What is "management"?

 

Professor Emeritus Ikujiro Nonaka of Hitotsubashi University passed away in January 2025. We offer our deepest condolences.

 

It's surprisingly difficult to become aware of the "common sense" that binds us. But consider this:

For instance, what if everyone—from management to frontline members—participates in distilling everyone's ideals into a "purpose," then tries to move the organization using wording that leaves no room for anyone to object?

For instance, suppose you're developing a groundbreaking new venture to create a market, yet at the project's outset, you organize work steps like "Research & Analysis → Issue Identification → Confirm Solution Direction → Implementation" or "Observation → Ideation → Trial → Verification → Implementation," and then schedule accordingly.

You are likely unknowingly bound by the "common sense" that "management is a science."

If asked what management is, I would answer without hesitation: 'a way of life'. (...) The collective narrative of that 'way of life' is 'Humanizing Strategy' – distinct from analytical strategy derived solely from objective logic.

Beginning with this declaration, " Binary Dynamics Management: Creating Collective Wisdom for the Common Good " (by Ikujiro Nonaka, Mikiharu Noma, and Yumiko Kawada, Nikkei Publishing) is a formidable book. It reveals the limitations of the prevailing "common sense" that "management is a science," dominating the global business world, and elucidates how organizations should escape this spell to continuously foster innovation.

Naturally, opinions will be divided, and it should spark intense debate, even drawing in the business world itself.

However, judging by reactions to their previous works, how many people remain blissfully unaware of their own constraints within this "scientific management" mindset, casually remarking things like, "It was easy to understand because there were so many examples," or "SECI(*) is a classic model, I know it well. It brings back memories."

※ For details on the SECI model,see here ("The Father of the Cycle: SECI")

 

The core theme of this book, "binary dynamics," posits that within the contradictory situations we face daily, merely making easy choices between opposing binaries won't open new paths. Only by confronting the inherent contradictions head-on can we generate new value. Applying this to the "purpose" example from the beginning: a "purpose" that garners unanimous approval without any internal conflict lacks the power to drive an organization forward.

Similarly, "new value" emerges from the earnest struggle "here and now" to overcome binary opposition. Therefore, it is incompatible with time management approaches like "You can do it in three weeks" or "Get it done in two months." (I'm sure you all know from experience that you can't manage the "idea" itself with time limits.)

Furthermore, from the perspective that "management is human endeavor itself, a 'way of life,'" I also take a critical view of the currently popular "human capital management."

While human capital disclosure is limited to measurable quantitative information, can we truly capture the existence, activities, and way of life of the "people" who become investment targets solely through numerical indicators? The question raised is whether an excessive pursuit of rationality creates a model that discards human essence, leading to a divergence between theory (predictions) and reality (results).

To be clear, the author does not dismiss "science (objectivity)" outright. However, he believes that the emergence of new meanings and values—the seeds of innovation—does not begin with science or theory. Instead, it always starts with first-person subjectivity, passes through second-person empathy, and only then gives birth to "new science (objectivity)." This "human-centered" management, with SECI at its core, encompasses both science and art.

Recently, while speaking with a young management scholar, they remarked, "In today's academic circles, only work involving quantitative verification is recognized as achievement. Frankly, Nakanishi's theory, which deals with subjective elements and is difficult to quantify, is hard to engage with." Can we truly reach the "essence of management" this way?

Now more than ever, everyone involved in business should approach the question of what "management" truly is with an open mind.

When I received a recommendation for my book's dust jacket years ago, the professor kindly said, "Let's grab a drink sometime." I was too intimidated to ever take him up on it.

Human-centered management is the true path to bringing creativity to business. Though my efforts may be small, I will continue to practice this approach.

Cheers.

For more details on "Indwelling Creators," a project by Takao Yamada, click the logo.