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The Power of Front-Line–Driven Improvement

More than seventy years ago, the Nobel-prize–winning economist Friedrich Hayek provided insight into the unique nature of front-line knowledge. In his essay “The Use of Knowledge in Society,” Hayek identified two kinds of knowledge: aggregate knowledge, and knowledge where the particular circumstances of time and place are important. Upper management generally has aggregate knowledge, gained from high-level data and performance information derived by quantifying, simplifying, and combining the results of the activities taking place across an organization. Such knowledge provides a picture of the organization’s overall performance and is necessary for spotting high-level trends, making good strategic ...

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