With the stagnation of real wages and job security has become for many workers in the U.S., the American dream to improve the lives of each generation is in danger. The author argues that while many companies are trying to be competitive in the first place by reducing costs, such as labor, there is another option. A considerable amount of research shows that companies that invest in their work force to build a knowledge-based organizations can achieve a return on their investment through increased productivity and profitability. Gives the example of Continental Airlines Inc, which after a period of Frank Lorenzo, which was marked by wage cuts and bankruptcy experience increased productivity and reputation under the leadership of a new team with a collaborative approach to management. Company Southwest Airlines and JetBlue Airways Corporation as examples of airlines that hold a high level of trust, knowledge-based strategy, while Toyota Motor Corp. and Kaiser Permanente examples from other industries. Leaders interested in creating a knowledge-based organizations can create momentum for their initiatives in several ways: carefully documenting the benefits of the knowledge-based strategies by encouraging employee representation in corporate governance issues, and by working with other leaders to approach the problems that no single company can solve alone. "Hide
by Thomas Kochan Source: MIT Sloan Management Review 5 pages. Publication Date: July 13, 2006. Prod. #: SMR209-PDF-ENG
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