2. What is Organizational Intelligence?
One perspective on Present-day notions of
„Organizational „organizational
Intelligence‟ is that it intelligence‟ bring
measures the ability of together ideas from
the organization to knowledge
manage complexity and management, decision
be self-aware. sciences, Operational
Research and
Cybernetics, including
Twitter tag #orgintelligence
the Viable System Model.
3. Background
We have been researching One of the key design
the socio-technical enablers requirements is to build in a
for effective feedback, set of feedback loops at
collaboration and different tempi (time based
intelligence, with practical and at different
examples from large organizational levels) to
organisations. support goal-directed
behaviour and rich
organizational learning.
4. Example: Microsoft
“Perhaps you have already
“Exponential seen memos from me or
improvements in others here about the
communications importance of the Internet.
networks … the I have gone through several
Internet is at the stages of increasing my view
forefront of this” of its importance.”
Bill Gates “Tidal Wave” May 1995
“Now I assign the Internet the
highest level of importance.”
5. Microsoft Example
Key Points General Implications
Review of history Any large organization
Weak signals becoming faces a huge number of
stronger challenges, both large and
Gradual shift of opinion small.
Pivotal shift in direction Success of organization
depends on achieving a
Evolving strategies good enough response to
Collective responsibility a good number of these.
6. Session Objectives
Detect and evaluate the UK Health Service
systematic and dynamic Whole organization
feedback loops in some Commissioning process
notorious organizations and
A political party of your choice
ecosystems, based on their
Whole organization
apparent behaviour and
outcomes, Campaigning
Draw some conclusions Policy-making
about their organizational BBC, Roman Catholic Church
intelligence, both current Whole organization
and potential.
7. Symptoms
Does the organization ignore changes in customer Are important decisions delayed and deferred, and do
behaviour or the external environment? Has the important issues remain unresolved? Do conflicting
organization failed to “join the dots” or anticipate views result in stalemate?
new customer requirements? Has this resulted in Does the organization experience inconsistency or
missed opportunities? instability in plans and decisions, processes and
Does the organization ignore complaints and practices? Are things constantly being altered or
concerns from field operations or junior staff (e.g. tinkered with?
those in customer-facing roles)? Is there an Does the organization repeat the same mistakes, over
expectation that important ideas and insights will and over? Do you miss opportunities to learn from
come mainly from those in senior or specialist roles? experience?
Does the organization experience high levels of Does management go around in circles, alternating
information overload? Is the organization struggling between equally unsatisfactory states?
to make sense of what is going on?
Is it hard to work out the effect of management
Are new ideas rejected quickly without proper decisions, because of a lack of relevant data (such as
consideration? Do people self-censor innovative historic performance metrics and benchmarks)?
ideas?
Do people hesitate to share knowledge and know-
Are important decisions taken too quickly, without how?
enough information? Do people self-censor critical
questions and concerns because of time pressure?
8. Important note …
One strategic success But if a strategic error can
doesn‟t show intelligence, be traced to some
and one strategic failure fragmentation or
doesn‟t show stupidity. incoherence or imbalance
or wilful blindness or
And one strategic error some other systemic flaw
doesn‟t show that a in the decision-making
formerly intelligent process, then we may
organization has become regard this as evidence of
unintelligent. stupidity.
9. Six Capabilities
Sense-Making
Information Decision
Gathering & Policy
WIGO
(what is going on)
Knowledge Learning
& Memory & Development
Communication & Collaboration
10. Perception and Monitoring
What kinds of signal does the To what extent is broad information
organization pay attention to? What gathering and intelligence seen as
kinds of signal is the organization liable meaningful and useful?
to miss?
How would you rate the breadth and
How would you rate the speed of diversity of sources and channels?
detection and response to emerging
events?
How would you rate the methods used
for fact-finding? How reliable are these
methods? How many false signals? How
many missed signals?
11. Sense-Making
What kinds of visions, models and Is sense-making (exploratory modeling)
stories are generally used to make sense valued as an activity in its own right, or
of what-is-going-on, or to interpret is it viewed with impatience?
customer needs?
What helps people believe and accept
How are changes to models and stories some visions, stories and models rather
triggered? than others? Are traditional explanations
trusted more than novel explanations?
Are there agreed principles (doctrine) or
implicit assumptions (culture) governing
the development and use of models and
stories?
12. Decision-Making
How sophisticated is decision-making How does politics affect the quality of
and problem-solving? Scope, range and decision-making? What is the decision-
complexity of decisions making ethos – e.g. rationality versus
intuition?
How quickly or slowly are decisions
made? What pushes the organization to
reach a decision? Are decisions clear and transparent? Do
decision-making structures provide clear
Does argument continue after the responsibility and accountability?
decision is reached? Once something is
decided, how easy is it to reopen the
decision when new information or ideas
emerge?
13. Knowledge
What kinds of knowledge does the What kinds of knowledge are seen as
organization capture and share? strategically valuable to the
organization? Do knowledge practices
focus on the most valuable areas of
Where does this knowledge come from? knowledge?
What are the flows of knowledge into
and within the organization? How does
old knowledge get replaced with new How is organizational knowledge
knowledge? Is there an awareness of the verified, validated, tested and
“shelf-life” of knowledge? maintained?
How are knowledge flows controlled
and exploited? Do these controls benefit
individuals (e.g. gatekeepers) or the
organization as a whole?
14. Learning and Development
What kinds of innovation is the How does the organization demonstrate
organization good at? What kinds of the value it places on learning and
innovation does the organization need development? How does the
to improve at? organization balance risk and reward
(individual and collective)?
What triggers organizational learning?
What is the relationship between
organizational learning and trust?
Does the organization have a fixed
learning style? Does the organization
inhibit certain kinds of innovation?
15. Communication and Collaboration
What do people talk about? How do Is open debate and discussion valued
new ideas get passed around? How are and appreciated?
people generally expected to respond to
information and ideas? How do people
actually respond? Is communication of knowledge and
intelligence driven by a doctrine of
secrecy (“need to know”) or openness?
What drives communication? Is there a
preference for “push” or “pull”?
Do the prevailing styles of
communication encourage or inhibit
vigorous discussion and challenge?
16. Assessment Approach
Simple Realistic
Does the organization For each capability, find
possess this capability? examples of strength and
weakness
How strong is this capability
in this organization … Identify and explain pockets
of high or low
organizational intelligence.
… and with what outcomes?
17. Questions to discuss …
How do we combine an What kinds of system
analytic approach does this analysis apply to?
(assessing the components Health Service as
of org intelligence) with disorganized system-of-
an holistic approach? systems
Political organizations as
What is the contribution
subsystems of larger
of the leader to the political ecosystems
intelligence of the
enterprise-as-system?
Terry Leahy at Tesco
Bob Diamond at Barclays
18. … and more
Future Events Other Material and Links
One-Day Workshop
November 22nd (Unicom) OrgIntelligence
.BlogSpot.com
The collective intelligence of an organization can be improved by appropriate technologies used in appropriate ways to tackle the inherent complexity of modern business in a dynamic environment. These technologies include business intelligence, event processing, knowledge management, process improvement and social networking. Most large organizations use these technologies, but fail to join them together or use them effectively, so there is a huge missed opportunity here for IT. Ultimately, the value that IT can bring to business is not just from automating clerical tasks and enabling large-scale global operational processes, but from enabling and supporting management processes such as coordination and innovation. Organizational intelligence is a critical measure of the management capacity of an organization in a demanding competitive environment, and IT has a key role in improving organizational intelligence. This talk will provide a roadmap for IT to make a strong contribution to business viability and survival.
The collective intelligence of an organization can be improved by appropriate technologies used in appropriate ways to tackle the inherent complexity of modern business in a dynamic environment. These technologies include business intelligence, event processing, knowledge management, process improvement and social networking. Most large organizations use these technologies, but fail to join them together or use them effectively, so there is a huge missed opportunity here for IT. Ultimately, the value that IT can bring to business is not just from automating clerical tasks and enabling large-scale global operational processes, but from enabling and supporting management processes such as coordination and innovation. Organizational intelligence is a critical measure of the management capacity of an organization in a demanding competitive environment, and IT has a key role in improving organizational intelligence. This talk will provide a roadmap for IT to make a strong contribution to business viability and survival.