
Process: Managing in the Knowledge Economy
W. Chan Kim and Renée
Mauborgne
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Unlike the traditional factors of production--land,
labor, and capital--knowledge is a resource that can't be forced out of
people. But creating and sharing knowledge is essential to fostering
innovation, the key challenge of the knowledge-based economy. To
create a climate in which employees volunteer their creativity and expertise,
managers need to look beyond the traditional tools at their disposal. They
need to build trust. The authors have studied the links between trust,
idea sharing, and corporate performance for more than a decade. They offer
an explanation for why people resist change even when it would benefit
them directly. In every case, the decisive factor was what the authors
call fair process--fairness in the way a company makes and executes decisions.
Fair process may sound like a soft issue, but it is crucial to building
trust and unlocking ideas.
| W. Chan Kim is The Boston Consulting Group Bruce D. Henderson Chair
Professor of International Management at INSEAD, France.
Renée Mauborgne is The INSEAD Distinguished Fellow and a professor of
strategy and management at INSEAD and a Fellow of the World Economic Forum.
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