Monthly Archives: May 2019

The mechanism of spreading knowledge analogous to Adam Smith’s wealth creation

Today’s mechanism of spreading knowledge is analogous to the mechanism of wealth creation of Adam Smith. To document it, below we briefly examine the mechanism of each of the two separately and then compare their most salient features, though we admit that our treatment of the claim provides food for thought and is by far not exhaustive.

The mechanism of spreading knowledge

The drive for the accomplishment of the self makes us want to disseminate freely our knowledge and our best works in pursuit of the others’ direct or indirect approval. Manifestations of such approvals or recognitions come by comments of appreciation, positive reviews or likes which serve to feed the sought-after enhancement of self.

Adam Smith’s mechanism of spreading economic prosperity

Adam Smith in his classic book “The Wealth of Nations” says that it is the rational self-interest which through trade and gain leads to the spread of economic prosperity. Individuals trade by exhibiting their products for others to see their value and endorse them thus contributing to the seller’s wealth which was then the sought-after enhancement of self.

The recognition of value in the days of Adam Smith was done by selecting and buying whereas in our days the recognition of the knowledge value is indicated by acceptance through likes and comments.

Some of the prominent points of the analogy are summarized in the table below


Self-interest forGain and
Self-interest forAccomplishment and

Attention-attracting method
Exhibiting and trade
Offering to public view via internet, exhibitions, concerts etc.

Value recognition through
Money payment
Attending or Reading:
Likes, appreciation, applause

Many people nowadays across all the spectrum of life, artists, writers, scientists share their work freely, without thought of charging for it, simply seeking a [...]

Be innovative to turn a Miscalculation into Something Better than Expected

I was hanging in my office a painting, the art of my 10-year-old grand-daughter which she painted in her 2nd class of the elementary school, and after I drilled the hole and hanged the painting on the wall, I saw that it was too high.

To drill another hole below and cover the already drilled hole? To forget it all and pretend that all was good? None a perfect answer!

Then I came up with new thinking. To hang another smaller painting below the one considered high.

The space fitted the smaller painting very well and the couple of them looked extremely nice, much better than a perfectly positioned single first painting could look.

The lesson from the story equally applies to business situations that result from our decisions.

Sometimes after the execution of an idea or a plan, we are faced with the realization that the achieved new state is much less than what was desired. Even worse is the realization that to change it, it would not be possible without leaving its scars badly exposed.

The answer for such unwelcome situations is, instead of attempting to change it, to think innovative how by adding to it, adding some new features, you will achieve correctness and even create a new state better than what was originally aimed at.


About the author: Panikos Sardos is the Managing Director of P&E Sardos Business Solutions Int., a management consulting firm that offers advisory services, coaching and training and can be reached by email: or telephone: +357 99640912, +357 24400884,

Culture: Simplicity matters

Culture is said to be hard to implement because it relates to the human factor and to the need for people to link with one another and cooperate for a common cause.

To win through this implementation challenge, culture should be kept simple in its concepts and wordings as to be given more clarity. More clarity, in its turn, will make it more understandable and easier to communicate and will lead to greater consistency under the various business circumstances.

To show that simplicity is possible when dealing with culture, we provide here below simple, short answers to some critical issues about culture.

When do we need to bring in a new culture?

Two distinguishable cases:

a)      When a successful organization finds itself stumbling and is no more successful (What got it here won’t get it there)

b)      When a struggling organization finds itself in a state of disarray and when the individualism of its members trumps organizational cohesion

What is culture?

Beyond its ordinary definition, we can see culture as a cohesion force that substitutes for a lot of rules and bureaucracy.

How is culture related to strategy?

Culture, the people’s mindset, should align with strategy i.e. a change of strategy necessitates a change in culture.

Where should a change of culture start?

Culture emanates from the top. The CEO and top leaders have an important role not only in crafting the desired culture but also in serving as role models for its implementation.

How long does it take to embed a new culture?

Culture is a long-term endeavor and for success, it should trickle down from the top and involve through practical measures everyone in the organization.

Culture is not about long drafted manifestations but about the way we do things that are shaped by our beliefs and [...]