The Wisdom-based Economy
By Pepper de Callier
Say good-bye to the knowledge-based economy. Knowledge is everywhere. We are
awash in a sea of knowledge. It is a commodity today. Say hello to the Wisdom-based
Economy. This economy is driven by not only knowing how to use the knowledge we
have access to, but understanding the subtle and powerful relationships among the
various elements that come together to make wise decisions—sustainable decisions in a
global marketplace. Let me explain my thinking.
What’s the difference between then and now? Simple. In the knowledge-based
economy, which gave birth to the Technology Boom, it was all about information and
speed—now—fast, and reach—seizing market share and “grabbing eyeballs”. Perception
became reality in the worst sense. “We must do things faster—at Internet Speed!” That
was the cry of every IPO-crazed technology entrepreneur and it pretty much summed up
the sense of urgency which permeated the knowledge-based economy. There wasn’t
even time for the Venture Capitalists, who were funding this wild growth, to hear the
complete story from those who were seeking money. “Give me your ‘elevator
speech’!”—which was Silicon Valley-speak for, “You’ve got three minutes. Excite
me.”—was about all you could get a Venture Capitalist to say to you.
Many business models didn’t make sense but still got funded (WebVan, Pets.com,
furniture.com and on and on). In fact, legendary investor, Warren Buffet even
commented that what was happening was not investing but speculating, "in which the
focus is not on what an asset will produce, but what the next fellow will pay for it." In
his words these were "entities designed more to making money off investors than for
them.”
This mentality spread and common sense went out the window. It even became “cool”
not to have time to do anything or to talk to anybody. In response to my asking how they
were doing one day, I remember someone saying to me “Can’t talk now--I’m running
around with my hair on fire!”
Unfortunately, this is how many younger people got their first exposure to the business
world. Fortunately, though, for the sake of the development of a whole generation of
young professionals, April 14th, 2000, came. That’s the day the knowledge-based
economy died—NASDAQ experienced its largest ever one-day decline—more than 355
points. The world went into a state of shock. Then, after the predictable periods of hope,
denial, anger, hope again, and finally resignation, people began to sift through the ashes
of what was the result of many people running around with their “hair on fire”.
The reason I say this was a fortunate event for a generation of young professionals is that
it dispelled the myth, literally, of overnight success, of rudeness being viewed as a
desirable trait, of thinking that everyone else is expendable, and my favorite, the tech
boom’s definition of relationship management, which was “What is the least I can do in
order to get you to buy more from me?” Further, in the intervening years, I think we all
have learned an important lesson about knowledge in general, and the knowledge-based
economy in specific, which is best summed up by this question posed by T.S. Eliot many
years ago, “Where is the wisdom that is lost in knowledge?”
Let’s take a look at a couple of definitions that I think will help explain my point. The
American Heritage Dictionary offers the following:
Knowledge: “The state or fact of knowing.”
Wisdom: “The ability to discern or judge what is true, right, or lasting; insight.”
And that brings us to today, The Wisdom-based Economy. Yes, knowledge is an
important part of the Wisdom-based Economy, but only a part of it. In today’s world of
business it’s not what you know. It’s how well you can use what you know that matters.
We all have access to knowledge. The future, however, belongs to those who cultivate
the wisdom of how to use that knowledge in the proper context. It belongs to those who
understand that sometimes it’s more important how or when something is done than what
is done. It belongs to those who take the time to fully understand the needs of others
before formulating solutions or displaying their brilliance. The Wisdom-based Economy
is fueled more by active listening than talking. It is more inclusive in its search for
solutions because sustainability, insight, context and common sense are the key words in
the Wisdom-based Economy, not grabbing eyeballs, Internet speed, and elevator
speeches.
Simply put, this economy is based on the useful application of knowledge, and it offers
just as much opportunity in Central Europe as it does in any other part of the world.
Good luck on your way up!