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tl;wr · OrgNot Organisational Intelligence

too long;won’t read

A short description of the nine building blocks of organisational intelligence.

1. Organisational Stress Management

The most relevant source of stress in an organisation is uncertainty. The antidote is voluntary goals and articulated personal narratives.

3. Personnel selection and placement

Cognitive ability predicts up to 20% of future job performance. Personality predicts up to 12% of future job performance. We cannot account for the remaining 68%. Selection and placement should be based on these facts.

5. Safe innovation

Innovation is a knowledge-driven process that uses creative destruction to produce original value.

Knowledge + Process + Communication = Innovation

7. Reward management

Everyone is motivated by rewards. Employees should be rewarded based on their marginal contribution to the organisation. Each person has a unique hierarchy of value, managers should take this into account when designing compensation packages.

2. Complex Adaptive Systems

An organisation is a system of nested systems existing within still larger nested systems. To make good long-term decisions, managers need to understand the laws that govern complex adaptive systems.

4. Building a learning organisation

We learn best by acting, reflecting on our actions, making adjustments, then acting again. Effective learning organisations support this action learning loop.

6. Leader development

The currency of leadership is trust. Effective leaders spend that coin on developing their team’s ability to achieve┬ávaluable objectives.

8. Social performance

Organisations should have a net positive effect on society. Strong social performance reduces legislative risk and increases goodwill. Organisations are responsible for identifying and minimising negative externalities.

9. Applied Game Theory

Organisations and individuals should not be making decisions based on the assumption they operate in a limited, zero-sum, competitive environment. Instead, decisions should be based the reality of our unlimited, positive-sum, co-operative environment. This strategy maximises value for all good faith participants.