What types of knowledge does the modern manager need?
In our view, “knowledge” is not the right word – “understanding” is better. An intelligent person knows, but a wise person understands. A knowledgeable manager knows how to solve problems, while the wise manager knows how to avoid them. In situations of intensive change, classic knowledge is not the most important factor as we are often exposed to new and unfamiliar dangers. Of much greater importance is what kind of person the manager is, whether they inspire respect and trust in their subordinates and whether they foster a positive culture in the organisation that can prevent or mitigate potential problems. That can turn threats into profitable opportunities.
An excellent manager is, first and foremost, one who is able to motivate those who know. The manager need not (and cannot) know everything. The manager must know how to motivate his or her people to acquire the necessary knowledge and apply it to real-world problems, as well as to learn from one another.