"ADI IGNATIUS: Yeah, exactly. I think successful leaders need to think on multiple levels, both to cope with the complexity of their jobs and to outthink their competition. So our guest today, Steven Pinker, is all about the power of knowledge. Understanding what we know, what we don't know, and most importantly, whether or not others know what we know. So I know that sounds very Donald Rumsfeldian, but there is power in understanding all of this."
"ADI IGNATIUS: Absolutely. So Pinker is a professor of psychology at Harvard University, author of the new book, When Everyone Knows That Everyone Knows: Common Knowledge and the Mysteries of Money, Power, and Everyday Life. It's a book that helps explain everything from the power of Super Bowl ads to the rise of cryptocurrency, to the unspoken rules of how we interact in the office. Here's our conversation."
Leadership effectiveness depends heavily on psychology, requiring anticipation of stakeholders' desires and mental states. Common knowledge is the shared understanding of who knows what and whether others know that knowledge, which amplifies coordination, signaling, and power. Recognizing not only facts but others' awareness of those facts changes outcomes in markets, politics, and organizations. Common knowledge explains the outsized effects of coordinated signals like Super Bowl ads, the social dynamics behind cryptocurrency adoption, and unspoken office rules. Leaders who think on multiple levels—about facts, beliefs, and beliefs about beliefs—can better manage complexity and influence collective behavior.
Read at Harvard Business Review
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