Organizational Intelligence: A Systems Perspective

Organization Development Journal, Summer 2004 by Stalinski, Sherryl

Abstract

This paper explores the theory of Organizational Intelligence (OI) as recently proposed by Albrecht (2003), and expands the concept to a more systemic concept of cultural intelligence as an emergent property, and thus indefinable or measurable as merely a sum of individual intelligence of a group's membership. Such an understanding is proposed as useful and relevant in understanding the evolutionary capacity of culture, and for helping organizations and OD professionals evaluate the long-term systemic viability of the organization.

Many organizational consultants use the concept of groupthink to warn work teams and business leaders about the dangers of collective thinking or mob mentality. However, the potential for organizational cultures to understand and utilize both conscious and unconscious aspects of their collective mind and intelligence for positive benefit seems to be a new theory with much to offer.

Albrecht (2003) proposes, "Organizational Intelligence is the capacity of an organization to mobilize all of its brain power, and focus that brain power on achieving the mission" (p. 15). Albrecht describes this capacity as "intelligence writ large," essentially, the collective sum of individual intelligence within an organization. He additionally proposes that like individual minds, the organizational mind has both conscious and unconscious aspects (chapter 1) that influence organizational behavior and effectiveness.

His model of Organizational Intelligence (OI) integrates learning that takes place at both the conscious and unconscious levels. Citing the work of Howard Gardner, he suggests that organizations, like individuals, have multiple intelligences or dimensions of competence and that OI can be seen as "a useful envelope for thinking about organizational effectiveness, and in particular how to help organizations evolve toward their full potential" (p. 43).

This paper seeks to explore and clarify some foundational conceptual understandings implied in Albrecht's latest work, plus expand his propositions to a more systemic understanding of learning and intelligence as a potential emergent property of cultural systems. This capacity can enable human systems to consciously catalyze and guide their own evolution.

Specifically, understanding the nature of organizational culture and OI can enable leadership and organizational development professionals to assess the ability of an organization to maintain itself and even evolve within its containing environments, and more effectively design and implement organizational interventions toward those objectives.

Before proposing a more systemic model of OI as proposed by Albrecht, meaningful exploration about the nature of organizational culture, conceptual understanding of intelligence as a capacity, and the impact of both on the long-term viability of organizational systems is necessary.

Defining Intelligence at the Individual and Organizational Level

Cyberneticians have closely studied successful self-regulating organisms as systems capable of learning in order to efficiently remain stable and grow. Morgan (1998) describes that

To self-regulate, learning systems must be able to

1. Sense, monitor and scan significant aspects of their environment,

2. Relate this information to the operating norms that guide system behavior

3. Detect significant deviations from these norms, and

4. Initiate corrective action when discrepancies are detected.

If these four conditions are satisfied, a continuous process of information exchange is created between a system and its environment, allowing the system to monitor changes and initiate appropriate responses. In this way, the system can operate in an intelligent, self-regulating manner. (Morgan, 1998, pp. 77-78)

The most complex and evolved open systems (such as humans and their social systems) have added to this capacity the ability to question the value of their learning itself. Humans uniquely possess the ability of questioning the value of our values (Banathy, 1996; Laszlo, 1996; Morgan; 1998).

Additionally, we have the ability to question the operating norms and our ways of doing and being, which are based on those values. The additional process of questioning whether operating norms are appropriate is a critical ingredient of successful, sustainable learning, resulting in continued growth and increased sustainability.

Failure to consciously engage in continual double-loop learning not only affects our organizations' and communities' ability to grow and transform, it could potentially affect our ability to even maintain their stability and viability.

Intelligence is any system's ability to engage in information transfer with its internal and external environments in order to maintain stability, adapt, and grow. That information exchange can happen in many ways, supporting the perspective that a variety of intelligences-reason, emotion, perceptive (or physical) and intuitive-all hold validity. It is likewise reasonable to propose that, as integrated, various multiple intelligences create a synergetic intelligence that cannot be measured by combining the sum of any of the various intelligences. As complex, open systems, cultures are cybernetic systems (can be intelligent as an entity) and do possess a unique mind or collective personality (an emergent property) that is a reflection of-but more than-the individuals who make up that culture.