What does capitalism mean when knowledge governs rather than money?
Within a fairly short period of time, we will face the problem of the governance of corporations again. We will have to redefine the purpose of the employing organization and of its management, to satisfy both the legal owners, such as shareholders, and the owners of the human capital that gives the organization its wealth-producing power, that is, the knowledge workers. For increasingly the ability of organizations to survive will come to depend on their “comparative advantage” in making the knowledge worker productive. And the ability to attract and hold the best of the knowledge workers is the first and most fundamental precondition.
What does capitalism mean when knowledge governs rather than money? And what do “free markets” mean when knowledge workers are the true assets? Knowledge workers can be neither bought nor sold. They do not come with a merger or an acquisition. It is certain that the emergence of the knowledge worker will bring about fundamental changes in the very structure and nature of the economic system.
ACTION POINT: What percentage of your workforce consists of people whose work requires advanced schooling? Tell these people you value their contributions and ask them to participate in decisions where their expertise is important. Make them feel like owners.
Management Challenges for the 21st Century
* Source: The Daily Drucker by Peter F. Drucker