In today’s modern workplace, where the primary resource is knowledge, collective knowledge building is a key strategic task. Production machinery remains present, but unlike physical production, knowledge-sharing and teamwork rely on strong interpersonal relations. Further, to the extent that knowledge, and other intangible assets, becomes the indispensable ingredient for value-added work, the nature of the work and the social identity of the worker are changing.

1. 1
Knowledge Work, Leadership and
Social Identity
John J. Sarno

2. 2
• The U.S. has a $14 trillion dollar economy,
the world’s biggest, representing 25% of the
world total output.
• The U.S. holds 25% of the world’s prison
population.
• One in four American adults is functionally
illiterate.
Economic and Social
Transformation

3. 3
Environmental Crises
 Global warming widely
recognized
 Rising sea level
 Water resources scarce
in much of the world
 Earth’s resources being
depleted 39% faster than
generated (Redefining
Progress, 2008)

4. 4
Social Crises
 Poverty widespread, 3
billon under $2 per day
 No schooling for 1 in 5
children
 Most population growth
in poorest regions
 U.S. incarceration rate
highest in developed
world

5. The CEO Project-2005
Interviews with CEOs of Fast-Growth
Firms
$16-60 million in annual revenues
100-200 employees
5

6. 6
What are the competitive
strengths of the firm?
36% - Proprietary Technology
31% - Unique Approach
10% - Process Innovation
5% - Operational Excellence
79% identified high percentages
of recurring revenue

7. 7
What are the biggest
opportunities for growth?
35% - New Products
22% - New Market Segments
15% - Current Market Penetration
9% - New Processes

8. 8
Talent Ratings
Talent was rated a “B” or above in all areas
• Product Creation
• Customer Creation
• Production/Service
• Support/Overhead
• Team Capability
Biggest Growth Opportunities
• 35% New Products
• 9% New Processes

9. 9
Constraints on Growth
29% - Talent
16% - Capital
12% - Product Development
12% - Sales/Marketing
Conclusion: While CEOs rated existing
human capital as “B” or better, the biggest
obstacle to growth is the difficulty attracting
and retaining the “right” employees.

10. 10
Today, most jobs require
knowledge to perform
1970 1980 1990 2000 2010

11. 11
Knowledge-intensive work has
changed the nature of organizations
and how work gets done.

12. 12
A large hospital organization in Paris
is implementing an integrated
patient-care platform to facilitate
seamless communications between
departments, tracking every stage of
a patient’s stay.

13. 13

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What kind of knowledge does it
take to perform your job?

15. 15
Knowledge is a resource that can’t be
forced out of people
Knowledge sharing occurs voluntarily

16. 16
Rigid, command-and-control bureaucracies
often misuse, lose or hide valuable
knowledge, i.e. knowledge to serve
customer’s better.
Knowledge is best communicated and
shared horizontally – peer to peer.

17. 17
Physical labor can be
forced through discipline,
and then only temporarily until more
discipline is needed.

18. 18

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Executive Leadership is
Deterministic, Results-Oriented
Underlying Philosophy: Ends-justify-the-means
Moral Justification: Greater good is best served
Organizational Structure: Hierarchical, command-and-control
Primary Tools: Power, external rewards and punishment

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Employee Work Ethic is
Passive and Pessimistic
Underlying Philosophy: Purpose of work is a paycheck
Moral Justification: Work-life follows bureaucratic laws,
no individual free-will
Relationship to Work: Dependent, low self-worth
Primary Motivators: Money, perks and fear

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Knowledge intensive work has changed the nature of
organizations and how work gets done.
Supervising “knowledge workers” requires advanced
social and interpersonal skills
 Peer-to-peer collaboration
 Teamwork
 Intrinsic motivation
 Communication skills
 Flexibility/Networks/Projects
 Creativity
 Integration of Technology

22. 22
What will it take to succeed?
• Promoting collaboration in problem
solving
• Encouraging creativity among working
group members
• Improving innovative practices
• Sharing leadership responsibilities
• Motivating followers toward outcomes

23. 23
Supervisor’s are Leaders
A recent survey of employees cited 28 attributes they
felt were important for their supervisor to have.
The top five characteristics were:
1. Honesty
2. Integrity/Morals/Ethics
3. Caring/Compassion
4. Fairness
5. Good relationships with employees, including approachability
and listening skills
In other words, leaders are expected to be values-based.

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The lack of integrity can degrade the
working environment and create confusion,
lack of focus, poor communication, lack of
productivity and inefficiencies.

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Common Problem Areas
 Blaming Others
 Shifting Responsibility
 Hoarding Information & Resources
 Letting Others Fail to Look Good
 Disrespecting Customers
 Lowering Expectations to Look Good
 Bad-Mouthing Company
 Favoritism
 Invasion of Privacy
 Not Trying/Not Caring
 Bullying

26. 26
Cross-cultural studies show that even
if people personally disagree with a
result, they will accept it if they
perceive the process as “fair”.
Fairness at Work

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Asked what was her biggest lesson
before being hired as CEO of Xerox,
Anne Mulcahy said:
“How little honest feedback people get in
companies, and how important it is for people
to have a sense of candid assessment. I think
sometimes companies get confused with
processes they think are fairest, and that is not
what companies need.”

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Do employees receive training?
Most new hires are left to figure things out.
Are expectations clear?
There is often substantial disagreement between
supervisors and employees.
Are expectations realistic?
Boss often gets angry when employee is not
working at same level.

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One Measure of Success…….
How many people work for me?
How much work can I get done today?
What is my salary?
How big is my office?
Another Measure of Success
At this moment, right now, am I doing
what I’m supposed to be doing?
Am I doing it well?
Supervisors are guided by
values (integrity, fairness)

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Punishment breeds resentment,
resistance and litigation
An ethical foundation supports
discipline and discharge, when
necessary
Discipline as Punishment

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Unethical Discipline
(Abuse of Power)
• Power Struggles
• Difficulty in Setting Goals
• Inability to Prioritize
• Lack of Motivation
• Fear, Anxiety and Confusion
• Lack of Empowerment or Feelings of Victimization
• Pessimism
• Conflict

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The Dilemma of Technology
Efficiency and transparency make it easy
to find mistakes.
Feedback is focused on mistakes.
No room for praise.

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About one-third of managers in Fortune
100 companies are against praising
people. “They don’t believe in it.”
Adrian Gostick
“The Carrot Principle”

34. 34
Solve, identify, and broker problems by
manipulating symbols.
The Problem with Abstract Work
“Symbolic Analysts”

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Symbolic, abstract work can be
fragmented, disjointed, and
disconnected

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Can there be meaning in abstract work?
Is there morality in abstract work?
What is the individual’s ethical responsibility
when work is abstract?

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Hierarchy of Needs

38. 38
Autonomy
Dependence
Moral Development

39. 39
The Challenge of Our Time
Can we create and maintain a
sustainable planet from the bottom up by
autonomous, free people?
or
Are we destined for unsustainable
conflict promoted from the top down
through autocracy and authoritarianism?