A little girl came home from her first day in school and proudly exclaimed, “Mom, I was the brightest one in my class today!”

“That’s great, Janie,” her mother said, “but tell me how it happened.”            

“Well,” Janie replied, “the teacher told each one of us to draw a picture on the blackboard, and then the others were to guess what the picture was. Mine was the only one no one could guess – but I knew exactly what it was all the time.”

Ah, the confidence of youth. But adults know that knowledge works best when it is shared.

The world’s store of knowledge is growing at an ever-increasing rate of speed, partly because more people are working to find more answers than ever before and partly because we have better means for learning than ever before, such as the internet.

Knowledge is considered to be such a valuable asset in today’s society that its importance in creating a future has been summed up in the long-time motto of the United Negro College Fund: “A mind is a terrible thing to waste.”

Knowledge is absolutely critical in business, especially when it comes to decision-making and innovation. In my experience, having a deep well of knowledge allows business leaders to make informed decisions that can steer their companies towards success and away from potential pitfalls.

American statesman Benjamin Franklin said, “An investment in knowledge always pays the best interest.”

When it comes to decision making, knowledge about the market, competitors and internal operations helps leaders assess risks accurately and make decisions that mitigate potential negative impacts. Understanding industry trends and consumer behavior allows for the development of strategic plans that are forward-thinking and adaptable.

Knowing where to invest in terms of time, money and human resources can make or break a business. Knowledge helps prioritize these investments for maximum benefit.

In innovation, identifying opportunities is crucial. A thorough understanding of the market can reveal gaps and opportunities for innovation that can set a business apart. Knowledge of the latest technologies and customer preferences is crucial for developing new products or services that meet and exceed expectations.

Always keep a close eye on your competitors. What are they doing well? Where are they falling short? Use this information to find your competitive edge. Conduct thorough research to understand market demands, customer needs and preferences. This can include surveys, focus groups and analysis of consumer data.

Use customer insights to tailor your products or services to better meet the needs of your target audience. Align your marketing strategies with the preferences and behaviors of your customers. Personalize your communications and offers.

In a rapidly changing world, businesses must adapt to survive. Knowledge about emerging trends and technologies enables a business to pivot quickly and stay relevant.

In every aspect of business, from the way we interact with customers to the way we manage our teams, knowledge is the foundation upon which we build success. It is not just about having information; it is about having the right information and knowing how to use it effectively.

American businessman Warren Buffett said, “The best investment you can make is an investment in yourself … The more you learn, the more you’ll earn.”

In my own career, I have seen the power of knowledge firsthand. By staying informed and continuously learning, I have been able to make strategic decisions that have kept my businesses agile and competitive. Knowledge has also been the key to fostering a culture of innovation, where new ideas are encouraged and nurtured.

In the world of business, knowledge isn’t just power – it is profit, progress and the pathway to innovation.

A history class was studying the Revolutionary battle of Saratoga, which was probably lost because General William Howe chose to remain in Philadelphia. The teacher then asked the class to explain this major British defeat.

“Lack of no Howe,” answered a voice in the back of the room.

Don’t get caught in that same trap. If you have the “know-how” that will matter, go to where the action is. Sharing your knowledge with those around you makes everyone smarter. Be humble and remember the words of comedian Bill Murray: “Knowledge is like underwear. It is useful to have it, but not necessary to show it off.”

Because no one likes a smarty-pants.

Mackay’s Moral: Knowledge is the rocket fuel for business growth, but only if you ignite it with action.