The Orgtology Blog
Theory 2I - Understanding Orgtelligence
Orgtelligence is the sum of the systems intelligence and human intellect within Org. This means that organisations have two types of intelligence. The first is implied. This is an algorithm - a set of rules that drives activity, which delivers a predictable output. For humans, breathing is an example. For Org, the flow of work is one. The second is tacit intellect. This is abstract thought - ideas and plans that do not have an obvious result. Abstract thought is not bound by a current reality. Vision, strategy, creativity, and spirituality are good examples. Dissimilar to implied intelligence, tacit intellect creates the outcomes of Org. Thus, orgtelligence is the sum of the implied and tacit intelligence within an organisation.
In 1971 Cattell, a psychologist, suggested two forms of intelligence. Today, the idea of fluid and crystallised intelligence is widely held. Fluid intelligence is an ability to solve new problems and to predict a future. This is tacit intellect. Its dual partner is crystallized intelligence. Like implied intelligence, it drives our repetitive processes. Jointly they create a powerful force.
The Basic Assumption behind Theory 2I of Orgtelligence
If intelligence holds something implied and something tacit, then Org must have both to be intelligent. The one creates algorithm, which is systems intelligence. The other gives abstract thought, which derives from human intellect. Org will need both to survive.
In Theory 2I, the "2I" means two types of intelligence. Jointly, the abstract thinking and systems intelligence within Org creates its orgtelligence. Implied intelligence drives performance, whilst tacit intellect ensures relevance.
Performance is the result of the systems intelligence and operational efficiency that Org can hold. Relevance is the sum of human intellect and strategic effectiveness that Org can ignite. To ensure performance and secure relevance, Org will need strong orgtelligence.
Explaining Implied Intelligence
This is the intelligence within a process. Therefore, it is the DNA of a system. Any process owns its own intelligence. I often tell executives; "if it is not implied, then you don't own it".
Without implied intelligence, a process will not cycle. I once saw a documentary on snakes. It showed how a black mamba laid her eggs. She then left with no intent to return. When the baby snakes hatched, they all knew exactly what to do, eat, and avoid. They knew this instantly. They did so without going to snake school. That is the power of implied intelligence.
Often, a team of people collectively hold such intelligence. E.g., a team of physicians, who do a caesarean delivery. Yet, people are not always the keepers of implied intelligence. Mother nature runs on processes, which works perfectly well without people. The DNA of any known specie hold the intelligence that it needs to survive. It is the same with Org. It owns the intelligence within its process construct. The intellect of people will come and go as their owners do.
Explaining Tacit Intellect
Then there is the abstract, unpredictable, and irrational thinking of humans. This is something people mostly fight against. Ironically, it is the only thing that systems cannot replicate. In that, a perfect mind will make you a robot. Think about this for a while. To create vision or be creative is not normal. There is no other species that can act beyond its implied purpose. It seems that our imperfection might be our greatest asset. It is what any system will lust for – if only it could be lustful.
Unlike implied intelligence, tacit intellect is unique to a person. It is the experience and knowledge that only you have. We often call someone who has developed his or her tacit intellect, a guru. If we use tacit intellect well, others will see us as wise.
The Problem of Explicit Intelligence
It is in the interest of Org to imply tacit intellect within a process. It is the only way to own it. In other words, we must take what is in the head of a person and put it into a process. If not done, the intelligence will stay in the head of a person. This is easier said than done. Before we can imply tacit intellect, we must make it explicit. This means that we must explain it, record it, and then transfer it. In this process, we must define the knowledge and experience of a person in such a way that others can grasp it. Then we must code it into the flow of a process. Thus, explicit intelligence is something we can explain.
The snag in this, is that most experts are unable to explain how they do things. E.g. a world golf champion would mostly not be able to explicitly define how he hits a hole in one. An Oscar winning actor would, for the most part, not be able to explain how she does what she does in front of a camera. Can a Nobel prize mathematician explain how to get the creative idea behind the math?
Renowned psychology professor, Csikszentmihalyi, spent his life on understanding this. His research shows that when experts perform, they enter a state of flow. During his research, he interviewed many distinguished experts. He found that very few could explain the specifics of what they do. If you had to ask Tiger Woods how he hits a hole in one, he would say "I give 110%", "I completely focus", etc. He would not be able to give the speed at which he hits the ball or the precise angle in degrees. Neither would he be able to explain the fluctuation of his eye movement form impact to target, etc. Explaining what you know is hard. However, his research shows that experts all have similar characteristics. Their work completely absorbs them. When engaged, most of them disregard things such as hunger, thirst, or sleep, etc.
The Flow of Intelligence
When we make knowledge and experience explicit, we can automate and replicate it. The flow chart below shows the flow of intelligence.
Creating Feedback Loops
Systems intelligence will drive performance and efficiency. Human intellect will keep Org relevant and effective. Tacit intellect does not play a key role in process efficiency. But you will need it, where you must manage a crisis or act outside the normal process flow.
A common thing with strong organisations, is superior orgtelligence. We must not confuse this with having smart employees. It is not enough to recruit and train competent people. During 2500BC, Org manifested in agriculture. At that time, systems controlled less than 1% of orgtelligence. During the first industrial revolution, systems began to control about 40% of orgtelligence. This was due to steam power, conveyer belts, etc. These numbers are based on an average across industries. Currently, in the fourth industrial revolution, systems control 60% or more of orgtelligence. To evolve from a 1% to a 40% contribution took +-4300-years. To move from 40% to 60% took about 220 years. Systems intelligence is evolving at high velocity. In terms of intelligence, we might overestimate the human role. In so, we might underestimate the intelligence of systems.
Superior orgtelligence happens when humans and systems collaborate to the advantage of Org. To do so, we must create feedback loops. This is like a plant that adapts to its environment. It finds underground, which it cannot find above. Constant feedback makes plants the most likely lifeform to survive a catastrophe. In Org we must create feedback loops to help us to perform and stay relevant.
The flow chart below shows a basic orgtelligence feedback system. It begins in activity. This could be humans doing things, systems calculating things, decisions being made, etc. When we organise activity within time and space, we create outputs that has an effect. That is the essence of organisation.
To grasp the effect of our outputs we must analyse four things. They are human dynamics, risk exposure, opportunities, and process efficiency. This will help us to know whether we have a problem or an opportunity.
If there is an internal problem or opportunity we must create, fix, or end a process. The aim here is always to increase efficiency. This will ensure performance.
Where there is an external problem or opportunity, we must transform or mitigate risk. The aim here is always effectiveness. This will secure relevance.
To stay relevant Org must stay clear of a "worst case" scenario and get close to a "best case" scenario. To be ready for an "outside" world, the "inside" world must run with mechanical precision. That is the crux of orgtelligence.
Their Duality
The duality of orgtelligence is hard to explain, since on face value, one can exist without the other. Yet, evolution needs mutation. For life to go on, there must be deviation from the process. That is why systems need humans. We make mistakes and argue through irrational self-interest. We give mutation to efficiency. This is how Org evolves.
Organisations compete through innovation and perception. A perfect system cannot be irrational, unpredictable, and abstract. In so, it cannot compete because it cannot be different. Org needs abstract thought for vision, creativity, strategy, and spirituality. On the flipside, tacit intellect is not enough to run Org. This is because consistent performance will need an algorithm. So, one needs the other.
Hypothesis 2x poses an inverse duality. On face value, an increase of tacit intellect will not decrease implied intelligence, and vice versa. Yet, it is quite clear that as systems intelligence evolve, we need fewer human minds. It is also common knowledge that humans who can think in the abstract, earn much more than those who do routine work. For humans, their ability to keep Org relevant will pay more than their ability to perform. An entity that repeats yesterday is replaceable. Thus, there is evidence that increase in one will create decrease in the other.
Conclusion
The human body has evolved to be one of the most advanced biological life forms. We do not use our arms and hands to move, which avails them for exploration. We can eat anything edible, which makes refuelling simple. Our bodies can adapt to a variety of temperatures. Most significantly are our senses. All five of them gears to experience an outside world. No person can experience their internal mechanics through using their senses. You cannot see, hear, taste, smell, or touch your heart or lungs. It might be possible to do so with the aid of external systems, which shows that you have not evolved to do so. Our senses have evolved to experience and respond to an external world.
Org should learn from this. Its processes should run with automated precision. In so, systems intelligence will free human minds to solve problems, create vision, and devise strategy. The role of humans is to keep Org relevant within a constant changing environment.
Orgtelligence will make it possible for human minds and systems intelligence to create a formidable force. This will induce powerful organisations, without which, we will return to primitive beings.
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© 2019-09-25: CFT Hendrikz
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