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Published by: Harvard Business Publishing
Published in: "Harvard Business Review - OnPoint", 2003

Abstract

This is an enhanced edition of the HBR article R0301K, originally published in January 2003. HBR OnPoint Articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, absorb, and share the management insights with others. 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.

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Abstract

This is an enhanced edition of the HBR article R0301K, originally published in January 2003. HBR OnPoint Articles save you time by enhancing an original Harvard Business Review article with an overview that draws out the main points and an annotated bibliography that points you to related resources. This enables you to scan, absorb, and share the management insights with others. 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.

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