Organizing Around Intelligence: The New Paradigm (2nd ed)

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ORGAN11 ING AROUND INTELLIGENCE Second Edition

The New Paradigm

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Published by World Scientific Publishing Co. Pte. Ltd. 5 Toh Tuck Link, Singapore 596224 USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601 UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE

British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library.

ORGANIZING AROUND INTELLIGENCE (2nd Edition) The New Paradigm Copyright © 2009 by World Scientific Publishing Co. Pte. Ltd. All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the Publisher.

For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy is not required from the publisher.

ISBN-13 978-981-4273-99-2 ISBN-10 981-4273-99-6

Typeset by Stallion Press Email: [email protected]

Printed in Singapore.

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Dedicated to Char Hoon Zhen Ning, Justin Wei Ning, Nicole

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Organizing around individual intelligence and nurturing collective intelligence with the right mindset drives a complex adaptive, self-organizing and sustainable dynamic that is greatly needed by all competitive organizations/nations in the current knowledge-intensive and fastchanging environment. Inherently, the entire biosphere and all its sub-systems are intelligence-centric.

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Preface

Currently, the exploration and exploitation of complexity and evolution concepts is sinking roots into many universities and research institutions, and spreading across numerous advanced nations. The new overwhelming wave manifests itself from the natural sciences and infiltrates into almost all aspects of humanity including Medicine, Technology, Economics, Social Sciences, Education, Politics, Military and National Security. The pivotal complex adaptive dynamic that drives all these systems depends critically on the intelligence of the individuals and collective intelligence of the system. In this respect, a holistic comprehension and exploitation of the complex adaptive domain by human organizations is a new advantage. However, the new endeavor requires a paradigmatic shift in mindset and thinking. The new mindset is the intelligence mindset and the new strategy is to organize around intelligence. Ultimately, the success of intelligence management is a critical factor for the sustainability of humankind. Fundamentally, in the fresh context, a human organization should be perceived as a collection of interacting human minds. The human mind where intrinsic intelligence of an individual (an intense intelligence ix

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Organizing Around Intelligence

source) emerges is an interesting example of complex adaptive system. In this respect, all human organizations are (composite) complex adaptive systems. Consequently, business corporations, educational institutions, societies, the whole of nature (Gaia), and the entire universe — is obviously steered by some level of intelligence. Intelligence, a unique form of energy, is responsible for the formation of physical structure, processing of information, structuring of knowledge, as well as exploitation of evolution phenomena. Hence, intelligence is the energy that drives the universe and it is also the entity that nature has created to unlock and comprehend itself. In this respect, intelligence is our most important resource. A biological organism (from single cell to trillion cells) that learns, evolves and adapts to the changing environment is a localized order that has been initiated and created by intelligence that drives the autopioetic dynamic. Intelligence when manifested up to a certain level of sophistication exhibits nonlinear characteristics and supports the emergence of higher-level consciousness, and the traits of innovation and creativity. Life cannot exist and sustain itself without the presence of nonlinear intelligence. On the same basis, for a human organization to survive and compete in a swift changing and knowledge-intensive environment, it is highly significant that it must possess intelligence-associated traits such as its own orgmind, collective intelligence and consciousness, and an evolving biotic structure. Inevitably, the attributes intelligence, structure, adaptation and robustness are inseparable. This book explains the core of the intelligent organization theory that emphasizes the cultivation of the above intelligence mindset. It focuses on intelligence management as the impetus behind mindfulness, awareness, connectivity, engagement, learning, thinking, knowledge internalization, decision-making, adaptation and sustainability (the intelligence paradigm).The basic keys to optimize benefits from the new global intelligence revolution are better awareness and mindfulness that embrace the ability to utilize the

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human thinking (beyond basic information processing) systems better, and the skills to quickly establish better connectivity and truthful engagement that can nurture a more supportive/mindful culture. An organization that demonstrates such a thinking and dynamic is an intelligent human organization.This new direction of thought also opens up more new opportunities by navigating into vast unexplored territories (edge of chaos) of high complexity. Concurrently, a new mode of leadership and management must be nurtured to orchestrate the highly intelligent complex adaptive dynamic. As the interacting agents in the human world become better educated and informed the leadership approach has to be more lateral and consultative. This horizontal shift is vital and the transformation is towards optimal exploitation of intrinsic leadership so as to optimize collective leadership (intelligence-to-intelligence linkages). The entire new trend and thinking leads to the conceptualization of a more illuminated leadership, the intelligence leadership that will be discussed more extensively in this book. In particular, in a highly intelligent organization, a category of leadership that should be allocated high priority is the latent leadership. Since I commenced teaching the course Intelligent Organizations that concentrates on organizing around intelligence and the nonlinear complex adaptive dynamic of business corporations in 2003, at the Singapore Management University, about 1000 students have gone through my various classes. Besides the local students, among them are also many foreign exchange undergraduates/graduates (from ASEAN, China, India, Canada, Taiwan, Korea, Chile, Peru, the United States and many other European Union countries). The attendance and discussion have always been marvellous.This book is adopted as the textbook for the course. During these few years, conducting those lessons has been a fascinating and deep learning process for me, especially on the new management and leadership perspective. Listening to the different

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views (encompassing studying and learning, working life and national service) of my students who perceive the world with their youthful thinking systems reconfirms my belief that the whole of nature, in particular the human world is a continuously changing landscape driven by nonlinear intelligence (intelligence that not only changes with age but also from generation to generation). Inevitably, an omniscient understanding of the nonlinear complex adaptive dynamic is extremely crucial. The sustainability of humanity as the most prominent species on this planet depends critically on the continuous learning and rapid adaptation we are able to initiate collectively as a global community. Based on their overwhelming feedbacks, it appears that the majority of my students have benefited substantially from nurturing the fresh intelligence mindset that has illuminated a new space of thinking in their mental sphere. The intelligence-centric and complex adaptive path is indeed a new critical and realistic approach that humanity must recognize, comprehend and exploit as we proceed deeper into raplexity. Intelligence management and the intelligence leadership approach is the new direction to explore and exploit. It will enable human organizations and the entire Gaia to move in better unison.Apparently, some of my students enjoy immediate benefits while others foresee future enhancement in their life and career with the new mindset. Some of their interesting comments are as follows:

“(The class introduces a) whole new paradigm to us in knowledge and management, and to some extent, the entire world.” — Ong Ken Hoon

“(The class is) interesting and thought-provoking as it provides us with a fresh and new mindset of the current and upcoming trend in corporate management.” — Zhao Danli

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Preface “The concepts taught by the Professor are very intriguing, offering a totally new perspective, very logical and the course should be made mandatory for everyone in this present time and context, especially for those involved in management.” — Tan Yong Le

“I’ve learnt things which I’ve never come across in my entire life … things like complexity theory … chaos theory ….This course provided me with an understanding of how businesses can exploit the intelligence advantage and reap tremendous benefits. …” — Sharon Cheah Xi Hui

“This new management concept will definitely give me an advantage when I assume leadership in any organization.” — Roger Loh Li Sheng

“It’s a privilege being one of the first few batches of students to explore into this new area of business management.” — Kevin Lee Chin Siang

“It really teaches one to view the world around us with more detail. Really thought provoking class in the sense that it makes me a more mindful and aware person.” — Audrey Petrina Heng Li Ling

“One of the most interesting courses I have attempted thus far.” — Tay Yi He

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In this respect, it is indeed my privilege and great enjoyment to have shared what I sincerely believe in with my fellow human beings, especially with those from the younger generations. The fact that they recognize that they have benefited from the knowledge and practices of this evolving domain leads me to produce the second edition of this book. The second edition is more encompassing in depth and holistic in connectivity of the magnificent concepts and ideas of the intelligent organization theory that are crucial to all human beings (leaders and followers, young and not so young) searching for better understanding, successes and sustainability in the intelligence era. Finally, thank you very much for reading this highly “complex, evolving and intelligent” book! Liang Thow Yick (2008)

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Contents

Preface

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Introductory Topics 1. Entering the Intelligence Era 1.1 Introduction 1.2 Some Major World Changes 1.3 Chaos and Complexity Theory 1.4 Some Properties of Complex Adaptive Systems 1.5 Managing Complex Adaptive Systems 1.6 Edge of Chaos: An Unexplored Goldmine 1.7 Conclusion

1 5 6 7 10 12 15 17 18

2.

23 24 25 27

The New Paradigm 2.1 Introduction 2.2 The New Consciousness 2.3 The Fresh Mindset 2.4 The Intelligence Paradigm and Intelligence Management 2.5 Conclusion

28 30 xv

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3.

4.


Fundamentals of Intelligent Organization Theory 3.1 Introduction 3.2 Intelligence and Intelligent Traits 3.3 Levels of Organizational Intelligence 3.4 Intelligence, Information and Language 3.5 Theory and Knowledge Structure 3.6 Inherent Intelligent Structure and the Basic Intelligence Strategy 3.7 Conclusion Intelligent Biotic and Complex Adaptive Structure of Human Organization 4.1 Introduction 4.2 Human Intelligence and Consciousness 4.3 Structuring Around Intelligence: The First Perspective 4.4 Intelligent Interacting Agents 4.5 Orgmind and Orgmindfulness 4.6 Intelligent Intangible Structure 4.7 Intelligent Physical Structure 4.8 Connectivity and Artificial Networks: Natural Nodes and Artificial Nodes 4.9 Summary of First Perspective 4.10 Structuring Around Intelligence: The Other Three Perspectives 4.11 Conclusion

Specialized Topics 5. The Human Thinking System 5.1 Introduction 5.2 The Information-Processing Perspective 5.3 Physical Symbol Subsystem 5.3.1 Basic human intelligence and the character set 5.3.2 Basic entity capturing and processing

35 36 36 41 43 46 48 53

59 60 61 62 65 67 69 71 72 74 76 78 81 85 86 87 93 93 95

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Contents

5.4 5.5 5.6 5.7

The Cognitive Perspective Advanced Human Intelligence Internalization Energy–Matter Subsystem 5.7.1 Basic entity–energy quantum interaction 5.7.2 Energy quantum–matter structure interaction: Internalization 5.7.3 Matter structure–energy quantum interaction: Externalization 5.7.4 Energy quantum–basic entity interaction 5.7.5 Matter–matter interaction 5.7.6 Wisdom creation 5.7.7 Energy–matter function space 5.8 Conclusion 6.

Basic Intelligence Evolutionary Dynamic and the Intelligent Person Model 6.1 Introduction 6.2 Complex Adaptive Features and Intelligence Dynamics 6.3 Intelligence Decoder 6.4 Management of Human Organizations 6.4.1 Organization theory 6.4.2 Economic entity transformation 6.4.3 New management and leadership perspective 6.5 Intelligent Human Organization 6.5.1 Local self-enrichment processes 6.5.2 Global forces 6.5.3 Basic intelligent system dynamic: Mindfulness and orgmindfulness 6.6 Intelligent Person Model: A Smarter Evolver and Emergent Strategist 6.7 Conclusion

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Artificial Intelligent Information Systems Network 7.1 Introduction 7.2 Intelligent Structure and Artificial Information Systems 7.3 Internal Intelligent Information Systems 7.3.1 Types of intelligent systems 7.3.2 Complexity-based IIS 7.3.3 Artificial intelligence IIS 7.4 External IIS 7.5 Conclusion

8. Interdependency: The Integrated 3C-OK Framework and the Higher Level Intelligence Dynamic 8.1 Introduction 8.2 The 3C (Collective Intelligence, Connectivity and Culture) Dynamic 8.2.1 Consciousness, connectivity and collective intelligence 8.2.2 Mindful culture as the core of supportive culture 8.2.3 Quality corporate intelligence enhancer 8.3 The OK (Organizational Learning and Knowledge Management) Dynamic 8.3.1 Learning organization 8.3.2 Organizational learning, knowledge structure and mindful culture 8.3.3 Classification of knowledge 8.3.4 Quality knowledge structure and knowledge management process 8.4 The Highly Intelligent Integrated 3C-OK Dynamic 8.5 Conclusion

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9. Paper Dialogue: An Effective Methodology for Nurturing Collective Intelligence 9.1 Introduction 9.2 Dialogue 9.3 Abilene Paradox 9.4 Paper Dialogue 9.4.1 Procedures and dynamic 9.4.2 Observations and feedbacks 9.5 Conclusion Concluding Topics 10. Intelligence Leadership and Intelligence Management Theory 10.1 Introduction 10.2 Exploiting Biotic Structure and Intelligent Complex Adaptive Dynamic 10.3 The New Leadership and Management Mindset 10.3.1 Significant new strategic focal points 10.3.2 A deeper analysis of the new mindset 10.4 The Macroscopic Framework of the New Leadership Model 10.4.1 Deeper analysis of the local autopoietic phenomena and collective self-organizing dynamic 10.4.2 Highly intelligent complex adaptive systems, iCAS 10.4.3 The new macroscopic intelligence-centric leadership framework 10.5 Some Microscopic Dynamics of the Intelligent Leadership Strategy 10.5.1 Constructive human self-organization dynamic and iCAD 10.5.2 Latent leadership: Highly intelligent leaders and interacting agents

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10.5.3 New leadership strategic factors 10.6 Conclusion

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11. Towards a Higher Order of Existence 11.1 Introduction 11.2 A More Holistic Perception 11.2.1 Intelligence/mind perspective 11.2.2 Biotic structure perspective 11.2.3 Nonlinear complex adaptive perspective 11.2.4 Intelligence-associated strategic model/ plan perspective 11.3 The Individual Wisdom Paradigm 11.4 Conclusion

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Additional/Supportive Information Appendix 1: Introduction to Chaos Appendix 2: Introduction to CAS and Complexity Theory Appendix 3: Gaia, Human Beings and the Brain’s Evolution Appendix 4: Intelligence Management, Knowledge Management and Organizational Learning Appendix 5: Basic Characteristics of Dialogue Appendix 6: Some CAS Research Institutions Appendix 7: One Hundred Prominent Complexity/ CAS Researchers/Contributors

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Glossary Bibliography Index About the Author

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Introductory Topics

I: Entering the Intelligence Era II: The New Paradigm III: Fundamentals of Intelligent Organization Theory IV: Intelligent Biotic and Complex Adaptive Structure of Human Organization

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I am convinced that the nations and people who master the new sciences of complexity will become the economic, cultural, and political superpowers of the next century. Heinz Pagels, The Dreams of Reason

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I Entering the Intelligence Era

This chapter introduces some significant changes taking place in the world that are affecting all categories of human organizations, as well as all individuals. The appropriateness, importance and exploitation of certain properties of Chaos and Complexity Theory are also examined briefly. Human systems are recognized as complex adaptive systems. In particular, the fact that the edge of chaos is an unexplored space embedded with new opportunities is highlighted.This observation and recognition indicates that a recalibration of understanding is essential. A change in era and mindset is also inevitable. The new era is the intelligence era. The primary focus of the new mindset is to organize around human intrinsic intelligence. Key Words: Chaos; Complexity Theory; complex adaptive systems (CAS); edge of chaos; intelligence era; organizing around intelligence; raplexity; intelligence paradigm; biotic structure; connectedness/interconnectedness; cosmic mind; consciousness; complexity; connectivity; dissipation; emergence; complex adaptive dynamic (CAD); deterministic disorder; local center; emergent dynamic; Butterfly Effect; unpredictability; adaptive; self-organizing; Red Queen race; punctuated equilibrium; smarter evolver; emergent strategist; strange attractor; intelligence strategy; evolution; far-from-equilibrium; biosphere (Gaia); complexadaptive/intelligence mindset.

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1.1. Introduction Over the last three decades, the entire world economy has been drifting from a machine-based (Newtonian–Cartesian mindset) setup to an information-based environment. This is a significant recognition that has to be analyzed and comprehended. More recently, certain highly developed economies/nations are in fact directing their attention and resources towards establishing a knowledge-based structure. As the reward for high-value-added knowledge and information-intensive activities is much greater, inevitably in the new millennium, all of humankind is gravitating towards the nucleus of the information era, the intelligence era. The rampant (rapidity) and enormous (complexity) changes sweeping across the world cannot be dealt with simply by means of superficial cosmetic surgery (rapidity + complexity → raplexity).The immense and unprecedented impact experienced requires more than just some ad hoc structural alterations. To accommodate the formidable developments, accumulation of new knowledge and a transformation in mindset is necessary. For all human organizations (businesses, education institutions, military setups, communities, economies, nations), the fundamental change in strategy indicates that organizing around intrinsic intelligence (rather than around machines, functions or processes) is the new fascinating focal path. Complexity, evolution and intelligence, and the human thinking systems are new knowledge domains that need to be scrutinized and more optimally exploited. This development leads to the emergence of a complex-adaptive/intelligence mindset. A shift in mindset is an extremely important phenomenon in human history. Such a transformation marks the end of an existing belief and the beginning of a new understanding. It is tantamount to a change in era. The change from a machine mindset to an intelligence paradigm indicates that human civilization is entering a new level of consciousness. The higher level of consciousness, if

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accomplished, will render certain obscurities explicit. The new understanding will identify new territories for exploration and will lead to fresh opportunities/niches. Eventually, the deeper comprehension of evolution and co-evolution of complex adaptive (living, intelligence and learning) systems (CAS) and their composite complex adaptive system (including their complex adaptive dynamic (CAD)) will lead to the establishment of a higher order of existence.

1.2. Some Major World Changes In this respect, it is imperative to identify and examine more rigorously the key developments that initiate the above transformation. Some of the crucial events identified to have exerted unprecedented pressure on human civilization are as follows (illustrated in Fig. 1.1):

Knowledge-intensive economy, fast pace changes, and structural mismatch

Awaking to a cosmic mind

Shrinking of global economy and global/local dialectic Human Organizations

Many current theories are becoming ineffective/obsolete

Rapid technological advancement, in particular, ICT

People are becoming better educated and informed

Fig. 1.1. Some major changes affecting humankind and its organizations.

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a. All of human civilization has drifted rather deeply into the information era but many of the socio-economic systems, structured like machines that support the requirements of the industrial era, are still intact. Thus, there exists a glaring mismatch between new visions and the present structure of human organizations. And accomplishing these new visions is difficult, if not impossible. Consequently, compared to biological systems, existing human organizations appear to be semi-paralyzed. A biotic structure is therefore more appropriate. b. In addition, a global economy has been emerging and competition is no longer confined locally. The global/local dialectic is a new challenge that both individual and organization are experiencing. Being able to adjust to the new perspective is crucial. The rapid pace of the global environmental changes (increasing complexity) is an added area of concern. Comprehending and reacting swiftly to environmental changes has become a universal critical success factor (speed is also associated with the ability to recognize the shortest path). Being able to be environmentally proactive, that is, being able to influence the environment, is a new advantage. Today, many human organizations are still not intelligent enough to act and react in the desired manner. c. Next, the rapid advancement of technological developments, in particular, information and communications technology (ICT), has substantially increased the potential of better connectivity. Quality connectivity is a significant property of intelligent systems. Understanding connectivity and establishing well-connected networks spreading across geographical boundaries are new challenges. The present focus on connectivity is very much restricted to the level of the physical structure. Many organizations are still ignorant as to how the connectivity of the deep structure (intangible) can be better established and how virtual team can be nurtured.They are not fully aware of the implications and significance of effective connectedness (interconnectedness).

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d. Next, people (especially the younger generations) are also becoming better educated and informed, more so in highly developed countries (more complex and heterogeneous). This is due to better education, the emergence of the e-landscape and the impact of the wireless communication technology. Consequently, their thinking, expectation and outlook in life are different from their ancestors (more simplistic). The organizational dynamic with the younger generations (generation Y and Z) as interacting agents is therefore rather dissimilar. In this respect, they will have to be managed and led rather differently. e. Besides, the current economic theories of equilibrium, perfect rationality and decreasing returns are incapable of explaining the highly dynamic global economy.The existing organization and decision theories that concentrate on linear models, such as game theories and business process re-engineering, are also revealing in their inadequacy (for instance the current financial crisis). In general, the expansion and domination of the standard reductionist analytic approach of Newtonian deterministic science is manifesting its limits.Therefore, new scientific concepts in the Einsteinian/ Quantum and Complex-Adaptive domains must be used to explore and optimize the socio-economic and political phenomena. Beyond physics, the Quantum-Relativistic and Complexity Theories are still fresh and unexplored knowledge areas. f.

The sixth and extremely important factor is the awakening to a cosmic mind and its nonlinear dynamics. Humankind is beginning to realize and understand that the universe is more a mind than a machine. The human world together with its entire socio-economic and political systems and subsystems, congruous with the natural biological and physical systems, has both linear and nonlinear components. They are complex adaptive systems in which order and complexity co-exist. Such systems consume new information and learn to adapt continuously. It appears that the entire cosmic world and its microcosm, including

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all human organizations, are driven by intelligence. In this respect, the universe is a mysterious space embedded with infinite sources of intelligence (including the recent discovery of a huge percentage of dark energy and matter).

1.3. Chaos and Complexity Theory The last factor mentioned above arises from the science of Chaos. This new scientific theory was first recognized and investigated by Edward Lorenz, Stephen Smale, Benoit Mandelbrot and many others in the 1960s and continued into the 1970s (Mitchell Feigenhaum, Philip Marcus, James Yorke and others). Consciousness, complexity, connectivity, dissipation and emergence were identified as the five core properties of this universe and its microcosms (see Fig. 1.2). The first property consciousness (a shift from a machine world to a living world mindset) indicates the significance and presence of intelligence in this universe and the other properties provide a better understanding on the dynamic that is continuously changing in the human world (see Appendix 1 for more discussion). A decade later (1980s), the focus was shifted to Complexity Theory, which concentrates on complexity (the deterministic aspect of Chaos), CAS and CAD. The central axiom of the theory

Consciousness Complexity Core Properties of Chaos

Connectivity Dissipation Emergence

Fig. 1.2. The primary set of properties of Chaos.

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(encompassing both Chaos and Complexity) is the inseparability of order and complexity, that is, the universe is inherently chaotic and intrinsically orderly at the same time. In addition, from the human perspective, the universe is a tapestry of thought produced by the ability/constraint of the human mind and its sensory system. This realization indicates that the whole of humankind, including its systems and environment, is merely a creation of human consciousness (Heisenberg’s Uncertainty Principle). The primary dynamic of Complexity Theory indicates that order can be reinforced by comprehending and exploiting the latent structure of deterministic disorder (complexity). Order is still of fundamental importance in the new context. Order provides the core stability for survival and existence. Certain types of order must be further strengthened and enlarged to prolong the existence of a system.This desire can best be achieved by tapping into the innovation and creativity embedded in the space of unexplored complexity. The dynamic between order and complexity is intriguing. It is accepted that the universe as a whole is expanding and hence entropy and disorder are increasing at all moments in time. This phenomenon is captured in the Second Law of Thermodynamics. However, in the midst of chaos, countless centers of order emerge, each serving as a local center for structure and order of different kinds to be created and enforced. Lives and systems of various forms and levels such as unicellar organisms, human beings, ecosystems and human organizations, are products of this dynamic. All these systems are complex, adaptive and evolutionary in nature. These systems learn, adapt, and evolve in the process. These basic abilities of complex adaptive systems are captured in Fig. 1.3. The emergent dynamic of evolution sustains and prolongs the existence of such systems. Systems that fail to maintain this dynamic dissolve into the mainstream expansion and vanish. Such appearing and disappearing acts are taking place perpetually in the universe.

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Organizing Around Intelligence Learn Complex adaptive systems

Adapt Evolve and Co-evolve

Fig. 1.3. The basic characteristics/abilities of complex adaptive systems.

1.4. Some Properties of Complex Adaptive Systems The term Complex Adaptive Systems (CAS) is first used by the pioneers at the Santa Fe Institute (SFI) in the early 1990s. SFI was founded in 1984 by George Cowan and seven other scientists mainly from the Los Alamos National Laboratory including Murray Gell-Mann, John Holland, and Doyne Farmer. Subsequently, many prominent researchers from greatly diversified disciplines (Natural Sciences, Computer Science, Economic, Sociology, Anthropology, Archaeology and others) and Nobel Laureates such as Brian Arthur are also attracted to SFI. A complex adaptive system comprises a group of dynamically interactive and changing heterogeneous agents. It is an open system in perpetual motion. Even a set of rules governing its dynamic are evolving. New information modifies the dynamic of the system as it tries to adapt by self-organizing and co-evolving. Its ability to anticipate, respond to, and influence the change in environmental conditions is vital, as a slight variation in initial conditions can lead to a totally unpredictable surface phenomenon. The surface phenomenon may be unpredictable because of the large number of feedback loops in the systems. Thus, an important property of such systems is the Butterfly Effect. Complex adaptive systems can be highly sensitive to initial conditions. As stated above a small variation in initial conditions can

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lead to a totally unpredictable output. Lorenz was the first to observe this interesting property during his weather forecasting computation, which renders weather forecasting beyond a few days meaningless. However, comprehending and exploiting the Butterfly Effect is extremely crucial when managing human complex adaptive systems. Another property of complex adaptive systems is unpredictability. The fact that their present state cannot be measured with absolute accuracy is vital (as such systems usually have infinitely large numbers of input points or interacting agents). Besides, their evolution trajectory may not be described accurately. This characteristic exists in human organizations too.As the systems are highly sensitive to initial conditions and yet the present state and developmental path cannot be accurately and completely defined, exact solutions in the form that are commonly understood (with a machine mindset) do not exist. It has a critical impact on prediction or forecasting. This is a significant observation that leaders and managers of human organizations must learn to handle. Next, complex adaptive systems are adaptive, that is, they continuously consume new information and react on it, if necessary. Such systems learn and evolve. Adaptation is a significant property of such systems, and they can only survive if they undergo dissipation and emergence as well. In addition, complex adaptive systems must co-evolve with the environment. The latter is usually a composite complex adaptive system with respect to the original system.An economy and its businesses, and a nation and its education institutions/schools demonstrate such a relationship. As stipulated earlier, complex adaptive systems comprise both spaces of order and complexity. These systems possess the ability to exploit complexity to reinforce order with the aim of sustaining and prolonging their existence. Such a system exhibits strange states (to be illustrated again later in the chapter) similar to the

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Lorenz attractors. In all human organizations, these spaces of high complexity or the edge of chaos (its discovery is credited to Steve Wolfram, Stuart Kauffman, Christopher Langton, Per Bak and Norman Packard: it was Norman who coined the term, edge of chaos) can be embedded with gold nuggets. Thus, recognizing and exploiting the presence of punctuated points/edge of chaos is extremely significant. Human complex adaptive systems are marked by stasis, a stable pattern of activity lasting for a period of time, and disrupted by short periods of rapid changes, known as punctuation points. Punctuated equilibrium makes it difficult for a system that is not adaptive to survive for long. Such a system tends to be complacent during a period of calm and cannot adjust fast enough when the situation turns complex. A highly adaptive system, on the other hand, is always dynamic, innovative, reactive and even proactive. In this respect, a smart evolver is an emergent strategist. Finally, complex adaptive systems (as well as their interacting agents) can be locked in a Red Queen race (first used by Leigh Van Valen in this context). In this situation a competitive advantage can only be sustained for a very short period. Thus, a niche created does not last long. In such an environment, the approach to survival is to develop continuously temporary advantages. In the Red Queen race, the winners are the faster runners. The winning positions must

Some properties of complex adaptive systems

Order Complex Adaptive Unpredictable Self-Organizing Edge of Chaos Butterfly Effect Red Queen race

Fig. 1.4. Some properties of complex adaptive systems.

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be renewed at all times. As there is also no ultimate destination, being trapped in such a situation does not appear to be too pleasant or comfortable. However, the reality is many human life journey is the Red Queen race itself (see Appendix 2). A summary of the common properties is listed in Fig. 1.4.

1.5. Managing Complex Adaptive Systems It is now apparent that a complex adaptive system can have infinitely large numbers of points of crisis, each of them with the ability to magnify small changes, as these points can be highly unstable.The whole situation appears to be highly complex. At first sight, the sensitive dependence on initial conditions and other characteristics observed seem to render long-term forecasting/strategic planning of human organizations totally meaningless. Nothing can be organized and accomplished in such a situation. However, when the output states of complex adaptive systems are examined, the perception is modified. Nonlinear complex adaptive systems exhibit only four different output states, namely, stable, periodic, deterministic aperiodic (strange attractor), and chaotic states (see Fig. 1.5). The complexity theory concentrates on the third state which is highly complex and yet at the same time deterministic. (The term strange attractor first appears in a paper by David Ruelle and Floris Takens.) In this state, the system is at the edge of chaos.Today, in most human organizations the richness of this state is neither fully understood nor exploited.

The four states of complex adaptive systems

Point attractor Periodic state Strange attractor Chaotic state

Fig. 1.5. The four states of complex adaptive systems.

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In addition, in reality, the variation in output of many complex adaptive systems tends to be small most of the time, with large fluctuations occurring only occasionally (the power law).This may be a comforting observation. It indicates that for humanity all that have been put in-place throughout history is not totally irrelevant or obsolete. Although a change in mindset is essential, the transformation from the past to the future does have some continuity. But extra caution have to be taken when making the above statement. Destruction/discontinuity occurs at punctuation points. Besides, the current rapidly changing environment indicates that the world and its subsystems are moving into the third state more frequently. In this respect, to manage complex adaptive systems effectively, fundamentally a combination of deliberate and emergent strategies must be adopted. During the formulation of deliberate strategy, planning is the key function, forecasting is linear, and accuracy is high. However, when disequilibrium sets in, the emergent component, which emphasizes fast (collective) learning, adaptation and evolution, becomes the key approach. In this event, complexity characteristics such as self-organization, bio-diversification and coevolution become critical. The new integrated approach in strategic management and leadership, as a component of the intelligence strategy, is illustrated in Fig. 1.6, is highly important.

Managing complex adaptive systems

Deliberate Strategy

Linear and Order

Emergent Strategy

Nonlinear and Complexity

A significant component of the new Intelligence Strategy

Fig. 1.6. Intelligence strategy: The new leadership and management approach for handling complex adaptive systems (a basic component).

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1.6. Edge of Chaos: An Unexplored Goldmine The recognition that human organizations are complex adaptive systems stipulates that Chaos and Complexity Theory are new domains that must be better comprehended and effectively utilized. And in complex adaptive systems, the edge of chaos is the most critical territory that must be carefully understood, explored and exploited. This space is embedded with maximum computational capability, maximum information manipulation, maximum fitness, as well as maximum evolvability. Basically, the human thinking systems must be raised to a higherlevel of consciousness where by the nuggets embedded at the edge of chaos can be creatively or innovatively mined. To date, the edge of chaos has always been avoided by human organizations because of the higher risk involved, that it is foreign, and the current mindset is not prepared to mine it. So, what is the edge of chaos in the physical and mental perspectives? When does an adaptive system move into such a state? What are its characteristics? The edge of chaos (also see Appendix 2) is a space with high complexity. Nonlinearity, complexity and sensitive dependence on initial conditions alone are not enough to create chaotic conditions in a CAS. Chaos develops in nonlinear systems where the elements are also interdependent on one another. Besides, such a system is also far-from-equilibrium. Far-fromequilibrium means that the system is constantly changing and not returning to any previous states. Many human organizations are observed to exhibit all the above characteristics (see Fig. 1.7). Thus, all human systems encompass different types of edge of chaos (for instance, tsunami, a new research and development domain, the environment/state before the disintegration of USSR). When USSR disintegrates, it had moved into the fourth state, the chaotic state, and had gone beyond the

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Complex adaptive systems

The third state is the edge of chaos that is embedded with new opportunities

Entering the edge of chaos with the right mindset and knowledge structure can activate the Butterfly Ef fect

Fig. 1.7. Gold nuggets embedded in the edge of chaos can be mined with the right mindset.

edge of chaos. They had not been able to see a surface structure in the space of high complexity and diversity when they were at the edge of chaos. They did not manage to strengthen themselves into a more robust structure for better existence. Human systems as they evolve drift into the edge of chaos constantly. Those systems that managed to reap some benefits from that space move back to a state with greater order and higher stability. This dynamic is continuous and part of the complex-adaptive scene. Thus, the exploration and exploitation of the edge of chaos requires a redefined mindset with a fresh mental dimension. The human mind must be nurtured to venture into this unexplored, nonlinear, complex and also rich territory with a high quality knowledge structure and calmness (will be dealt with again). The organizational (societal, corporate) culture must also be supportive to such an endeavor. As the journey can be haphazard and risk-taking, failure must be accepted with a more positive mindset. It must be taken as a learning process. The reward may be the enormous returns from a small investment when the Butterfly Effect is activated.

1.7. Conclusion The above discussion succinctly endorses that the entire biosphere, Gaia ( Jim Lovelock) and its microcosms, and the artificially

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Some major world changes New knowledge from Chaos and Complexity Theory

Human Organizations

Organizing around intelligence

Fig. 1.8. The new direction points towards organizing around intelligence.

created human systems (businesses, schools, militaries, communities and nations) are complex and adaptive (living, intelligence and learning). They increase in complexity (for instance, from village to small town to cosmopolitan city) with evolution.Thus, understanding CAS and CAD, and being able to adopt and apply some of the concepts of complexity theory to the management of human organizations are crucial in the knowledge-intensive and fast-changing environment. Apparently, humanity is venturing into the intelligence era. The driving force of the complex adaptive dynamic is intelligence. This fresh comprehension reveals a new direction, a new paradigm that human organizations can be structured, managed and led. The new paradigm advocates that organizing around intelligence and nurturing high collective intelligence (the intelligence and complex-adaptive mindset) is the new fundamental principle. Human organizations must be “made” more intelligent (see Fig. 1.8).

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Where chaos begins, classical science stops. James Gleick, Chaos

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II The New Paradigm

In this chapter, the emergence of a new paradigm is discussed. The new paradigm is the intelligence paradigm which focuses on intelligence sources and stipulates that organizing around intelligence (especially human intelligence) is the strategy to adopt by all organizations in the knowledge-intensive, fast changing and not always predictable environment. In intelligence management, the human thinking systems and their associated intelligence, and the collective intelligence (orgmind) of human organizations form the fresh focal centers of the new theory (intelligent organization theory). This paradigmatic shift in mindset and approach in leading and managing human organizations is highly significant to everyone (both leaders and followers). Concurrently, a more biotic and complex adaptive structure (intelligence-centric) that will serve all human organizations better in the new context is conceived. Key Words: Intelligence paradigm; intelligence source; organizing around intelligence; intelligence management; human thinking systems; collective intelligence; orgmind; intelligent organization theory; intelligence-centric; intense intrinsic (human) intelligence; human consciousness; awareness; self-awareness; mindfulness; interdependency; biotic structure; intangible structure; physical structure; CAD.

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2.1. Introduction In the new context, human beings and hence the human thinking systems are the primary and most important components of all human setups irrespective of their fundamental function (economic, education, military, social, political or spiritual).The human minds are the only sources that intense intrinsic intelligence (will be further elaborated in this book) emerge from this world. Over the past two decades, new developments and challenges have been substantially affecting this thinking and concepts. Some of the critical changes (linked to intelligence and its associated properties) that must be noted include the following events: a. The consciousness and knowledge structures of the individual human thinking system have been constantly elevated through better education and knowledge acquisition. b. Information, a vital input to all human thinking systems, once travels at the speed of horses/planes now travels at the speed of light. c. Human beings can now travel faster than sound (physical connectivity). d. Human beings worldwide are also more closely connected (especially, mental connectivity) due to technological advancement (for instance, Internet, mobile phone). e. Consequently, the relationships and process dynamic taking place among a group of interacting minds have been drastically modified. f.

Finally, competitions are no more localized.

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2.2. The New Consciousness Associated with the above observations (including those mentioned in Chapter 1), the current generations (especially generations Y and Z) of human beings will have to nurture in themselves a new dimension of consciousness (see Figs. 2.1 and 2.2) and understanding.The higher level of awareness, self-awareness and mindfulness (the core of self-awareness focusing on the mental state of the mind) that emerge from human consciousness must encompass the following comprehension and abilities (linked to awareness and mindfulness): a. The human thinking systems and their organizations that were once linear and structured (at least perceived to be so) have become more nonlinear, complex and unpredictable.

Cerebral Cortex Human Brain

Human Level Intelligence

Limbic System Cerebellum

Human Consciousness

Fig. 2.1. The emergence of present human consciousness after the formation of the cerebral cortex.

Human Consciousness

Awareness (externally focus) Self-awareness (internally focus)

Mindfulness (core of selfawareness)

Fig. 2.2. Mental functions generated by human consciousness.

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b. Reductionism that worked for simple linear systems does not work for the more complex nonlinear systems. c. Human organizations that were once machine-like are now more mind-centric. d. The interdependency among individuals, human organizations, as well as human organizations and their environment has increased substantially. e. The two mental functions of awareness and mindfulness that emerge from second-order human consciousness are equally significant. Although, to date the second function has always been neglected in many human organizations. The right hemisphere of the human brain is believed to be better at mindfulness (see Appendix 3). f.

Finally, intangible assets such as intellectual property and mental capital (that are embedded in the human thinking systems) are becoming more valuable than traditional economic resources.

Mindfulness Mindfulness is a mental function created by human consciousness. It is the core ability of self-awareness and is unique to the human thinking systems. It enables the human mind to observe its own mental state. No other animal species is able to activate this ability. Its also enables the mind to recognize that thoughts are quantized, that is, they exist as packages and only one thought package enters the mind at a time. Besides, the packages entering in series may not be interlinked or related to one another. (This unique ability confined to human beings alone must be nurtured in human organizations.)

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2.3. The Fresh Mindset Inevitably, a totally redefined mindset is also essential to understand, exploit, and survive in the new context. In this respect, the fresh mindset should indicate a new direction for individuals to lead, organize, manage and survive comfortably in the emerging environment. The new mindset should encompass the following recognitions (linked to new thinking): a. Human organizations and its human thinking systems are complex adaptive systems and therefore the current leadership and management philosophy must be transformed. b. The state of the mind of the interacting agents in the organization must be allocated top priority. c. An effective relationship among the interacting agents must be carefully cultivated and constantly reinforced. d. Human organizations must be organized around intelligence, and equipped with an intense intelligence source and an equivalent of the central nervous system (biotic structure). e. Human organizations must be nurtured and handled like biological beings (intelligence management), as intelligent organizations process collective intelligence and behave like intelligent corporation beings. f.

Complexity, nonlinearity and interdependency in all human organizations cannot be ignored. Instead, these properties must be exploited.

g. Similarly, the core properties of chaos, consciousness, complexity, connectivity, dissipation and emergence must be more deeply scrutinized and effectively used.

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h. New opportunities embedded at the edge of chaos should also be carefully explored and effectively exploited (changing uncertainties to opportunities).

2.4. The Intelligence Paradigm and Intelligence Management Apparently, the central theme of this fresh nonlinear strategic thinking and new recognition clearly points towards the emergence of the intelligence paradigm (illustrated in Fig. 2.3). The new paradigm indicates that the individual mind and intelligence must be the center of analysis, experimentation and careful exploitation.Thus, organizing around intelligence is the best option for nurturing highly intelligent human organizations (with high collective intelligence). The new priority for managing human organizations is the better and more subtle management of the

Human Consciousness Intelligence Paradigm Fresh Mindset

Human organizations are intelligent complex adaptive systems and organizing around intelligence is the new strategy to adopt

Emergence of Intelligent Organizations with Biotic Structure

Fig. 2.3. The new and critical intelligence paradigm for leading, managing and structuring human organizations.

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human thinking systems and their nonlinear dynamic. The intrinsic intelligence and knowledge structures in the individual minds must be more effectively utilized by all farsighted organizations. In this respect, an orgmind (organization mind) and its collective intelligence has to be nurtured in an intelligent human organization. It is from the orgmind and the intangible deep structure that the physical structure evolves. Thus, in the new environment, leaders and managers of human organizations must examine and search beyond the physical structure. They must immerse themselves into the intangible structure and the orgmind to better understand and exploit the mysterious power of intrinsic intelligence and collective intelligence.The new structure, a biotic/complex adaptive structure, is more biological in nature (see Figs. 2.4 and 2.5). Thus, the new paradigm also focuses on elevating the collective intelligence, enhancing the quality of connectivity, and exploiting the

Physical

Intangible Intelligent Human Organization

Orgmind

Structure

Structure

Fig. 2.4. The basic biotic structure of an intelligent human organization with better complex adaptive ability.

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Intelligence Management

Intelligent Organization Theory

Organizing Around Intrinsic Intelligence

Nurturing High Collective Intelligence

Fig. 2.5. The general intelligence-centric path adopted by the intelligent organization theory.

bio-logic aspect of human organizations. Inherently, group features such as organizational learning, corporate knowledge structure, adaptation and emergence are highly significant areas/domains. In this respect, an effective human organization in the new intelligence era has to be an intelligent complex adaptive system that can evolve and compete successfully in a complex and nonlinear environment like intelligent biological organisms. A critical characteristic to note is the interdependency of all the properties/characteristics affecting the complex adaptive dynamic.The above discussion is the basic concept of intelligence management (to be further discussed later).

2.5. Conclusion Apparently, the paradigmatic shift in mindset is inevitable and it has to be supported by a new theory for leadership, management, strategic thinking and operations that is more intelligence centric. The new theory to be introduced in this book and embraces the social, economic, political and many other domains of human activities and their dynamics is the intelligent organization theory. It is significant for all individuals who wish to be an effective member of the new global society to comprehend and exploit such a theory

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well. This theory provides a more holistic and realistic view of the human thinking systems and their interactive dynamic (CAD), and intelligence management in all types of human organizations that resembles more like biological organisms or ecological systems. In particular, leaders of human organizations, whether they are top business executives, political leaders, or social/welfare/education administrators must nurture this fresh mindset to remain relevant and credible for the future.

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Without the randomness of chaos, the rich variety and diversity of evolution would be stifled and throttled. Chaos is the rich soil from which creativity is born. Uri Merry, Coping with Uncertainty

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III Fundamentals of Intelligent Organization Theory

The basic foundation of the intelligent organization theory is conceptualized in this chapter. The significance of intelligence and organizing around intelligence, intelligence management and the general biotic structure of an intelligent human organization and its benefits are further discussed. The roles of intelligence, information and language in a human organization are examined.The presence and necessity of nurturing an effective intelligence enhancer encompassing three entities, namely, intelligence, knowledge and theory in the human thinking systems is introduced.The concepts on the space of order and the space of complexity are also shared. Some fundamental aspects of the deliberate strategy and emergent strategy are further examined. The above concepts are developed with respect to the fact that the human minds and human organizations are nonlinear complex adaptive systems. Consequently, the intelligent organizations that emerge are smarter evolvers. Key Words: Intelligent organization theory; organizing around intelligence; intelligence management; biotic structure; information; language; intelligence enhancer; human thinking system; space of order; space of complexity; deliberate strategy; emergent strategy; smarter evolver; human intelligence; human consciousness; mindfulness; physical symbol system; mental function; proto-intelligence; internalization; intense intelligence source; intelligence web; environment 35

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scanning and responding component; engagement; theory; analytical lens; mental compass; knowledge structure; deterministic chaos; orgmind; composite complex adaptive systems; collective intelligence; orgmindfulness; thought technology; emergent strategist; intelligence advantage; intelligence strategy.

3.1. Introduction As indicated in the earlier two chapters, the human mind is the “epicenter” of all human setups, and the mind and orgmind are complex adaptive systems. In this respect, all human organizations are also composite complex adaptive systems.The basic elements (interacting agents) of these systems, human beings (human thinking systems), interact with one another and form the feedback loops. Any one member of an organization can have a direct or indirect influence on another member. The influence from a message communicated is very often under-reacted or over-reacted upon. Thus, human group behavior is not simply the sum of the individual behavior. Hence, the dynamic and the outcomes of human interactions include a nonlinear dimension. Inevitably, in the emerging knowledge-intensive environment, human organizations are behaving and evolving as intelligent corporate beings. The economy is its ecological system. Similar to biological entities, human organizations embrace the abilities of learning, adapting, evolving and competing. The intrinsic force driving the above dynamic is intelligence. And higher levels intelligence is manifested as sophisticated information processing abilities. Conversely, any system that possesses a structure is embedded with information. Consequently, understanding intelligence, information processing, knowledge structure, and quality connectivity is a key to understanding the orgmind.

3.2. Intelligence and Intelligent Traits Intelligence is the primary entity that enables a biological being to compete for survival, to undergo evolution, and to save itself and its

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species from extinction. The presence of intelligence allows the organism to interact with its environment and to make adjustments to itself. The act of adaptation, evolution and emergence is a key to survival in nature.The same basic principles also ensure that human organizations survive and compete better in the new knowledgebased economy. On a broader perspective, all the five core properties of Chaos, namely, consciousness, connectivity, complexity, dissipation and emergence must be constantly reflected upon. This set of five properties forms the fundamental stratum of the new thinking. So what is intelligence? Intelligence is a mental ability: at a higher level it is the power of perceiving, learning, understanding and knowing. Subsequently, decision making and action will be activated if necessary. Such a definition of intelligence is closely associated with human consciousness. It may be interesting to determine at what level of intelligence human consciousness emerges.This is a puzzle of the mind that the mind itself cannot resolve explicitly. It is a mystery that has pre-occupied some of the best minds for centuries. A school of thought believes that this mystery can never be resolved because it is beyond the capability of a physical network that has something on the order of billions of neurons. It is a structural constraint. Perhaps even a multi-trillion-neuron network is required to unveil the secret. In the intelligent organization theory, intelligence is perceived as an intangible entity similar to energy in the sciences and technologies. It is invisible, intangible, and at the moment, not easily quantifiable. But its presence can be felt. Its status is similar to energy a century ago. It is the existence of intelligence as an entity that enables intelligent traits to be manifested. It is the presence of this entity that allows intelligent mental abilities such as information processing, knowledge structuring and perception to be manifested and executed. The economic capability of an intelligent being is also fuelled by the same entity. In this respect, intelligence and all intelligence sources in human organizations must be carefully managed (intelligence management). This fundamental concept is stated as the first axiom of the theory.

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Axiom I There exists an intangible entity known as intelligence in all intelligent systems that provides the fundamental driving force for all their cognition/mental functions and other associated activities.

In this sense, there exists a relationship between intelligence and consciousness. However, the exact formula of the relationship is unknown. As higher-levels of consciousness is associated with higher-levels of intelligence, the presence of an intense intelligence source (similar to the human brain) is significant. An intense intelligence source is needed to generate higher-levels of intelligence. Physically, a dense and well-connected biological network with an enormous number of neurons must be present to create and sustain the strange phenomena (see Chapter 2, Section 2.2). The above observation leads to the first postulation.

Postulate I A necessary condition for higher-levels of intelligence and consciousness to exist is the presence of a sufficiently intense intelligence source.

The absence of the intense source indicates the absence of humanlevel or second-order consciousness.A feeble source or an intelligence web is not able to generate the same level of consciousness. Lowerlevel consciousness, mainly raw sensations or qualia are not very useful by themselves (with respect to human learning and economic activities). In this respect, a colony of ants is only an intelligence web, and its activities can never flourish beyond its present status, unless an

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intense intelligence source emerges.The weakly connected network of an ant nest is not sufficiently intense. (Although the gap between the intelligence of the individual ants and the collective intelligence of the nest is huge.) This recognition is stipulated as the second postulate.

Postulate II The presence of an intelligence web is necessary but not a sufficient condition for generating higher-levels of mental activities and second-order consciousness.

However, the presence of an intelligent web in a living organism is significant because it is this internal network (similar to the central nervous system) which allows intelligence to be transmitted from the intense intelligence source to the other parts of the organism, and vice versa. Such a web is also an internal information action and reaction system. It forms a vital communication structure in all intelligent beings. The tangible component of the web is the physical network that supports the communication of information, decisions, and other intelligent-related entities. The network comprises intelligent nodes that can be both natural and constructed. Therefore, knowledge bases and other artificial intelligent systems are also part of the web. The manner in which the nodes communicate among themselves, the types of information that flow between two nodes, the effectiveness and efficiency of the network, and ultimately the level of intelligence of the web, are some major concerns when nurturing the internal structure. An extension of the web is an environment scanning and responding component/subsystem (sensory subsystem). Any intelligent

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system that learns, adapts and evolves must possess such a component. Otherwise, it is literally dead and consciousness does not exist at a high-level. It is then no different from a crystal or a snowflake that contains only proto-intelligence. The requirement indicates that a system is highly-intelligent only if it is open and continuously interacting with its environment. Although, it has been stated that highly-intelligent beings also do lots of internal mental search (mindfulness). The environment scanning and responding component must possess certain characteristics before it can be regarded as functioning intelligently. Some of the essential features include the following abilities: a. To scan and detect environmental signals coming from environmental targets. b. To process the environmental signals locally or to transmit them to the intense intelligence source for a decision. c. To respond to the environmental signals. d. To introduce changes, and thus have the ability to influence the environmental targets. With respect to a business organization, some environmental targets are its customers, suppliers, competitors, and related government institutions. The environmental functions are to detect, evaluate, respond and change. And the target functions are sensing, influencing, buying, selling, competing, and entering into an alliance with another organization. The third postulate, listed below, captures the existence of the environment interacting component as an important subsystem of an intelligent organization.

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Fundamentals of Intelligent Organization Theory Physical structure of intelligent human organization

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Intense intelligence source Intelligence web Scanning and responding component

Fig. 3.1. The physical intelligent structure/network of human organization.

Postulate III The presence of an environment scanning and responding component is a necessary requirement for the continuous survival and evolution of an intelligent system.

Thus, the physical structure (more biotic) of an intelligent human organization must possess the following three features (see Fig. 3.1): a. An intense intelligence source (organization brain or org-brain). b. An intelligence web that spreads and permeates the entire system. c. An environment scanning and responding component.

3.3. Levels of Organizational Intelligence Although intelligence is manifested as a continuous spectrum in nature, constructing a conceptual structure containing different intelligence levels renders the analysis of intelligent human systems more comprehensible. In this model, a four-level structure is conceived. And each level is defined by certain unique characteristics as follows: a. Level 0 Intelligence: Slavery An organizational system operating at this level is only capable of economic production. It has literally no intelligence capability

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and has no environment scanning and responding component. It is a non-thinking, purely mechanistic system. It behaves like a pathetic slave whose intelligence is suppressed. As far as the human intelligence domain is concerned, the system is dumb. A mechanical machine exists in this state. b. Level I Intelligence: Instinctive Besides economic production, a system in this case is capable of sensing simple changes in the environment, such as changes in demand, and responds by varying the quantity of its output. The behavior of such a system is instinctive. Its level of intelligence is low. Many business organizations, at the moment, exist in this state, similar to plants (move according to the direction of the light rays) in an ecological system. There is not much “mobility” in this state. c. Level II Intelligence: Survival Seeking A system can be classified in this category if an attempt has been made to improve its environment scanning and responding component. Such a system is also aware of the significance of having a well-established intelligence web. It is better informed, increasingly reactive to changes, and has assimilated learning and adaptive capabilities. It is a mobile intelligent being. Some organizations are moving to this state. d. Level III Intelligence: Highly Intelligent A system in this category has a sophisticated intelligent network. It is highly reactive, as well as proactive to the environment. It is intelligent enough to influence the environment to enhance its existence. Whenever possible and necessary, this option is exercised. Such a system can diversify, “migrate” and have “offspring”.Thus, existing in this state, the system possesses

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its own orgmind and collective intelligence, and behaves as a highly intelligent biological being. This is the ideal state that human organizations should venture into.

3.4. Intelligence, Information and Language It has been recognized that any system which exhibits structure contains information. The more intricately organized a system is, the more information has accumulated within that system. This statement stipulates that a more organized system contains more structured information or knowledge, and hence possesses a higher level of intelligence, and is generally more robust (see Fig. 3.2). A piece of crystal contains proto-intelligence but it is non-living. An ant colony is an intelligence web but an ant cannot survive on its own. However, a human being that possesses an intense intelligence source has the capability of creating awareness and also has better capability of individual learning and survival. In all circumstances, data is useful only with respect to a context, that is, data must be transformed into useful information when the necessity for consumption arises. The ways in which a set of information is structured, communicated and utilized further determine its usefulness. Besides, certain relationships must be established between a set of information and an existing knowledge structure. When a set of information is consumed, the

Structure

Information

Intelligence

Fig. 3.2. Structure, information and intelligence are inter-related.

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knowledge structure is altered, and internalization is said to have taken place in the mind. Data and information in this respect are also entities of a physical symbol system and they collectively form a language. Underlying and quietly forging the thinking process is the presence of such a language. Without the existence of a language (especially the written form), human thinking activities would be simplistic, and human civilizations would not have flourished to their present levels.“Without language our mental capacities would be poor indeed, comparable to those of the higher animals” (Einstein, 1954, p. 13).The processing of pictorial signals and sound signals would not have the same level of sophistication, dynamism, connectivity and depth as manipulating a physical symbol system. There seems to be an association among the number of neurons present within an intelligence source and its ability to manipulate and to create abstract concepts using a physical symbol system.

Human Intelligence Human intelligence that emerges with the development of the cerebral cortex possesses the ability to conceptualize a physical symbol set that leads to the emergence of a written language. The presence of such a language facilitates abstract perception, conceptualization and communication, and the storage of knowledge externally. Again, this ability is unique to humanity alone.

In operation, a piece of information is simply expressed as a linear combination of some characters in a physical symbol system. Communicating a concept is a more complex process. If the language used to transmit the concept is linear, some richness in ideas

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may be lost during communication. “A language rooted in a linear, mechanistic view of the universe creates different actions and opportunities from a language that emerges from a complex intelligent view of the universe” (McMaster, 1996, p. 32). In fact, the relationships among information, knowledge, concept, and the language used to create and communicate them are intriguing, if not mystical. Masters speak differently from others in their discipline. When people attain a certain level of mastery, it is not merely their words that are different, but also the meaning of their words, and their understanding of their existence.A single word or a short collection of statements can convey a very deep thought or meaning. In a human organization, language is the medium that helps to facilitate the dynamic of the intangible component of the intelligent structure. It penetrates and flows through the web and binds the organization. The automatic behavior and thinking of a human organization is made possible by language. The dynamic of the system can also be enhanced by the ways the language is used. A change in the way of speaking and thinking will change its coherence and competitiveness. A change in the language of interpretation will generate new information from existing data. The new information generated may be crucial. Engagement, a critical activity in all human-related setups, is made possible by the presence of a language. Therefore, a human organization must make a conscientious effort to ensure that its level of interpretation using language is more advanced and sophisticated than that of its rivals. The exact communication and engagement between any two nodes in the web, the meaning of the language used, the more subtle interpretation of the language used, are areas for repetitive scrutiny. In this respect, the long-neglected role of language operating in the deep conceptual structure of human organizations must be

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re-examined. This binding medium must be better understood. The above discussion leads to the proposal of the fourth postulate.

Postulate IV The survival of an intelligent system is highly-dependent on the awareness, orgmindfulness, connectivity and coherence of the orgmind and intangible deep structure. An optimal physical structure can only emerge from a highly-intelligent intangible structure. The physical structure cannot be created and sustained artificially without a firm intangible structure as its foundation.

3.5. Theory and Knowledge Structure Evolving from the physical to the conceptual use of a physical symbol system, within a certain domain, a theory arises. A theory is a set of statements which allows an intelligent being’s self-examination. It is a reference source for internal searching. In addition, a theory also serves as an analytical lens that enables the intelligent system to examine its environment and the events happening in it. Without a theory, there is no proper basis for analysis and explanations. A thought that emerges without such a basis may not be very valuable.Therefore, a theory is an intelligence enabler. A theory is not and cannot be stagnant. It emerges and evolves with time. In many instances, it has never been fully explicit or understood, even if its fundamentals may be well established and widely practised by the community that adopts it. However, to understand the logic of a theory, and to use it consciously as an analytical lens, is a new mindset that is critically needed to enhance intelligence. A highly-developed group of human beings have many theories.

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In addition, new theory drives leadership. Leadership is meaningless without a theory to support its mission. When a person with a new mindset leads, the theory helps to explain his/her leadership by clearly indicating the direction and intention. Theory is a mental compass indicating the direction in which to steer. In fact, a theory also helps to ensure that an intention and its actions are coherent, and such a match is vital for any human organization to compete successfully. A theory is not necessarily abstract — it is not always a “theory of relativity”. In reality, an operational theory can be fairly simple. As mentioned, quite often people use theories without realizing their existence and importance. Such theories are subconsciously built up in the mind and thus can be relatively simple. However, it is much more beneficial if a theory is well understood, made explicit, and fully supported by the group. Its presence must be known and accepted before the theory can be exploited effectively. The existence of theory in intelligent systems is stated as the next axiom.

Axiom II There exist one or more theories in all intelligent systems that serve as the compass and analytical lens for the systems.

It is through a theory that information is consumed and added on to a knowledge structure. A knowledge structure is a largescale accumulation of related pieces of information over a long period of time. When a piece of information is consumed by a thinking system, it alters the knowledge structure of the system. The consequence of a decision-making process is influenced by internalized knowledge structures. In this respect, a knowledge structure is another intelligence enabler.

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Therefore, the presence of quality knowledge structures in intelligent systems is essential and crucial. Such structures are the products of prolonged mental/intelligent-related activities. When pieces of information are manipulated and consumed, a knowledge structure capturing the relationships of the pieces will gradually emerge, if sufficient time and effort have been invested. These structures are also reference sources when further pieces of information are brought into the thinking system. The next axiom on knowledge structures is stated below.

Axiom III There exist one or more internalized knowledge structures in all intelligent systems that are the reference sources for intelligent activities and actions.

In this respect, knowledge structures, theories, and intelligence are constantly enriching each other in an intelligent system. These three entities form an intelligent enabler triad. The triad is the intelligence enhancer of the mind and orgmind. The presence of such an enhancer in the human thinking systems is vital. It is the most significant dynamo that drives complex thinking in highlyintelligent systems. The dynamic of the intelligence enhancer is illustrated in Fig. 3.3 and its quality can be substantially improved with the presence of a written language. The functions of this enhancer will be more deeply examined in subsequent chapters.

3.6. Inherent Intelligent Structure and the Basic Intelligence Strategy Designing around intelligence is a creation of nature. It is an inherent feature of the universe and all its microcosms that exhibit

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Intelligence

Engagement using information and language

Theory

Knowledge

Fig. 3.3. The intelligence enhancer of the human thinking system.

stability. In the sea of chaotic expansion, infinite numbers of “bubbles of order” proliferate. The centers of these bubbles are the “local order centers”. In the vicinity of each of these centers is a space of order. A space of order is a region of established structure and stability, where activities constantly reduce entropy, and relationships are linear. The characteristics of such a space are significant to humankind as their predictability provides confidence, comfort and certainty. However in a space of order, intelligence is not optimized. Information use is rigid and information redundancy is not acceptable or carefully avoided. Its dynamic is linear and usually simplistic. Consequently, creativity and innovation are unconsciously suppressed. For an intelligent organization to prolong its existence, its spaces of order have to be constantly strengthened and enhanced. Thus, venturing beyond order into the unfamiliar territories of complexity is the best option to achieve the above objective. Just beyond a space of order is a space of complexity. This mysterious sphere is embedded with new unexplored opportunities. The main attributes guiding activities in the space of complexity are high-level intelligence, intense complex information processing, and

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to a great extent innovation and creativity. The characteristics of the space of complexity are non-linear and the Butterfly Effect can manifest itself. Thus, the returns for venturing into this space can be enormous. Nature frequently exploits the dynamism of complexity to support its evolutionary dynamics. In addition, this space allows dynamics that contradict the exact sciences to exist. For instance, matter can exist in a state in between solid and liquid in such a space. Currently, human organizations have not either realized the existence of complexity or have avoided this uncertain space. Operating within the spaces of order has always been the norm. However, confining organizational activities to spaces of order can only sustain survival for a limited period of time. Niches cannot be easily found in territories that are commonly understood. The complexity spaces are the unexplored goldmines. Anyone that is able to recognize new order and structure in complexity (deterministic chaos) acquires an intelligence advantage. However, the present machine-oriented structure of human organizations suppresses the analysis and exploitation of the spaces of complexity. The structure of the spaces of order of a mechanistic setup is unnatural, as it does not take on a form congruous with biological systems that inherently support their own growth and survival by reaping benefits from the spaces of complexity. The common existing practice of fitting human beings into a machine setup is also not a natural process. Therefore, the intelligence strategy has to be adopted. Human organizations must ensure that their structure does not end abruptly at the edge of order. Intelligent human systems must venture into the spaces of complexity to reap the latent benefits. In general, structure fluidity, information redundancy, knowledge enhancement and non-linear use of intelligence, are some of the main characteristics that the new environment requires. These

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characteristics are some of the key life-supporting features of biological evolutionary systems. The intelligent organization theory stipulates that human organizations designed around intelligence are more adaptive and competitive. At the center of the deep structure is the orgmind of the organization and embedded in it is its consciousness.The level of collective intelligence determines the level of consciousness and orgmindfulness of the system. Orgmindfulness and collective intelligence, are responsible for the connectivity of the system. In this respect, orgmindfulness is a highly significant aspect of intelligence management. It is only when an organization is orgmindful of its existence (including that of its interacting agents) before that system can be well connected. Thought technology can play a significant role in this engagement. The connectivity of an organization is determined by its mode of communication. Coherent thought is the social and psychological gel that binds human beings together, and it helps human organizations to achieve functional cohesion. As discussed above, language facilitates engagement and the flow of information, and binds the interacting agents. Language also allows for more abstract and intense interaction. Very often, concepts can only be successfully explained using language. In addition, language also enhances the linguistic act of interpretation. Therefore, language is a major concern when nurturing the deep structure, and when extending the boundaries of the spaces of complexity. Without a highly developed language, the intelligence enhancer cannot function at a higher level of complexity. Language facilitates the interaction among the three entities in the enhancer and also among the interacting agents. In this respect, language and collective intelligence are closely associated. In the new theory, an intelligent business organization that is constantly learning, responding to the environment, and adapting

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and evolving with time will not adopt a stagnant five-year strategic plan. As the internal and external parameters change, an intelligent system will have to adjust or even transform its orgmind, intelligence enhancer, deep structure and surface structure, accordingly. Inevitably, its strategic plan will have to be altered or updated constantly. A transformation may even be a necessity depending on the acceleration and complication of the change involved. Fundamentally, the deliberate strategy commonly adopted today is useful only when the environment is stable or fairly predictable. However, when the environment becomes highly-dynamic and the future cannot be well predicted, an emergent strategy is more viable. In this case, the scan-respond-evolve cycle will has to be exploited frequently or even continuously. In reality, as order and complexity always co-exist, a combination of the two strategies is essential. A combination of deliberate and emergent strategies (a basic aspect of the intelligence strategy) is a more viable option in the new context. Some differences in the two strategies are summarized in Table 3.1.

Table 3.1 Some differences between deliberate strategy and emergent strategy. Deliberate strategy (Effective in an orderly space) Presence of planned intention (plan mapping activities exist) Destination and environment are highly predictable (determinism) Path of advancement can be charted A plan exists The plan is usually centrally formulated The plan is implemented with high precision

Emergent strategy (Needed in a complexity space) Absence of planned intention (interconnectivity activities exist) Destination and environment cannot be well-predicted (unpredictability) Path of advancement emerges gradually A plan emerges Formulation requires broad consensus and high collective intelligence Implementation by self-organization and requires a high degree of tolerance

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Finally, it must be emphasized again that recognizing the presence of punctuated equilibrium is a new awareness that today’s managers, social scientists, economists and political leaders must acquire. Punctuated equilibrium makes it difficult for a system that is not adaptive to survive for long. Such a system that tends to be complacent during a period of calm cannot adjust when the situation turns complex. An adaptive system, on the other hand, is always dynamic, innovative, creative and proactive. Thus, the emergent strategy has to be nurtured over time and its success is closely linked with the collective intelligence of the system. In this respect, a smart evolver must also be an emergent strategist. (The concepts of emergent strategy, smarter evolver and the new leadership strategy will be further discussed later.)

3.7. Conclusion For better omniscient understanding, it may be beneficial to summarize the foundation of the intelligent organization theory that has been proposed before concluding this chapter. The most basic concepts that have been discussed are as follows: a. Human organizations are intelligent beings. b. They are corporate beings with an orgmind and collective intelligence. c. Their level of collective intelligence can be elevated through better management of their internal intelligence sources and proper design. d. The more intelligent an organization, the more adaptive orgmindfulness and competitive it is. e. Such a competitive advantage is an intelligence advantage.

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Therefore, there exists a critical relationship between intelligence and human organizations, as there exists a similar relationship between intelligence and biological organisms.The requirements of this vital connection are summarized below: a. The presence of an intense intelligence source is vital; otherwise, the activities of organizational systems will have no proper co-ordination and direction. b. The existence of a sophisticated environment scanning and responding component is essential because such a component not only enables organizations to interact with their environment, but also enables organizations to elevate their collective intelligence. c. The spread and integration of the intelligence web with the economic production functions connecting the components specified in (a) and (b), is a necessity in business organizations as the absence of the web indicates that that organization is paralyzed. d. The flexible physical structure must be supported by an intelligent deep process structure. An intelligent and coherent orgmind is the fundamental intelligent stratum of all intelligent organizations. In particular, it is important to recognize that the collective intelligence in human organizations can be elevated through proper design. Some benefits derived from organizing around intelligence are as follows: a. The intelligence strategy that focuses on an intelligenceoriented design helps to elevate the collective intelligence and competitive level of human organizations.

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b. This new designing (biotic) approach allows human organizations to settle more spontaneously into a competitive state that is closer to an inherent intelligent structure of nature. c. Human organizations with an intelligent structure possess an orgmind, a deep intangible structure and a surface structure. Such intelligent systems are more coherent with information and knowledge-related functions, and therefore they survive better in the knowledge-intensive environment. d. Intelligent human organizations are more adaptive to both linear and orderly changes, as well as non-linear and complex changes. In addition, they adopt both the deliberate and emergent strategies. In this respect, intelligent organizations are smarter evolvers and emergent strategists. Therefore the three basic components of the intelligence strategy (more to be discussed later) are as follows: a. Design and nurture a biotic structure. b. Continuosly elevate the intelligence enhancer. c. Design and implement an integrated deliberate and emergent strategy.

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Aggregation of complex adaptive systems into a composite complex adaptive system is an effective way to open up new level of organization. The composite system then consists of adaptive agents constructing schemata to account for and deal with one another’s behavior. Murray Gell-Mann, The Quark and the Jaguar

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IV Intelligent Biotic and Complex Adaptive Structure of Human Organization

In this chapter, the biotic/biological structure of an intelligent human organization is more deeply analyzed. Some fundamental characteristics of highly intelligent biological organisms and other complex adaptive systems are scrutinized and compared with human organizations as composite complex adaptive systems — organizational consciousness, orgmindfulness, collective intelligence, connectivity, engagement. It is crucial for intelligent human organizations to possess these biological and complexity associated characteristics. Structurally, a highly intelligent human organization should resemble a highly intelligent biological being. In particular, the characteristics and significance of consciousness, awareness, self-awareness, mindfulness, orgmindfulness, collective intelligence and quality connectivity are further examined with respect to nurturing the orgmind, intangible structure and physical structure in highly intelligent complex adaptive systems (iCAS). Key Words: Biotic structure; consciousness; awareness; self-awareness; mindfulness; organizational consciousness; orgmindfulness; collective intelligence; connectivity; engagement; highly intelligent complex adaptive system; iCAS; thought technology; interacting agent; space of order; space of complexity; sustainability; intelligence advantage; human consciousness; autonomous; anticipatory; complex adaptive dynamic; self-organization; bio-diversification; co-evolution;

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concentrated calmness; structural capacity; far-from-equilibrium; humanizing organization; supportive culture; mindful culture; artificial information network; natural node; decision-making node; artificial node; latent intelligence; intelligence-centric.

4.1. Introduction It is now better comprehended that intelligent human organizations are complex adaptive systems that possess spaces of order and spaces of complexity (see Fig. 4.1). A space of order is linear and its events are more easily understood. This space provides predictability, comfort, and confidence. However, operating in a space of this nature can only sustain survival for a limited period of time. Niches cannot be easily found in a territory that is commonly understood. To increase competitiveness and achieve higher sustainability, human organizations will have to endeavor beyond order and navigate more frequently into spaces of high complexity. Innovation and creativity are more abundantly deposited in the spaces of complexity where activities are nonlinear. Because of their non-linearity, the complexity spaces contain an enormous amount of unexplored knowledge awaiting a more prepared and curious mind. Anyone that is able to discern some structures in these spaces early possesses an intelligence advantage. In the event of comprehending a portion of a space of complexity, the knowledge

Complexity Intelligent Human Organization

Order

Fig. 4.1. Order and complexity co-exist in all human organizations.

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derived can be used to strengthen and enlarge the spaces of order. In the process, the opportunities, competitiveness and sustainability of the organization are broadened. The organization can then move on to explore other portions of the complexity spaces more extensively. Basically, the idea is to tap into and exploit the innovation and creativity of deterministic disorder to further strengthen the structure of order. This cyclical process continually elevates the competitiveness of the organization. It is an evolutionary dynamic that can only be sustained by a high level of collective intelligence. Physically, the spaces of complexity are perceived to encompass the spaces of order. In reality, the two sets of spaces are intertwined in a complicated manner and sometimes sophisticated intelligence is required to identify their boundaries. Conscientious effort must be invested to identify the boundaries of these two sets of highly dynamic spaces. Nonetheless, as the benefits derived from understanding and exploiting the complexity spaces are enormous, competitive organizations will still continuously channel resources into the complexity spaces to sustain or increase their competitiveness.

4.2. Human Intelligence and Consciousness The pivotal development in the final stage of brain evolution is confined to the Homo sapiens that emerge around a quarter of a million years ago. In the earlier chapters, human intelligence and consciousness have been introduced as significantly different from that of all other living species on this planet because of these events.The consequence is the emergence of the following abilities/functions: a. The human brain is the most intense intelligence source known in this biosphere. Human intelligence after the development of the cerebral cortex has enabled human beings to see seven colors; visualize a three-dimensional space; activate bipedal locomotion; conceptualize a physical symbol set; and use a written language intensively.

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b. Similarly, from this intense intelligence source, second-order human consciousness emerges which encompasses the unique function of mindfuness. With this level of consciousness human beings are able to observe (and control) the mental state of their own mind.

Human Level Consciousness Human consciousness activates two mental functions namely, awareness and self-awareness. At the core of selfawareness is mindfulness. Mindfulness is unique to human level consciousness and therefore is confined to humanity alone. This is the special mental function that human organizations must learn to nurture as it is vital for cultivating collective intelligence.

These two highly important recognitions must be effectively utilized when nurturing highly intelligent human organizations (highly intelligent complex adaptive systems, iCAS). Highly intelligent human organizations possess very high collective intelligence and orgmindfulness. Orgmindfulness is the function that observes the mental states of all the interacting agents in an organization to ensure better engagement. Thus, among others, these are the key characteristics/functions that an iCAS must encompass.

4.3. Structuring Around Intelligence: The First Perspective At this juncture, the methodology of organizing around intelligence concentrates on 4 different perspectives. First, the primary focal centers of the intelligent organization theory are the mind and

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orgmind (the first perspective of organizing around intelligence) as they are the origins of thought and action. A thought originates in the mind and an action is initiated by a thought.When there is no thought, there is no action. Thus, a more mindful mind is perceived to exercise a better course of action and hence is more intelligent. On the same note, the best means to enhance the collective intelligence of organizations is to concentrate on the connectivity of the intrinsic intelligence sources. Human organizations can elevate their collective intelligence through better orgmindfulness by focusing on connecting or changing the thoughts of the individual minds subtlety. Therefore, an orgmindful organization is one that is highly concern about the state of the mind of its interacting agents. Human minds are nonlinear systems and they are the basic elements of an orgmind. In the new perspective, an organization as a unique single entity is perceived to behave as an evolving intelligent corporate being driven by its own collective intelligence that originates from its orgmind. Similar to biological entities, organizations with an orgmind are able to learn, adapt, compete, and evolve with time. As indicated earlier, the intrinsic energy that can drive the above development is primarily human intelligence. Higher levels of intelligence from sources with the right mindset are required to facilitate the new leadership and management dynamics. Thus, as the world moves into the intelligence era, organizations must first discern the primary importance of intelligence and the existence of an orgmind in their setup. An organization must be designed with a structure and orchestrated with a dynamic that allows its own orgmind and collective intelligence to emerge. Ideally, it should possess a structure and dynamic that continually accumulates and internalizes knowledge, and allows its corporate theories and philosophy to evolve with time. Simultaneously, the orgmind would then be expanded and consolidated. In this respect, an orgmind is different from a human mind. The former can be

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enlarged and its collective intelligence can be elevated substantially with orgmindfulness and other appropriate activities. A key factor to take note of is connectivity. Connectivity in an organization does not simply imply uniformity and homogeneity. The secret embedded here may be unity through diversity, that is, establishing connectivity by accommodating diversification. In this respect, when organizations are structured around intelligence, a new technology that can be exploited is thought technology.This technology focuses on the connectivity of the orgmind and the intangible aspect of the organization. Although putting in place an effective physical structure is important, the underlying dynamic in the deep structure that makes the tangible structure work coherently is even more significant. In an ideal situation, the deep structure should provide the foundation for an intelligent and flexible surface structure to be established. Primarily, orchestrating the growth and ensuring the coherence of the intangible structure originates from the orgmind. At the moment, few organizations actually place sufficient attention on the existence of the orgmind and the intangible structure. Those that have artificially erected their physical structure should recognize that their structural components are not well synchronized. An artificially enforced structure can never come close to optimal performance if the intangible structure is weak and divided. Therefore, an understanding of the connectivity of the intrinsic sources, collective intelligence, organizational consciousness


Human Mind Orgmind

Intrinsic Intelligence Human Consciousness Collective Intelligence Organizational Consciousness

Fig. 4.2. Vital entities to focus on when nurturing a human organization around intelligence.

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(orgmindfulness), connectivity, information processing and knowledge management, is the key to comprehending the orgmind. The above discussion is summarized in Fig. 4.2.

4.4. Intelligent Interacting Agents Human beings are the heterogeneous interacting agents that constitute all human organizations. They behave and interact nonlinearly.When they form a human organization, they do so with a specific mission/purpose in mind, such as economic production or provision of welfare services. Irrespective of the mission, the organization incorporated is an open system because such a system interacts with the environment, and the agents can enter and leave the system. The exact patterns of adaptation and evolution of the individuals cannot be predicted in advance. Those that do not or cannot adapt to the group dynamic will leave. And those that can adapt evolve with the system. The whole phenomenon is emergent in nature. Several evolutionary activities such as self-organization, biodiversification and co-evolution can be unfolding concurrently. The individual human thinking system, the mind, is a complex adaptive system that possesses linear and nonlinear components. Each mind is extremely complex and must be managed professionally and carefully (especially for a well educated/informed person and a smart evolver which will be dealt with later). In this respect, the state of every mind is a vital factor that can decide whether the organization will succeed or disintegrate. The dynamic of the mind, being nonlinear, can be highly sensitive to initial conditions, and understanding how the mind thinks and interacts is highly significant to intelligent organizations. In this respect, comprehending the properties and functions of the human

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thinking systems is a great necessity. Apparently the most fundamental complex adaptive system in human organizations, the human mind, must be understood first, before the higher level complex adaptive systems such as an orgmind can be effective or nurtured. An important strategy in the new mindset is getting the individual mind to be mindful first. To be mindful is to be more aware of itself and its internal state. It is a self-reflection function. The intention is to ensure that the mind is in better control of its thoughts, decisions and actions. The higher the level of mindfulness of the mind, the greater is its ability to manage itself and solve problems. In practice, nurturing this process is by no means a simple task. A high level of mindfulness can only be attained through conscientious effort over time. The mind must continuously and perpetually search itself. It must also continuously build up a set of theories that facilitates coherent thought. There is no shortcut to this endeavor. Concentration is needed to achieve a well-focused mind, and concentrated calmness as well as clarity are needed to promote better understanding and decision making. The entire process is smooth and soothing only if there is a high level of mindfulness.The decisions and actions that emerge from such a mental state are substantially different. To cultivate such a mind the individuals must first be aware of their thoughts. Watching their thoughts increases mindfulness. As a thought begins in the mind, it is at the source, the mind, that it must be checked. The persistent practice of watching helps to avoid interferences by revealing the errors in thoughts at an early stage. In this way, inappropriate actions can also be avoided. Concurrently, the same process also helps to identify new opportunities. Thus, the individuals must mind the mind, and not allow it to drift in the wrong direction. This is the basic criterion that must be achieved in mind cultivation (see Fig. 4.3).

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Human Consciousness

Awareness

Externally focused

Selfawareness/ Mindfulness

Internally focused

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Fig. 4.3. Awareness and self-awareness/mindfulness are the primary mental functions that arise from human consciousness.

4.5. Orgmind and Orgmindfulness In a human organization, the orgmind embraces the minds of all its members. An effective orgmind needs all members of the organization to voluntarily connect their minds through appropriate engagement to form the pivotal portion of the organizational structure. They are bound due to their own volition.There must be no coercing. Intangibly, it may appear to be the fusion of the individual minds into the orgmind. Physically, it is not always possible to identify its boundary as the latter may vary with the situation or problem encountered. As discussed earlier, the state of the individual minds has a profound effect on the orgmind and the state of the orgmind is not a linear combination of the individual minds. Certain synergetic effects can only be achieved if the individual minds are connected in the right manner. Therefore, the integration of all the intrinsic intelligence sources into one collective source is a tricky endeavor. There may be more than one possible combination. It is a difficult task that leaders and managers have to learn to handle, especially with the better educated and very different mindset younger generations (generation X, Y and Z). However, once that “collective” stage is attained, the organization’s concern becomes the full concern of the individual members. The organization’s survival is perceived to be connected to their

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survival. The co-evolution mentality emerges. Thus, nurturing a well-connected orgmind must be a top priority and accomplishment of an intelligent organization. Once an orgmind is established, orgmindfulness must be further enhanced. It can be attained in the same manner as nurturing individual mindfulness, although the task involved here is more delicate. The attributes of a well-focused, clear, calm, and well-controlled mind also apply to organizations. (Some of these attributes are also associated with the new leadership which will be discussed later.) A drifting and disintegrated orgmind is disastrous. An organization that aims to exploit the intelligence-based paradigm must attain a high level of orgmindfulness. Only when the orgmind is highly orgmindful is the organization ready to adopt other intelligencerelated re-structuring (see Fig. 4.4). If a mind exists within the body, logically it ought to thoroughly comprehend the internal environment of its body first. Very often, human beings tend to be more attracted by external events. Many organizations are observed to have the same traits. Focusing internally, in particular, on the intangible dynamic is an important aspect that is always neglected. It must be emphasized that an organization must direct its attention internally first if it is to achieve a high level of collective intelligence. This is the basic mission of orgmindfulness. By constantly and conscientiously checking and changing the

Collective intelligence Orgmind

Awareness (externally focused) Orgmindfulness (internally focused)

Present in most current competitive organizations Absent in most current organizations

Fig. 4.4. The crucial characteristics/properties/functions of the orgmind.

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mental state of the interacting agents, the organization is in a better position to face a battle as a united entity. The primary reason for the failure of some organizations is the absence of an effective orgmind. In other cases, it is the deterioration of the orgmind that causes the collapse of these organizations. Very often, failed businesses are not directly eliminated by other businesses. If an organization is alert, continuously aware of the changing environment and orgmindful of the mental state of its interacting agents, and does constant internal searches, its chance of survival is high. On the other hand, if its orgmind is chaotic or brain-dead, it does not have to be destroyed by others; rather, it self-destructs.

4.6. Intelligent Intangible Structure At the core of the organizational structure is the orgmind of the organization. The level of consciousness of the orgmind is responsible for its overall performance. Consciousness and connectivity are two mutually enforcing properties. It is only when an organization is highly conscious of its existence, mental state and activities, and well connected structurally, that learning and adaptation can emerge successfully. Such an intelligent structure will lead to a tremendous improvement in decision-making, evolution and competitiveness. It is only then can an organization be collectively perceived as a single unique entity. The critical need to focus on the structure of organizations is due to one fundamental belief. The capacity of the structure limits their growth and competitiveness. Thus, the structural capacity and dynamics of organizations determine their potential for successful evolution. Inevitably, over time, such systems move towards the edge of chaos. At the edge of chaos, these organizations have two options: either face disintegration because of stagnation or

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move into a higher order of complexity. An organization that has consciously nurtured its collective intelligence has a higher probability of achieving a better order of existence. In general, organizations must be able to evolve into optimal states similar to, for instance, the evolution of the ape family into different species, which takes place spontaneously by optimizing the dynamic of the orgmind, the intangible structure and the physical structure. These species have their differences (for instance, only humanity has perceived the physical symbol system) and commonalities (for instance, all the ape species have achieved bi-pedal locomotion). Each species exists in its present state due to a set of intrinsic factors and its interaction with the environment over time. Therefore, it is crucial that organizations be able to evolve in this manner, too. To identify an appropriate equilibrium state quickly is a pivotal necessity. However, the state of equilibrium of each organization is different, depending on its internal dynamic, its structure, and its environment. In addition, the state of equilibrium itself is a dynamic equilibrium and not a static one. It may be significant to remember the far-fromequilibrium characteristic of all human systems. A derivation of this theory is the concept of humanizing organizations. This development is by no means a coincidence. It is associated with the change in mindset, from the Newtonian machine world to the current complex and nonlinear living world. In an intelligence-focused environment, the humanizing of organizations is a parallel development, as human beings cannot be treated as machine parts. In the new socio-economic and political environment, human beings must be treated as human beings again. The humanization of an organization emphasizes trust, respect and other human-sensitive attributes. A large layer of the intangible structure, a web of human attributes, has to be highly regarded. Only then can quality connectivity and a supportive/mindful culture be nurtured, as illustrated in Fig. 4.5. (Basically, the increase in the quality of relationship must be faster than the increase in complexity.)

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Quality connectivity (Central nervous system) Intangible structure Supportive/mindful culture

Fig. 4.5. The crucial characteristics/dynamic of the intangible structure.

This highly desired trait can only be achieved if a high level of collective intelligence and orgmindfulness emerge from the core of interacting human minds.

4.7. Intelligent Physical Structure As stipulated earlier, it is vital that the architectural setup of the surface structure should emerge from the deep structure. Such a process is evolutionary in nature. When the deep structure is changed gradually, the surface is also altered, but not vice-versa. Therefore, altering the organizational chart and hoping that the culture of the organization will be changed will never materialize. Such a dynamic is not sustainable. Thus, time and effort must be invested into nurturing the intangible structure. It is only when the deep structure supports the surface structure it helps to create, that an organization becomes more nimble, flexible, adaptive and intelligent. The physical structure itself is also extremely significant. This is the structure that we are constantly in contact with during our daily operations. In general, the nervous system of the physical structure of an intelligent organization possesses three features, namely, an intense intelligence source (organization brain), an environment scanning and responding component, and an intelligence web. The existence of an intense intelligence source is the pivotal factor that distinguishes higher levels of intelligent systems from others. The absence of such a source indicates the absence of the leadership node. An intelligent organization cannot compete beyond a certain limit without proper co-ordination and direction,

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and this role is initiated and performed by the intense intelligence source. The intelligence web that spreads and permeates the entire system has its own significance and value. For biological organisms, this web is the nervous system that spreads from the brain. In business organizations, this web must also spread from the intense source, intertwine with, and support the economic production system. In human organizations, the relationship between the web and the intense source is more delicate. In certain instances, the demarcation may not be clear. In addition, extra precautions are necessary to balance the roles of the two components; otherwise, evolutionary characteristics and creativity may be suppressed. A highly intelligent system has to be responsive to its environment. It must act, react, and think like an intelligent biological entity. Therefore, the scanning and responding capabilities of the environment component are important assets. The ability to scan and detect environmental signals coming from environmental targets, the ability to respond swiftly to such signals, and the ability to influence the environmental targets, are significant features of this component. This environment-dependent component is highly important to competitive intelligence activities in most businesses.

4.8. Connectivity and Artificial Networks: Natural Nodes and Artificial Nodes As mentioned, quality connectivity is a key factor for successful evolution. In general, an interacting agent will express willingness or unwillingness to be connected. If the option is willingness, then higher quality connectivity can be achieved by better information flows (see Fig. 4.6). In this respect, the connectivity of the physical structure is also an important area of concern. The networks, and the integration of systems, in particular, the intelligent information

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Connectivity

Willing to be connected

Unwilling to be connected

73

Better engagement and information flows

Fig. 4.6. Connectivity options.

systems network and the economic production system, are important components of the physical structure. In many human organizations, a sizable component of the physical structure comprises integrated information system networks. Intelligent information system networks enhance the connectivity of the organization through better communication and faster processing of information. This feature is particularly significant in a knowledge-intensive environment. In this respect, artificial intelligent information networks partially serve as the nervous system of an intelligent organization. Highly intelligent, artificially created information systems also serve as artificial information processing nodes in intelligent organizations (see Fig. 4.7). The central node of an information systems network in intelligent human organizations includes the set of human minds, the natural thinking systems (natural nodes, decision-making nodes), which provide the decision-making and leadership roles of the organizations. This set of natural thinking systems is the major component of the intense source.A well-connected and coherent intense source forms the center from which the orgmind emerges. It is linked to all other parts of the organization by the intelligent web.Within the web, there are other secondary decision-making nodes that may possess specialization capabilities, some of which are artificial nodes. At the moment, there are several categories of intelligent information systems that are being used in businesses.

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Intangible Physical structure Orgmind (Main decisionmaking node)

Artificial information network (Supporting information processing nodes)

Structure

Fig. 4.7. An effective physical structure should emerge from the intangible structure and it should be supported by an effective artificial information network.

Complexity-based systems, artificial neural networks, expert systems, fuzzy logic systems, intelligent hybrid systems and knowledge management systems are some examples. However, in most organizations, these systems, if they exist, are not well integrated into a central nervous system. A highly intelligent being must possess well-integrated information processing networks and not patches of nerves here and there. An increasingly important component of the nervous system is the e-landscape. The artificial information systems network will be dealt with again in Chapter 7.

4.9. Summary of the First Perspective The synopsis of the basic briefs and approach of the intelligent organization theory associated with the fundamental perspective is re-captured below. It is envisaged that the following suppositions are vital to the success of implementing the intelligence paradigm: a. A structure designed around intrinsic intelligence/human mind is the best option to create a more intelligent human organization and smarter evolver.

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b. The intelligence-based approach optimizes the ability and capacity of the surface structure by improving the connectivity of the intangible structure (encompassing the orgmind). A well-connected intangible deep structure supports a more effective surface structure. It is important to note that the effectiveness of organizations is bounded by their overall structure. c. An intelligence-based design (with a living system mindset) helps to humanize organizations and to elevate collective intelligence. d. An intelligence-based design places more attention on the spaces of complexity and therefore encourages more innovative and creative endeavors. e. An intelligence-based design stimulates more effective selforganization. Self-organization, connectivity, emergence, evolution and collective intelligence are closely associated attributes. f.

An intelligence-based design supports co-evolution with the composite system. This dynamic creates a more sustainable intelligence advantage.

Based on the above beliefs, the first set of responsibilities to be fulfilled when adopting the intelligence strategy includes the following areas: a. Nurturing the orgmind and elevating collective intelligence. b. Optimizing the contributions of every intrinsic intelligence sources. c. Cultivating a mindset that is highly adaptive and evolving.

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d. Ensuring a high level of orgmindfulness (beyond awareness). e. Ensuring a high level of connectivity (and engagement). f.

Continuously and conscientiously tapping into latent intelligence.

g. Investing sufficient resources in the spaces of complexity. h. Creating an intense intelligence node (organization brain). i.

Creating an effective intelligence web (equivalent of the central nervous system).

j.

Building an intelligent environment scanning and responding component (equivalent of the sensory system).

k. Ensuring that the artificial intelligent information systems network and the economic production system are synchronized (for business organizations). This set of pre-requisites is vital to putting an intelligent human organization in place. They form the primary initiators that can effectively make an organization more intelligent.

4.10. Structuring Around Intelligence: The Other Three Perspectives In addition, the concept for organizing around intelligence also encompasses three other secondary/associated perspectives. The second perspective involves organizing around knowledge and information-related activities. Natural organisms, especially the more sophisticated systems, are inherently structured in this manner. The information-related activities are responsible for the

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information processing, knowledge structuring, thinking and decisionmaking capabilities of intelligent natural systems. These activities engulf the following functions: a. Scanning the environment for relevant external information. b. Creating useful internal information from thought processes. c. Distributing information to all parts of the system. e. Consuming information to update the knowledge structures. f.

Consuming information to improve decision making.

g. Creating new knowledge structures. h. Advancing to a higher stage of discernment and existence by means of an enhanced language. The third perspective of the intelligent organization theory involves organizing around evolution and complex adaptive dynamic (learning, adaptation, emergence). Successful evolution means that the organism continuously adapts itself to the changing environment so that it remains alive.A living system continuously consumes information and attempts to evolve successfully.The ability to perform this function prolongs the existence of that system. Thus, human organizations must also internalize the following abilities: a. Organizations must learn, adapt, evolve, compete and survive. b. Organizations must learn and re-learn faster than their competitors.

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c. Organizations must continuously restructure through emergence and dissipation, that is, organizations must restructure to a higher order of existence by continuously moving into the edge of chaos and releasing the extra entropy. d. Organizations must continuously enhance their connectivity and consequently their ability to manage evolution will be improved. e. Organizations must maintain a high level of orgmindfulness and nurture a supportive culture to drive all the above factors. The fourth perspective involves the use of complexity properties such as complexity, non-linearity, far-from-equilibrium, interdependency, the Butterfly Effect, the rugged landscape concept and the Red Queen race where appropriate.These are natural nonlinear phenomena that have stimulated and sustained the existence of different forms of life and their environment on this planet. In this respect, these are also the niches that can be exploited by intelligent human organizations if the latter wish to reap the astronomical returns of non-linearity through the butterfly effect. Intelligent organizations must be aware and ready to exploit these opportunities.

4.11. Conclusion The above explanation clearly endorsed that the machine-like structure existing in all human organizations that supports the Newtonian mindset and industrial era for the past few hundred years is becoming irrelevant if not obsolete. Meanwhile, a new and more natural/biotic structure that emerges from the intelligence mindset is definitely more appropriate and optimistic (intelligencecentric). Such a structure embraces a complex adaptive dynamic. The fundamental principle to exploit is organizing around

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intelligence. Organizing around intelligence is also the primary strategic principle of the intelligent organization theory. The adoption of this principle will lead to the emergence of intelligent human organizations which can be defined as follows:

Intelligent Organization It is a human organization that encompasses a high collective intelligence, intelligence-associated characteristics and information-associated characteristics, and possesses a biotic structure including an orgmind, an intangible structure and a physical structure. It is also an autonomous, aware, mindful and anticipatory system driven by a continuous complex and adaptive dynamic. A highly intelligent human organization (iCAS) is also a smarter evolver and an emergent strategist.

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Specialized Topics

V: The Human Thinking System VI: Basic Intelligence Evolutionary Dynamic and the Intelligent Person Model VII: Artificial Intelligent Information Systems Network VIII: Interdependency: The Integrated 3COK Framework and the Higher Level Intelligence Dynamic IX: Paper Dialogue: An Effective Methodology for Nurturing Collective Intelligence

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Without language our mental capacities would be poor indeed, comparable to those of the higher animals; we have, therefore, to admit that we owe our principal advantage over the beasts to the fact of living in human society. Albert Einstein, Ideas and Opinions

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V The Human Thinking System

This chapter focuses on the macroscopic perspective of the human thinking system. The human thinking system is perceived to be comprised of two sub-components namely, the energy–matter subsystem and the physical symbol subsystem.The procedure in which the human mind handles one or more physical symbol systems is discussed.The conceptual development encompasses the transformation of data, information, knowledge and wisdom, and how a language emerges.The boundary of a human thinking system and the necessity of artificial information systems are also included. A better understanding of the human thinking system and the conceptualization of the general information theory is vital to the nurturing of highly intelligent human organizations. Key Words: Human thinking system; energy–matter subsystem; physical symbol subsystem; information decoder; intelligence spectrum; physical entity set; data; information; knowledge; wisdom; language; neuron; neurotransmitter; information-processing perspective; information consumption; general information theory; character set; artifact; basic entity; intelligence space; basic human intelligence; advanced human intelligence; symbol creation function; basic entity coding/capturing function; basic entity transformation function; perception function; decision-making function; cognitive perspective; concept; cognitive structure; cognitive intelligence/functions space; cognitive space;

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knowledge structure; information-coded energy quantum; internalization function; externalization function; energy–matter interaction; matter–matter interaction; energy–matter function space; four postulates of the general information theory.

5.1. Introduction The human thinking system in which the human mind and brain reside ranks among the most exciting research domains of the entire last century and it will continue to attract the same level of interest over the next few decades. It has been mentioned that “the nature of the mind, … , how a biological organ like the human brain can be an organ of thought, … , how biological organs like neurons which carry on chemical and electrical processes can support our thinking, … and the processes of thinking at the level of symbols — the kind of symbolic processes that are going on when a human being thinks,” are some aspects of this fascinating discipline that have captivated both information scientists and neuroscientists alike (Simon, 1989: p. 1).This group must be extended to include all individuals that manage or have interest in human organizations. At the moment, the microscopic principles and dynamics of the human brain (the biological organ that is engulfed in the cranial space) at the neural or atomic level are still far from being fully understood. However, since Cajal confirmed that the brain is made up of a large number of discrete units using Golgi’s method of staining neurons with silver salts about a hundred years ago, the neuron doctrine has been further examined by numerous researchers rigorously (see Appendix 3). Today, the brain is known to contain between 10 billion and 1 trillion neurons connected by about 100 trillion synapses, forming an extremely complex three-dimensional maze of neuronal circuitry. The neural codes travel as electrical (energy) codes in the axon and biochemical (matter) codes in the neurotransmission at the synaptic gaps. Overall, the brain generates a global neuronal pattern based on interactions at the level of the synapse.

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The mechanism at the neural level that enables the brain to generate neuronal patterns remains a mystery in neuroscience even though over the last two decades, new technologies have greatly enhanced the research activities in this area. However, the discovery of the first neurotransmitter in 1973 was a significant advancement. It signified that neural codes are decipherable at the atomic level. Neuroscientists estimated that there are as many as three hundred neurotransmitters. Although this number is large, the existence of order that holds the key to unfolding the neural code must be present. The creation and operation of the abstract mind is equally mysterious. The cognitive or neuropsychological dimension of the mind will always remain a significant component of human behavioral analysis even after the neural mechanism of the brain is fully established. In fact, determining the relationships between the neural activities of the brain and the behavioral functions of the mind is a current key research domain. Perhaps a better understanding could be obtained eventually using some fundamental principles from the science of complexity.

5.2. The Information-Processing Perspective Cognitive science has always emphasized that human beings are information processors. Information processing appears to be an important connection between the function of a human thinking system and its behavior. Basically, cognitive science perceives a human thinking system as having components such as sensory memory, short-term memory, and long-term memory. Such a setup is an information-processing-related structure with capabilities to explain operations of different complexities including information processing, information consumption, concept-attainment, reasoning, and decision making. The above basis is further supported by the belief that our conscious conception of self is largely derived from our ability to acquire and use at least one natural language or a symbol system.The creation of an artificial physical symbol subsystem by the human mind leads to

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Human thinking system

Cognitive perspective Neural perspective

Natural informationprocessing system

General information theory

Fig. 5.1. The human brain is a naturally information-processing system.

the extension of the natural system. The evolutionary development of the symbol subsystem is a fairly recent phenomenon in the context of evolution theory. The creation of logograms by the Sumerians took place around 3000 B.C. By 800 B.C. a complete alphabet system was finally used by the Greeks.The evolution of the above developments has altered human-thinking capabilities significantly. Similarly, the substantive claim by neuroscience that the human brain is an information-processing machine is another strong impetus for this analysis. Almost every major development in neuroscience from the 1960s to the present has served to reinforce this claim. The assumption now is that the brain and hence human thinking systems, from both the neural and cognitive perspectives, are at least information processing systems (see Fig. 5.1) (The human thinking system is a thinking system beyond just basic information processing).The convergence of all brain-mind-related studies towards information-processing activities indicates the necessity of establishing the general information theory. Conceptualizing the general information theory is a challenging task. Since a human thinking system encompasses both a natural component as well as an artificial component, among other things, the theory must be able to account for the interactions between the artificial and the natural. The interactions include transformations of human-created

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Energy−matter subsystem (Natural) Physical symbol subsystem (Artificial and unique to humanity)

Fig. 5.2. The two components of the human thinking system.

entities into naturally occurring entities and vice-versa.Therefore, the general information theory to be introduced must engulf a theory of artifacts that is immersed in a theory of energy and matter. A human thinking system is an open system that interacts with its environment via a physical symbol subsystem.Therefore, it has physical symbol creation, manipulation and processing capabilities. It must also be able to convert physical symbols into informationcoded energy quanta in the energy–matter subsystem and vice versa (see Fig. 5.2). Subsequently, the energy quanta interact with the information-coded matter structure.Thus, it may be appropriate to define a human thinking system with respect to the knowledge already conceptualized as follows:

Definition I A human thinking system encompasses at least an energy– matter subsystem and a physical symbol subsystem. The former is the natural component that resides in the brain while the latter is a human-created component that is an extension created by the human mind. The functional capabilities of the human thinking systems include a physical symbol perspective, a cognition perspective, an energy– matter perspective, and an underlying subatomic neural dimension.

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With respect to the above definition, the human mind is also given a definition that reflects its boundaries and capabilities.

Definition II The human mind is an abstract space projected by the brain’s consciousness and activities. It is a complex adaptive system sustained by the neural and underlying subatomic functions of the brain matter, as well as the symbol manipulation capabilities/activities of the artificially created physical symbol component. The boundaries of this mental space evolve continuously with time.

Matter that is coded with information, for example, DNA and brain matter, exhibits certain levels of intelligence capability. Very likely, a higher level of intelligence emerges when information-coded energy quanta interact with information-coded matter packages, and when the latter interact among each other.These unique activities occur only in an appropriate decoder — information decoder. In this respect, there is a correlation between the level of intelligence, and the quantity and density of such matter present. The level of intelligence in turn determines the complexity of the information processing ability of such systems.Thus, intelligence and information processing abilities appear to be very closely coupled and mutually enhancing. Natural information existing in energy–matter form is an extremely powerful latent force that determines how nature evolves and how the entire universe behaves. Thus, the universe is not dumb. The presence of intelligence gives rise to consciousness (the first core properties of Chaos). It has intelligent matter that carries its “secret” codes. On the other hand, the information that exists in physical symbol form is usually created by human beings. This form of information not only enables human beings to interact with each other more meaningfully; it also enables humanity to understand

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nature in a totally different dimension, a new dimension which other living organisms have never experienced. It may be important to mention again the existence of the intelligence spectrum and to note the difference between protointelligence and true intelligence (discussed in earlier chapters). Examples of proto-intelligence are structures embedded in crystals. These are non-living systems carrying coded information. On the other hand, the latter class of systems exhibits the capacity to learn and adapt. The highest extreme end of the intelligence spectrum encompasses intelligent systems that can manipulate symbols and possess a pivotal structure known as the mind. An intelligent energy–matter system with encoded information responds to the (changing) environment. It may have complex internal activities including duplicating (reproduction) capability. The human thinking systems are prominent examples of such intelligent energy–matter systems. The global characteristic of the human thinking systems is captured in the following general interaction equation, environment ↔ artifact ↔ energy ↔ matter.

(5.1)

This equation provides an overview of the macroscopic phenomena occurring in the human mind. It also indicates that such a system has a natural component (energy–matter) and a humancreated (artifact) component, and that it is an open system. The boundaries of the physical symbol subsystem are defined by the entities of the human-created basic physical entity set, namely, data, information, knowledge and wisdom. These sets of entities are externalized entities, and each of them can be a set. In addition, the boundaries of the energy–matter subsystem are defined by the natural basic entity set, containing a set of information-coded energy quanta, and a set of neural matter packages that collectively form the information-coded matter structure. Therefore, the

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human-created basic physical entity set and the natural basic entity set define the operational boundaries of the human thinking systems. Besides the natural and artificial entities, another important aspect of the human thinking system is the intelligence space.The human thinking systems include a fairly advanced intelligence space that can be divided into four sets of functions.The first set enables the physical symbol subsystem to evolve and interact with the environment. It includes capabilities such as primitive character set creation and event capturing. The second set of functions facilitates basic entity and basic entity interactions. Therefore it includes activities such as basic entity transformation and manipulation, that is, data processing, information processing and knowledge accumulation. The next set of functions connects the physical symbol subsystem and the energy–matter subsystem. It transforms a human-created entity into an information-coded energy quantum and vice-versa, which includes the perception or concept-attainment capability. Finally, the last set of functions facilitates energy–matter and matter-matter interactions. The cognitive interpretation of such interactions includes reasoning and decision making. The neural equivalences are the information-coded energy quanta manifested as electrical signals and the information-embedded matter packages transmitted as chemical signals. The interaction between the intelligence space and the physical entity set of the human thinking system are illustrated in Fig. 5.3.

Intelligence space Human Thinking System

Physical entity set

Fig. 5.3. Interaction between the intelligence space and the physical entities set in the human thinking system.

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5.3. Physical Symbol Subsystem 5.3.1. Basic human intelligence and the character set Symbols lie at the root of intelligent action, and the symbols can be physical or non-physical. A requirement of intelligence, at a basic (human) level, is that such a system must have the ability to store and manipulate symbols.The characteristics of the physical symbol subsystem are defined by the equation: environment ↔ artifact,

(5.2)

environment ↔ basic entity,

(5.3)

or

which is fundamentally a data creation and capturing phenomenon, and the equation: artifact ↔ artifact,

(5.4)

basic entity ↔ basic entity,

(5.5)

or

which embodies the information processing and knowledge structuring processes. The creation of a symbol/character set by a certain community of human beings constitutes the birth of basic (human) intelligence. It may not be too extreme to equate the above emergence to the beginning of human civilization. The discovery of this ability also distinguishes basic (human) intelligent action itself from instinctive (animal intelligence) action. This unique human intelligence trait separates humankind from the other species. (Basic human intelligence >> Animal intelligence.)

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The creation of a symbol set by a particular human civilization is a fascinating phenomenon. It marks the crossing of an “intelligence threshold”. The character set containing primitive elements is created by the interactions between the thinking systems and their environment. This event is extremely significant for all human thinking systems as its discovery signifies the extension of the natural component of the thinking system to include an artificial component, the physical symbol subsystem. The artificial component in turn facilitates the evolution of the natural component to achieve a more sophisticated level of thinking activity. This evolution has been slow, gradual and ongoing for the past few thousand years. The character set also enabled a community to store knowledge externally in written form for the first time (see Fig. 5.4). The creation of a symbol set is only made possible by the emergence of a function to create it. Thus, there exists a symbol creation function that can create a primitive symbol or character set when a human thinking system interacts with its environment. The character set contains all the symbols that are created for the use of a particular community. In a community that uses the English language, the character set (C) can be represented as follows: C = {a,b,c,…, A,B,C,…,1,2,3,…,+, −,…}.

Physical symbol subsystem

Character set Data Information Knowledge Wisdom

(5.6)

External Physical Storage

Language

Fig. 5.4. The character set and physical entity set of a physical symbol system leads to the emergence of a language.

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The character set together with the physical entity set (PE) form the basic foundation that leads to the emergent of a language (see Fig. 5.4). PE = {data, information, knowledge, wisdom}.

(5.6a)

5.3.2. Basic entity capturing and processing The creation of a character set leads to the emergence of a written language that facilitates event capturing and basic entity processing. The occurrence of this event is incremental and it is made possible by the existence of certain conditions.

Axiom I There exists at least one natural language that is not a null set and it has a character set with a large number of primitive elements.

Axiom II There exists a coding function that can code an event into a data element or data set.

Axiom III There exist higher-order basic entity transformation functions that transform the basic entities for better problem solving and decision making.

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When an event occurs, the coding function is activated and captures the occurrence of an event using the character set. The data set created contains the raw facts of the event. The coding process must observe a set of grammatical, semantic and computational rules. Very often, additional transformations (basic entity transformation functions) are required before the basic entity is useful. Thus, the data set has to be processed to generate a useful information set relevant to a particular situation. The information is matched against a knowledge structure. The knowledge accumulation process is perceived as a large-scale selective combination or union of related pieces of information. A knowledge structure contains chunks of information with established relationships.

5.4. The Cognitive Perspective The psychological and neuropsychological characteristics of a human thinking system observed at the macroscopic level form the cognitive dimension. The cognitive phenomena associated with information processing and consciousness are studied at the brain code level in neuropsychology. It is at this level that a relationship between human thinking and behavior can be established. From this perspective, perception signals are interpreted as concepts. A concept is a basic cognitive entity of the mind and concepts interact with the cognitive structure during thinking processes. Therefore, a concept is a basic cognitive entity of a human thinking system and it contains one or more pieces of related information that have been understood. Therefore, a concept is formed when a piece or a body of information is understood. At the least, its structure and content must have been recognized. The requirement is that a concept must be meaningful, and that it can be integrated into the cognitive structure. The level of sophistication of the concept-attainment process is

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Cognitive structure

97

Cognitive intelligence / functions space

Cognitive space

Fig. 5.5. Cognitive perspective of the human thinking system.

determined by the cognitive intelligence present. The cognitive intelligence of the human thinking systems is more complex than basic intelligence. This higher form of intelligence is denoted as advanced (human) intelligence in this model (see Fig. 5.5).

5.5. Advanced Human Intelligence The advanced intelligence of the human mind is expressed differently from basic intelligence. It is manifested in the concept-attainment dimension. Its presence is manifested as a perception function and a decision-making function.The combinations of these two functions form a reasoning process (the thinking aspect of human intelligence; beyond basic information processing). The existence of the two functions is vital to the evolution of advanced intelligence.

Axiom IV There exists a perception function that maps related, humancreated basic entities into a concept or a set of concepts.

Axiom V There exists a decision function that acts on concepts or perception signals to create a decision choice and an action.

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In this respect, a concept is a perception signal capturing an information state. The signal can be absorbed into the cognitive structure if it is consumed. The ability of a thinking system to handle and consume concepts indicates the presence of an advanced intelligence source. A cognitive structure processes an intelligence source embedded within it. It is important to distinguish between the two components of a cognitive structure — the basic store of internalized information/knowledge, and intelligence as the means for its internal processing. In this model, the basic store of internalized information/knowledge is the cognitive space and the intelligence is the set of cognitive functions. Information and the other basic entities are external entities with respect to the cognitive structure. A piece of information can be scanned by the mind but it is only integrated into the structure after it has been consumed or internalized, that is, after a relationship with a particular knowledge space is established. In this sense, a knowledge space is internalized within the cognitive structure while a knowledge entity is an external entity. As a particular knowledge space grows, the cognitive structure as a whole is enhanced. Thus, there exists an internalization or consumption function that enables concepts to be integrated into the cognitive structure. The internalization function enables a concept to be consumed by the cognitive structure once the relationship between the concept and an internalized knowledge space is established. The various functions are summarized in Figs. 5.6 and 5.7.

5.6. Internalization At this juncture, a human thinking system is perceived to have a cognitive structure comprising a cognitive space and a set of

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Basic intelligence space

Advanced intelligence space

99

Basic entity coding function < Symbol creation function Basic entity transformation functions

Perception/reasoning function Decision function

Fig. 5.6. Intelligence functions of the human thinking system.

Basic entity transformation functions

Data processing function Information processing function Knowledge structuring function (Internalization)

Fig. 5.7. Sub-functions of basic entity transformation function.

cognitive functions (see Fig. 5.5). The cognitive space is a store containing the various internalized knowledge spaces/structures. The union between the various knowledge spaces forms the cognitive space, and each knowledge space is therefore a subset of the cognitive space. Internalization occurs when a concept or a set of concepts is consumed and absorbed into the cognitive space. When a concept is absorbed into a particular knowledge space, some restructuring takes place in that space. Therefore, understanding a concept, establishing the relationship between the concept and the knowledge space concerned, and finally identifying a proper fit between the two units, lead to the internalization of the concept. Thus, absorption and restructuring are necessary conditions for internalization to occur. In this regard, an internalized knowledge space can be perceived as a large collection of concepts arranged in a certain meaningful structure (see Fig. 5.8).

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Information / Concept

Knowledge structure in the cognitive space

Enhanced knowledge structure in the cognitive space

Enhanced cognitive structure

Fig. 5.8. Internalization/consumption of a piece of information/concept.

5.7. Energy–Matter Subsystem 5.7.1. Basic entity–energy quantum interaction The energy–matter subsystem resides within the human brain. The general characteristics of this subsystem are captured by the two equations: basic entity ↔ energy,

(5.7)

energy ↔ matter,

(5.8)

and

which have been given a cognitive description earlier. It is important to analyze the brain’s operations on the energy–matter basis which in turn will support the understanding of the microscopic neural dimension better eventually. In the energy–matter perspective, a concept is perceived as an information-coded energy quantum, and the cognitive structure is the information-embedded matter structure of the natural system. Establishing this relationship enables the role of the energy– matter subsystem to be analyzed with respect to the entire human thinking system in the energy–matter dimension.

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When one or more pieces of information are assimilated by the natural component of a human thinking system, this is done by the perception function. Therefore, the perception function is also the artifact-energy conversion function, which transforms one or more pieces of information into one or more packages of information-coded energy quanta. As an energy quantum in which information codes are embedded is a concept, the latter can be redefined in the new context as one or more related information-coded energy quanta. Similarly, the artifact-energy conversion function or perception function must also be given an energy–matter perspective. Thus, a perception function is one that has the ability to convert one or more human-created basic entities into an information-coded energy quantum. 5.7.2. Energy quantum–matter structure interaction: Internalization The information-coded energy quanta created during the interaction of the two subsystems are scanned with respect to an appropriate matter knowledge structure. No consumption occurs if an energy quantum is merely scanned and rejected. Consumption of an energy quantum only happens if that quantum causes a reorganization in the matter structure. In such a case, internalization is said to have occurred.Therefore, the internalization function is an energy–matter interaction function that facilitates the knowledge restructuring process. The matter structure is perceived as a discrete structure comprising a large number of information-coded matter packages and processors (neurons). Human intelligence appears to emerge from this structure. A different perception of the internalization function must now be re-established. It is perceived as the function that enables an energy quantum to be consumed by the matter structure and in the process enhances the structure itself.

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5.7.3. Matter structure–energy quantum interaction: Externalization There also exists a function that enables the information-coded matter to create and emit energy quanta. This function is represented as an externalization function that acts on the matter package involved in the emission process. In the event, the matter structure creates an energy quantum when responding to the consumption of another energy quantum. Thus, there exists an externalization function that enables the matter structure to create and emit one or more energy quanta when the latter consumes an energy quantum. It must be noted that the internalization and externalization functions are not mathematically inverse functions. Besides, the matter structure remains intact or unaltered after externalization. The process appears to be more a duplication function where the information quantum created is identical to the portion of the matter structure concerned. Externalization is important as it enables the internal content of a thinking system to be made known to the environment and yet the contents in the source remain unaltered.

5.7.4 Energy quantum–basic entity interaction After externalization, the energy quanta created interact with the physical symbol subsystem. The energy quanta are converted into combinations of physical symbols for communication or other external manipulations. This process is executed by the energyto-artifact conversion function. Its operation is the reverse of the perception function. Thus, there exists an energy-to-artifact conversion function that enables an information-coded energy quantum to be converted into one or more human-created basic entities. Again, the two functions may not be exact inverse functions.

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5.7.5. Matter–matter interaction As mentioned earlier, the matter structure is a discrete structure containing an infinitely large number of information-coded matter packages and processors. The different information-coded matter packages and processors interact among themselves internally within the structure. This activity is matter–matter interaction. It is facilitated by an intermediary matter package — a neurotransmitter. The process also leads to re-organization and enhancement of the matter structure as a whole. Therefore, there exists a matter–matter interaction function, which can enhance the matter structure. Such interaction occurs when reasoning and decision-making processes take place in the human mind. Thus, there also exists a matter interaction function that enables information-coded matter packages to interact among themselves and in the event enhances the matter structure. In this respect, matter–matter interaction and mindfulness may have an interesting relationship. 5.7.6. Wisdom creation Wisdom creation is a special form of energy–matter and matter– matter interactions. It is perceived as the creation of matter packages with a new set of information codes (unknown to the community using the knowledge). It is an intense self-enhancement process that is taking place within the matter structure. It is an internal process and usually it can be activated only if that particular human thinking system has been consistently consuming energy quanta in a certain knowledge domain or related areas. The presence of high quality sophisticated knowledge structures is essential. Very often, rigorous analysis and restructuring of the matter structure must also have taken place. The creation of a new information state can only emerge in a mind that has made preparations for it. A reasonable knowledge

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Innovation and Creativity

Nonlinearity Complexity Intensity

Fig. 5.9. Some characteristics of innovation and creativity.

space must have evolved before wisdom creation can occur. Even though wisdom has been defined as a body of new information, very often, it also encompasses the ability to conceive the new information. The consequence may amount to a discovery, an invention, or an innovative and creative contribution. Thus, the creation of wisdom is highly nonlinear. It is not merely a linear extension of the existing knowledge matter structure. Thus, this function is closely associated with complexity and nonlinearity (see Fig. 5.9). 5.7.7. Energy–matter function space The energy–matter function space is an abstract space that stores the intelligence of the human thinking systems. The intelligence space is located within the discrete neuronal structure of the energy–matter subsystem. It is the dynamo of the human mind. The intelligence space is perceived to give rise to all the mental functions discussed earlier in the chapter. When activated, the intelligence generation function generates packages of intelligence (energy) during neuronal activities. In this respect, intelligence is quantized and very likely, consciousness is also quantized. It is the large quantity of intelligence packages emitted at one point in time that makes intelligence appear to be a continuum. Thus, there exists an intelligence function that manipulates the intelligence space. In this respect, a human thinking system is a concentrated source of intelligence. It is probably the most intense source of intelligence

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on Earth. However, the universe as a whole embodies infinite sources of intelligence, in particular, at the proto-intelligence level. In general, all intelligent systems, natural and artificial, living and non-living, contain some degree of structured information. In this sense, intelligence is the ability or power to decode and process data embedded in the universe. It is a mysterious energy created by nature to decode itself. The degree of decoding depends on the intelligence of the decoder.

5.8. Conclusion The general information theory is the theory of the human thinking systems as information-processing systems and encompassing the artificially created information systems. At the moment, the above conceptualization only provides a fundamental structure that can explain the macroscopic dynamics of the human thinking systems. The theory perceives human thinking systems as intelligent open systems that interact with their immediate environment. Such systems have a natural component and a human-created component that substantially extend and enhance the capabilities of the former. Besides the macroscopic dynamics, human thinking systems also have a neuronal and subatomic dimension as well as a complex adaptive perspective. The general information theory conceived to explain the human mind must take care of all these perspectives eventually. When that is achieved, the mysterious phenomena that enable the material brain to give rise to a non-material abstract mind with a behaviorial/cognitive dimension will be more fully understood. At this juncture, it may be appropriate to conclude this chapter on the human thinking system by putting in place the four postulates of the general information theory.

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Postulate I: Law of Boundary Data, information, knowledge, and wisdom are the humancreated basic entities, and information-coded energy quanta as well as information-coded matter packages are the natural entities that define the boundaries of the general information theory.

Postulate II: First Law of Interaction The basic objective of all human-created entity interaction is to transform a physical entity with higher entropy to one with lower entropy so that the concept-attainment, reasoning and decision-making processes can be enhanced.

Postulate III: Second Law of Interaction The basic objective of energy–matter and matter–matter interaction is to enhance the matter knowledge structure of a human thinking system so that it can function more effectively. In this respect, both the information-coded matter subspace and the intelligence subspace are enriched by the above interaction.

Postulate IV: Law of Artificial Systems The primary objectives of all constructed basic entity systems (including the computerized information systems) are to achieve the first law of interaction more effectively using artificial means, and to support the second law of interaction by complementing the shortcomings of the natural component of a human thinking system.

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With a better comprehension of the human mind (as the natural information-processing system and the key node in any information systems networks) on a macroscopic perspective, the more complex aspect of the interactive dynamics of human organizations (with the human thinking systems as their interacting agents), encompassing autopoiesis, self-organization, evolution and co-evolution, adaptive as well as the interdependency of characteristics/properties of composite complex adaptive (living and learning) systems will be further examined over the next few chapters.

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Mindfulness is considered as the strongest strand, for it plays an important role in the acquisition of both calm and insight. Mindfulness is awareness (of the mind); it is a certain function of the mind and, therefore, is a mental factor. Without this allimportant factor of mindfulness one cannot cognize sense objects, one cannot be fully aware of one’s behavior. Piyadassi Thera, The Buddha’s Ancient Path

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VI Basic Intelligence Evolutionary Dynamic and the Intelligent Person Model

In this chapter, the intelligence-associated evolution and coevolution dynamics of eco-systems are examined and compared to the processes of human organizations as stipulated in some existing organization theories. A special focus on businesses as complex adaptive systems is also included.The individual local self-centric and the global org-centric evolutionary dynamics of intelligent organizations and their interacting agents are more explicitly investigated. Subsequently, the intelligent person model is introduced to substantiate the needs to transform. How the intelligent person function as a smarter evolver helps to bind a group of human thinking systems and elevate the collective intelligence of the organization through mindfulness, orgmindfulness and co-evolution is also analyzed. (For better understanding, some concepts that are introduced earlier are further reinforced and better integrated in this chapter.) Key Words: Intelligence evolution dynamic; self-centric; global orgcentric; intelligent organization; interacting agent; intelligent person model; smarter evolver; collective intelligence; mindfulness; orgmindfulness; co-evolution; Cambrian explosion; order for free; self-organization; criticality; local activity center; space of order; space of complexity; nonlinear activity; strategic planning; competitive advantage; structuring organization; Butterfly Effect; organizational/societal DNA;

111

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autopoiesis; self-enrichment process; attractor; intelligence advantage; first mover advantage; punctuation point; intelligence decoder; bounded rationality; business function set; economic production subsystem; composite complex adaptive system; economic entity transformation; economic entity; utility value; intelligence enhancing function; socio-psychological subsystem; economic man; administrative man; intelligent person; constructive global forces; supportive mindful culture; mindful center; emergent strategist; rugged landscape; integrated deliberate and emergent strategy; intelligence leadership and management mindset.

6.1. Introduction The Darwinian Theory suggests that evolution is a gradual process that adopts a tactician approach. The process is a survival of the fittest. A subsequent discovery indicates that this claim of Darwin and Wallace may not have been totally right. The observation of sudden increase and the richness of life forms existing on the Earth during the Cambrian era suggested that there is a contradiction. This event, termed the Cambrian explosion, took place very swiftly about 600 million years ago, after 3 billion years of biological silence. Thus, evolution does not appear to be entirely a gradual process. Another important discovery is the property of spontaneous order or “order for free”.This property indicates that self-organization is an intrinsic characteristic of complex genetic systems, and probably of all complex adaptive systems. Basically, there is no need for any external forces to execute or influence an evolution process. Self-organization emerges when the system reaches a certain level of criticality. In this respect, it is an intrinsic activity of nature due to internal forces existing within the systems.These latent internalized forces are the impetus from the dynamo behind structure, life and human organizations which are manifested as intelligence (driven by intelligence). As stipulated earlier, the second law of thermodynamics states that the universe is expanding, entropy is increasing, and the

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phenomenon itself is chaotic. However, in the sea of chaos there are countless “local activity centres”, each surrounded by a space of order that defies the second law. In each of these spaces, structure emerges, entropy is reduced, and predictability is enhanced. The space of order is the space of established structure where predictability is high, if not absolutely accurate. These local activity centres include a crystal, a plant, an amoeba, an ape, the human thinking system, and even a community of human beings. The linear world that humankind is familiar with will continue to exist and serve as the comfortable primordial stratum. However, the more embracing and unexplored frontiers of the non-linear domain (space of complexity) should be the next territory to be exploited if human beings are to ensure its sustainability and to progress further into the intelligence era. As competitions, niches and focus areas have changed understanding and exploiting the fundamental characteristics of complexity and non-linearity is crucial for all human organizations. Similarly, businesses whose functions encompass non-linear activities such as strategic planning, creating competitive advantage, and structuring organization must also exploit complexity in the new context.

6.2. Complex Adaptive Features and Intelligence Dynamic It is now understood that the human thinking systems as well as all human organizations are complex, adaptive and nonlinear. The first distinction is the presence of great diversification in surface phenomena arising from a fairly simple set of elementary processes, due to only slight variations in initial conditions, the Butterfly Effect. The set of elementary processes operating in every brain must be similar, however, the macroscopic/cognitive characteristics and the behavior of individuals are vastly different. The complex behaviorial patterns versus the same set of simple elementary processes, makes the brain and hence the mind, a complex adaptive system.

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Thus, the proliferation of behaviorial patterns due to small variations in initial conditions is a significant property to note. The implication is that a person’s behavior can be greatly altered by just small changes in conditions. Another vital characteristic of such systems is their ability to encrypt information about themselves and their environment. A piece of snowflake contains information. The genetic message of human beings is encoded in DNA. In today’s societies, the human brains carry highly sophisticated and complex knowledge structures. Similarly, intelligent human organizations (communities, nations) must also possess the equivalent genetic packages — the organizational (societal) DNA. Identifying and strengthening organizational DNA is a new responsibility of social, business and political leaders. The encoded information in any structure can only be decoded when intelligence is present. Intelligence is associated with a spectrum of information-related activities. At the higher end of the spectrum, intelligence energy tends to create more distinct order through self-centric/autopoietic or self-enrichment processes with respect to a certain local order center. This reinforcement of local structure is a basic characteristic of life. It leads to the existence of a “self”, a physical entity and an interacting agent. Thus, order and structure are created against the expanding universe and increasing entropy. When this activity reaches a certain level of sophistication, consciousness emerges inherently. In this respect, with the support of intelligence and consciousness, all complex adaptive systems that evolve successfully with time have to be innovative and creative to a great extent. They shift or transform from one state to another state, responding to changes in conditions of the system and its environment. In addition, there are actually certain preferred states or attractors that the system will move into swiftly, depending on the overall conditions.

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Butterfly Effect Latent complex structure Intelligent Human Organization

Autopoiesis Self-organization Innovation and creativity First mover advantage

Fig. 6.1. Some complex adaptive features that are beneficial to human organizations if exploited correctly.

This observation noted in complexity theory has significant implications on organization strategy because an intelligence advantage can be created if a preferred state is quickly recognized and adopted/ exploited. Potentially, the first mover advantage is highly critical. At a punctuation point or phase transition enormous changes take place quickly. A slight change in conditions can lead to a huge transformation and the existence of non-linear characteristics, for instance, when water solidifies into a cube of ice, and when unicellular organisms become multi-cellular organisms such as during the Cambrian era. Thus, at these points, complex adaptive systems move very swiftly into a new state, similar to a revolution or a discovery. Subsequently, the changes that take place become slower. The various positive characteristics that can be manifested and exploited by intelligent human organizations are captured in Fig. 6.1.

6.3. Intelligence Decoder The universe is coded with information, ranging from crystal, DNA, human brain, human organization, nation, and eventually to a global society. All these examples are systems embedded with

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varying forms of structure. As information is the capacity to organize and structure systems, all organized systems contain information. This bilateral relationship is fascinating and vital to the emergence of life. However, the embedded information by itself may not be very meaningful. It becomes valuable only when it is decoded with respect to a certain environmental context. Therefore, the existence of an appropriate intelligence decoder is essential for the encoded information in energy and matter forms to be understood, released and utilized (see Fig. 6.2). In the microbiological world, a cell decodes the information stored in a DNA. In the socio-economic and political dimensions, the human minds are the key information decoders. Hence, with the new understanding, the human minds must be the fundamental focal points in all human organizations. Their functions, as well as the means to improve their performance at individual, team and organizational levels must be allocated high priority and better understood. Basically, the human thinking systems must be made to function as better information decoders. Therefore, intelligence and information are two closely associated universal entities with mutually reinforcing relationships. At a more advanced stage of development, intelligence is the unique intangible energy that drives all human thinking systems. The more sophisticated the information processing capability, the higher the level of intelligence. As indicated earlier, intelligence is spread over a spectrum, with the collective intelligence of a global nation being the optimal on this planet.

Intelligence

Decoder

Fig. 6.2. Function of an intelligence decoder.

Information and Structure

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6.4. Management of Human Organizations 6.4.1. Organization theory Human beings have come together to form groups as early as they were cave dwellers. Since the industrial revolution, the intention and characteristics of human organizations and their dynamics have changed drastically. The historical development of organization theory has been stimulating, as several outstanding schools of thoughts have emerged during the last century. The contributions of management organization theorists embrace numerous domains such as executive leadership, management function, management strategy, operational procedure, organization objective and productivity. Thus, the detailed ideas, concepts and practices of these schools differ to some extent. In the new context, some old concepts may remain intact. For instance, Davis suggested that the primary objective of a business organization is economic service and the creation of products and/or services to generate economic utilities so that the organization can survive is still true to a large extent. Similarly, the elements of management such as planning, organizing, command, co-ordination, and control may remain a significant requisite set. However, some of these elements may have to be more closely scrutinized. They have to be executed with a rather different mindset and greater subtlety. In addition, new elements may have to be added as old ones are redefined. Leadership is another vital attribute that requires re-examination. It links organizational objectives, business/social/political functions, destinations and other future activities together. Davis stated that management is the function of executive leadership. Its purpose is to determine an effective economic basis for the accomplishment of designated objectives. In this respect, economic leadership may still be a crucial component of management. Although, a school of thought believes that leadership and management are

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two totally different qualities. Whatever the current belief is, in general, leadership theory and practices will have to be revolutionalized and to a greater extent collective leadership will emerge. At the moment, business functions are broadly classified as managerial and operative. The operative functions appear to be more structured relative to the managerial functions. The most significant contributions to the (Newtonian) operative aspect of management have been attributed to Taylor. In the most structured form, a unit of operative function is a single, simple act of operative performance, either mental or physical. It has definite starting and ending points. This concept is fundamental to the techniques of time and motion study. The managerial aspect of business function is more complex, as it includes the more sophisticated problem solving and decisionmaking perspective. This association articulates that the decisionmaking model of Simon, and the bounded rationality concept of March and Simon, are important references sources. In the current context, all the human thinking systems, assisted by artificially constructed information systems are responsible for executing the business function set that an organization possesses. As decisionmaking processes take place in the human mind, the intelligence sources are becoming even more important in the new form of organization. Thus, in human resource management, the key perspectives are no longer the same. The shift from menial/skills to intelligence/ knowledge is inevitable. In this respect, the theory of organization science has to be revamped. In this chapter, the Kuhn’s traditional scientific approach is adopted to examine the structured and linear aspect of the economic production subsystem of business organizations. This aspect is included to provide a more holistic explanation of businesses as complex adaptive systems. Subsequently, the complex and nonlinear domain of the human

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thinking systems is incorporated to illustrate that all human organizations are composite complex adaptive systems. 6.4.2. Economic entity transformation To construct an organization/management theory with attributes that could accommodate the new observations/understandings stipulated in the earlier chapters, a paradigmatic shift that encompasses a scientific dimension must be established. The conceptualization of a theoretical scientific model starts with the identification of variables or constructs. The model should specify the manner in which these entities interact with each other. The boundary of the model must be determined by examining both the intrinsic and interactive properties of the entities involved.The complexity, nonlinearity and intelligence perspectives are new domains that must be explored and exploited eventually. It is the latter that is perceived as the intelligence strategic aspect of the new organization science. Traditionally, all human organizations are always established with certain basic objectives in mind. For instance, a business organization is a setup that pools various business functions together to generate revenue. Such a system must be an open system. It must be prepared to accept input and to deliver output. The input consists of the economic resources, and the output, products and services. The business functions are certain operative and managerial functions (economic entity transformation) that enable the input to be converted into the output. Such a transformational process is guided by a primary objective. This objective is to optimize profit. Besides, a business organization is also a looped system. This feature ensures that the transformational processes can be fine-tuned and controlled. The managerial functions play a significant role in the feedback process. Thus, in such a model, a business organization is perceived and examined as a looped open system, accepting

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economic resources as input and manufactured products and/or services as output. The entire mechanism is made possible by a set of business functions, including the production processes. To ensure the continuity of this conceptualization, it will be more meaningful to begin by examining briefly the intrinsic properties of the various economic resources that are identified as the basic entities. Material and labor are the physical entities. These economic entities are valued for the physical state in which they exist and they constitute direct input into organizations. On the other hand, information is a rather different type of economic entity. Even though it exists in physical form (very often in symbolic form), by itself it is useless until it is consumed to create a concept that has meaning and value (as mentioned in the previous chapter). Thus, internalization must occur if a piece of information is to be regarded as being consumed by a human thinking system. In this respect, information is a conceptual entity and it can be re-used. Money is another entity that has a different fundamental characteristic. It is a pseudo-entity or an indirect economic entity. The money entity is used to obtain the three economic entities mentioned earlier. In this sense, if an organization has a sufficient supply of the other three entities, money becomes redundant (barter trade). Money is basically an intermediary created by human beings to store wealth more efficiently. Hence, the four input economic entities utilized are information, labor, material, and money. Correspondingly, there are two output economic entities — the product and service entities. A product is a physical economic entity while service is an intangible economic entity. The output economic entities are assumed to be more valuable compared to the input economic entities. Otherwise, the transformations used to convert them from the input to the output state are irrelevant and unnecessary. As each of these entities or entity states has a utility value associated with it, the utility value of an output state is

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assumed to be greater than that of an input state. This fact must be true in general. Therefore, the assumption is that there are always consumers that value the output economic entities more than the raw materials. Economic production is basically the transformation of input economic entities into output economic entities. Business organizations are operational because of the existence of certain business functions. Such functions are assumed to exist in the mind of the staff, and are also found in the artificially constructed systems including information and production systems. Historically, five such operative and managerial functions have been recognized in business organizations and their transformational characteristics are uniquely different from one another. These functions are stated as the first five axioms of the model (see Fig. 6.3). Axiom I There exists a buying function that has the ability to transform a money entity input state into a primary economic entity input state.

Axiom II There exists an operative (production) function, manual and/ or automated, which transforms a primary economic entity input state into a primary economic entity output state.

Axiom III There exists a selling function that has the ability to transform a primary economic entity output state into a money entity output state.

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Organizing Around Intelligence Buying

Selling

Input

Output

Economic entity transformation

Fig. 6.3. The basic economic entity production cycle.

Axiom IV There exists a “production/economic-oriented” managerial function that complements the production or operative function to increase the profit of the organizational systems.

Axiom V There exists a “socio-psychologically-oriented” managerial function that minimizes the socio-psychological/stress and political disturbances in organizations.

Postulate I: Law of Boundaries The scope of the spaces of order of business organizations is defined by the elements of the input economic entity states and the elements of the output economic entity states, namely information, labor, material, money, product, and service, as well as the transformational characteristics of the business function set.

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Based on the identification and discussion of the six economic entities and their properties, and the basic operations in the business function set, the first postulate of the economic entity transformation model, the law of boundaries, is stated. Concurrently, the other fundamentals of the spaces of order are summarized in the next two postulates as the law of interaction and the law of organization.

Postulate II: Law of Interaction The primary objective of a business organization for transforming an economic entity input state into an economic entity output state is to generate profit.

Postulate III: Law of Organization The key purpose for establishing a business organization and hence for setting up an economic entity transformation system is to optimize the law of interaction.

Apparently, besides economic production/transformation, a sociopsychological subsystem is present in all businesses. Axiom V assumes that there exists a socio-psychologically-oriented managerial function that manages the social behavioral perspective. In this respect, a business organization is a combination of an economic production subsystem and a socio-psychological subsystem intertwined in a rather complex manner. This reality indicates that complexity, nonlinearity and unpredictability are also present in all business organizations. A latest observation reveals that some newer business organizations do not even possess the basic economic entity transformation subsystem. Many of the fastest moving businesses in the

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world are knowledge-intensive organizations, and their sole activity is selling the knowledge and know-how of their employees, rather than manufacturing products or providing (traditional) services. This new breed of business organizations further signifies the importance of a change in mindset and economic environment, and further reinforces the significant of organizing around intelligence. Human beings are valued more for their thinking systems (educated, trained and well-informed minds) and not merely their labor. More and more businesses are discovering that the value of their human capital and intellectual property are exceeding their material assets. The knowledge to exploit knowledge more effectively is highly valued in the new environment. 6.4.3. New management and leadership perspective Apparently, business organizations and all human organizations, similar to biological and ecological systems, possess both spaces of order and complexity. They are complex adaptive systems. However, the structure of the spaces of order of human organizations in its present form is revealing its inefficiency. The current theories and practices “based on the view of an organization as a production machine, people as the major parts of the machine, and systems as engineered linear structures” are no longer valid (McMaster, 1996: p. 6). Such theories, practices, and structures created for the industrial era are misfits in the new knowledge-intensive economy. The tremendous amount of emphasis placed on the surface structure alone, in particular the linear perspective, must be avoided. The newly discovered landscape of complexity and non-linearity has to be allocated higher priority. Although the mechanistic, rigid, and tangible structure of the spaces of order is important, the intangible and dynamical deep structure of organizations is becoming even more crucial. In intelligent organizations, it is the complex deep structure that binds the systems and provides the basis for the surface structure to be better conceived and constructed.

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In this respect, the spaces of complexity, including the individual and group thinking dynamics must be more deeply explored, understood and exploited. Even though the set of basic entities and the set of elementary processes stipulated in the economic entity transformation model will remain as the fundamental component for many business organizations, the intelligence enhancing function is swiftly assuming a more crucial role. Especially, for businesses that solely provide the know-how of their employees, this change is inevitable. As intelligence enhancing function is nonlinear in nature, it magnifies the importance of the socio-psychological subsystem and diminishes the status of the economic production subsystem. The axiom specifying the intelligence enhancing function is stipulated as follows:

Axiom VI There exists an intelligence enhancing function that enables latent intelligence in organizations to be exploited, and collective intelligence and connectivity to be nurtured.

Thus, human organizations are able to perform more effectively only if they are able to exploit the intelligence enhancing function more optimally. A new organization form that is structured around intelligence is becoming a new necessity. It must be emphasized again that the human thinking systems, the primary sources of intelligence in all organizations, must be allocated top priority so as to elevate both social and mental bindings. The collective intelligence of human organizations can only be enhanced through the deeper interaction of the individual intrinsic intelligence sources. In this respect, ideally a human organization is perceived to possess a life and exist as a unique evolutionary entity. Thus, a new niche is to structure a human organization as a community of human minds working together to survive by optimizing their intrinsic and

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collective intelligence. The deep/inner dynamic of such an intelligent structure is further examined below.

6.5. Intelligent Human Organization 6.5.1. Local self-enrichment processes In any evolving systems, the smallest unit of interest, the elementary unit, is an extremely significant entity. An elementary unit is the smallest unit capable of independent existence in the system under examination. The evolutionary success or failure of these units determines the fate of the systems. Successful elementary units help to stabilize the systems and unsuccessful units propagate instability. This is analogous to atoms as the basic building blocks of elements and compounds. In human organizations, the elementary units are human beings or more specifically, the human thinking systems. Business organizations are human systems formed with the basic objective of pooling different human abilities or expertise together to create certain synergetic effects in business/economic operations. Even with the advent and extensive application of technologies, human beings must remain the most significant entities in all human organizations, as the intrinsic intense intelligent sources are embedded in the human brains. Therefore, the presence and significance of intrinsic intelligence in the elementary units and collective intelligence in human systems are stated in the next two axioms:

Axiom VII The elementary units of intelligent human organizations, the human thinking systems, are driven by their own intrinsic intelligence. Each of these units is a complex adaptive system.

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Axiom VIII All intelligent human organizations possess their own collective intelligence. Hence they are higher order/composite intelligent complex adaptive systems.

The elementary units of human systems are influenced and controlled by certain elementary forces that are self-centric or autopoietic. These primary forces controlling all human activities and decision-making are the self-enrichment processes. Thus, the self-enrichment forces, analogous to attractive physical forces are centripetal in nature (see Fig. 6.4). They focus on strengthening the local structure and prolong the existence of the individual elementary entities. For instance, even in the matter world (the non-living world), atoms that are self-sufficient do not react. They are highly stable. A group of such atoms, the noble gases, is totally inert. They are fully self-sufficient. However, other atoms that are not selfsufficient will react through sharing (covalent bond) and exchanging (electrovalent bond) electrons. These atoms form molecules that are more stable in the compound state. In the human world, the autopoietic dynamics are similar, except these self-enrichment processes are not necessarily material based. The sophisticated and multi-dimensional needs of human beings

self-enrichment processes Interacting agent / “self”

Fig. 6.4. Self-centric characteristic of all interacting agents.

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render their interactive dynamic even more complex. Mental, spiritual, self-actualization and other forms of enrichment are equally significant. Although, for many people at the moment, the socio-economic dimension still appears to predominate. The existence of these elementary self-enrichment processes is stated as the next axiom of the model.

Axiom IX There exist autopoietic elementary self-enrichment processes that constantly enhance the stability of the elementary units in all intelligent human organizations.

Thus, the elementary self-enrichment processes constitute the first set of primary stabilizing forces in human systems. Under all circumstances, these elementary processes cannot be ruthlessly suppressed or totally deactivated. In certain communist regimes, for instance, where individuals are asked to make sacrifices for the nation to the extent that their own interests are completely ignored, the expected surface phenomena never materialize. Instead, a very different outcome emerges. In this case, the systems disintegrated. Although a fundamental belief in the communist ideology is actually to stabilize the elementary units, the practice has been otherwise. Apparently, the elementary units must be stabilized first before the system in which they are elements, can ever be stabilized. Therefore, in human organizations once the self-enrichment processes vanish, the system destabilizes and quickly disintegrates. Such a consequence is due to the fact that the most basic layer of the system is not in proper order. In this case, complexity exceeds connectivity. The internal dynamic becomes chaotic and the expected surface phenomenon does not materialize. The adaptive

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system can no longer adapt or evolve. This important understanding is stated as the next postulate of the model.

Postulate IV: Law of Self-Enrichment Self-enrichment of the elementary units is the most fundamental requirement for the successful evolution of all human organizations. Self-enrichment processes form the first set of primary stabilizers in such systems.

The degree of self-enhancement needed by an elementary unit is subjective with respect to the individual units concerned. However, in reality local optimization associated with the concept of an economic man rarely materializes. In addition, due to the constraints of the thinking system of the elementary units, there are limits to optimizing a decision or an action.This is the administrative man concept. The bounded rationality model indicates that the inner dynamic of the individual elementary unit is very important. However, the inner dynamic of the human thinking systems is extremely complex as well. Later in this chapter, the inner dynamic of an intelligent person as a smart evolver will be introduced. 6.5.2. Global forces In the atomic world, the structure of an atom must be intact before a molecule can be formed and the purpose of forming a molecule is to further increase the stability of the respective atoms. Similarly, a piece of element or compound is created for the same reason. The atoms and molecules come together to stabilize themselves within a larger system. In the biological world, similar group instincts exists. Colonies of various kinds are common sight, and in many respects, colonies (as a whole) are more successful evolvers than loners.Thus, the integration of evolution and co-evolution of a system and its elementary units is a common phenomenon in nature.

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In systems where human beings are the elementary units, the dynamic manifested is the same. A few human beings are attracted to form a group and to participate in the groups’ activities fundamentally for better self-enrichment. The size of the group can be increased to that of a corporation, an economy, or a community/ nation. In addition, when a group is established, global forces and self-organization emerge spontaneously as well. Self-organization has also been observed in the matter world. For instance, when the condition is right, crystallization takes place spontaneously. Again, the phenomenon occurs to strengthen both the existence of the individual atoms and the collection of atoms that now exists as a crystal. Thus, the global forces support the survival of the systems. However, the global forces of these systems must simultaneously enhance the elementary self-enrichment processes and sustain the existence of the interacting agents if they are to be effective. The next axiom stipulates this requirement.

Axiom X There exist global forces that further enrich the elementary units, that is, global forces must enhance the self-enrichment processes if they are to be regarded as constructive.

Apparently, the strangeness of constructive global forces is that, although they are globally focused, they interact with the local elementary self-enrichment processes to ensure that the complex adaptive system evolves and survives successfully together with its interacting agents. On the contrary, global forces that interrupt or suppress elementary self-enrichment possesses have negative contributions.Thus, the overall effective multi-dimensional dynamic of human organizations is inherently an interaction between the

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self-enrichment processes and the constructive global forces. The entire dynamic is cyclical and emergence in nature.

Postulate V: Law of Global Forces The effective global forces in intelligent human organizations are those that further enrich the elementary units of the systems, that is, they must enhance the elementary selfenrichment processes. Therefore, the presence of constructive global forces is essential and critical for successful evolution of all intelligent organizations. This set of constructive global forces forms the next set of system stabilizers.

Therefore, the notion that global interest should be enforced and be placed above that of the elementary units at all costs does not support the expected global phenomenon. If a business organization places too much priority on its corporate interest and ignores those of its employees, the set-up will collapse eventually. When the elementary units observe that the elementary self-enrichment activities are being suppressed, the system will self-destruct. It is only through enhancing the elementary processes with constructive global forces that the expected system phenomena can emerge (For instance, every interacting agent is taken care of in Singapore during the current financial crisis).This is a new critical success factor (see Fig. 6.5).Thus, the subtlety that leads to successful competition and survival of an intelligent organization in the knowledge economy lies in the mental/physical state of its human thinking systems. Self-enrichment processes Interacting agents

Constructive global forces

Basic intelligent organization dynamics

Fig. 6.5. The basic integrated complex dynamics in intelligent human organization.

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6.5.3. Basic intelligent system dynamic: Mindfulness and orgmindfulness Primarily, the self-enrichment dynamic of the individual human beings must now be recognized and respected as a vital local selfcentric phenomenon. Its basic objective is to strengthen the local structure and to prolong the existence of the individual units.This dynamic is driven by the intelligence embedded in the human thinking systems. As indicated, in most circumstances, the multidimensional needs of human beings encompassing the material, mental and spiritual perspectives render the system dynamic of human organizations very complex. As the self-enrichment processes emerge from the individual interacting agents, conceptually the global forces emerge concurrently from the orgmind. An organization is intelligent only if it is able to nurture a high level of collective intelligence. A dynamic equilibrium state of the system is determined by the interaction between the elementary processes and the global forces. Thus, an intelligent organization must be able to bind the individuals and the latter must be able to influence and contribute to the system positively at the same time. This loop of forces simultaneously enhances the elementary units and the global system and also facilitates them to learn, adapt and evolve together. A human organization with intense collective intelligence self-organizes more effectively when the condition is right. As a new stable surface structure emerges, a better and more competitive system is perceived to come into existence. The entire dynamic is highly non-linear, complex and continuous. It focuses on both the evolution and co-evolution of the system and its elementary units. The elementary self-enrichment processes, the primary set of internalized forces that drive human organizations could be modified/enhanced by a mindful mind (illustrated in Fig. 6.6). Thus, the mental state of the thinking system is a crucial factor.

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The mindfulness of the individual minds is a vital attribute. Similarly, for an organization, orgmindfulness is another new crucial property. An organization is orgmindful if it constantly focuses inwards (besides just focusing outwards) to ensure that all its interacting agents are in a stable and highly participative state (see Fig. 6.7). Thus, the collective intelligence source is effective only if the orgmind is able to influence the mindfulness of the individual thinking systems. This bilateral relationship is extremely significant and delicate in intelligent organizations. It enhances connectivity and supports the emergence of a more supportive mindful culture, as illustrated in Fig. 6.8. Mindfulness

Interacting agents

Better Autopoiesis and Self-organization

Fig. 6.6. Mindfulness is an internally focused mental function that enhances the overall evolution dynamic.

Intelligent human organization

Orgmindfulness

Interacting agents with better mental state

Fig. 6.7. An orgmindful human organization always monitors the mental state of its interacting agents. Orgmindfulness

Orgmind

Quality connectivity and mindful culture

Fig. 6.8. Orgmindfulness nurtures better connectivity and a mindful culture.

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In this respect, the state of the orgmind is an extremely vital property in a knowledge-intensive environment, especially when the interacting agents are highly educated and well informed. A highly coherent and dynamic intangible structure only evolves from a very well focused orgmind with intense collective intelligence. Orgmindfulness enhances the evolution and co-evolution of the system and its interacting agents. The organization becomes better aware of the priority of the mental state of each and every interacting human thinking system. This important understanding is summarized as the next two postulates of the intelligent organization theory.

Postulate VI: Law of Collective Intelligence The collective intelligence of an intelligent organization resides in its orgmind and it is the critical energy source that is responsible for moulding a coherent deep structure and an effective nimble surface structure. Without the presence of collective intelligence a human organization is retarded.

Postulate VII: Law of Orgmindfulness A high level of orgmindfulness is necessary to nurture an intense, coherence and well focused collective intelligence source. Otherwise, the evolution and co-evolution dynamics of the organization and its interacting agents will not be effective.

6.6. Intelligent Person Model: A Smarter Evolver and Emergent Strategist Apparently, the human thinking system is the most important asset of all human beings and the organizations they form. This is true for

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all living systems (including those of other animal species) in this world. Once the thinking system ceases to function, the person ceases to exist and the physical system in which the mind resides will be swiftly absorbed into the chaotic main flow of the universe. The human mind comes into existence because of the emergence of human consciousness from human intelligence. Otherwise, it will remain as a brain, merely a biological organ, like a kidney. In this case, there will be no difference between a biological system and an automated mechanical machine. Thus, the human mind, a unique intangible complex abstract space projected by the intense intelligence of the human brain is a vital “entity”. Even though the mind is intangible, its presence is overwhelmingly felt. Different levels of consciousness emerges when intelligence crosses different levels of thresholds. The consciousness of a human mind makes a human being aware of his/her own existence as an independent unique entity (the emergent of a self or I). Subsequently, intelligence and consciousness facilitate the emergence of other mental functions such as awareness, perception, reasoning and decision making. This state of awareness is further enhanced by the presence of the sensory system, an intelligent subsystem that provides a human being with the abilities to interact with the environment. The sensory input helps a person to act and react to the changing conditions more effectively (human beings as open systems). Most human beings today are highly aware of their environment. However, to sustain itself as a unique consciousness source, a human mind has to be extremely mindful too. Mindfulness emerges only when the mind focuses inwards at its own mental state. Very likely, this mental function of mindfulness only exists in the human mind and not in any other living species on this planet. It is the observation of each and every thought that arises in the mind. It creates directed inward attention and teaches the mind to be more aware of itself. In this respect, mindfulness is different from

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awareness in its general usage. Mindfulness is an internal self-search mental function and is perceived as the core function of self-awareness. It is a highly valued attribute because it enhances rationality and better connectivity. In general, mindfulness can be better achieved when the brain is in the alpha state, that is, when the mind is more serene and less confused. The brain waves in this state have frequency between 8 to 13 Hz. In addition, mindfulness and creativity are also intimately related.Thus, a more mindful mind is usually more calm, innovative and creative. This observation has a significant impact on the intelligence leadership and management mindset as well as the mental state of smarter evolvers and emergent strategists. In intelligent human organizations, right mindfulness and clear comprehension are the two significant attributes that guide the inner dynamic of an intelligent person and the better self-organizing dynamic of the system. Therefore, it is when the mind is mindful that other activities such as perception, problems solving and decision making are executed effectively. As an action arises from a thought, a mindful mind being more internally focused will eventually generate a more rational longer-term decision and action. Thus, in a highly intelligent mind, there exists a deeper organizing center. This center continually reminds the mind to be mindful (mindfulness center). In an intelligent person (a smarter evolver and emergent strategist as defined in the intelligent person model), a very high order of mindfulness must be present at all times to sustain a high level of rationality and constructive connectivity. In this manner, an intelligent person frequently modifies and introduces additional meanings to his/her self-enrichment processes. A more subtle approach is usually adopted compared to an ordinary thinking system. An intelligent person ensures that s/he has better long-term survival opportunities. The evolution of

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an intelligent person also encompasses co-evolution with the system, that is, there is also an orgmindfulness component. Such an intelligent person seeks holistic adaptive solutions. In this respect, an adaptive solution may not be optimal (total rationality of an economic man) or even satisficing at a particular moment in time (bounded rationality of an administrative man, proposed by Herbert Simon). Due to mental, physical and environmental constraints, the solution adopted may even be an option with shortterm losses (to ensure better sustainability and optimize the rugged landscape) that eventually leads to longer-term gains (see Fig. 6.9). For instance, an intelligent person may not put the knowledge acquired during a short training program into immediate practice (short-term losses for the individual and the system). The intelligent person realizes that his/her knowledge chunks in the new knowledge domain are not sufficiently large to bring about the desired change. S/he also recognizes the significance of the holistic perspective of the system, that is, there may be many other factors involved. However, if the condition is right the intelligent

Economic man

Administrative man

Intelligent person

Total rationality

Bounded rationality

Innovative rationality

Individual optimal solution

Satisficing solution

Short-term sustainability and longer-term optimal solution

Fig. 6.9. Comparison of the economic man, administrative man and intelligent person model.

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person will orchestrate a change, and will allow the change to emerge (longer-term gains). An intelligent person is always aware that an effective change may not take place overnight (emergent strategist). Thus, being highly adaptive and nonlinear, an intelligent person focuses on longer-term survival, and also helps to create a more positive system phenomenon through the use of an integrated deliberate and emergent strategy. In this respect, an intelligent person is always making preparation for the sudden appearance of punctuation points. In addition, as the self-organization processes of human organizations are highly dependent on the mental state of the individual interacting agents, these processes can be greatly enhanced by interacting agents that are highly mindful. Fundamentally, if self-organization could take place in atoms with very low protointelligence when the condition is right, a group of highly intelligent persons with a very high level of collective intelligence should self-organize even more effectively at criticality. This concept is illustrated in Fig. 6.10.

Orgmindfulness Collective intelligence

Awareness Intelligent person

Mindfulness

Intelligence strategy

Better Evolution and Co-evolution with composite system Better Selforganization

Integrated deliberate and emergent strategy

Fig. 6.10. Basic dynamic of an intelligent person as a smarter evolver and emergent strategist.

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6.7. Conclusion This chapter reinforces a fundamental fact of the intelligent organization theory that the evolution of all natural systems, including human organizations, is primarily driven by intelligence. Intelligence is the mysterious intangible entity created by nature to drive its own evolutionary and co-evolutionary dynamics. The more advanced systems learn quickly, create sophisticated knowledge structure, and adapt to fast changing environment continuously. In addition, intelligence is not merely computational competency. Thinking (beyond just information processing), or for that matter, logical and rational thinking, is a necessary attribute that indicates the presence of advanced intelligence. The basic dynamic of intelligent organizations has a self-centric as well as an org-centric component. The autopoietic self-enrichment processes are essential for individual survival. Coupled with the constructive global forces of the composite system, the interacting agents co-evolve with the organization. The combined dynamic is responsible for nurturing collective intelligence, connectivity, and a supportive and mindful culture that are desperately needed in all intelligent organizations. This above observation leads to the conceptualization of the intelligent person model. An intelligent person besides being highly aware of the environment also maintains a highly mindful mind at all times. Such a mental state in an interacting agent is vital if humankind wishes to move into a more advanced state of development. In addition, an intelligent person being also orgmindful helps to expedite the nurturing of collective intelligence in an organization. Thus, an intelligent interacting agent always attempts to establish a more supportive culture in the organization through improving the quality of its connectivity, competitiveness, and evolution and co-evolution dynamics. This is a cyclical process that requires the intelligent interacting agent and the system to

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continually identify new equilibriums, guided by the core properties of Chaos Theory. The learning and adjustment process between the system and the agent is continual and may have no ultimate known destination. This is also the basic mindset of an intelligent person. Finally, to summarize, the important features to note when nurturing an intelligent organization are as follows: a. The complex adaptive dynamic of an intelligent human organization is an integration of local self-enrichment processes and constructive global forces. b. The mental state of the interacting agents as well as the presence of an orgmind and its collective intelligence has an extremely significant impact on the overall system dynamic. c. An interacting agent that is an intelligent person ensures a more constructive system dynamic. Such a person possesses three basic characteristics, namely, a high level of mindfulness, more concern about longer-term optimality rather than shorter-term gain, and highly aware of the presence of emergence. d. Thus, an intelligent person is able to adapt at punctuation points more effectively with the group, and better self-organization will also emerge spontaneously in the system at criticality. In this respect, an intelligent person is a smarter evolver and emergent strategist always adopting an integrated deliberate and emergent strategy. e. Therefore, in the new context, the mindfulness of the interacting agents and the orgmindfulness of the human organizations must be allocated high priority when leading and

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managing an intelligent organization and their interacting agents. A higher level of collective intelligence and a more supportive/mindful culture can be nurtured with the intelligence leadership and management mindset (to be further discussed in Chapter 10).

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Technology is not the limiting factor in creating a knowledge management environment — it is the management of the technology and culture that greatly influences the success of knowledge management endeavors. Jay Liebowitz, Building Organizational Intelligence

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VII Artificial Intelligent Information Systems Network

This chapter introduces the roles and needs of artificial information systems networks in intelligent human organizations. These artificial networks improve the efficiency of the physical structure of human organizations by increasing the speed of information processing and transmission, elevating the capacity of knowledge storage externally, and improving the quality of connectivity and organizational learning.To a great extent, the artificial intelligent information networks enhance the efficiency of the equivalent of the central nervous system in highly intelligent biological beings, including the sensory subsystem.The common intelligent artificial information systems and their roles and functions are briefly discussed. Key Words: Artificial information systems network; intelligent human organizations; central nervous system; sensory subsystem; quality information; swift communication; knowledge economy; knowledge structure; interdependency; iCAS; collective intelligence; orgmindfulness; thought technology; dialogue; visual thinking; structural capacity; decision-making node; artificial intelligent information system (IIS); traditional information systems; complexity-based IIS; artificial intelligence IIS; competitive intelligence systems; quantum computing systems; wireless communication technology.

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7.1. Introduction It has been noted in Chapter 1 that besides the awakening to intelligence, consciousness, complexity and nonlinearity, there are two other significant changes that have also altered the environment in which human organizations (in particular, business organizations) operate and compete. The first change is the emergence and strengthening of a global economy. The implication of this transformation is that an organization does not only compete with its local competitors but also with those in other parts of the world. The way to evaluate and compete with these competitors is through the use of better quality information and swift communication. The second event is the transformation of industrial economies into knowledge economies.With the emergence of the new global knowledge economy, the needs for a transformation in leadership and management philosophy, organizational structure, and planning and operation, have also been discussed in some of the previous chapters. Every new generation of human beings are carrying more sophisticated knowledge structures. Emphasis shifts from the tangible to the intangible. Businesses will be producing more and more intangible products. The fastest developing businesses are those that offer knowledge-based services such as consultancy (expertises of experts), and research and development (for instance, information/knowledge technology, biotechnology and quantum technology). Even for those who are producing physical products, information is assuming a more crucial role. Automation using intelligent machine will be a significant part of the future trend. Apparently, the two developments mentioned above also indicate that new opportunities can be created through effective use of information/knowledge and its networks. This is vital in particular to the structure and dynamics of intelligent organizations. Artificial intelligent information systems networks improve the communication means, the connectivity, and the analytical power that are

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desperately needed by organizations in the new environment. Controlling a widely spread global corporation requires a powerful intelligent information systems network that responds swiftly and reliably at all times to all interacting agents. Such a network must be accessible anywhere and at anytime by anyone. Basically, intelligent human organizations require a higher quality nervous system that can be enhanced artificially. Vividly, in the new economy, there is an even closer interdependency between the intelligent structure of the organization on the one hand, and intelligent information systems network on the other. The artificial information systems network forms a significant proportion of the physical structure of an intelligent organization. Therefore, it is interesting to examine the following aspects of intelligent information networks with respect to the concepts developed. Have such networks been developed to the same level of sophistication as nervous systems in intelligent biological beings? Have they attained the status of autopoietic systems? Are current artificial information systems networks supporting the orgmind in the ways they should in a highly intelligent human organization (iCAS)?

7.2. Intelligent Structure and Artificial Information Systems As discussed earlier, an intelligent organization possesses both a physical structure as well as an intangible deep structure. Embedded in the core of the deep structure of an organization is its orgmind and hence its collective intelligence and consciousness.The level of consciousness determines the level of awareness and orgmindfulness.The latter, in turn, is responsible for nurturing the collective intelligence and enhancing the connectivity of the system. It is only when an organization is orgmindful that innovative and creative ideas can emerge from its interacting agents. Thus, a high level of orgmindfulness enhances the nonlinear component of collective intelligence of the organization.

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Operationally, the connectivity of an organization is highly dependent on the mode of communication. Effective communication helps to create coherent thought. Coherent thought is the social and psychological gel that binds human beings together, and it helps human organizations to achieve functional cohesion more swiftly. A coherent intangible structure supports the physical structure better. Thought technologies such as dialogue and visual thinking have been used to achieve this goal. In highly intelligent human organizations, the information processing and knowledge creation capabilities of the organizations must be well coupled with the overall intelligent structure. The information systems network must enhance the nervous system and the org-brain of the intelligent organization. The connectivity and capability of the natural and artificial systems determine the success in structuring and nurturing intelligent organizations. It must be noted that structural capacity is a vital attribute of all human organizations. The intelligent organization theory indicates that the ideal physical structure of intelligent organizations emerges from the deep structure. The physical structure of an intelligent organization possesses three features, namely, an intense intelligence source, an environment scanning and responding component, and an intelligence web. For better comprehension, and better connectivity between the natural systems and the artificial systems, the important characteristics of the three components are summarized below: a. The existence of an intense intelligence source is vital to all higher levels of intelligent systems. This is the brain of the organization. In composite complex adaptive systems, the org-brain is at least the collection of brains of the interacting agents. This is the decision-making node of the organization.

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The absence of such a source indicates the absence of the leadership node and collective intelligence in that organization. b. A highly intelligent system must also be responsive to its environment. It must act, react, and think like any intelligent biological entity. Therefore, the sensing, scanning, and responding capabilities of the environmental component are important assets. These are the sensory activities of a biological being. The ability to scan and detect environmental signals coming from environmental targets, the ability to respond to such signals swiftly, and the ability to influence the environmental targets, are vital features of intelligent organizations. In business organizations, the competitive intelligence activities can be substantially enhanced using artificial information systems. c. Finally, the intelligence web that spreads and permeates the entire system provides the connectivity. This web intertwines and supports all the organizational functions and activities. Through this web, information is communicated, knowledge structures are created and stored, and decisions are disseminated. This is the nervous network of intelligent organizations. The general usage of information and communication technology is vital in this aspect. In particular, the connectivity aspect has been greatly enhanced by the e-landscape, wireless technology and multi-media technology. Apparently, at the physical level, the web and the environmental component can be greatly enhanced by well-integrated artificial information systems networks. Thus, the effectiveness of the latter is closely correlated with the collective intelligence of the organization. Therefore, the mindset of designing an effective artificial intelligent information systems network and integrating it with the natural information network so that the overall information system structure is congruous with the central nervous system of highly intelligent organisms is crucial (see Fig. 7.1).

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Intelligence web Org-brain Environment scanning and responding component

Artificial information systems networks

Fig. 7.1. Integrated physical nervous structure of an intelligent human organization and the roles of the artificial IIS.

7.3. Internal Intelligent Information Systems 7.3.1. Types of intelligent systems The intense source is mainly contributed by the human thinking systems, the key and decision-making nodes. The artificial information systems and their networks that form the intelligent web (for secondary information processing and communication) and the environmental scanning and responding component are the main subsystems of concern in this section. First, the artificial intelligent information systems (IIS) to be examined are broadly classified as internal IIS and external IIS, so that their roles with respect to the web and the environmental sensory component are made more explicit. The internal IIS in an intelligent organization forms the major portion of its nervous system. This physical network is responsible for processing information, communicating information, creating knowledge structures, and supporting the decision-making processes. It is also the intelligence web that intertwines and supports the economic production system in businesses. The internal intelligent systems are divided into three groups, namely, the traditional information systems, the complexity-based IIS and the artificial intelligence IIS. The traditional information systems have been extensively explained in many sources. In this section, only the latter two classes of systems are briefly introduced.

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Traditional information systems

Internal IIS

Complexitybased intelligent systems Artificial intelligence systems

Intelligent information systems

External IIS

Competitive intelligence systems

Fig. 7.2. Classification of the main types of intelligent information systems.

The external IIS are mainly the competitive intelligence systems. These systems, the equivalence of the human sensory systems, form mainly the environment scanning and responding component.The early warning systems and data mining systems are discussed.The classification of the current intelligent information systems into the above framework is illustrated in Fig.7.2. (The traditional information systems will not be discussed as they are covered in many other books.) 7.3.2. Complexity-based IIS Some business organizations are beginning to exploit the unique properties of complexity by capturing them in their information systems. Certain complexity-based algorithms are utilized to process and extract more useful information. For instance, some businesses are using agents and emergent behavior concepts to build information systems to improve their effectiveness in activities such as inventory control, logistics management, and production scheduling.

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These information systems have helped to reduce costs and add value to the operations of the organizations. The following illustrations are examples of complexity-based systems that have been used by some organizations to create an intelligence advantage. a. Self-organizing systems A self-organizing IIS has been developed by an organization to co-ordinate its painting booths. Each booth is perceived as an independent agent capable of “bidding” on new paint jobs, depending on its ability to perform the work quickly and competitively. The software developed instructs the robots at each paint booth to perform a series of complex tasks. Among other things, the robots treat the surface of the truck with phosphate, apply base coats and clear coats, and set the painted trucks in an oven at a temperature of up to 300 degrees Fahrenheit. Before the use of the agent-based self-organizing system, a single paint booth may have to paint a red truck, then a blue truck, and then a black truck. In this case, paints will have to be changed and machinery cleaned, before each truck can be painted. The new system completely changes the process. If a particular booth has been painting several black trucks consecutively, it will bid to paint any subsequent trucks that are to be painted black. The booth is empowered to decide what it does, or will be doing. This innovative, self-organizing system speeds up the painting process by 50 percent, saves on paint costs, and reduces software requirements by numerous folds. b. Genetic algorithm systems Another business organization also solved its farm equipment maker’s scheduling problems using a complexity-based approach.

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This time, a survival-of-the-fittest genetic algorithm has been adopted to produce the schedule. Software using the above algorithm allows solutions to emerge, rather than to be calculated. A computer is used to download data from the plant’s database and generates the first set of trial schedules. These schedules are then allowed to “breed”, or combine, to create new and improved schedules. Each consecutive schedule is tested for fitness, that is, whether it produces a more efficient throughput than the previous ones generated during that iteration, and the fittest schedules are chosen to integrate with each other to produce even more efficient schedules. Evolving solutions, rather than engineering solutions, are the essence of such a system. Overnight, schedules close-to-optimal are produced. No worker is involved in the production of the schedules. It is a success as overtime has been reduced, while monthly production figures have increased substantially. c. Biodiversity systems Yet, another complexity-based system has been developed by a bank to handle portfolio management. The biodiversity system contains risk-management algorithms for swapping currencies and around-the-clock-trading. Instead of a single best solution, the biodiversity system attempts to maintain several near-best approaches to risk management, thereby protecting itself from the intrinsic exposure in a monoculture. The multiple near-best approaches have made portfolio management in this bank safer. 7.3.3. Artificial intelligence IIS Another category of information technology that can elevate the collective intelligence of organizations is artificial intelligence (AI) systems. Compared to the complexity-based technology, the AI

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technology is much more established. Some AI systems have been in use for several decades. These systems mimic the human mind when processing and consolidating information. These intelligent systems are able to rank tasks and reach conclusions based on previous experiences/training. In this respect, they can serve as artificial intelligent nodes in an intelligent structure. Four classes of AI systems, namely, neural networks, expert systems, fuzzy logic systems, and hybrid systems, and their usage are briefly discussed here. a. Artificial neural networks Artificial neural networks are self-learning systems. These systems learn and teach themselves the set of decision-making rules in the domain in which they operate. The decisions made are based on past experiences. The self-learning ability comes from a selftraining mechanism that is embedded within the neural networks. This mechanism also allows the networks to perform analysis on massive amounts of data and tests them for the purpose of finding associations or dependence between data. For instance, a neural network is used by a military service for the purposes of detecting and cleaning up ordnance. The engineers use the neural network to determine the presence of ordnance that is buried underground.The intelligent system is able to detect the presence of ordnance, specifying the weight, dimensions, variety and location with high precision. Consequently, due to the higher accuracy of the system, the danger associated with the clearing process is substantially reduced. b. Expert systems The expert systems are another fairly well established AI technology. Expert systems exploit the expertise of experts. The knowledge

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of expert(s) is mined and stored in the knowledge base which is a crucial component of an expert system. When a problem in the same domain is encountered subsequently, the problem-solving inference engine applies rule-based statements and taps on the knowledge base to draw a conclusion. Thus, the contents embedded in the knowledge base and inference engine determine the performance of an exert system. An active expert systems technology user is the insurance industry. An advantage of using such systems is that better and more consistent decisions are made. They also enable their users to work faster and with fewer errors. Expert systems are used extensively in processing claims in the insurance industry. Claims processing is an important and difficult task for insurers. Conflicting objectives exist in this area. On the one hand, insurers want to be as responsive and as fast as possible in handling claims in order to give the customers the best service. As most claims are legitimate, the insurer does not want to cause these customers any inconvenience or delay. On the other hand, it is also crucial for the company to identify potential fraudulent claims to be passed on for further investigation. In this respect, a well-designed expert system can help to detect fraud patterns and review a potential fraud to the insurers more effectively. c. Fuzzy logic systems The third type of the AI systems is the fuzzy logic systems. These systems make decisions based on Boolean algebra and probability. Compared to an expert system, a fuzzy logic system is more loosely defined. It incorporates “more or less” statements, and hence is termed “fuzzy”. The rules are programmed based on intuitive experience gathered from the domain experts. A research institution in Singapore and a business organization have jointly developed a fuzzy controller for vacuum furnaces that

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enable the system to heat turbine components automatically. Previously, operators were needed to adjust the furnace heating, to ensure that the heat transferred by radiation in the furnace would not result in uneven loading conditions. After the adoption of the fuzzy logic system, the adjustment is left to the fuzzy controller, which is intelligent enough to take into account the loading conditions automatically. The implementation of the fuzzy controller leads to higher furnace throughput and reduces both energy consumption and the operator’s effort to control the furnace. Each heat treatment cycle, which previously takes sixteen hours, is reduced to about twelve hours.

d. Intelligent hybrid systems Owing to the fact that different intelligent techniques are suitable for different applications, intelligent hybrid systems combine two or more techniques to overcome the constraints of the individual techniques, as well as to complement each other. For instance, a fuzzy logic system in loan evaluation can overcome some of its weaknesses by incorporating a neural network structure to form a system that has the capability to learn fuzzy decision rules automatically. The strength of intelligent hybrid systems lies in their ability to solve complex problems that are not easily manageable by one type of intelligent system alone. Thus, such systems are powerful tools in the business world. Since the development and applications of these systems are relatively new, not many such tools are in use. An example is a stock exchange system used to carry out detection of insider trading and market manipulation. The system uses a combination of fuzzy logic, neural networks and genetic algorithms to detect suspicious trades that are otherwise extremely difficult to discover in large volumes of trading data.

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7.4. External IIS Business organizations similar to biological systems are open systems that are very much affected by their changing external environment. Therefore, the presence of an effective environment sensing component is critical. The external IIS currently exploited to support this function are mainly the competitive intelligence information systems and data mining systems. Competitive intelligence is an avenue whereby organizations fund, collect, analyze and learn about environmental information that may be advantageous and vital to their survival. It can track competitors’ movements, discover profitable opportunities, and open up new markets. a. Early warning systems Environmental scanning is the organization’s ability to monitor or scan the external environment and anticipated changes. The information collected can be strategic as it helps to foster organizational adaptability and survival. For instance, executive information systems (EIS) incorporated with an early warning feature can provide managers with the capability to efficiently use environmental information when mapping out a strategic plan for the organization. There are two methods of using EIS for environment scanning, namely the linear approach and the nonlinear approach. The linear approach uses established relationships of environmental factors that have been integrated into the system. The nonlinear or hypermedia approach allows its users to use information in an unstructured manner. These EIS have demonstrated the ability to gather, filter and analyze data, and subsequently communicate information to the appropriate person effectively. Environmental scanning systems that incorporate expert systems can also better address the needs of strategic planners.These integrated systems simulate the human cognitive processes to enhance

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environmental scanning by using their machine-learning algorithm and a knowledge base. The environmental scanning process can be expedited through faster recognition of threats and opportunities to the organization. Once relevant environmental issues are identified and prioritized, the organization can move on to determine what other information regarding these issues should be collected and analyzed. A more current and advanced example of such a system is the risk assessment and horizon scanning system (RAHS). b. Data mining systems Data mining is the process of discovering meaningful correlations and patterns by filtering through large amounts of data. It is the automatic extraction of patterns of information from historical data that enables businesses to focus on the most important aspects of their operation. Data mining and knowledge access have a myriad of applications in many industries. They improve the efficiency and value of an organization by enhancing its knowledge processes. For instance, they are extensively utilized in marketing whereby identifying trends and patterns in a timely manner are critical for success. For instance, data mining can assist in customer acquisition. Direct marketers apply data mining methods to discover attributes that predict customers’ responses to offers and communication programs. The attributes of the customers that the system indicates are most likely to respond are matched with the corresponding attributes of non-customers. The non-customers that are most likely to respond to a new offer or communication are filtered out. Data mining is also invaluable in customer retention. In a typical application, it identifies those customers who contribute to the company’s bottom line but who are likely to leave and go to a competitor. With this information, the company can target these vulnerable customers for special offers and other inducements.

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Conversely, in customer abandonment, data mining helps to identify customers who cost more than they contribute. Unprofitable customers populate the files of traditional direct marketers. These are customers that place small orders or habitually order merchandise and then return them. These accounts can be picked out and closed.

7.5. Conclusion Many human organizations, in particular business organizations, are making a conscientious effort to exploit the potentials of artificial information systems and their networks.Artificial information systems are emerging as an important component of the physical structure of businesses, as well as other human organizations. These artificial systems have contributed significantly towards the competitiveness of their users in certain perspectives. Some more innovative organizations are in fact experimenting with newer concepts and technologies which build artificial information systems that are more intelligent and well connected. In some research and development laboratories, researchers are experimenting with quantum computing systems. However, to date, many current artificial systems are not really well synchronized or integrated with the structure and dynamics of the organizations as in highly developed biological organisms. In general, most business organizations and other human organizations are not fully aware of themselves as intelligent corporation beings. Embedded with the machine mindset, they are also not fully aware of the effective role of artificial information systems as the equivalence of nervous systems. An example of a better integrated artificial nervous system is the e-government network of Singapore. In intelligent organizations, the design, integration and effectiveness of the artificial intelligent information systems network as a component of the nervous system and sensory subsystem is

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a natural critical success factor. A well-developed intelligent information systems web not only helps to strengthen the physical structure, but also provides the means for language to flow better in the intangible structure. Therefore, all intelligent organizations must ideally possess a nervous network and sensory system similar to the one in highly intelligent biological organisms. This network must be rightly integrated with the overall structure of the organization and support the decision-making and other operational functions of the orgmind. Over the past couple of years the wireless communication technology has further enhance the connectivity between individual and individual, and between individual and organization.

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The edge of chaos is where life has enough stability to sustain itself and enough creativity to deserve the name of life. The edge of chaos is where new ideas and innovative genotypes are forever nibbling away at the edges of the status quo, and where even the most entrenched old guard will eventually be overthrown. Mitchell Waldrop, Complexity

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VIII Interdependency: The Integrated 3C-OK Framework and the Higher Level Intelligence Dynamic

This chapter advocates the interdependency of five significant properties of intelligent human organizations. The properties involved are collective intelligence, connectivity, culture, organizational learning and knowledge management (3C-OK). Recognizing the presence of the integrated complex adaptive dynamic, this set of properties cannot be considered independently of one another when structuring and managing intelligent organizations. The 3C-OK framework is conceptualized to emphasize the fact that complex adaptive systems cannot be analyzed, nurtured or managed using hierarchical decomposition. In particular, organizational learning and knowledge management cannot take place effectively in any human organizations without incorporating the other three characteristics. An organization that uses the integrated 3C-OK framework will gradually experience the emergence of a higher level intelligence dynamic (a dynamic that only emerges with collective human level intelligence and consciousness). In between, the significance of a mindful culture as the core of a supportive culture is further reinforced. Key Words: Interdependency; collective intelligence; connectivity; mindful culture; organizational learning; knowledge management; 3C-OK framework; higher

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level intelligence dynamic; information explosion; iCAS; bio-logic; intrinsic intelligence; intelligence strategy; awareness; mindfulness; self-awareness; orgmindfulness; consciousness-connectivity cycle; emergence-dissipation cycle; autopoiesis; selforganization; supportive culture; intelligence advantage; corporate intelligence enhancer; externalized knowledge structure; learning organization; smarter evolver; cosmopolitan communicator; effective communication; corporate knowledge structure; tacit knowledge; explicit knowledge; knowledge repository; integrated 3C-OK dynamic; iCAD; raplexity.

8.1. Introduction At the moment, humanity is situated in the transition period between the third and fourth era in the history of humankind. The world is in the midst of another chaotic transformation, at a new edge of chaos. The primary causes driving the transformation are information explosion, a world population with better knowledge structures, an accelerated information (speed of light) and physical communication (speed of sound), and the need to create higher quality corporate knowledge structures and connectivity. The increasing use of value information and knowledge called for the creation of a totally different breed of human beings and human organizations.The new individuals and the new form of organizations must be able to process information fast, learn fast, use knowledge effectively, adapt to competition and the changing environment swiftly, and evolve smartly and successfully. In this respect, highly intelligent human organizations (iCAS) are those that are able to manage interacting agents who are highly intelligent and possess higher quality knowledge structures effectively. Hence, the flesh strategic approach that focuses on structuring and managing organizations around intelligence has certain advantages. The intellectual development of humanity has arrived at a phase whereby focusing on bio-logic rather than machine-logic makes better sense in many of its endeavors. Human organizational dynamic is inherently complex adaptive in nature. However, due to highly authoritative leadership (see Chapter 10) and the Newtonian mindset, the non-linear and complex perspective is always suppressed or taken as

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The Integrated 3C-OK Framework

Basic Intelligence Dynamic

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Self-enrichment processes Self-organizing dynamic

Fig. 8.1. Main components of the basic intelligence dynamic.

errors. Therefore, the design and strength of biological structures and systems is far more superior to that of mechanistic models. Machines have to be controlled, monitored and maintained externally. Biological systems, even those with relatively lower intelligence, inherently manifest properties associated with complexity and adaptation, and their dynamics are driven by their own intrinsic intelligence and collective intelligence (this could be seen in an ant colony, see Fig. 8.1). Human beings are sophisticated biological beings. People are not merely a physical means of production. More importantly, each human being carries a non-linear thinking system from which many other properties and features of that creature are defined and determined. Connecting people is thus linking these highly complex thinking systems together to form an effective composite system that is organism-like and not machine-like. To better manage human organizations, the human thinking systems and their dynamic must be better handled. Voluntary collaboration can only be achieved through mutual respect, intimacy, subtlety and trust. Thus, the current social/corporate culture must be transformed. Leaders of all forms of human organizations must be prepared to make the paradigmatic shift and venture into a new dimension if their leadership is to remain effective, relevant and acceptable. In this chapter, the 3C-OK framework (a highly sophisticated human-level dynamic encompassing collective intelligence, connectivity, culture, organizational learning and knowledge management), a significant integrated tool of intelligence strategy is introduced.

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Organizing Around Intelligence Enhanced self-enrichment processes

Higher Intelligence Dynamic

3C-OK integration

Enhanced self-organizing dynamic

Fig. 8.2. Main components of higher intelligence dynamic.

The framework and its strategy (beyond other animal species evolution and co-evolution dynamics) is a critical component of the intelligent organization theory that helps to nurture higher level intelligence dynamic (confined only to human interactions in iCAS, see Fig. 8.2). A vital aspect of this framework is the recognition of the interdependency of the five attributes involved (due to human level intelligence and consciousness, especially smarter evolvers). The interdependent and non-linear aspect of these five attributes is a vital characteristic in the dynamic of intelligent human organizations that must be recognized by all their interacting agents (leaders and followers).The new recognition reveals how an organization can be led and managed more effectively. For instance, knowledge management activity cannot be carried out in an organization without cautiously managing the other four activities concurrently.

8.2. The 3C (Collective Intelligence, Connectivity and Culture) Dynamic 8.2.1. Consciousness, connectivity and collective intelligence The universe is conscious and so are all its microcosms. Consciousness is an extremely unique attribute that exists in this world and it entices

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some of the best minds that existed. The level of consciousness spreads over a spectrum. It has been stated in earlier chapters that arising from human consciousness are two mental functions, namely, awareness and self-awareness mindfulness. Awareness focuses outwards. It recognizes the environment in which the individual exists and enables the latter to act/react to the changing circumstances. On the other hand, mindfulness focuses inwards. It executes internal search on the mind and also observes the mental state of the mind. Mindfulness can help the mind to watch itself when a new thought emerges. Mindfulness is the core of self-awareness. In this respect, mindfulness only emerges from a highly conscious source. Similar to a human being, an intelligent organization must be aware of its environment and orgmindful of its orgmind. This fundamental concept is stipulated in Axiom I of the 3C-OK framework as follows:

Axiom I An intelligent human organization manifests both awareness and orgmindfulness, and they are mental functions that emerge from consciousness of an orgmind.

When the consciousness-connectivity cycle is analyzed, an orgmind and its collective intelligence appears to be an inevitable feature embedded in all intelligent organizations. A high level of consciousness and quality connectivity are necessary to create and sustain a high level of collective intelligence. In return, a high collective intelligence will further enhance the group’s consciousness and connectivity. The element ensuring that this cycle flows smoothly is orgmindfulness. It must be emphasized that orgmindfulness is the organizational mental function that nurtures a high level of collective intelligence. Thus, collective intelligence and the

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consciousness-connectivity cycle are mutually enhancing. This intrinsic characteristic is stipulated as the next axiom.

Axiom II A highly intelligent human organization possesses a high level of collective intelligence that drives a better and more effective evolutionary dynamic.

The consciousness-connectivity cyclical dynamic is also responsible for establishing other vital attributes such as mindset, culture, vision, as well as decision-making processes, in human organizations. The elements that ensure the effectiveness of the above creations are again awareness and orgmindfulness. In addition, arising from the analysis of the consciousnessconnectivity cycle, it is recognized that an organization can remain stable only if its level/quality of connectivity exceeds its increasing complexity (see the relationship (8.1) below). Once the latter characteristic dominates, the system will move towards the edge of chaos and eventually falls into the chaotic state, if the degree of freedom becomes too large and not manageable. However, if complexity is skillfully exploited, re-structuring will take place through evolution, emergence and dissipation. In this case, the system moves into a higher state of existence, and a battle is won. Increase in connectivity » Increase in complexity.

(8.1)

In this respect, corresponding to the consciousness-connectivity cycle is the emergence-dissipation cycle. This is another selforganizing cycle that an intelligent organization will venture into if a sufficient level of collective intelligence is attained. This is the cycle that helps to modify/enhance the structure and dynamic of the organization. It is important to note again that the presence of

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structure indicates the presence of information, and vice-versa. All forms of structure are created by intelligence. As complexity increases, a higher level of intelligence is needed to process information or visualize structure in the system. In the process, unwanted elements are dissipated. Thus, a more sophisticated structure in human organizations can only be attained if the above two cycles are integrated, and evolve simultaneously. The merging of the two cycles helps to create order/structure out of complexity. The macro-cycle is the dynamic that supports the evolution of complex adaptive systems. It is the desire to survive in a more complex environment that leads to the evolution of all biological organisms. In this situation, greater order is established out of a higher level of complexity. This analysis reiterates that consciousness, connectivity, complexity, emergence and dissipation are indeed the most vital properties of all complex adaptive systems, including human organizations. The interrelationship of the five abstract attributes is illustrated in Fig. 8.3. It provides a better

Complexity

Connectivity

Consciousness

Emergence

Dissipation

Fig. 8.3. The interactive dynamic of the five core properties of Chaos.

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perspective for explaining and comprehending the abstract dynamic of intelligent human complex adaptive systems and the bio-logic of living systems driven by intelligence, on a macroscopic level. Consequently, the model further supports the fact that all forms of human organizations are composite complex adaptive systems because their constituents, the human thinking systems, are themselves complex adaptive systems. The complex and adaptive dynamics of such systems will vary with time, depending on changes in attributes/entities such as memberships, interacting processes, and external environment. Understanding the five core properties of chaos and their integrated dynamic is a significant knowledge that leaders and managers must acquire in the current context and for future usage. 8.2.2. Mindful culture as the core of supportive culture In a human being, the vital mental function steering the dynamic of the above cycle is mindfulness. As stipulated earlier, mindfulness is the attribute that directs the human mind to focus internally. Most human beings today are more concerned about the environment rather than the internal mental state of the mind itself. This mindset is incomplete and disastrous. Both mindfulness and awareness are significant attributes that affect autopoiesis and self-organization. The two mental functions must be executed concurrently. They are equally important to the evolution and co-evolution of an interacting agent and its system. When a mind is mindful, it learns faster, and it learns more effectively. Such a mind also erects higher quality knowledge structures. This characteristic has been stipulated in the intelligent person model. Logical and effective theories and better decision-making processes only originate from a mind that is mindful. Under all circumstances, mindfulness is a crucial attribute in all highly intelligent minds. Mindfulness also helps to elevate collective intelligence and

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establish better connectivity. Thus, it is a greatly desirable attribute that must be nurtured by all intelligent human beings. Similarly, an organization that is orgmindful learns faster through better connectivity and sharing knowledge. With the right mindset, all interacting agents in such an organization believe that the continuous acquisition of knowledge and skills is their individual responsibility. They are also more willing to share whatever they have acquired voluntarily. Such a collaborative and supportive culture that increases the survival ability of the organization only emerges from an orgmind that is orgmindful. A highly orgmindful organization can also more quickly self-organizes when the need arises.Thus, the ability to maintain a high level of orgmindfulness is a new intelligence advantage. However, today, most organizations are still more outward seeking and they tend to neglect or ignore the internal mental state of the interacting agents. Therefore, to nurture collective intelligence, enhance connectivity, and cultivate a mindful culture (the core of supportive culture) more efficiently, the orgmind must first be orgmindful. Concurrently, a corporate culture that is more willing to collaborate and share, and is more concerned for the corporation’s vision and mission, will emerge. In addition, the internal reflecting activity of the orgmind becomes more sustainable and continuous. Continuity in orgmindfulness is a crucial requirement as both the external and internal environments are changing at all times. A mindful culture and higher collective intelligence can only be cultivated through continuous refinement using orgmindfulness (see Fig. 8.4). An intelligent organization is regarded as highly intelligent only if a mindful culture exists. The mental state of the interacting agents are better known and comprehended. Simultaneously, more voluntary connectivity and engagement emerge. Apparently, nurturing a mindful culture prepares the organization for enhanced self-organization and hence supports

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Orgmindfulness

Mindful Culture

Higher Collective Intelligence

Fig. 8.4. Relationships of the three attributes, orgminfulness, mindful culture and higher collective intelligence.

the emergent strategy more effectively. Without a mindful culture, human organizations today will not be able to withstand the current rapid changing environment. In this respect, an organization that is always orgmindful and coupled with awareness is a better survivor. In addition, it must be noted that the equilibrium in this respect is dynamic.This conceptualization is stipulated as the next axiom.

Axiom III A mindful culture as the core of a supportive culture exits in all intelligent human organizations. It supports the system objectives as well as the requirements of the individual interacting agents (that is, it supports both the evolution and co-evolution dynamics, and enhances the autopoietic and selforganizing dynamics).

8.2.3. Quality corporate intelligence enhancer On a more microscopic perspective, the collective intelligence of a human organization can also be nurtured and enhanced by directing attention on the corporate intelligence enhancer (note its similarity with the individual intelligence enhancer in the human thinking systems discussed in Chapter 3). As the environment becomes more and more complex, this enhancer, located in the orgmind, must be able to constantly provide the organization with higher and higher levels of organizing ability.

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Collective Intelligence

Mindful Culture

Corporate Knowledge Structure

Corporate Theory and Philosophy

Fig. 8.5. The corporate intelligence enhancer driving a more collective intelligence dynamic.

Similar to that in an individual thinking system, the corporate intelligent enhancer is a triad comprising three entities, namely, collective intelligence, corporate knowledge structure, and corporate theory and philosophy (see Fig. 8.5). The dynamic of the enhancer is facilitated by at least one physical symbol system manifested in a more advanced form as a language. In addition, language when used rightly is a social glue that binds all the human thinking systems in an organization. A highly developed and effective language is a product of both mindfulness and orgmindfulness. The content of the intelligence enhancer highlights the significance of a corporate knowledge structure in the new environment. The presence of a physical symbol system enables more permanent externalized knowledge structures to be constructed in human organizations. As the interaction between knowledge structure and theory determines whether a new piece of information is consumed or rejected, a better-organized knowledge structure together with a better-developed theory will facilitate the consumption of more pieces of information, or the

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better use of a new piece of information. Apparently, the value of a new piece of information depends on the quality of the knowledge structure and the collective intelligence space of the organization. In this respect, the presence of a quality enhancer boosts the decision-making processes of human organizations.

8.3. The OK (Organizational Learning and Knowledge Management) Dynamic 8.3.1. Learning organization Currently, some organizations learn as human beings do. Learning organizations acquire, store, transfer and create information and knowledge. As mentioned earlier, all human organizations are formed with certain basic objective(s) in mind. Thus, the learning dynamic is to ensure that the organizations move towards these aims collectively. However, “collectively” is the key term that many organizations are encountering difficulties. An organization whereby the interacting agents are continually learning how to learn together is a more intelligent organization. In this respect, a learning organization is one in which the leaders and other members are effective and efficient in learning, and learning how to learn together because they are all willing to venture deeper and broader into their learning endeavors. In many instances, to nurture an organization that learns, and learns fast and continuously is no easy task. In order to learn and learn collectively, the interacting agents must first be willing to be engaged with one another, and to communicate their hearts and minds voluntarily. Thus, an appropriate mindset must be present. A supportive culture with a core mindful culture must exist. Inevitably, effective communication is a fundamental characteristic that is badly needed in human organizations that want to learn at all levels. Ineffective communication lies at the root of why people

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are not really working well and learning together, and this obstacle can be overcome by nurturing smarter evolvers (as described in the intelligent person model). In addition, the concept of “cosmopolitan communicators” describes people who can make important contributions to diverse organizations because they do not ignore differences, but instead, fully recognize, appreciate, and collaborate across them. Such cosmopolitan communicators do not assume everyone is just like themselves but actively seek out different ideas and ways to think about issues. These communicators consider functional conflict a learning opportunity rather than a threat. This mindset improves the quality of thought, decision making and performance of the interacting agents as well as their organizations. Indeed before organizational learning can take place, the interacting agents must be willing to express their true feelings and thinking, instead of being closed up by the fear of saying wrong things. Thus, the basic key to nurturing collective learning is effective communication (see Chapter 9).

8.3.2. Organizational learning, knowledge structure and mindful culture Learning occurs at different levels in an organization (see also Appendix 4). Individual learning is the primary level of learning in any organization, whether the latter is a family, community, business corporation or nation. This learning process should be encouraged and rewarded if humankind is to continue to exist on this planet. However, to be collectively intelligent, the group as a whole must also learn. Thus, higher-level learning must occur simultaneously if the group aspires to compete as a team. In this respect, learning must take place concurrently and spontaneously at different levels as intelligent organizations of different sizes emerge. Basically, the relationship expressed in (8.2) must be achieved.

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Rate of learning » Rate of change.

(8.2)

In addition, a competitive and intelligent organization must be able to learn faster than its competitors. Otherwise, it is not really that intelligent relatively. Collective intelligence is responsible for carrying out the learning process in human organization. Analogous to intelligence in an individual human being, collective intelligence is the driving force behind learning in intelligent organizations. As mentioned earlier, orgmindfulness and awareness are the crucial mental functions that influence the dynamic of the autopoetic and self-organizing processes, and hence the rate of learning in organization. Thus, without a mindful culture, organizational learning can never be optimized. The continuous learning ability of an intelligent organization is stipulated as the next axiom.

Axiom IV An intelligent organization possesses a continuous learning ability at different levels that enables it to consume new information, adapt to changing environment, make better decision, and evolve with time.

There are some differences between individual and organizational learning. As an organization learns, knowledge accumulates and the latter has to be stored physically. The accumulation of corporate knowledge is a highly significant function of intelligent organizations. Corporate knowledge structures do not only reside in the mind of the interacting agents alone. Intelligent organizations have to create additional corporate knowledge structures outside the traditional human thinking systems. Usually, these externalized knowledge structures are stored in external physical storages. Information and communications technology has to be exploited in this respect. An organized approach is essential to move towards

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optimality. Plan and strategy must be mapped out to ensure that an organization learns faster and better, and accumulates and utilizes knowledge more effectively. Inevitably, organizational learning and knowledge management are vital activities that must be highly integrated and effective in intelligent organizations. 8.3.3. Classification of knowledge At the frontier of knowledge activity is the creation of new knowledge. Only top-notch researchers and highly creative people are involved in this activity. The second line of action is the acquisition of knowledge. The acquisition of knowledge, re-organizing it, giving it a new perspective, and using it innovatively to solve a problem and make a better decision, are the daily tasks of many professors, managers and national leaders. However, as humankind ventures deeper into the intelligence era, the acquisition and utilization of knowledge at all levels is becoming a necessity. Eventually, every individual (leaders and followers alike) will have to participate in such an activity in this highly educated and competitive world. Information first enters the thinking system of the individual human beings usually with the support of one or more physical symbols systems. It appears that knowledge is always made tacit before becoming explicit. In this respect, the knowledge created or acquired by the individuals has to be extracted and disseminated, if it is to be made valuable to others. Otherwise, it will remain within the thinking system that acquired it, that is, it is only useful for the individuals’ usage and consumption. In intelligent human organizations, it is essential to make the tacit and internalized knowledge explicit. In the new environment, having experts alone is not sufficient to operate effectively. It is vital to have experts that are willing to share their expertise. However, the tacit and internalized knowledge structures, as well as innovative ideas, are individual intellectual properties. To get the members of

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an organization to share/collaborate voluntarily, the corporate culture must be right. Again, the presence of a mindful culture is crucial. The knowledge to manage knowledge must be present. With the introduction of the knowledge-based/expert systems technology, human organizations begun to realize the significance of externalized knowledge. After the construction of the first artificial automated knowledge structure, the domain of knowledge management has evolved substantially. Knowledge repositories have proliferated to a certain extent, continuous updating and usage of these artificial knowledge structures has become a necessity in knowledge-intensive organizations.Therefore, with the even greater dependency on better knowledge to survive the future competition, the quality of knowledge structures and knowledge management processes must be enhanced. Similar to an intelligent being, this is one activity that no intelligent organization can avoid. 8.3.4. Quality knowledge structure and knowledge management process The quality knowledge structure embedded in the individual human thinking system has to be updated through continuous learning. The current emphasis is on fast learning coupled with innovation and creativity. Many developed nations are moving their education and skills training systems towards this direction. The objective is to develop quality knowledge structures in their people, and to train them to learn continuously. These individuals’ knowledge structures are the most vital sources for establishing quality organizational/corporate knowledge structure. A high level of collective intelligence and continuous organizational learning is the main element for driving quality knowledge management processes in intelligent human organizations. The two critical quantities, collective intelligence with organizational learning and individuals’ knowledge structures, are intangibles and

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they cannot be acquired by force. As indicated earlier, a new form of relationship has to be established. In this case, a mindful culture is again an essential facilitating medium. An intelligent organization and its interacting agents, orchestrated by a new form of leadership and management philosophy (see Chapter 10), must work collaboratively as partners. People with highly sophisticated knowledge structures cannot be led or managed in the present manner. As the world population becomes more educated and better informed, the values of people may be modified. Monetary rewards alone may not be sufficient. Social recognition and mutual respect could be a new perspective that must be satisfied. The need of intangible satisfaction of the individuals has increased. Thus, intelligent organizations must also recognize this new trend. Otherwise, the organizational learning and knowledge management dynamic will not evolve satisfactorily or spontaneously. The presence of the knowledge management dynamic in intelligent organizations is stated in the next axiom.

Axiom V An intelligent organization possesses the ability to create and enhance corporate knowledge structures as the organizational learning dynamic progresses.

As the value of a piece of information coming into an organization depends on the quality of the knowledge structures already established, quality corporate knowledge structure is a new critical success factor in the knowledge economy. Effective knowledge management dynamic is another new critical success factor. Apparently, contributing to corporate knowledge structures as well as exploiting existing structures is equally important. The effective combination of the two factors together with organizational learning and the efficient use of appropriate theory constitute an intelligent

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advantage that human organizations must more fully comprehend and exploit in the knowledge-intensive environment.

8.4. The Highly Intelligent Integrated 3C-OK Dynamic The interdependency of collective intelligence, connectivity and culture (3C), and organizational learning and knowledge management (OK), and their dynamic clearly indicates that intelligent organization must be managed differently from the present approach. The 3C-OK framework illustrated that the attributes governing the interaction of human beings are integrated. These attributes in human organizations cannot be decomposed and focused on separately as a linear system is often dealt with. Collective intelligence, culture, connectivity, organizational learning and knowledge management are intertwined in a complex manner, and together with the processes involved they form a complex adaptive system. The situation must be analogous to the confinement of quarks in elementary particles. For instance, a proton has three quarks. They are interlocked in the proton and cannot be separated by gluons. In addition, the gluons behave in a non-linear manner. When the quarks are moved apart, the attractive force of the gluons increases in strength. The strength increases quickly, thus confining the quarks to the elementary particles. Similarly, when some of the above organizational attributes in human systems are diminished, their presence becomes even more necessary. The more a particular attribute is being removed, the greater its presence is needed. In this respect, the integrated 3C-OK dynamic (iCAD) helps to glue the interacting agents together. They are the gluons that provide the connectivity in all human organizations. In addition, they must also be able to bind certain interacting agents more strongly when needed. Thus, recognizing that these five attributes are interdependent and they are the gluons of human organizations, and that their

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Culture/Supportive Culture/Mindful Culture

Connectivity

Collective Intelligence

Organizational Learning

Knowledge Management

Fig. 8.6. The integrated 3C-OK dynamic of intelligent organizations.

dynamic is complex, nonlinear and adaptive, is a new mindset that is crucial to the structuring and management of human organizations. Therefore, the 3C-OK framework is a significant component of the intelligence strategy. The 3C-OK dynamic can only be created and driven by human-level intelligence and consciousness and when it emerges it helps to further elevate these two properties. The 3C-OK dynamic is also a highly-intelligent complex adaptive dynamic that is unique to humanity. The presence and support of a sophisticated (written) language is inevitable. In addition, the framework also points a new direction in leadership and management philosophy. Interacting agents with highly sophisticated knowledge structures must be managed differently.The dynamic of the 3C-OK dynamic is summarized in Fig. 8.6.

8.5. Conclusion Apparently, the five core properties of chaos theory constitute an excellent macroscopic platform for analyzing, comprehending,

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organizing, leading and managing all intelligent human organizations more omnisciently in the new environment. The dynamic of this set of properties together with some additional characteristics of the Complexity Theory further reinforces the fact that intelligent human organizations are composite complex adaptive systems. It is also observed that with the unique human-level intelligence and consciousness, the complex adaptive dynamic of human interaction is further modified. The interdependency of human associated characteristics in intelligent human organizations is captured in the 3C-OK framework and its associated dynamic (beyond any other animal species). The key factors of the integrated framework are summarized as below: a. The five associated attributes of intelligent human organizations, namely, collective intelligence, connectivity, culture, organizational learning and knowledge management are highly interdependent on each other. They are also the gluons of these highly intelligent human organizations. Together with the dynamic involved, they formed a composite complex adaptive system. b. In particular, organizational learning and knowledge management cannot take place effectively in any human organizations without the presence of high collective intelligence, quality connectivity, and a supportive/mindful culture. Consequently, orgmindfulness must be allocated higher priority. It only emerges in organizations with a very high level of consciousness that focuses internally. (Increase in connectedness/interconnectedness and learning/co-learning » Increase in raplexity) ⇒ Effective collective intelligence.

(8.3)

c. Finally, recognizing the confinement effect of 3C-OK dynamic in all human organizations is an essential mindset for all

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current/potential leaders and managers.The integrated 3C-OK framework (explaining a highly complex adaptive dynamic unique to humanity) is an important reference source for leading and managing intelligent organizations more effectively as humankind ventures deeper into the intelligence paradigm (see Chapter 10).

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[W]ithin dialogue the task is not to reach a decision. The task is to enhance understanding and build a shared view that includes diverse perspectives and creates the possibility for decisions made later to be better informed and possibly even of breakthrough quality. Linda Ellinor and Glenna Gerard, Dialogue

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IX Paper Dialogue: An Effective Methodology for Nurturing Collective Intelligence

A primary requirement for nurturing collective intelligence is that the interacting agents must be willing to share their thoughts and knowledge with the organization. In this respect, orgmindfulness is a vital attribute.Very often, if the organizational culture is not supportive/mindful, the interacting agents will feel uncomfortable, insecure or threatened and become non-participative. Consequently, the Abilene Paradox will surface. Apparently, voluntary connectivity and truthful engagement of the individuals in any human organizations is critical. To overcome the phobia of honest/truthful communication, paper dialogue is a useful method that can be adopted to facilitate and improve thoughts sharing processes. It is observed that paper dialogue and orgmindfulness can complement each other when nurturing collective intelligence and enhancing connectivity. The success and effectiveness of its usage will be elaborated in this chapter. Key Words: Orgmindfulness; collective intelligence; Abilene Paradox; voluntary connectivity; truthful engagement; paper dialogue; dialogue; individual’s mental state; truthfulness; supportive culture; mindful culture; effective communication; truthful communication; thought technology; visual thinking; shared meanings/views; mutual trust; phobic mindset; defensive communication; participative communication; defensive routine; verbal dialogue; dialogue facilitator; absolute confinement.

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9.1. Introduction In particular, the voluntary connectivity and truthful engagement of the interacting agents in all human organizations are basic crucial requirements for nurturing collective intelligence. Apparently, it is easier to connect a colony of ants (more simplistic) than a group of human beings. In fact, the difficulty increases if the individuals are highly intelligent and educated. Each of them is carrying a highly intense intelligent source and their autopoietic dynamic is rather sophisticated. They are well informed and not easily influenced. Any one of these interacting agents could survive on their own but an ant depends greatly on its colony for existence. Up to this point in the book, orgmindfulness and the individuals’ mental state have been mentioned as the two vital attributes involved in the collective intelligence dynamic. As discussed earlier, orgmindfulness is the inward focusing consciousness mental function of a human organization. Orgmindful organizations are interested in the mental state of their interacting agents. Expressing concern for the interacting agents and assimilating their thoughts into the organizations improve the connectivity, engagement and personal commitment of the agents (see Fig. 9.1). The entire orgmindfulness process enhances a stronger sense of belonging and increases the level of truthfulness. Orgmindfulness emerges from the orgmind of an intelligent human organization. Such an organization encompasses a supportive culture with a mindful culture at its core. Many business organizations today are more externally focused rather than internally focused. These organizations are highly aware of the changing environment and the sophisticated needs of their customers. But they ignore or are not so sure of the mental state and requirements of their own employees. This ignorance can cause an extremely negative impact on the dynamic of the organization. Organizations that are poorly connected internally do not communicate effectively. Consequently, the 3C-OK

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Individuals’ mental state

Orgmindfulness

Voluntary connectivity and engagement

Effective communication

Higher collective intelligence

Fig. 9.1. Basic dynamic for nurturing collective intelligence.

dynamic (the integrated and highly intelligent complex adaptive dynamic unique to human systems) cannot be orchestrated successfully. Such organizations will not be competitive and will deteriorate in the new information and knowledge intensive battlegrounds. Thus, a key to nurturing a higher level of collective intelligence is through more effective communication. The indication is clear. Basically, some forms of communications, either written or verbal, are essential to initiate the binding process. An omniscient understanding of the process is critical. Hence, dialogue is a very valuable tool in this respect.

9.2. Dialogue Dialogue is a methodology classified under an interesting domain called thought technology. The present form of dialogue is first proposed and utilized by a group of researchers at MIT. Another such

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methodology is visual thinking. In the current context, dialogue is defined as a free flow of meaning that balances inquiry and advocacy in one’s attempts to influence others. The purpose of dialogue is to go beyond the present understanding held by each member in the group, and to explore issues creatively from many and diverse points of view. Dialogue requires the participants to “suspend” their present opinions so that deeper levels of listening, synthesis, and meanings can evolve. The entire process is divergence in nature. What emerges eventually is an expanded and deeper perspective of an issue or a better solution. When the interacting agents in an organization gather to dialogue, it is a general consensus that they commit themselves to a common set of guidelines as follows: a. Willingness to voice openly. b. Willingness to listen intently. c. Willingness to respect one another. d. Willingness to suspend immediate judgment. During a positive dialogue session, as the interacting agents share their thoughts openly and as sensitivity and experience increase, a perception of shared meanings/views emerges. People find that they are neither opposing one another, nor are they simply interacting. Increasing trust (mutual trust) between members of the group — and trust in the process itself — leads to the expression of the sorts of thoughts and feelings that are usually kept hidden. There is no imposed consensus, no instigation, no condemnation, nor are there any attempts to avoid conflict. The participants recognize that they are involved in an ever-changing environment and slowly developing a pool of common meanings and shared views. Gradually and astonishing, a shared content of

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consciousness emerges which allows a level of creativity and insight that is not generally available to individuals or to groups that interact in more traditional ways to mature (see more about dialogue in Appendix 5).

9.3. Abilene Paradox However, while the notion of dialogue is appealing, it is rarely observed in many current organizations, especially in the Asian context. When people need to talk about sensitive issues, most are still trapped by the present cultural norms, whether it is an illusion or unrealistic pessimism. Some may think this is abnormal. However, it is observed in many organizations. The interacting agents try to suppress emotions, appear rational and non-confrontational because of a phobic mindset. This is a predominantly autopoietic characteristic. Self-safety in all aspects is highly critical and natural. These interacting agents are subdued and not voluntarily connected. The consequences of such behavior include no communication, miscommunication and escalating errors. Thus, most of these interacting agents are defensive (defensive communication) rather than participative (participative communication). They are just too busy avoiding conflicts and taking care of themselves. They conceal their genuine thinking and feelings. These interacting agents just pretend to be candid and straightforward when in reality they are not. Their phobic mindset inhibits the exchange of relevant and accurate/truthful information, reduces sensitivity to feedback, and makes real problem solving and learning virtually impossible in any team and the organization. In the extreme, there is actually no contribution from the interacting agents. This massive obstruction has to be moderated or eliminated. In addition, even when one individual may know that another person is also aware of an issue that is a problem of mutual

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concern, they both choose to act as if neither of the parties knows anything. They do this in a highly skilful and convincing manner in order to perpetuate a cover-up. The behaviors that support the camouflages, or defensive routines, drastically hinder the learning that is needed to bring about individual and organizational changes for improvement. Such defensive routines are a double bind. If the interacting agents do not discuss the defensive routines, then these routines will persist and proliferate. If they do discuss them, they may get into trouble. The consequence is that defensive routines are protected and reinforced by the very people who prefer that they do not exist. Eventually, most of the interacting agents then develop a cynical attitude that “nothing will change around here”. Why is open sharing and communication so intimidating? Why are true feelings and opinions sometimes unspeakable? It is dangerous to share one’s true feelings and opinions because they may be politically incorrect. A truthful interacting agent never knows when s/he may end up in trouble. Obviously, the individual’s basic need for safety and security is not met. Hence, many people elected to keep mum about their true feelings. They keep themselves to saying only the politically correct things. In traditional organizations, the higher up an organizational hierarchy, the more the individual is insulated from meaningful and genuine feedback. The interacting agents feel that s/he who answers honestly is honestly out of his/her mind. Such a mindset and culture is still present in many current organizations, especially in highly authoritative organizations with a leadership mindset of “do not rock the boat”. Thus, the obvious reason dialogue does not materialize in such organizations is because the interacting agents are not even voicing. In this respect, it is totally useless to talk about “listening”, “respecting” and “suspending” when people just refuse to “voice”. Consequently, dialogue facilitators thus find it difficult to get people

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Unsupportive culture

No communication Miscommunication Defensive communication

Defensive routines

Abilene Paradox

Fig. 9.2. The emergence of Abilene Paradox.

to talk honestly and openly about issues, much less to uncover deeper mental models and constructing real shared vision. Instead, instances of people agreeing on things that they all disagree with, simply because nobody is speaking up, keep happening. The above observation is the Abilene Paradox and the phenomenon is still wide spread in many present organizations (see Fig. 9.2).Apparently, Abilene Paradox clearly advocates that truthful communication among interacting agents is not a natural phenomenon.

9.4. Paper Dialogue Based on the above observation, it is clear that dialogue is an effective methodology that can enhance communication, connectivity and collective intelligence in any human organization if the interacting agents are influenced to contribute genuinely. Apparently, some forms of communications are vital to all human organizations.

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An organization that does not communicate internally is brain dead. However, the constraint often encountered is a culture that stifles “openness”. Thus, there is a need to overcome the trap of the phobic mindset in the interacting agents. Something must be done to make the latent apparent. In this respect, paper dialogue, a modified approach to verbal dialogue, is introduced as a convenient and useful alternative to address the challenge. Paper dialogue brilliantly brings in the factor of confidentiality and “personal safety”. It allows the initial obstacle of fear and intimidation to be reduced or removed. It is a means to overcome the phobia of lashback for communicating the truth. It reduces the pressure, hesitation and frustration. Thus, it enables and encourages the interacting agents to speak the unspeakable. In addition, it also allows many interacting agents to dialogue at the same time. Consequently, paper dialogue provides all organizations with an extra valuable tool in their repertoire to generate more effective and truthful communications that is desperately needed (see Fig. 9.3).

Paper dialogue

Orgmindfulness

Non-phobic communication Voluntary communication Truthful communication


Fig. 9.3. Combination of orgmindfulness and paper dialogue nurtures even higher collective intelligence.

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At this juncture, it is beneficial to summarize the above thinking on truthful communication and the reasons that paper dialogue as an effective interim option into the following six points: a. Recognizing a problem and the willingness to share individuals’ views on the issue is the beginning of voluntary and truthful communication. b. Resolving/solving the problem can be subsequently achieved by additional communications and understanding with enhanced connectivity and engagement when a shared meaning/view emerges. c. Thus, it is the beginning of being truthfully and genuinely engaged that have to be activated first. d. Subsequently, it is the constructive and continuous responses to the ever-changing landscape to ensure sustainability that are crucial and have to be maintained. e. Paper dialogue provides the interim means to achieve all the above until a mindful culture is nurtured in the organization. f.

Finally, even when a supportive and mindful culture exists, both dialogue and paper dialogue can still be employed concurrently to further enhance connectivity and collective intelligence.

9.4.1. Procedures and dynamic To start a paper dialogue session, the facilitator must first explain clearly to the participants what verbal dialogue is and in what ways are paper dialogue different. The main difference is that instead of verbalizing their thoughts, the interacting agents will now be writing their opinions down and the identity of the “contributors” will

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be kept confidential. Immediately, insecurity, hesitation and phobia will reduce, instead, authenticity, motivation and honesty will emerge. Consequently, more truthful mass participation will also emerge. In paper dialogue, many of the interacting agents will be writing down their truth thinking at the same time instead of just one person speaking at a time. The dialogue facilitator should now explain the steps and ground rules to the group before the commencement of a paper dialogue session. A typical example is as follows: a. Suppose there are 10 issues of interest for discussion and there are 50 participants. Fifty sheets of paper, each with an issue clearly printed at the top, are randomly distributed to the participants, so that each starts with one sheet of paper. There are five sheets of paper corresponding to one issue. Each sheet of paper represents a “dialogue forum”. b. Each participant then writes his/her thoughts regarding the issue on the paper. The participants are reminded to share their truthful thinking or feelings about the issue with no fear of “personal safety”. But, they should refrain from taking the opportunity to attack other individuals. c. When a participant has finished, usually in a few minutes, s/he drops the paper into a central bin and collects another piece of paper to pen his/her thoughts. d. Each participant may either respond to any of the comments already written on the paper or write something new in response to the issue. Extra sheets could be attached to the main paper, if necessary. e. This “exchange” process can continue for about half an hour to an hour. The period used is flexible.

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f.

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When the time is due, the “written communications” are collected and put up on the walls of the room, organized according to the respective issues.

g. The participants may then go around reading the comments while taking some light refreshments. Generally, after the paper dialogue process, many participants would have been warmed up to the issues and would have also developed an interest for further sharing. The change in dynamic can be fascinating. Having read how other participants really think about the topic, people feel more confident to share their thoughts, since some of the points have already been written on the papers and everyone has seen it. More interacting agents will feel that they are just elaborating and discussing the feelings/thoughts that have already been exposed. Subsequently, the participants are then divided into smaller groups each accompanied by an experienced dialogue facilitator. They are then asked to comment further on the points written on the papers. No one needs to “own up” to the comments on the papers. They can share their opinions why some people may feel in a certain way in the organization. This approach normally elicits a great deal more of truthful and honest sharing. Sometimes, the interacting agents become overwhelmed and are highly determined to share their views. An enormous and magnificent change in the communication dynamic also emerges in parallel. Thus, it has been observed that paper dialogue could form part of the normal effective communication process in any human organizations. 9.4.2. Observations and feedbacks Based on the observations and feedbacks of some paper dialogue sessions conducted, the consensuses of the participants endorse

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that the methodology is substantially credible and beneficial. The feedbacks can be classified into five prominent themes as follows: a. Ability to share truthful thinking and feelings Almost all the participants felt that the paper dialogue approach allowed them to feel free to “speak up” anonymously, without fear of reprisal, about their true feeling, about policy and practice, or better ways of doing things. As one participant wrote: “The key benefit of paper dialogue must be its anonymity. It is especially useful when difficult or sensitive issues are to be discussed and people often do not dare reveal their true feelings for fear of direct conflict with the top person. In paper dialogue, because it is anonymous, people feel safe in ‘voicing’ what they truly feel and can also respond to the comments of others.”

The paper dialogue process is a driving force in breaking down the communication barrier in a culture where people are still uncomfortable with making politically incorrect statements. “I thought that this was a very effective tool, especially in the Asian context, whereby people tend to be more comfortable in expressing their thoughts on paper.The element of anonymity was (a) strong advantage of this method, particularly so in a ‘politicized’ environment whereby one can be prejudiced for giving ‘negative’ remarks.”

b. Many participants can “dialogue” at the same time The paper dialogue approach allows many people to “speak up” at the same time, unlike a verbal dialogue in which there is limited airtime for each participant in a large group. “This is a great way to get honest and sincere participation from a big group of people. Everyone can ‘speak’ at the same time.”

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c. A good tool for brainstorming and feedback The paper dialogue process can serve other purposes besides generating dialogue alone. In particular, it can be used as a tool for brainstorming: “Paper dialogue would be useful in surfacing good ideas. It can even bring up issues that leaders in the organization may not be aware of. Some of these issues may even be addressed directly, thus providing immediate feedback to the people involved.”

Paper dialogue can also be used as a feedback tool: “It is finally an opportunity for me to be heard. I am able to give my opinion and feedback on policy issues that I have never dared to. It is not as threatening as saying it out. Moreover, it is great to know that there are so many others who feel in the same way as me about these issues.”

d. A means for people to “listen” and “reflect” In a verbal dialogue session, participants sometimes do not really listen “deeply” to others because they are more engaged in the cut and thrust of the session. The paper dialogue approach allows people to take time to read what others have to share and reflect further before sharing their own thoughts.This additional time slot improves the quality of the dialogue output. “It is especially good for people like me who find it useful to have a little time to think before expressing my thoughts. Often, in the oral form of dialogue, I find myself not listening closely as my mind was more concerned about preparing what I would like to share when I have the floor.”

e. Simple process Many participants discovered that the paper dialogue process is really simple, easy to implement and easy to participate in: “The steps in carrying out the paper dialogue are very simple and easy to follow and I am sure it can be easily carried out ….”

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9.5. Conclusion Paper dialogue has demonstrated to be an extremely beneficial approach in facilitating interacting agents to communicate more voluntarily, comfortably and truthfully. It is an effective thought sharing methodology that can help to overcome obstacles due to unsupportive culture and fear. However, paper dialogue is not meant to replace verbal dialogue. It is a useful alternative to initiate interacting agents to share their deep feelings more openly when the culture and mindset is still not adequately right for verbal communication. Open and verbal dialogue can then flow more naturally when a supportive/mindful culture and high collective intelligence emerge. Thus, paper dialogue is a highly beneficial interim tool for nurturing an intelligent human organization by providing a less intimidating environment for more truthful communication. In fact, paper dialogue can be implemented together with verbal dialogue even in a highly intelligent human organization, an iCAS (see Fig. 9.4). In this respect, paper dialogue and verbal dialogue can be exploited as complementary tools subsequently. Ultimately, they are critical tools for nurturing the integrated 3C-OK dynamic.

Paper dialogue


Supportive / Mindful culture

Intelligent Organization

Dialogue

Fig. 9.4. Paper dialogue as an interim or even permanent tool for nurturing intelligent organizations.

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However, for many more years to come, for any organizations in any nations, there will always be issues or problems that are unspeakable. At the core of every interacting agent is always the highly autopoietic self, privacy and absolute confinement. Consequently, paper dialogue will always remain as an immensely innovative and useful alternative.

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Concluding Topics

X: Intelligence Leadership and Intelligence Management Theory XI: Towards a Higher Order of Existence

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As executive leaders test their brains against their corners of the great complexity, they find that certain leadership workways work best. The hallmarks of this modern style are the soft voice and the low key. Harlan Cleveland, Nobody In Charge

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X Intelligence Leadership and Intelligence Management Theory

Fundamentally, for all categories of human organizations (economics, business, social, education and political) their members are becoming better educated and informed, and consequently they are more sophisticated interacting agents with modified expectations. Leading these new intelligent human organizations is drastically different from leading a traditional setup.The intelligent complex adaptive and nonlinear evolving dynamic is driven by the intrinsic intelligence of the individuals and the collective intelligence of the group.Together with the influence of the knowledgeintensive, fast-changing and more complex (raplexity) environment, a immense shift in the mindset, strategic thinking, ability and style in the new generation of leaders and managers is inevitable. As the leader-follower relationship is now more complex and nonlinear, the dynamic appears to be more intelligence-centric. In this respect, a better comprehension of leadership strategy and organizational dynamics can be acquired by “bisociating” some properties of the complexity theory and the different perspectives of organizing around intelligence.The resulting evolutionary model to be introduced in this chapter is the intelligence management and intelligence leadership theory/strategy for iCAS. Key Words: Intrinsic intelligence; collective intelligence; raplexity; intelligencecentric; organizing around intelligence; intelligence management; intelligence 207

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leadership strategy; highly intelligent complex adaptive system (iCAS); intelligence-centric leadership and management mindset; self-centric; biotic structure; highly intelligent complex adaptive dynamic (iCAD); complex adaptive-centric; intelligence mindset; intelligent complex adaptive mindset; intelligence advantage; group-centric leadership; self-centric leadership; collective leadership; intelligence strategy; proto-autopoietic; non-linear intelligence; stability-centric; intrinsic leadership; soft voice and low key; lateral and consultative leadership; collective leadership; transitional leadership; learning leadership; intelligence-to-intelligence linkage; truthful engagement; latent/virtual leadership.

10.1. Introduction Mindset (both of leaders and followers), strategy, and organization structure and the associated dynamics are closely correlated with leadership and managerial traits in all human systems. Nowadays, most human organizations including many business corporations still possess a machine-like structure that originates from the Newtonian mechanical mindset engulfing order, linearity, predictability and low tolerance for error. The consequence of the above mindset is the domination of leadership and management theories and practices that believe human systems must be controlled and managed hierarchically, like physical instruments of production, and workers must be engineered and re-engineered to fit the mechanistic structure. In this environment, the human minds are highly disabled. There is minimal space for query, exploration and contradiction. To the extreme, it is a confinement of modern man/woman in a slavery mental space. However, it is becoming a known fact today that most organizations led and managed in this manner are moving farther and farther away from optimality. Authoritative governance (in some underdeveloped and chaotic countries) and family business practices are confronted with discontent, revolution and even terrorism. Human beings, especially the better educated ones (generations Y and Z, or even the generation X) will definitely not welcome their roles as machine parts

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that have no mental freedom, respect, innovation and creativity. Some characteristics of generation Y are technology-savvy, self-assured and fulfilment-seeking. Similarly the generation Z will be more sophisticated and will not be easily subdued. Coupled with their higher literacy rate, engaging them is obviously non-linear and needs to be more humanized. Definitely, their ambition is beyond monetary seeking alone. Concurrently, younger organizations, especially those at the technological frontiers are beginning to be structured, managed and led differently. These organizations frequently exploit the edge of chaos. Therefore, a gradual change or even a transformation in leadership and management mindset is inevitable. As advocated in the earlier chapters, a general shift from a machine perspective to an intelligence and complex adaptive mindset is occurring and must be accelerated. Humanity and its biotic characteristics, in particular, the human thinking systems, their intelligence and their contents, are assuming a more significant role in many aspects of current human system dynamics. The new primary focus of management is intelligence management which is beyond the traditional domain of human resources management. This new awareness is stimulated by some old characteristics that have been intensified or modified, as well as the emergence of numerous new characteristics. In particular, the critical features that are highly responsible for driving the transformation are as follows: a. More knowledge-intensive interaction; b. Faster changing environment; c. Highly networked communities; d. More truthful engagement; e. Faster and continuous learning individuals; f.

Smarter interacting agents (at all levels);

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g. Modified expectations of all interacting agents; h. Unification through diversification; i.

Higher mobility of all interacting agents; and

j.

More intelligent human organizations.

Again, all these indicators clearly point towards a new vital focal point, intelligence (intelligence-centric). Consequently, the crucial recognition associated with the transformation in leadership and management thinking and strategy for all categories of human organizations is to focus on the critical factors of intelligence and collective intelligence. In the intelligence era, concepts and strategies on leadership and management have to be transformed towards the fresh direction recognized. In this respect, executing the basic functions of intelligence management is apparently the crucial starting point, and the two basic functions are as follows: a. Optimize every intelligence source; and b. Nurture a high collective intelligence. Therefore, in general, the change in effective leadership attributes with respect to the change in the key organizational and environmental characteristics and dynamics is necessary for all forms of human organizations. The two variables have to be positively connected. As the interacting agents become more educated and informed the thinking systems possess highly complex and sophisticated knowledge structures, thinking dynamics, problem-solving abilities, and decision-making processes. Hence, an intelligencecentric leadership and management mindset emerges (see Fig. 10.1). It may also be interesting and significant to note at this juncture that intelligence-centric and self-centric are not totally identical, although, the two terms are analogous in some ways.

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New leadership and management theory, strategy and practices

Well-educated and well-informed interacting agents Transformation inevitable More sophisticated needs and connectivity of interacting agents

Intelligencecentric

New leadership and management mindset

Fig. 10.1. The new leadership and management mindset is intelligence-centric.

10.2. Exploiting Biotic Structure and Intelligent Complex Adaptive Dynamic The above recognition reflects that comprehending and exploiting the close association between intelligent human systems biological (living systems) characteristics and dynamics, and the new leadership and management mindset is also highly vital. The studies of how intelligence drives a living system, how the human mind behaves and operates, how an ecosystem evolves and how the individual species sustains itself, and how human organizations can be better managed and enhanced with bio-logic (biotic structure and its associated dynamic) open a significant new frontier and a new direction for leadership and management. As discussed throughout this book, the mind and orgmind are the sources where intrinsic and collective intelligence emerge respectively, and the primary critical success factor for the success of human organizations today is to optimize available intrinsic intelligence and nurture high collective intelligence.The human minds are the key nodes in all information processing and communication systems networks that contain the ability to deal with the non-linear aspect of unstructured problems, especially in unpredicted events

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(at punctuation points). Consequently, quality human connectivity and relationships should be allocated high priority, as a quality human network is positively correlated to a higher level collective intelligence in all human organizations. A high collective intelligence emerging from a biotic structure is essential for handling all problems, including unstructured and unexpected problems at organizational level. All biotic structured human organizations, embedded with sophisticated knowledge structures, effective information processing and learning capabilities of their interacting agents, quality connectivity of the system and an enormous collective intelligence are highly intelligent complex adaptive systems (iCAS). The dynamics of the iCAS encompass fast learning, adaptation, quality connectivity, truthful engagement, innovation and creativity, high competitiveness, smarter evolution and co-evolution with the environment/composite system (associated with the integrated 3C-OK framework). In this respect, the ability to orchestrate the highly intelligent complex adaptive dynamic (iCAD) is another critical requirement for the new leaders and managers. Inevitably, intelligence-centric and complex adaptive-centric leadership and management theory, strategy and practices are the best options for all current human organizations and their interacting agents that wish to maintain sustainability and elevate competitiveness (see Fig. 10.2). Such an approach allows an intelligence advantage to surface gradually.

Intelligent biotic structure Intelligent complex adaptive dynamic

New leadership and management theory, strategy and practices

Complex adaptivecentric

Fig. 10.2. The new leadership and management theory, strategy and practices must also be complex adaptive-centric.

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10.3. The New Leadership and Management Mindset 10.3.1. Significant new strategic focal points With respect to the above discussions and comprehension, as well as those in the earlier chapters, the intelligence-centric mindset of future effective leaders and managers should at least encompass the following boundaries. a. The mindset to maximize the contribution of each and every intrinsic intelligence source in the organization. b. The mindset that recognizes the needs to nurture high collective intelligence. c. The desire to constructively exploit the complexity and nonlinearity of both the intrinsic and collective intelligence. d. The mindset that focuses on the necessity to learn, adapt, innovate, evolve and co-evolve with the other interacting agents, as well as the composite system. e. The mindset that recognizes the significance of nurturing an intelligence-based mindful culture. f.

The recognition that the leader-follower relationship is now highly complex and nonlinear, more lateral, consultative and no more unidirectional.

10.3.2. A deeper analysis of the new mindset Apparently, in the new context, an effective leadership strategy needs an intelligence mindset and an intelligent complex adaptive mindset. Complex adaptive dynamic has bottom-up recursive interactions. Thus, coupled with the smarter interacting agents,

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nurturing collective intelligence through more entrenched mass participation, quality networking and connectivity is highly recommended. Therefore, a crucial ability of the new leadership is to orchestrate and facilitate the emergence of a group-centric leadership dynamic. A highly effective leader is no longer one that maximizes his/her own intelligence alone and dominates the scene (self-centric leadership), but one that optimizes the collective intelligence of the systems and allows the latter to evolve, compete and succeed. In the new environment, both the leaders and followers possess both direct and indirect functions.This is the collective leadership approach, and it is a vital aspect of the intelligence strategy (see Table 10.1). Therefore, nurturing the new mindset and strategic thinking that can exploit intrinsic intelligence and collective intelligence, and the

Table 10.1 Changes in basic leadership characteristics. Traditional leadership

New leadership

Vertical Individualistic Command-and-Control Machine-logic

Lateral/Horizontal Collective Consultative Bio-logic

Leadership attributes

Interacting agent characteristics

Complex and non-linear dynamics Types of problems

Fig. 10.3. Highly complex and non-linear leadership dynamic and the changing environment.

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Intelligence-centric

Emerging leadership mindset

Complex adaptive-centric

Group-centric

Fig. 10.4. The primary focal points of the emerging leadership mindset.

ability that can initiate and orchestrate the desired intelligent nonlinear, complex and adaptive dynamic to sustain and improve the system objectives are the primary requisites for all future leaders and managers. In this respect, the new leadership itself is also becoming complex and nonlinear, and therefore the new leaders must possess the new recalibrated thinking and must also be highly adaptive, that is always learning (see Figs. 10.3 and 10.4).

10.4. The Macroscopic Framework of the New Leadership Model 10.4.1. Deeper analysis of the local autopoietic phenomena and collective self-organizing dynamic Currently, it is believed that a form of energy known as the dark energy is expanding the universe. There is a general random expansion that increases entropy and does not support the emergence of detailed structure. However, microscopically, a reverse dynamic is occurring concurrently. This dynamic gives rise to structure, pattern, network, and life. These are localized self-centric phenomena. The energy driving this fascinating development is intelligence. Intelligence is the unique form of energy that is embedded intrinsically in the universe to support autopoiesis and self-organization.

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It takes place in a localized space. For a human being the intrinsic intelligence is his/her own localized source, and for an organization its collective intelligence is the localized intelligence. Thus, the ability to nurture collective intelligence is a highly valuable characteristic in all human organizations. At the most basic level, the confinement of quarks in sub-atomic particles is an elementary proto-autopoietic characteristic. This phenomenon allows sub-atomic particles to exist. At the atomic level, atoms that are stable do not react, and atoms that are not stable react chemically to enhance their stability. All these processes are autopoietic. In all these cases, the autopoietic needs is rather simplistic. It is purely physical in nature, purely physical stabilitycentric. From the approximately 100 elements, countless numbers of compounds emerge. The entire proto-autopoiesis is driven by some form of proto-intelligence. As the intelligence energy becomes more intense and nonlinear, the autopoietic needs and processes increase in complexity. A significant threshold is the boundary between non-living and living matters. As the intelligence source increases in intensity up to a certain level, life emerges. Apparently, intelligence is not confined to living organisms alone. However, it is the more intense and nonlinear intelligence sources embedded in biological organisms that further increase the complexity and evolution ability of the living systems. From a single cell organism, gradually the intense intelligence embedded in it is able to transform it into a trillion cells living system such as a human being. Apparently, the autopoietic needs of non-living interacting agents is much more simplistic because it usually only involves physical stability.The autopoietic needs of living intelligent interacting agents is more sophisticated because it can encompass physical, biological and even mental stabilities. The interaction of the physical, biological and mental spaces is itself highly complex and non-linear. It is in the living world that consciousness emerges.

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As the organisms form a group, self-organization can emerge. An effective self-organizing dynamic only emerges from a living system with relatively high collective intelligence. With the emergence of the self-organization dynamic, co-evolution is observed. In human organizations, the self-organization dynamic is highly complex and non-linear. Thus, mindfulness and interdependency are highly significant properties in this respect. Highly intelligent interacting agents as specified in the intelligent person model will have to balance between autopoiesis and self-organization with a high level of mindfulness and awareness so that a constructive selforganizing dynamic emerges whenever it is required. As discussed earlier, mindfulness, the ability to focus inwards at the mental state of the mind is unique to human consciousness. Therefore, this special ability must be exploited optimally to create the advantage desperately needed in the Red Queen race. Similarly, many organizations today are aware of the changing environment to a varying degree but most of them are not orgmindful. A well-synchronized awareness and orgmindfulness approach will automatically elevate collective intelligence significantly. A human organization with the above characteristics is an iCAS. The above analysis leads to the following two postulates for the localized phenomena observed:

Postulate I: Law of Autopoiesis Less intelligent interacting agents are “autopoietically” more simplistic (that is, their individual needs/stability is lesser/ lower) (for example, a hydrogen atom, an ant). In this respect, their autopoiesis also reaches optimality very quickly. However, highly intelligent interacting agents possess more complex autopoietic needs and hence the autopoietic dynamic is much more complex (for example, a human being).

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Postulate II: Law of Self-Organization The less intelligent interacting agents self-organize more automatically, as their self-organized state is also relatively more simplistic (for example, a crystal, a bee hive). It is more difficult for a group of human beings to self-organize because they are “autopoietically” more complex. Special effort is required to nurture a high level of collective intelligence to ensure constructive human self-organization (for example, a cosmopolitan city).

10.4.2. Highly intelligent complex adaptive systems, iCAS This new understanding and belief strongly indicates that human systems designed around intelligence are the most adaptive and competitive. The intrinsic characteristics of intelligence blend more naturally with the requirements of the intelligence era. In fact, as specified in Chaos, an intelligence-based structure is the inherent structure of the universe and its microcosms at all levels. At the lower level, enhancing stability is the key driving force. However, highly intelligent systems learn, adapt, innovate and compete better, and human intelligence is nonlinear. Non-linear intelligence is able to balance between autopoiesis and self-organization depending on needs and circumstances. The non-linear aspect of intelligence is also more closely associated with innovation and creativity. Apparently, nurturing highly intelligent human organizations is vital, as iCAS are the best competitors in the knowledge-intensive environment. Therefore, the intelligence-related biological and mental properties of CAS are crucial factors for closer examination. The ten core properties of human organizations are as follows: a. Intelligence b. Order and Complexity

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c. Connectivity d. Non-linearity e. Interdependency f.

Far-from-equilibrium (seeking dynamic equilibrium)

g. Learning h. Adaptation i.

Dissipation

j.

Emergence

Strong emphasis must be placed on cultivating, managing, coordinating and exploiting the above set of properties, with a special focus on their interdependency to nurture the required iCAS environment. The ten key abilities/characteristics that subsequently emerge in the iCAS if the appropriate leadership and management strategies are adopted are as follows: a. High Awareness b. High Orgmindfulness c. High Collective Intelligence d. Quality Relationship/Connectivity/Mutual Trust e. Mindful and Supportive Culture f.

Fast Continuous Learning

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g. Quality Knowledge Management i.

Essential Autopoiesis

j.

Constructive Self-Organization

k. Smarter Evolver The above set of properties and characteristics clearly reinforce the close association between all human organizations and collective intelligence. Inevitably, organizing around intelligence is the most effective approach to adopt when leading, managing and nurturing all types of human organizations in the new context. The fundamental objective is the continuous elevation of the collective intelligence of the organization so that an iCAS, as a smarter and smarter evolver, emerges successfully. This is a vital strategic factor that the new leadership must recognize.

Postulate III: Law of Organization Organizing around intelligence, both the intrinsic intelligence of the individuals and the collective intelligence of the organization (intelligence management), is the primary requisite for nurturing a competitive iCAS in the new environment. The basic intention is to nurture a smarter and smarter evolver.

10.4.3. The new macroscopic intelligence-centric leadership framework Fundamentally, leadership is a vital attribute that connects organizational objectives, strategies, plans, functions and the other activities together. The basic essential functions of leadership are

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to provide a new direction, nurture a culture, and cultivate an “organizational soul”. Are these abilities within the reach of every individual human being? In fact, every individual is endowed with a certain degree of leadership (intrinsic leadership) value/quality. But this intrinsic leadership quality in all the people that assume the role of followers is often suppressed by the structure of the system and its environment, especially in the past.With the new evolving environment, where individuals are better informed and educated, this naturally endowed leadership is at least subconsciously activated, and sometimes even more visibly manifested.A new advantage for any organization is therefore to elevate, optimize and exploit this natural endowed ability. In this respect, the command-and-control leadership is vividly losing its effectiveness. Even organizations with a highly hierarchical structure such as the military are gradually adopting a modified mindset and approach — soft voice and low key. There is a general consensus that the traditional leadership and its characteristics are becoming less relevant, if not obsolete. Different views and dissimilar schools of thoughts have emerged over time. The different leadership approaches and characteristics have been occasionally examined and re-examined. For instance, some of the models that have been compared are as follows: a. Command-and control leadership b. Empowering leadership c. Learning leadership In the present context, the highly rank-and-class domineering, command-and-control leadership is rejected by the current interacting agents in most types of human organization. Even the

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empowering leadership approach is perceived to be rank-and-class domineering. The lower ranking leaders have to be empowered with authority by the higher levels leaders to execute certain duties and responsibilities. The current trend is towards leadership emergence, beyond leadership empowerment. Consequently, the mindset of the learning leadership that appears to encompass bio-logic is more appropriate and appealing. Inevitably, the general trend is from authoritative to consultative, and highly local/individualistic to collective/diffusive leadership. The more consultative and diffusive approach appears to be the new direction, enhancing leadership learning and transforming leadership from vertical to lateral. Apparently, traits such as acceptability, truthfulness, mutual trust and even compassion are becoming more critical attributes for the new leadership. Concurrently collective decisions may become more and more significant. With respect to the above analysis some crucial facts associated with the transformation in leadership characteristics and dynamic has been observed. It has been observed that the following list of factors is highly significant: a. There is a general shift from one prominent leader to collective leadership. b. Leadership is no more associated with individuals at the top of the structure but has become more diffused with managerial/ executive and even operational functions. c. A critical requirement for leading effectively is closely associated with nurturing intense collective intelligence and mindful supportive culture in the organization. d. The form of leadership to be adopted becomes more dependent on the types of activity or problem encountered, that is, more situational dependent.

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e. The leadership is highly dependent on the characteristics and expectations of the interacting agents. f.

In the new leadership, the intelligence-to-intelligence linkages, that is, the direct links between the intelligence of the leader and the intelligence of the followers is a critical success factor.

g. Within collective leadership, a new category of leadership, the transitional (temporary) leadership is also emerging. In this respect, the leader-follower gap has diminished significantly. Thus, in the new leadership dynamic of an intelligent organization, the followers have to be as much a part of the leadership process as possible.To connect them needs a more humanized approach.The way to enhance this development is to have effective and continuous communications through thought methodology, such as dialogue. There must always be effective and appropriate communications between the leaders and their highly intelligent interacting agents, and as the process evolves, new leaders emerge. This activity also ensures that the followers get their thoughts (truthful engagement) through and the leaders better manage the evolving dynamics, hence further increasing motivation and enhancing quality connectivity. The entire thinking and dynamic should be embedded in the culture, and they always emerge spontaneously. Consequently, leaders as well as the other interacting agents can then better exploit creativity at the edge of chaos, if necessary. Apparently, nurturing collective intelligence through mass participation is inevitable.Therefore, a crucial role of the new leadership is to orchestrate and facilitate an effective intelligence-centric group leadership dynamic. This is the collective leadership approach. Collective leadership is more horizontal in nature and is more acceptable. The interdependency between individual leadership and collective leadership is a critical component of the

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intelligence leadership strategy. In general, the roles of leadership have diffused in the new environment. An individual leader that hopes to be effective has to depend on the effectiveness of the collective leadership. This observation further reinforces the significance of self-organization.

Postulate IV: First Law of Leadership Transformation A fundamental mindset of the new leadership strategy is to adopt a more lateral and consultative approach instead of the vertical approach. The new trend is towards group-centric leadership. The success of an individual leader is highly dependent on the success of the collective leadership.

Postulate V: Second Law of Leadership Transformation The next new leadership mindset is that the collective leadership approach can only be orchestrated effectively with a high level of collective intelligence, and a constructive emergent strategy that encompasses more consultation, diffusion, truthful engagement, mutual respect and intelligence-to-intelligence linkages.

10.5. Some Microscopic Dynamics of the Intelligence Leadership Strategy 10.5.1. Constructive human self-organization dynamic and iCAD The above recognition and conceptualization leads towards a significant attribute — effective self-organization. Self-organization

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creates opportunity for the new leadership, but in some ways also negates the usefulness/presence of leadership. In a system with a highly effective self-organizing dynamic, where are the leaders, or is every member a leader? However, it does clearly indicate the fact that the presence of leadership is not entrenched in one person. Leadership is no longer with a charismatic person that pulls the organization along with his/her definition of what a successful direction might be. Within the intelligence leader model, leadership is a natural phenomenon that results from intrinsic leadership and effective self-organization. In high collective intelligence driven self-organization the set of rules may even be latent, that is, not explicitly stated but implicitly embedded in the minds of the interacting agents. The interesting reality is that collective leadership and self-organization can be mutually enhancing. Individual intelligence, collective intelligence, self-organization and effective emergent dynamic are highly interdependent. Therefore, the primary aim of the new strategy is to nurture a group of self-organizing intrinsic leaders, that is, each interacting agent is behaving both as a leader and follower, depending on the exact situation and requirement. Thus, the roles and gap between a leader and follower is significantly reduced. Many interacting agents will have to assume both roles in order to be effective in the new knowledge-intensive environment, so that their organizations evolve successfully (see Table 10.2).

Table 10.2 Additional changes in leadership characteristics. Traditional leadership

New leadership

Total power-to-fear relationship Total top-to-bottom dependency Intelligence confined to the top leadership

Direct intelligence-tointelligence linkage Exhibit self-organizing ability Huge and diverse collective intelligence source

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10.5.2. Latent leadership: Highly intelligent leaders and interacting agents A highly intelligent interacting agent frequently modifies and introduces additional meanings to his/her autopoietic self-enrichment dynamics (as specified in the intelligent person model). A more subtle approach is usually adopted compared to an ordinary thinking system. An intelligent person, both a leader and a follower, ensures that he/she has better long-term survival opportunities. The evolution dynamic of an intelligent person also encompasses co-evolution with the system through strong orgmindfulness. At all times, an intelligent person balances between autopoiesis and self-organization, and seeks holistic adaptive solutions. In this case, the solutions may even be an option with short-term losses that eventually leads to longer-term gains because of mental, biological, physical and environmental constraints. Therefore, an intelligent person being highly adaptive and nonlinear, focuses on longer-term survival, and also helps to orchestrate a more constructive system dynamic through the manipulation of both deliberate and emergent strategies. In this respect, an intelligent person is always making preparations for the sudden appearance of punctuation points. When the condition is right, a group of highly intelligent interacting agents with a high level of collective intelligence should self-organize very effectively at criticality. The leader of such a highly intelligent organization, iCAS could also adopt the latent/virtual leadership approach. The presence of the leader becomes latent when the leader orchestrates a dynamic with such great subtlety that the followers are not aware of his/her intention. As complexity is in the mind of the beholder, its intensity/impact is relative. A space with high complexity to one agent may only be moderate to another.Very likely it is the latter, the latent leader with intense intelligence, that observe the global patterns first. Consequently, through the “latent mind”, the collective intelligence and emergent dynamic is gradually nurtured, and

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Intelligence Leadership and Intelligence Management Theory Increasing collective intelligence

227

Latent Leadership

Collective Leadership

Vertical Leadership

Increasing knowledge intensity

Fig. 10.5. General deviations in leadership strategy with respect to increasing intelligence and knowledge intensity.

when it exceeds a certain threshold, and a positive self-organizational ability always surfaces in times of crisis automatically. Quality connectivity, mutual trust, mutual respect, and other characteristics of the intelligent interacting agents are also responsible for this type of effective self-organizing dynamic in the latent/virtual leadership approach (see Fig. 10.5).The presence of this trait indicates a new level of organizational consciousness.

Postulate VI: Third Law of Leadership Transformation The next mindset is on the special needs to initiate and orchestrate constructive human self-organization continuously at different group sizes and at all organizational levels in an i CAS. This is part of the intelligence emergent dynamic that allows a desirable state to crystallize when a punctuation point is encountered.

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Postulate VII: Law of the Ultimate Leadership The final mindset is the recognition of the strength and value of the latent/virtual leadership strategy for leading highly intelligent interacting agents in i CAS. It is an integrated and vital part of the collective leadership strategy that emerges from a “latent mind”, a highly intense intelligence source.

10.5.3. New leadership strategic factors At this juncture, it is beneficial to recapitulate some of the appropriate key attributes associated with the traditional leadership so that the new leadership strategic factors can be better recognized. The former attributes extracted are as follows: a. The ability to identify new directions and opportunities. b. The ability to determine new objectives. c. The ability to map out new strategies. d. The ability to garner the support of the other members. e. The ability to nurture distinctive organizational culture. With respect to the emerging new environment, the above abilities are still vital but have to be modified, depending on the situation or problem encountered. However, some additional vital leadership strategic factors must also be nurtured and embraced. The intelligence leadership theory indicates that the following new abilities are of high significance when leading iCAS: a. The special ability to perform/orchestrate the above attributes continuously with a new intelligence-centric mindset.

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b. The special ability to continuously optimize the intrinsic intelligence of the individuals to enhance the collective intelligence of the organization. c. The special ability of utilizing high awareness (focus externally) and orgmindfulness (focus internally) concurrently and effectively. d. The special ability to constantly update the mental model of the interacting agents and the culture of the organization through quality interconnectedness, acceptability, truthful engagement and mutual trust. e. The special ability to change faster than the changing environment, as well as to change faster than all the other interacting agents, if needed. f.

The special ability to nurture a swift and effective self-organizing dynamic for the organization, especially to solve difficult unpredictable problems.

g. The special ability to switch between the deliberate and emergent path without difficulty. (The ability to effectively exploit the predictable and make substantial preparations for the unpredictable.) h. The special ability to lead in intelligence management, organizational learning and knowledge sharing at all levels. i.

The special ability to lead with new knowledge, theory and strategy whenever necessary, that is, always evolving and emerging in nature.

j.

The special ability to orchestrate the emergence of intrinsic, collective, transitional and latent leadership dynamics and strategies, and to exploit them selectively.

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Organizing Around Intelligence Intelligence management

Intelligence leadership strategy

Intrinsic leadership Learning leadership Lateral and consultative leadership Transitional leadership Collective leadership Latent/virtual leadership

Fig. 10.6. Different categories of leadership style that emerge from the intelligence leadership strategy.

k. The special ability to lead the followers to exploit the edge of chaos innovatively and creatively. l.

The special ability to look out for the Butterfly Effect (to be the first to see a potential surface pattern, to be a first mover) and reap its enormous output/benefit.

m. The special ability to better humanize the organization/nation to a higher level of existence, a smarter evolver and emergent strategist, with deep wisdom encompassing new attributes such as compassion (by sustaining high quality intelligence-tointelligence linkages). Finally, the categories of leadership style that emerge from the intelligence leadership strategy are summarized in Fig. 10.6. Some of these categories can be exhibited by the same leader depending on the situations and environment.

10.6. Conclusion The intelligence leadership model discussed offers a more accurate glimpse into the highly complex traits and dynamics of the future leadership characteristics and strategy. In intelligent human organizations, effective leadership and constructive self-organization

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are highly interdependent. The new leadership emerges with the processes and a deeper understanding of the highly intelligent complex adaptive dynamics of the system, with a special focus on intelligence at different levels. It is now more explicit that to be at the forefront of the new leadership requires a more in-depth comprehension of the complex and non-linear dynamics of complex adaptive systems, organizing around intelligence and intelligence management.There is a shift in mindset from high predictability to the needs for a smart and well-prepared evolver mindset. A critical factor is the quality of intelligence-to-intelligence linkages amongst leaders and followers. It is an intense intelligence-centric approach at all levels. This is the basic foundation advocated by the new intelligence leadership theory and strategy.

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The wicked leader is he who the people despise. The good leader is he who the people revere. The great leader is he who the people say, “We did it ourselves.” Lao Tzu

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XI Towards a Higher Order of Existence

The chapter concludes the book by providing a more holistic view of the intelligence paradigm and the intelligent organization theory through recollecting and amalgamating the various perspectives and strategies involved. Organizing around intelligence and intelligence management is the fundamental strategy to be adopted in the current environment. This paradigmatic shift towards an intelligence mindset is apparently inevitable.At this moment, certain properties of complex adaptive systems and the complex adaptive dynamic have been exploited by some human/business organizations. However, the intelligent organization theory discussed in this book contains concepts and ideas that are more holistic and highly critical. One aspect is the interdependency of the five properties of intelligent organizations that is captured in the 3C-OK framework. Another is the intelligent person model that perceives interacting agents as smarter evolvers and emergent strategists. Concurrently, the integrated deliberate and emergent strategy and intelligence leadership and intelligence management theory provide a fresh and more integrated approach for leading, managing and structuring highly intelligent human organizations, iCAS and facilitating the highly intelligent complex adaptive dynamic, iCAD. Ultimately, an omniscient understanding of this book will instil in both leaders and followers an intelligence advantage. 235

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Key Words: Intelligence paradigm; intelligent organization theory; organizing around intelligence; intelligence management; intelligence mindset; complex adaptive dynamic; interdependency; 3C-OK framework; intelligent person model; smarter evolver; emergent strategist; integrated deliberate and emergent strategy; intelligence leadership theory; highly intelligent human organization; iCAS; highly intelligent complex adaptive dynamic; iCAD; intelligence advantage; intelligence mindset; intelligence/mind perspective; biotic structure perspective; non-linear complex adaptive perspective; intelligence-associated strategic model/plan perspective.

11.1. Introduction On a broader perspective, the intelligence paradigm eventually will encompass the quantum-relativistic domain (see Fig. 11.1). After about a century of analysis and experimentation, the quantumrelativistic domain, especially the application aspect is still rather preliminary. Knowledge emerging from the theoretical perspective now perceived the universe rather differently. The proposal and analysis of the existence of dark energy, dark matter and quantum field (grid) will transform the current understanding of the Big Bang

Complexity Theory nonlinear and complex linear and orderly Classical Newtonian Theory mechanistic/ non-adaptive

normal dimension

Quantum Theory subatomic dimension

slow speed Theory of Relativity near to velocity of light

Evolution Theory living/adaptive

Fig. 11.1. Theories and the more encompassing intelligence mindset.

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theory, the concept of absolute vacuum and some other aspects of human existence. It is estimated that only four percent of the universe is made up of familiar constituents (energy and physical matter) and the remaining 96 percent is made up of quantum constituents.With the completion of the large hadron collider at CERN (September 2008), the human sensory and mental interpretations of the quantum world will be artificially enhanced. The quantum technological development is also gradually emerging. Some research and development activities in this domain are directed at quantum computer and quantum computing, teleporting, superconductor and superfluity. Successes of these endeavors are expected to transform the human world drastically. For instance, it has been estimated that a personal quantum computer will possess a computing power equivalent to all the present computers in the world combined together. Thus, the quantum-relativistic domain will definitely and gradually increase its impact on humanity over the next century. Exploiting the quantum world is greatly significant for the future sustainability of human existence. At this juncture, the crucial changes that will affect humankind as mentioned and developed over this book are recaptured and summarized in Figs. 11.2 and 11.3. As humanity ventures about a decade

complex

Intense individual intelligence

Complexity Theory CAS

iCAS/iCAD complex adaptive

Evolution Theory adaptive

High collective intelligence

Fig. 11.2. Comprehending and nurturing iCAS and iCAD.

highly complex adaptive

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Organizing Around Intelligence Key World Changes -

Better educated and informed people Raplexity Knowledge-intensive activities Swift ICT development Shrinking of global economy Recognizing that the universe is more a mind than a machine

-

Chaos Theory -

Consciousness Complexity Connectivity Dissipation Emergence

Human organizations

Complexity and Evolution Theory -

Order and Complexity Adaptive Learn Knowledge accumulation Non-linearity Interdependency Unpredictability Far-from-equilibrium Edge of chaos Autopoiesis Self-organization Butterfly Effect Red Queen race Rugged landscape

Living systems

Intelligent organization theory

Intelligence management

Organizing around intelligence Intelligent human organizations

Highly intelligent human organizations (iCAS/ iCAD)

Fig. 11.3. Critical factors that are overwhelming human organizations and the nurturing of highly intelligent human organizations.

into the new millennium, the entire human world is becoming better informed and educated and many other dimensions are also undergoing rapid transformation. What was accepted as traditional or heritage may now be regarded as out-dated or obsolete. The evolution dynamic and outputs deviate as the inputs vary. The rules

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and environment that were once logical or bearable may now be totally incongruous. All these characteristics are observed in the global financial system as the 2008/2009 financial crisis continues to unfold. Ultimately, economic abundance and the quality of human existence may not be positively correlated. With the needs for more critical sustainability surfacing, even industrialization and human/ societal development may no more be totally synonymous. Inevitably, nurturing highly intelligent human organizations, iCAS and recognizing and exploiting highly intelligent complex adaptive dynamic, iCAD is becoming critical, and the new direction is towards the intelligence mindset. With respect to organizing, managing and leading human organizations, these changes vividly indicate the importance of intelligence as the utmost priority. Organizing around intelligence is the first strategic principle to adopt. For all human organizations, regardless of their sizes and missions, the fundamental aim is to make systems more intelligent. In this respect, intelligence management is highly critical. Consequently, the structure, management and leadership of highly intelligent human organizations are very different from the traditional mechanistic forms and practices.

11.2. A More Holistic Perception As discussed, the intelligence paradigm encompasses a fresh mindset and a new direction that focuses on organizing around intelligence. The four different perspectives of organizing around intelligence are briefly re-captured here to ensure that the readers nurture and attain a more holistic view of the intelligent organization theory.They are as follows: a. Intelligence/mind perspective b. Biotic structure perspective c. Nonlinear complex adaptive perspective d. Intelligence-associated model/plan

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11.2.1. Intelligence/mind perspective The primary focal point of organizing around intelligence is the human mind and the orgmind (intelligence/mind perspective). Intelligence management concentrates on optimizing all intrinsic intelligence sources and nurturing high collective intelligence. The details are as follows: Individual level: a. Focus on elevating the awareness and mindfulness of the individual minds continuously. b. Enhance the learning processes and knowledge structures of the interacting agents. c. Optimize the contributions of all intelligence sources. Organizational level: a. Be orgmindful, that is, be mindful of the mental state of the interacting agents at all times. b. Ensure fast continuous organizational learning and enhancement of corporate knowledge structures. c. Nurture better connectivity, truthful engagement and a more mindful culture. d. Ultimately, nurturing a high level of collective intelligence. This perspective of organizing around intelligence (the primary aspect of intelligence management) will eventually lead to the enhancement of other properties, characteristics and activities such as the intelligence enhancer, evolution and co-evolution, and the new form of leadership and management strategy as summarized in Fig. 11.4.

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Awarenesss

Human consciousness

Self-awareness Mindfulness

Human thinking system Individual intelligence enhancer

Intrinsic intelligence

Learn/adapt/evolve/autopoiesis


Corporate intelligence enhancer

Collective intelligence

Organizational learning/ knowledge management/ self-organization/ co-evolve

Intelligent organization

Organizational consciousness

Awareness orgmindfulness

Supportive/ Mindful culture

Intelligence management Intelligence leadership strategy

Fig. 11.4. The primary focus of organizing around intelligence that concentrates on intelligence and collective intelligence.

11.2.2. Biotic structure perspective The next aspect of organizing around intelligence is the biotic structure perspective. Similar to any highly intelligent biological beings the intelligent structure of human organizations has three components. The orgmind is the center/core of the intelligent biotic structure. It can be created through mind fusion exploiting thought technology methodologies such as dialogue, paper dialogue and visual thinking. Thus, it is at least a collection of the minds of the interacting agents in the system. The orgmind drives the dynamic of the intangible structure that encompasses numerous properties and activities as illustrated in Fig. 11.5. The third component is the physical structure. Ideally, the details of the latter should emerge from the dynamic of the intangible structure.

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Organizing Around Intelligence Orgmind - Collective intelligence - Awareness - Self-awareness - Orgmindfulness Intangible structure Biotic Structure Organizing around intelligence

- Orgmind - Intangible structure - Physical structure

- Connectivity/engagement - Physical symbol system/language - Supportive/mindful culture - Self-enhancement process - Global force - Dialogue/paper dialogue/visual thinking - Organizational learning - Corporate knowledge structure

Physical structure - Intense intelligence source - Intelligence web - Environmental scanning and responding component

Fig. 11.5. The basic biotic structure of organizing around intelligence.

11.2.3. Non-linear complex adaptive perspective The third aspect is the non-linear complex adaptive perspective of intelligent organizations. This dimension has been covered fairly substantially in the earlier chapters. Figure 11.6 below re-captures some of the key focuses of this analysis. A significant space that must be allocated special attention is the edge of chaos. This is the space where unknown amount of innovation and creativity are embedded, awaiting the right explorers. This unexplored space contains gold nuggets that have not been mined. Equally significant is the intelligent organization dynamic that emerges from the integration of autopoiesis and self-organization. A high level of collective intelligence and orgmindfulness gives rise to better selforganization. A highly intelligent organization with better emergent strategy will survive better at a punctuation point. In this respect,

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Towards a Higher Order of Existence Order Linear


Complex adaptive system

Edge of chaos

243

Deliberate strategy

Complexity Nonlinearity

Emergent strategy

Innovation Creativity

Fig. 11.6. The perspective that focuses on human organizations as intelligent complex adaptive systems and their properties.

adopting an integrated deliberate and emergent strategy at all times is highly critical. 11.2.4. Intelligence-associated strategic model/plan perspective The last perspective concentrates on the intelligence-centric strategic models/plans that provide a more holistic comprehension and exploitation of the intelligent organization’s structure, dynamic and mental state. The different models covered in this book include the general information theory, intelligent person model, 3C-OK framework, economic entity transformation model, integrated deliberate and emergent strategy, and intelligence leadership and intelligence management theory. Briefly, it is interesting to note again that the general information theory perceives the human thinking system as two subsystems (energy-matter subsystem and physical symbols subsystem) and provides a macroscopic explanation of the information processing dynamics of the thinking systems that is unique to humanity. The intelligent person model focuses on the mindset of the interacting agents that has three fundamental characteristics (mindfulness center,

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smarter evolver, emergent strategist) as stated in Chapter 8. Next, the 3C-OK framework emphasizes the interdependency of the five properties in human complex adaptive systems that is manifested as a highly intelligent complex adaptive dynamic unique to humanity. Changes in one characteristic will affect the rest in one way or another. The integrated deliberate and emergent strategy is a highly significant approach in the nonlinear complex adaptive environment. It emphasizes that strategic planning or planning in general is not totally structured and predictable. A strategy and its plan cannot be a detailed procedure whereby individual steps are clearly specified and must be fully observed and implemented. In fact, an emergent component must always be included to encompass and exploit the complex and nonlinear perspective. Its role is extremely vital as the organization may encounter many punctuation points over time. Finally, the intelligence leadership theory and strategy focuses on intelligence-to-intelligence linkages. Some details of this model are re-captured in Fig. 11.7. Overall, leadership is becoming more lateral and consultative in nature due to the emergence of better educated and informed interacting agents. In this respect, the roles and duties of leaders and followers are more defused. Hence, the new leadership is also becoming more collective and even latent/ virtual. In certain situations, especially in spaces of high complexity, concentrated calmness of the leaders and even the followers is a vital new characteristic so that certain surface patterns can be observed. In order to achieve a more in-depth understanding of the intelligent organization theory, the four different perspectives have been visualized separately above. However, it is important to reinforce that the various perspectives are highly interdependent too. There is a substantial amount of overlapping in the four approaches.

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Intelligent Person Model (A smarter evolver and emergent strategist) - Nurtures a mindfulness center in the thinking system - Integrating deliberate and emergent strategies - Focuses on longer-term gain/survival even if there is shorterterm losses, thus ensuring better sustainability - Ensures both evolution of self and co-evolution of system

General information theory


3C-OK Framework (An integrated complex adaptive dynamic)

Key models of intelligen t organization theory

Collective intelligence, connectivity, culture, organizational learning and knowledge management are highly interdependent, and they possess an integrated complex adaptive dynamic that cannot be analyzed or nurtured separately

Economic entity transformation model Integrated Strategic Planning (IO as a smarter evolver and emergent strategist) Integrated deliberate and emergent strategic planning as better self-organization will emerge during criticality, especially with higher collective intelligence

Intelligence Leadership and Intelligence Management Theory and Strategy (A new management and leadership approach) -

Intelligence mindset Management of intelligence sources Nurturing orgmindfulness Nurturing collective intelligence Intelligence-to-intelligence linkage Concentrated calmness leadership mindset Intrinsic leadership Learning leadership Lateral and consultative leadership Collective leadership Transitional leadership Latent/virtual leadership

Fig. 11.7. The intelligence-centric theories/models for leading and managing highly intelligent human organizations, iCAS.

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This is the basic nature of complexity theory, evolution theory as well as the intelligent organization theory. When analyzing an intelligent organization an integrative analysis is inevitable. Thus, when structuring, managing and leading an iCAS, a holistic application of the various perspectives and their practices is necessary for the organization to move in unison. Besides, highly intelligent human organizations cannot be constructed overnight. An intelligent organization can only be nurtured holistically through gradual evolvement, that is, through high consciousness, connectivity, truthful engagement, emergence and dissipation, and constantly exploiting the edge of chaos. The entire approach is greatly intelligence-centric (also see Appendix 6).

11.3. The Individual Wisdom Paradigm Anyone that aspires to be an expert in this domain or any other disciplines must realize that there is no shortcut to achieving the ambition. A tremendous amount of hard work is needed. Effort is the key root of all achievements. Interest and self-motivation are the other two crucial factors. Probably, this requirement is fairly obvious. In addition, the knowledge structures in the mind of the individual must also be substantially nurtured/internalized and their quality must be continuously enriched. A fair amount of time is essential. The process is continuous and may be taxing. However, when success emerges a high illumination is attained. Basically, at the beginning of the journey to be an expert, the learner must have executed the following activities: a. Must know the fundamentals of the domain (which are very unlikely to change in the near future) very well. b. Must acquire the skills of problem solving, in-depth comprehension, and independent learning in the domain.

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c. Must be aware of the new directions that are surfacing in the domain. With respect to increasing the quality of the knowledge structures and improving one’s goal as an expert, the following questions must also be positively achieved: a. How large is your knowledge chunk size? b. How fast are you able to recognize patterns in a sea of information? c. How fast are you able to link recognized patterns to a problem and its solution? d. Am I ready to propose new ideas/concepts/theories/practices? Fundamentally, quality knowledge structures must be present before innovation and creativity can emerge. A new discovery or invention only emerges from a highly prepared mind. A deep comprehension and seeing through structural relationships in the domain is needed. The “seeing through” achievement illuminates the expert to generate new knowledge and hence wisdom. And humankind can only sustain its existence through the continuous creation of new knowledge by these experts.

11.4. Conclusion Ultimately, in an extremely intelligence-centric environment, it may also be beneficial to note that a promising learner is one that has the potential to overtake the teacher while a great teacher is one that possesses the ability to stimulate a learner to surpass oneself. Every generation must perform better than the previous one.

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In addition, great teachers sow seeds of knowledge with great compassion. Even if some seeds land on concrete ground, it is fine. One day, the condition of the ground may change and the seeds may still germinate. Nobody lives forever, not even organizations or nations or humanity. Therefore, every new generation of human beings must move on to unexplored new frontiers, edges of chaos, generate and exploit new knowledge and wisdom, and adopt a new form of structure, thinking, practices, and philosophy; continuously entering a higher level of existence.

Watching the river that day the boy made a discovery. It was not the discovery of a material thing, something he might put his hand upon. He could not even see it. He had discovered an idea. Quite suddenly, yet quietly, he knew that everything in his life would someday pass under the bridge and be gone, like water. Grove Patterson,Toledo Blade

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Additional/Supportive Information

Appendix 1: Appendix 2: Appendix 3: Appendix 4:

Appendix 5: Appendix 6: Appendix 7:

Introduction to Chaos Introduction to CAS and Complexity Theory Gaia, Human Beings and the Brain’s Evolution Intelligence Management, Knowledge Management and Organizational Learning Basic Characteristics of Dialogue Some CAS Research Institutions One Hundred Prominent Complexity/CAS Researchers/Contributors

Glossary Bibliography 249

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Appendix 1 Introduction to Chaos

1. Fundamental 1a. Order and chaos In human organizations, both linear order and chaos intertwine in varying degrees and alternate throughout the life history of the systems. A period of relative order is followed by a period of chaos, which in turn brings forth a new order (with a more complex structure). The period of deep chaos is a natural and necessary part of development/evolution of non-linear dynamical systems. It comes at the bifurcation point of discontinuous change.The conditions for the creation of new order are borne out of the turbulence of chaos. 1b. What is Chaos Theory? Chaos is the study of dynamical systems. There are two different ways of perceiving dynamical systems and they are

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as follows: i.

Dynamical Systems •

linear, closed conservative systems

•

dissipative, open, non-linear systems

ii. Dynamical Systems •

a set of processes (dynamic)

•

a set of states (outcome)

In this respect, chaos is a process. It is dynamic.Thus, chaos is a certain dynamical phenomenon that happens when the state of a system changes with time (chaos is not a state). When a system is complex, there is a particular patterned order in the way it changes as a whole, but the future (behavior) of its individual components is totally unpredictable. (Complexity ↔ Deterministic Chaos). 1c. What is order? Linear order, certainty, regularity, reliability, predictability and similarity do exist in this world. Within certain time scales and under certain conditions many phenomena change in an orderly, linear way, or at least perceive to be so. Order provides us with comfort, confidence and assurance. In linear systems, small causes (inputs) have small effects (outputs) and large causes have large effects. Two similar systems under

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the same conditions often develop in the same way. In many circumstances, small errors in measurements cancel each other and are negligible in predicting outcomes. From the way the system changed in the past, it is often possible to predict how the system will change in the future.

2. Five Core Properties of Chaos Theory •

Consciousness (Life-centric)

•

Connectivity (Network-centric)

•

Complexity (Non-predictability)

•

Emergence (Evolution and Co-evolution)

•

Dissipation (Renewal)

3. Some Properties of Dynamical Systems 3a. Linearity and non-linearity The essence of linearity is the proportionate relationship between cause and effect. In a non-linear system, the directly proportional relationship is no longer true (nonlinearity). Consequently, in a nonlinear system, starting points that are almost the same may evolve into completely different ending points. 3b. Sensitive to initial conditions (The Butterfly Effect) Lorenz had demonstrated that in many systems, there are variables that either cannot be measured exactly, or if they can be measured, the slightest initial difference, if amplified repeatedly, may lead to

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highly unpredictable behavior. This phenomenon of repetitive amplification is due to iteration (nonlinear feedback loop). It is given the term Butterfly Effect. 3c. Interdependency of systems Non-linearity and sensitive dependence on initial conditions alone are not enough to create chaotic conditions in systems. Chaos develops in non-linear systems that are interdependent with each other. Non-linearity is not the same as interdependency.Non-linearity deals with proportionality. Interdependency deals with the relationships between systems and the way they affect one another (connectivity). Interdependency is a highly significant property of all complex adaptive systems (CAS). 3d. Far-from-equilibrium state Far-from-equilibrium systems do not return to their earlier state, they never repeat themselves and they are non-linear. The non-linear interactions in far-from-equilibrium open systems allow the systems to pass from one basic state to another in discontinuous transitions. Far-from-equilibrium in non-linear interdependent systems is both the source of chaos and renewal. The dynamic of human systems that is nonlinear, far-fromequilibrium and interdependent is in permanent flux that includes a phase of chaos, self-organization, and renewal. Life is built on the basis of far-from-equilibrium changes.

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Note a. Chaos develops in nonlinear, interdependent and far-fromequilibrium systems. Non-linear means that output is not proportional to input. Interdependent means the systems/ characteristics mutually affect one another. b. With the above characteristics, small differences in initial conditions may be blown up by repetitive amplification (feedback) leading to completely unpredictable outcomes. c. The non-linearity of a system manifests itself more explicitly when it is in a far-from-equilibrium state. Far-from-equilibrium means that the system is constantly changing and not returning to some prefixed states. d. All human organizations exhibit far-from-equilibrium, non-linear, interdependent characteristics.

4. States of Dynamical Systems There are 4 states: •

point attractor

•

periodic state

•

strange attractor

•

chaotic state

Note Currently, the strange attractor (state) often perceived as the edge of chaos is a key area of study in Complexity Theory. This is the

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space of high complexity where abundant amount of gold nuggets are embedded in it. The large numbers of degree of freedom indicate that there are many choices and opportunities. A high level of innovation and creativity is needed to recognize the surface pattern.

5. Self-Organization and Bifurcation 5a. Self-organization Non-linear, interdependent, far-from-equilibrium system continuously self-organizes (spontaneous — order for free) itself into a new and more complex order. Self-organization is the principle underlying the emergence of forms manifest in physical, chemical, biological, ecological, social, and cultural structures. With self-organization, matter becomes active and has the potential to spontaneously and unpredictably develop new forms and structures by itself. It is also the principle connecting the sciences of the physical (non-living) world and the world of the living (biological). 5b. Bifurcation On the way to a new order, a human system passes through a period of great instability. It is faced with decision points on which its future will depend. A variety of different paths are opened up before the system. Which path it chooses at each of these forking/branching points determines the possibilities open to it in the future. Different paths

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may lead to a completely different direction, to entirely dissimilar ways of self-organizing itself and totally different destinations. These points of choice are called bifurcations. Note a. Highly intelligent human organizations evolve spontaneously encompassing the five core properties of Chaos Theory, and gaining order for free (that is, always self-organizing effectively). b. At bifurcations, better decisions can be taken with better orgmindfulness, awareness and collective intelligence. c. All human beings are autopoietic and self-organizing.Autopoiesis and self-organization have to be constructively balanced in human organizations.

6. Chaos and Complexity Theory Currently, Chaos is accepted as a subset of Complexity Theory.

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Appendix 2 Introduction to CAS and Complexity Theory

1. Complex Adaptive Systems Complexity Theory highlights the presence of non-orderly and nonlinear components/characteristics and therefore explains the world very differently from the Newtonian mindset. Currently, the domain of Complexity Theory focuses substantially on complex adaptive systems (especially in the human-associated domains). The meanings of complexity and adaptive are as follows: Complexity → Surface pattern exists, no detail pattern Adaptive → Learn and change if necessary Systems In complex adaptive systems both order and complexity coexist. The level of order and complexity will vary with time depending on many factors such as the environment, the internal dynamic of the system, the problem encountered, or even the mental state of the interacting agents. In this respect, the presence of complexity is formally endorsed and it has to be scrutinized, comprehended and exploited. 259

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A complex adaptive system comprises a group of dynamically changing and interactive heterogeneous agents. (For example, a group of human thinking systems in a human organization.) It is an open system in perpetual motion. (For example, a group of human thinking systems that continuously absorbs and emits information/knowledge. The membership of the group will also change over time.) Even the set of rules governing its dynamic is evolving/changing. (For example, the policies in a country will be modified or changed over time.) In addition, new information is continuously consumed as the system tries to adapt by self-organizing and/or co-evolving (complex adaptive dynamic). Its ability to anticipate, respond to, and influence the change in environmental conditions is vital, as a slight variation in initial conditions can lead to a totally unpredictable global outcome.

2. Some Properties of CAS 2a. Complexity/Self-organization/The edge of chaos Complexity arises as a natural/inherent development when a CAS reaches a certain level of variety and diversity. Internal processes of autocatalysis feed the system leading it to self-organize into a more complex level of functioning. If the complexity of the interactions is rich enough then the system becomes supercritical. The autocatalytic process (self-organization) would be inevitable, and the system would get order for free. In this respect, all CAS evolve themselves to the edge of chaos. This is the state where the system needs to balance and

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re-organize itself so as not to fall into too much chaos on the one hand, and too much order on the other. Systems at the edge of chaos are stable enough to receive and keep information, while they are also able to transmit them. They can adjust themselves to a point where their computational ability is maximized. This is also the point where they attain their highest level of fitness and adaptability. It is also at the edge of chaos that complex adaptive systems are most innovative and creative. Complex adaptive systems that emerge successfully from the edge of chaos become more robust. 2b. Adaptive Complex adaptive systems are adaptive, that is, they continuously consume new information and act on it, if necessary. Thus, such systems are living, embedded with intelligence, learn, evolve and co-evolve with the environment which very often is a composite CAS. In this respect, CAS encompass life-centric intelligence which is absent in CS (complex systems). 2c. Connectivity Another crucial basic characteristic of CAS is connectivity (relationships/engagement). In the world of CAS, everything is connected to everything else (for example, individuals and family, business corporations and economy, economies and global society). A human organization becomes more robust when it is more complex. However, the more numerous are the fluctuations that threaten its stability. To maintain its wholeness — despite discontinuous changes — it has to invest in itself more meaningful communication and effective relationships between its

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components, as well as between itself and its environment.Thus, the quality of its connectivity is vital. The indicators of complexity are the degree of differentiation and degree of organization in terms of intricacy of connectedness. In general, when human systems lag in matching the quality of their relationships to the degree of complexity of these relationships, they are in for a period of high uncertainty. Increasing complexity of a system breeds growing uncertainty when it is not matched with a parallel change in the quality of relationships. Note The equation below should serve as a general guide for intelligent human organizations. Quality of relationships » Degree of complexity. 2d. Unpredictability The next property of CAS is that their present state may not be measured with absolute accuracy. Such systems usually have infinitely large numbers of inputs or interacting agents. Besides, the evolution trajectories of such systems also cannot be described accurately because of its high complexity and nonlinearity. In this respect, a future state is not always predictable, rendering forecasting meaningless. 2e. Butterfly Effect Another important property of CAS is the Butterfly Effect. CAS can be highly sensitive to changes in initial conditions. A small variation in initial condition can lead to a totally unpredictable output which can be constructive or destructive.

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2f. Complexity/CAS and evolution Complex adaptive systems are complex systems that are embedded with “life”-intelligence. Therefore they possess higher level intelligence and are able to learn, adapt and evolve with the changing environment. All CAS evolve from a primitive (less complex) stage to a more sophisticated and robust (more complex) stage (For example, from unicellular organisms to trillion-cellular organisms, and from a small village to an enormous cosmopolitan city). Evolution also has the tendency to build upon its own historical successes (For example, the cerebral cortex merges on top of the limbic system and cerebellum). Thus, microscopically CAS become more complex over time but macroscopically there are surface patterns that can be deciphered or understood and even exploited with a higher level of intelligence. 2g. Chaos/Complexity/Complicated In this domain the above three terms have been allocated the following meanings:

Term Chaos Complexity Complicated

Detail pattern

Surface pattern

No No Yes

No Yes No

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Appendix 3 Gaia, Human Beings and the Brain’s Evolution

1. Introduction •

The Earth was formed about 4.6 billion years ago.

•

Life emerged about 1.6 billion years ago in the form of unicellar organisms.

•

Cambrian explosion occurred about 570 to 530 million years ago, lasting 40 million years (punctuation point, edge of chaos, evolution is not always gradual).

•

During this period large amount of multi-cellar organisms emerged.

•

Homo sapiens appear around 250,000 years ago.

•

As evolution proceeds, nerve cells in the human biological structure tend to coordinate themselves into neural networks.

•

This led to the emergence of the “first brain” — a neural network of more compact concentration of neurons. 265

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•

With the emergent and substantial development of the Cerebral Cortex (“third brain”), certain abilities/characteristics unique to humanity surfaced.

•

The two-color (dichromatic) vision of our early ancestors became three-color (tri-chromatic).

•

In addition, with the increase in brain size, our ancestors acquired bipedal locomotion (the ability to walk with two limbs).

•

Eventually, the ability (basic human intelligence) to create physical symbol set emerged.

•

Subsequently, human beings with their large brain and languages (advanced human intelligence) began dominating this planet about 40,000 years ago.

•

Currently, the human brain has about 10 billion to 1 trillion neurons, 100 trillion cells and is about 1.3 to 1.4 kg.

•

Interactions between neurons are nonlinear and modifiable.

•

This neuronal structure was first discovered by Santiago Ramon Cajal (Nobel Prize for Medicine, 1906) in 1889.

2. Layered Evolution (Phylogenesis) and the Tri-Partite Structure •

The process of evolution does not replace its history — phylogenesis — layered evolution.

•

The present human brain has three layers.

•

From layer 1 to 3, they are namely, the Brain Stem and the Cerebellum (reptile brain), the Limbic System (mammalian brain) and the Cerebral Cortex (primate/human brain).

•

The Brain Stem and the Cerebellum → smell, taste, touch, sight, hearing and spontaneous response without “thinking”.

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•

The Limbic System → emotion (especially fear) and memory.

•

The Cerebral Cortex → intellectual and thinking/logical abilities and other higher functions.

3. The Brain Stem and the Cerebellum •

It resembles the entire brain of a modern reptile.

•

It took about 200 million years to form.

•

The brain stem is responsible for controlling some of the body’s vital functions. It has three parts. They are Medulla Oblongata, Pons and Midbrain.

•

Medulla Oblongata → the lowest part joining the spinal cord is responsible for functions such as breathing, heart rate and digestion.

•

Pons → a small swollen region that performs some of the Medulla functions as well as directing information movement between the Cerebellum and Cortex.

•

Midbrain → located just below the middle part of the brain and controls many sensory and motor functions.

•

The Cerebellum (little brain) is located behind the brain stem.

•

It is split into two hemispheres and is responsible for instantaneous sensory functions such as sight, smell, taste, touch and hearing.

4. The Limbic System •

It resembles the brain of current mammals.

•

It took about 150 million years to form.

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•


Its components are as follows: Amygdala (emotion), Hippocampus (memory), Hypothalamus (monitoring information from the central nervous system and regulating some inner organs), Thalamus (“switchboard” of the brain) and Pineal Gland.

5. The Cerebral Cortex •

Its presence is only substantially significant in primates (first appear about 60 million years ago) and above, (monkeys, 35 million years ago; apes, 20 million years ago; hominid, 5 million years ago; Homo sapiens, 250,000 years ago).

•

In human beings, the cerebral cortex is a thin sheet (2 to 4 mm thick) of complex interconnecting cells (grey and white tissues) covering the entire human brain.

•

The cerebral cortex of human beings is the most developed, about twice as thick as the other primates.

•

It is responsible for the trichromatic and three-dimensional vision, and the creation of the physical symbol set.

•

It is also responsible for the higher mental functions such as human level consciousness, memory, perception, reasoning, decision-making, and advance usage of languages.

6. Lobes •

The human brain is divided into four lobes in both the left and right hemisphere and they are the Frontal, Occipital, Parietal and Temporal Lobes.

•

Frontal → most recently developed and controls the higher cognitive functions such as self-awareness, mindfulness, abstract thinking and reasoning, self-motivation, appropriateness of behavior, and wisdom.

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•

Occipital → the back portion of the brain that is responsible for visual interpretation.

•

Parietal → the top middle portion of the brain that is responsible for creating the 3-dimensional world and the location of the self in this environment.

•

Temporal → situated on both sides of the brain near to the ears and is primarily responsible for the hearing, learning, as well as speech and memory.

7. Neuronal Dynamic and Structure •

The human brain has up to about one trillion neurons.

•

The connection of the neurons forms the highly complex neural network in the brain.

•

Neurons are also found in the spinal cord and the peripheral nervous system.

•

Each neuron comprises dendrites (inputs) and axons (outputs).

•

In between neurons there are gaps known as synapses.

•

Each neuron has membranes (atoms and molecules that vibrate) that are excitable and as a result generates and propagates electrical signals.

•

The electrical signals at the axon of a neuron may activate the emission of a neurotransmitter to the dendrite of the next neuron.

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Thus, neural information exists in the form of electrical/energy and chemical/matter (neurotransmitter) signals.

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8. Left and Right Hemispheres •

The human brain is also divided into two cerebral hemispheres known as the left brain and the right brain.

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The two hemispheres are rather asymmetrical.

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The information processing dynamics of the two hemispheres are also rather dissimilar.

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The two hemispheres are connected by a thick band of tissues known as the Corpus Callosum.

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Left brain/hemisphere → more self-centric, ego center, language center, structured thinking, sequential thinking, logical thinking, better at organizing information, memorizing, rationalizing and theorizing.

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Right brain/hemisphere → more group-centric, higher consciousness, kinesthetic, imagination, emotion, innovation and creativity, more compassionate and externally optimistic, and more sensitive to nonverbal communication.

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The current belief is that both hemispheres have to be wellnurtured from a young age (an integrated approach) to better exploit the brain’s full capacity.

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A better connected neurological bridge (Corpus Callosum) ensures better learning, as well as other thought processes.

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Currently, the cerebral hemispheres are believed to be complementary.

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To better exploit the intelligence strategy, the right brain has to be better developed.

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9. Other Important Properties/Characteristics (Emotion/Proliferation/Myelination/Pruning) •

The human brain is an emotional system that thinks.

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The Prefrontal Cortex that is responsible for higher cognitive and intellectual functions is not fully developed until a person is about 20 years old.

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Proliferation/Synaptogenesis → from infancy to about 10 years old, there is a huge proliferation of new neural connections in the child’s brain.

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Myelination → each time a new connection is activated/utilized it is coated with a layer of white fatty acid called myelin.

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The myelinated paths have less resistance (information flows faster) and are more difficult to break (last longer).

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Neural Pruning → formed at 10 to 20 years old, neural pruning removes those paths that are not used.

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In this respect, the educational methodologies for children, adolescences and young adults are different from adults (Amygdala versus Prefrontal Cortex).

10. Brain waves •

In 1924, Hans Berger used electroencephalograph (EEG) to measure human brain waves for the first time. The waves observed are classified into 4 different categories: •

β waves → 13 Hz and above

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∝ waves → 8 to 13 Hz

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θ waves → 4 to 8 Hz

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∆ waves → 1 to 4 Hz

Further studies have also reviewed the following observations associated with the ∝-state: •

Every human being can move into the α state with mindfulness.

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The α state is mentally relaxing and “empty/non-focus”.

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People know that they are in the α state.

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The α state and creativity are interrelated.

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Calmness is associated with creativity.

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Thus, creativity can be nurtured.

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Just before people sleep and just after they wake up they are in α state, and these are excellent periods to exploit.

11. Human Intelligence and Consciousness •

The human brain is the source of two critical entities/abilities, namely human intelligence and human consciousness.

•

It is the most intense intelligence source on this planet. This observation can be easily substantiated by the creation of the physical symbol set that eventually flourished into a sophisticated vocal and written language. This phenomenon has taken place in many human civilizations but never with any other animal species.

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Next, human intelligence has facilitated the emergence of a very intense level of consciousness confined only to the human race. Human consciousness activates both the awareness (external) and self-awareness (internal) mental functions. At the core of the self-awareness ability is mindfulness. Mindfulness is the ability to observe the mental state of the mind. This ability is currently also unique to humanity.

12. Conclusion Many of the current observations and understanding of the brain structure and its functions are obtained with the assistance from some interesting technological aid such as computerized axial tomography (CAT) (Godfrey Newbold Hounsfield and Allan McLeod Cormack, Nobel Prize in Physiology, 1979), magnetic resonance imaging (MRI) (Peter Mansfield and Paul Lauterbur, Nobel Prize in Physiology, 2003), and positron emission tomography (PET). Scientists are now able to visualize specific neurons with certain designated functions in real time. However, up to this stage, comprehension of the human brain is still rather insubstantial and far from complete. Although over the generations a significant number of top brains have been attracted to the neuronal domain, a deeper comprehension of the human brain and mind (human thinking systems) is only emerging gradually. Eventually, an integrated complex adaptive (macroscopic) and quantum/atomic/neural (microscopic) analysis may be essential for a more holistic interpretation of the brain’s dynamic.

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Appendix 4 Intelligence Management, Knowledge Management and Organizational Learning

1. Intelligence Management Intelligence management, knowledge management and organizational learning are highly integrated and interdependent. The effectiveness of knowledge management and organizational learning in an organization depends greatly on the performance of intelligence management. In this respect, all intelligent organizations should ideally have a Chief Intelligence Officer that orchestrates the overall intelligence-centric dynamic. The fundamental aspects of intelligence management are as follows: a. Educating/training the individual intelligence sources. b. Optimizing all the intense intelligence sources. c. Connecting and ensuring truthful engagement of all the intelligence sources.

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d. Driving the complex adaptive dynamic. e. Nurturing/elevating collective intelligence through a high-level of orgmindfulness of the organization. Therefore, adopting the emergent strategy is a significant aspect of intelligence management. A highly intelligent organization must be able to self-organize effectively when needed, especially during unexpected crisis. Concurrently, intelligence management must also encompass the optimization of the artificial information systems networks.

2. Knowledge Management 2a. Introduction About 50 percent of the fastest growing companies in the U.S. are knowledge intensive organizations that sell the knowledge and the know-how of their employees rather than manufactured products or providing services (1998). 2b. Collective/organizational intelligence Organizations today are trying to capitalize on their collective intelligence to maintain their competitive edge (intelligence advantage). Human/mental/natural capital (intrinsic human intelligence) and structure/artificial capital (databases, knowledge repository, patents, intellectual property) are elements of organizational intelligence. Thus, knowledge (a significant component of the corporate intelligence enhancer) management (KM) is a vital activity in intelligent human organizations.

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Hence, acquiring and sharing knowledge is power (at both individual and corporate levels) in the new context. 2c. What is knowledge management? Knowledge management (KM) is a process of creating value from an organization’s intangible assets. For instance, knowledge in the individual minds should be creatively exploited at corporate levels through knowledge sharing. KM deals with creating, securing, capturing, coordinating, combining, retrieving, and distributing knowledge. Corporate knowledge structure (together with collective intelligence and corporate philosophy/theory) is an important component of the orgmind. 2d. Basic KM environment It is critical to build a supportive culture (mindful culture/intelligent organization) that encourages knowledge sharing. Concurrently, an incentive and reward system must be put in place. Very often, the technology is not the limiting factor in creating a favorable KM environment — it is the management of people, culture, and technology that influences the success of KM endeavors (intelligence management). A basic KM environment supported by a mindful culture should include the following features: — A yellow page directory mapping knowledge areas to experts within the organization.

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— A best-practices or lessons-learned knowledge repository to facilitate knowledge sharing. — A KM infrastructure whose mandate is to identify, analyze, manage, maintain, and disseminate knowledge to appropriate individuals within the organization and externally to others (e.g. customers). — A web-based/intranet system to enhance connectivity and dissemination.

3. Organizational Learning 3a. Introduction Organizational learning is a key characteristic of intelligent organizations. For an organization’s intelligence to increase, the organization must be able to learn and adapt. (As the individual members learn, the organization must also learn.) The only way to sustain a competitive intelligence advantage is to ensure that your organization is learning faster than others. Thus, intelligent organizations must have sensors and systems in place to predict, anticipate, react and adjust to changes (both internal and environmental) swiftly (for instance, the RAHS system). The ability to transform individual learning into organizational learning is a new challenge to all organizations. Note a. Knowledge is a resource/asset. b. Learning is the process that continually alters/updates the knowledge structure.

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c. Fast continuous learning is a new strategic requirement. 3b. Social capital Knowledge originates in people (human thinking systems) and becomes “embodied” in communities and networks,“embedded” in work routines, practices, and norms, and “represented” in artifacts (e.g. documents, reports, files, etc). In order to build knowledge capital (and hence collective intelligence), social capital is probably the most vital element. Social capital includes the following aspects: — Trust (reciprocity) — Space (cognitive space — share of mind around knowledge) — Slack (time to reflect) — Coherence (shared context, language, vocabulary, symbols and signals supported by a mindful culture). Thus, social capital enhances organizational learning and gives rise to new values, attitudes, behaviors, skills and products.

4. Creating Knowledge Knowledge is Power (Francis Bacon, 1597) 4a. Tacit to explicit knowledge A key to creating organizational knowledge is to tap on the pool of tacit knowledge (resides in the mind/knowledge structure of the

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interacting agents) and convert it into explicit knowledge (resides in the corporate knowledge structure). Tacit knowledge is the “automatic” knowledge one uses sometimes without even realizing it. Explicit knowledge is brought out into the open [and can be formalized into a knowledge repository (a significant component of the corporate knowledge structure)]. The various acquisition techniques used by knowledge engineers when constructing expert systems can be applied to acquire tacit knowledge and encode it in a knowledge repository. 4b. Internalized to explicit knowledge Internalized knowledge (also resides in the knowledge structure of the individual mind) usually refers to someone else’s knowledge. It is the tacit knowledge of another person that you would like to acquire. Similarly, internalized knowledge will have to be made explicit before it can be shared and used by others. 4c. Externalized to explicit knowledge Externalized knowledge refers to the outside knowledge — that is, knowledge associated with the external environment (for example, competitor’s intelligence, economic conditions). Synthesizing knowledge from the external environment to create value internally to the organization is also an important form of knowledge creation.

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5. Semantic Knowledge Technology Currently, the European Union is implementing the semantic knowledge technology. This new technology will remove boundaries between document management, content management and knowledge management. It will also enable right information to be delivered to all appropriate people at the right time.

6. Continuous Learning Culture A mindful culture is the key determinant in nurturing high collective intelligence and creating useful/quality corporate knowledge structure. The interacting agents in an organization with a mindful culture are more willing to share their knowledge. They also understand better the importance of co-evolution with their organization. For KM strategies to be successful, a continuous learning and sharing culture must be present. In the presence of a learning culture, the interacting agents assume that knowledge and skill acquisition is their essential responsibility. The type of leadership, as well as the rewards practice puts in place is a vital part of this learning and KM culture. A mindful, continuous learning and knowledge sharing culture will only evolve if the leadership of the organization is actively involved in nurturing it. Power is in the Hand of the Active Learner (Eric Hoffer, 1932)

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Appendix 5 Basic Characteristics of Dialogue

1. Introduction — Dialogue is a form of conversation developed by a group of researchers at MIT that helps to create and sustain collaborative partnerships (connectivity). — It helps to elevate the collective awareness of an organization through reflective thinking, collective thinking and better shared value (mindful culture). — It promotes collective learning, growth, understanding, healing and renewal. — It develops skills to build the trust needed to surface taboo issues. — It opens doors to new and creative ways of thinking and problem solving. — It gets to the roots of recurring problems. 283

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— It helps to unleash the full potential of every interacting agent. — It helps to enhance collective intelligence and foster selforganization. — Dialogue is about emergence.

2. Discussion versus Dialogue — Generally, pure dialogue or discussion is not found in daily conversation or department meeting. Dialogue and discussion can be perceived as two extreme ends of a conversation continuum. Normally, a conversation tends to move in between the spectrum and the participants are usually unaware of where they are. — Dialogue is about gathering or unfolding meaning that comes from many parts, while discussion is about breaking the whole down to many parts. — When the underlying dynamic in a meeting is to learn and expand what is known about something or to generate new perspectives from the views of many, the conversation tends towards the dialogic end of the continuum. — Conversely, when the dynamic focuses on immediate decision making, it tends towards the discussion end.

3. Divergent versus Convergent — Dialogue is divergent in nature. It encourages an opening up about problems, issues, or topics by looking at many different possible perspectives.

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— Discussion or debate is convergent in nature. It narrows down the conversation to a final decision. It always ensures everyone knows what to do eventually. — If a group or a team dialogues about such a problem or an issue first, by the time a solution must be selected, chances are the process will go more quickly. The choice may almost choose itself (self-organizing/collective intelligence).

4. Advocacy and Inquiry in Dialogue — In dialogue, advocacy is quite appropriate if it is to offer some perspective for the purpose of group learning. In this case, the intention is not to force the group to accept a certain perspective, but rather to build shared meaning. — In dialogue, inquiry exists for the purpose of digging deeper into the problem/issue concerned. It is used to ask about others’ assumptions and underlying thinking for further clarification. The intention of inquiry is also to learn more.

5. Other Qualities (Attitude) of Dialogue — Suspension of judgment — No immediate decision making — Deeper inquiry into underlying assumptions — Ensure authenticity — Slower pace of conversation with silence between speakers (for better listening and deeper thinking)

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— Listen deeply to one-self and others for better collective meaning (mindful) Note None of the above characteristics by itself makes a conversation a dialogue. It is the integration of all of them that the conversational dynamic is moved towards the dialogic end of the spectrum.

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Appendix 6 Some CAS Research Institutions

1. Santa Fe Institute (SFI, US, 1984) 2. Center for Complex Systems and Brain Sciences (Florida Atlantic Univ, US, 1985) 3. Max Planck Institute for the Physics of Complex Systems (Germany, 1992) 4. New England Complex Systems Institute (NECSI, Harvard, MIT., US, 1996) 5. Institute for the Study of Coherence and Emergence (ISCE, Boston, US, 1999) 6. Center for the Study of Complex Systems (CSCS, Univ of Michigan, US, 1999) 7. Complex Systems Research Center (CSRC, Cranfield Univ, UK, 1999) 287

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8. London School of Economics Complexity Group (LSE, UK, 1995) 9. Center for Complex Systems (National Central Univ, Taiwan, 1997) 10. The Center for Complexity Studies (CCS, Romania, 1996) 11. Washington Center for Complexity and Public Policy (US, 2001) 12. Bandung Fe Institute (Indonesia, 2002) 13. Plexus Institute (New Jersey, US, 2000) 14. Center for Complexity Research (CCR, Univ of Liverpool, UK, 2003) 15. Australia Research Council Center for Complex System (Australia, 2004) 16. The Institute Para Limes (Holland, 2005)

Some CAS Associated Institutes/Centers in Singapore 1. National Security Coordination Secretariat/Center (Prime Minister’s Office, 2004) 2. Centre of Excellence for National Security (S Rajaratnam School of International Studies, 2006) At the moment, there are more than 50 CAS research institutions in the world. SFI was the first to be established (1984). Some of the later CAS institutes, such as the one at Cranfield University

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(CSMC, 1999) are in the Business School.While others such as the Washington Center for Complexity and Public Policy (2001) and the two centers in Singapore focus on defense and emergency response mechanisms, as well as national education and military training/security/horizon scanning.

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Appendix 7 One Hundred Prominent Complexity/CAS Researchers/ Contributors

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Peter Allen Herb Anderson Ruth Anderson Bertil Anderson Kenneth Arrow Brian Arthur Bob Axelrol Walter Baets Per Bak Yaneer Bar-Yam Ken Baskin Arthur Battram James Begun Carl Bergstrom Tanmoy Bhattacharya Terry Bossomaier Max Boisot Samuel Bowles Peter Carruthers Nick Chater

21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40.

Morten Christiansen Paul Cilliers Michael Cohen Stirling Colgate Daryl Conner Richard Cooper George Cowan Patricia Crown Jeffery Dean Jennifer Dunne Steven Durlauf Douglas Erwin Doyne Farmer Guillo Fioretti Jessica Flack Peter Fulde Murray Gell-Mann Robert Geyer Jeffery Goldstein Brian Goodwin 291

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41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70.


Stephen Jay Gould David Green Douglas Griffin Hugh Gunz Ian Hayes F Heylighen John Holland Atlee Jackson Denise Jarratt Stuart Kauffman Scott Kelso Julie Klein Michael Lachmann David Lane Christopher Langton Steven Lansing Hugo Letiche D A Levinthal Peter Lindsay Michael Lissack James Lovelock Reuben McDaniel Bill McKelvey M D McMaster Dan McShea Uri Merry Stan Metcalfe Nick Metropolis John Miller Eve Mitleton-Kelly

71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100.

Mark Newman Pak Tee Ng Norman Packard Scott Page Mercedes Pascual Stuart Pimm David Pines Ilya Prigogine Tom Ray Caroline Richardson Kurt Richardson Rick Riolo D A Robertson Irene Sanders Peter Senge Carl Simon Hokky Situngkir Richard Slansky Eric Smith John Maynard Smith David Snowden Pedro Sotolongo Ralph Stacey John Sterman Geoffrey West Chip Wills Margaret Wheatley Stephen Wolfram Libby Wood Milan Zeleny

(There are many more prominent researchers in Complexity/CAS that are not listed here, especially those in the natural sciences, mathematics, computer science and applied sciences.)

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Glossary

Adaptive: It is the ability to consume new information and to react to changes in the environment spontaneously if necessary. Adaptive capacity: It encompasses the ability of a CAS to learn and store knowledge and experience, the flexible problem solving and decision making characteristic, and a power structure that is responsive to the needs of the interacting agents. The adaptive capacity of an organization depends on its structure. In this respect, a biotic structure that resembles a highly intelligent biological being will enhance the adaptive capacity of human organizations more effectively. Administrative man: A term (as opposed to economic man) proposed by Herbert Simon (Nobel Laureate) in his concept on bounded rationality. It indicates that all men, especially managers, do not make use of all the information collected (sometimes, the complete set is not available) in decision-making because of the limited in usable capacity of the human brain. A best subset of the information collected is normally used. Thus, the decision made is still rational but bounded. 293

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Anticipatory system: It is an aware and mindful system that plans ahead to ensure continuous existence and sustainability (see aware system, mindful system and intelligent system). Artefact/Artifact: An object/entity artificially constructed in the non-sciences to assume the roles of a variable in the natural sciences, such as the physical variables in classical mechanics (see basic entity). Attractor: It is the state of a dynamical system. In CAS, the four states are point, periodic, strange and chaotic. Lorenz’s attractor is a deep spiral that never intersects and is confined in a finite space like a box. In a human society, sociality is a biological attractor. Autonomous: An autonomous agent/system acts independently by itself. It is driven by its own internal goals. It is driven by the intrinsic intelligence of the agent and/or the collective intelligence of the system. Autopoiesis: Individual entity can be highly myopic and selfcentric. The autopoietic dynamic is therefore closely associated with individuality (as a unique entity, and the presence of I) and selfpreservation including reproduction. It is the inward center-seeking process encompassing non-equilibrium that resists changes and makes communication difficult. Aware system: It is an autonomous system that responds to the changing environment positively. Such a system usually possesses high collective intelligence. Awareness: It is a primary mental function that arises from human consciousness. (All living organisms/systems exhibit a certain level of awareness, including plants.) A high level of consciousness leads to a high level of awareness of a self (self-awareness → internal) and its surrounding environment (awareness → external).

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Axiom: A rule/principle that is assumed to be true within a certain theory/domain. Basic entity: An artifact recognized/created in a non-scientific domain to describe its characteristic and/or dynamic. The set of basic entity involved also defines the boundaries of the domain (see artifact). Bifurcation: It is a point in a CAS that allows the system to split into many different paths and the outcome for selecting any one will be very different from the rest. Biodiversity: It is the variation of taxonomic life forms at all levels of biological organizations. Biodiversity helps to reduce risk during evolution. Biosphere: It is the sphere that encompasses all life forms (also the largest ecosystem, the Gaia) on this planet. Butterfly Effect: Complex system or CAS can be highly sensitive to a slight change in the conditions of the input state, thus rendering the output highly unpredictable. This characteristic is known as the Butterfly Effect. In this respect, a small change in input can also lead to an enormous output. Chaos: It is the process/dynamical phenomenon that causes a complex system or CAS to enter the chaotic state. It arises because of inaccuracy in inputs, infinite numbers of input points, large numbers of feedback loops, as well as unpredictable long term behavior. Chaos theory: This is the popular name for the theory of dynamical systems. Chaotic state: The state where the details cannot be understood and there is also no obvious global pattern. A system in this state will eventually disintegrate. It is the fourth state of CS and CAS.

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Character set: The collection of all the most basic symbols in a language used. For instance, in the English language the character set is {a, b, c, …, A, B, C, …, 1, 2, 3,…}. The character set of most languages are always emerging. Co-evolution: It indicates the concurrent emergence and survival of two or more complex adaptive systems that are integrating in the same environment. The co-evolution dynamic focuses on the connectivity, relationships, engagement, intelligence and collective intelligence between/among the systems. Complex: The state where the details cannot be comprehended but patterns that enable the system as a whole to be understood are present. Complex adaptive systems (CAS): These are complex systems (CS) that consume information, learn and respond/adapt to changes continuously. In this respect, CAS are living systems embedded with intelligence. Consequently, they are more predictable than complex systems that are not adaptive. CAS are also self-organizing and coevolutionary. This term was introduced by a group of researchers from Santa Fe in the 1990s. Complex systems (CS): All complex systems encompass both order and complexity, and are therefore highly unpredictable and what can be predicted is very constrained. CS are non-living while CAS encompass life. Complexity theory: It is the study of systems that encompasses order and complexity, non-linearity and emergence. It also studies how interacting agents self-organize to form evolving structure, usually of higher and higher complexity. In social, economic and political domains, complexity theory focuses on complex adaptive systems (since the 1990s), as well as the edge of chaos.

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Composite CAS: These are higher level CAS with interacting agents that are also CAS. For instance, an economy is a composite CAS with business corporations as interacting agents. Connectivity: It is the quality of the relationships among interacting agents (human beings) in a system (human organization), as well as the quality of the relationships between a complex adaptive system and its environment. Connectivity is highly correlated with engagement and collective intelligence, and therefore has a strong effect on the emerging dynamic. Consciousness: Consciousness emerges from intelligence and it is only present in a living system. In a human thinking system, it is the most fundamental/significant phenomenon of the human mind, as the other mental factors cannot exist without it. Human consciousness enables the mind to cognize the world of thoughts and ideas through the two primary functions of awareness and mindfulness (core of self-awareness). Corporate intelligence enhancer: It exists in the orgmind of all intelligent human organizations. It is a triad encompassing collective intelligence, corporate knowledge structures, and corporate philosophy and theory, with a dynamic facilitated by a collective/ common language. Criticality: It describes the characteristic of the critical state which is also the edge of chaos. This term is first used by Per Bak. Complex adaptive systems self-organize at criticality and reap order for free. Deliberate strategy: It is the current form of strategy adopted by most human organizations. It assumes that the present state is known with a high degree of precision, the path towards the future is also known, and therefore the future can be predicted accurately (for instance, operation plan and strategic plan).

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Dialogue: It is a methodology of thought technology invented by a group of researchers at MIT. It is a special kind of divergent conversation that focuses on nurturing better connectivity, more truthful engagement, higher collective intelligence and emergent dynamic in an organization (see paper dialogue). If it is properly carried out the organization is able to self-organize effectively when unpredicted events surface. Dissipation: It is the removal of extra entropy from a complex system or CAS that is undergoing emergence. Dissipative structure: A stable structure with recognizable form and is continually being dissipated and renewed. Economic man: A term in classical economics which indicates that all individuals are perfectly rational and they always make optimal decisions. In reality, such a dynamic is unrealistic. Edge of chaos: It is a state of bounded instability and high complexity in CS and CAS. The edge of chaos is more a space rather than an edge. It can be a physical space (for instance, the scene created by a tsunami) or even a mental space (complexity is in the mental state of the beholder). When complex adaptive systems enter the edge of chaos their computational ability is maximized, and the systems are at their highest level of fitness and adaptability. Emergence: It is the production of global patterns of behavior by interacting agents according to some local rules, but the exact patterns that emerge cannot be accurately predicted in advance. Emergent strategy: This is a vital component of the intelligence strategy. It is the adaptive approach that takes care of the complexity aspect of the organizational dynamic and its environment. It focuses on nurturing collective intelligence and its associated

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attributes so that the organization can self-organize effectively in times of crisis. The emergent strategy and deliberate strategy of any intelligent organization has to be integrated. Engagement: When the interacting agents are engaged they share information and knowledge truthfully with one another. In this respect, they are better connected and the collective intelligence of the organization is also higher. Evolution: Darwinian’s evolution is a gradual and adaptive dynamic that varies with the changing environment in the ecosystem. However, it is discovered later that there are punctuation points such as the Cambrian explosion. Evolution also builds upon its past successes (phylogenesis). As a CAS evolves its complexity increases and it becomes more robust. Externalization: The exportation of an idea/concept from a human mind. It is the transferring of the idea/concept from the knowledge structure of an individual to other interacting agents or some external sources (repositories). The process is better facilitated by the use of a physical symbols system that is unique to humanity. Far-from-equilibrium system: Such a system does not return to a regular state. It does not repeat itself, and the dynamic is nonlinear. All human organizations including nations and human civilizations are far-from-equilibrium systems. First mover advantage: It is the advantage associated with the first to move into certain position/possibility. For instance, the Qwerty layout was originally developed to make typing difficult. However, being the first keyboard layout gives it the first mover advantage as the entry of subsequent layout such as the Dvorak layout never became popular.

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Gaia: It is a term that viewed the Earth as a self-regulating biotic system. In this respect, Gaia encompasses all the ecosystems on this planet. It is the largest biosphere. This term is first used by Jim Lovelock. Human organization/system: It is a group comprising of two or more human beings as interacting agents, irrespective of the primary objective of the system. Human thinking system: In the general information theory, the human thinking system encompasses both the brain, the tangible biological organ, and its projection, the abstract mind. In this study, the human thinking system possesses two subsystems, namely the energy-matter subsystem and the physical symbol subsystem. The human thinking systems are the sources of the highest intelligence presence on this planet. Increasing returns: Traditional economical dynamic observes decreasing returns. Increasing returns was introduced by Brian Arthur to explain the reverse dynamic, especially in the knowledgebased economy. Individual intelligence enhancer: It is the triad that exists in human mind and encompasses intelligence, theory and knowledge structure (see corporate intelligence enhancer). Its dynamic is facilitated by the presence of a language. The increase in sophistication of the language used in the enhancer increases the intellectual perspective of the mind. Intelligence: It is a unique form of energy that exists inherently in this universe that leads to the establishment of structure, nurturing of life, and emergence of consciousness. Human level intelligence is perceived as the highest on this planet.This claim can be substantiated by the creation of the physical symbol sets which is confined only to humanity.

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Intelligence advantage: It is the advantage/niche acquired by a human organization that practices intelligence management, structures/organizes around intrinsic intelligence and nurtures collective intelligence. Intelligence era: This term is used to indicate the core of the information/knowledge period that places high significance on individual intrinsic intelligence, as well as organizational collective intelligence. Intelligence leadership: It is the new leadership theory and practices that places significant amount of emphasis on the individual intelligence and knowledge of the interacting agents, and the collective intelligence of the organization (intelligence management). This leadership approach encompasses collective leadership, lateral leadership, transitional leadership as well as latent/virtual leadership. Intelligence management: It is the proper management of individual intense intelligence sources and the nurturing of high level collective intelligence in an organization. This is a new management thinking and approach introduced by the intelligent organization theory that emphasizes the importance of orgmindfulness, connectivity and truthful engagement of the interacting agents, as well as the exploitation of the complex adaptive dynamic. The basic goal of intelligence management is to nurture a highly intelligent human organization, iCAS. Intelligence paradigm: It is the new way/method/approach that focuses on the individual intelligence (optimizing) of the interacting agents and the collective intelligence (elevating) of the organization. Consequently, primary functions such as organizing around intelligence and intelligent management are vital. Intelligence strategy: It is the strategy stipulated in the intelligent organization theory that emphasizes the concept of organizing

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around intelligence, and the exploitation of attributes such as consciousness, awareness, mindfulness, intrinsic intelligence, collective intelligence, quality connectivity, organizational learning, corporate knowledge structure, mindful culture, and other intelligenceassociated entities (3C-OK framework, intelligent person model). It encompasses both a deliberate as well as an emergent component integrated as a whole. Intelligent organization/system: It is a human organization with a biotic structure that engulfs an orgmind, an intelligence web, and an environment sensing and responding subsystem. Such an organization learns, adapts and evolves like an intelligent biological being. Thus, an intelligent organization is an aware, mindful, autonomous and anticipatory system. Intelligent person (model): This model emerges from the economic man model (total rationality/optimality) and the administrative man model (bounded rationality). An intelligent person as stipulated in this model is highly mindful (possesses a mindfulness center), accepts short-term losses for longer-term gains (smarter evolver), recognizes that human systems are CAS, and exploits the integrated deliberate and emergent strategy (emergent strategist). Such a person also practices intelligence management and recognizes the significance of intelligence leadership. Internalization: It is the consumption of a piece of information by the human mind. When internalization occurs the knowledge structure is altered and the decision made is different. Conscientious effort has to be made to consume a piece of information. Interdependency: In this world, especially in CAS, many properties/characteristics/components are interrelated and affect one another (for instance, as stipulated in the 3C-OK framework). Similarly, complex adaptive systems that affect/influence one another are also interdependent.

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Linearity: It is the proportionate relationship between cause and effect. Linear systems are modular and they can be examined using hierarchical decomposition. Mindful culture: It is a form (core) of supportive organizational culture that places equal emphasis/priority on internal and external focuses. The orgmindfulness aspect concentrates on the internal mental state of the interacting agents. The awareness aspect concentrates on the entities (such as customers) outside the organization, and the changes in environmental factors (see mindfulness and orgmindfulness). Mindful system: It is a system that is orgmindful, that is, it is mindful of the mental state of all its interacting agents. Mindfulness: It is a primary mental function that emerges from human consciousness. It is the core of the self-awareness function. It enables the human mind to keep track of its own internal mental state and dynamic. Mindfulness facilitates the emergence of better thoughts, words and actions. Thus, a mindful mind is highly aware of its own internal state. (Mindfulness can be better achieved when the frequency of the brain wave is 8 Hz to13 Hz, that is, the alpha state.) Non-linearity: It is the non-proportionate relationship between cause and effect.The output of a non-linear system is not proportional to the input. Orgmindfulness: It is the equivalent of mindfulness at organizational level. Thus, it is the mental factor of an intelligent human organization that focuses on the mental state of all its interacting agents (continuously). In this respect, it is responsible for elevating collective intelligence and nurturing a mindful culture (core of supportive culture) in the organization.

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Paper dialogue: It is a modified version of dialogue that is activated with written expression rather than verbal expression. It is more suitable for society/organization/group whereby certain oral communication can be highly sensitive (see dialogue). Paper dialogue initiates truthful engagement more easily by overcoming the phobia of negative repercussion. Paradigm: A way/path/method that indicates a change in direction and thinking. A paradigmatic shift is usually associated with a change in mindset. The intelligence paradigm points towards an intelligence-centric path. Proto-intelligence: Intelligence is perceived to exist as a spectrum. Proto-intelligence is low level intelligence associated with non-living matter, for instance, during crystallization certain structure (can be sophisticated) embedded with information is formed. Punctuated equilibrium/point: This is a point/stage whereby the changes taking place is sudden and highly non-linear, complex and unpredictable. The outcome can be totally different from the input state, for instance, from solid to liquid state. CAS usually are in stasis and at times move into punctuation points. Red King Race: It is a race whereby those at the tail-end of the race are the winners (for instance, many African countries being less developed are not affected by the 2008/2009 financial crisis). Red Queen Race: It is a race whereby any advantage/niche attained by a winning participant is only temporary and great effort is needed to sustain it. Besides, this race also has no known destination. It is a continuous journey that most human beings and human organizations are trapped in. Rugged landscape: It is a surface with many peaks (the fittest has the highest peak) and valleys. The landscape changes over

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time with the environment. To move from one peak to another higher peak, a downward journey into a valley first is inevitable (in some biological cases, natural selection alone is not good enough to move a species from one peak to another, the genetic system has to be involved). Self-organization: It is the spontaneous process whereby the agents in a complex adaptive system interacts without the guidance of a blueprint. It is also the principle underlying the emergence of forms manifest in physical, chemical, biological, ecological, social, and cultural structures, that is, the spontaneous crystallization of order out of chaos in complex system and CAS (order for free). The dynamic is morphogenetic, that is, it favors certain states known as morphogenetic attractors. (Thus, there are certain advantages being a first mover.) Smart evolver: Such an evolver is willing to endure short-term losses for a larger long-term gain. It also possesses other characteristics as stipulated in the intelligent person model, such as better awareness and mindfulness, more innovation and creativity, and higher quality emerging and self-organizing ability. Stasis: This is the period of linear and orderly changes (or at least perceived to be so by the interacting agents) and hence the system, as well as the interacting agents is usually affected minimally. Space of complexity: This space exists in all CS and CAS. It is a space of disorder and it has a surface pattern but no detailed pattern. When the complexity in this space increases further, it develops into the edge of chaos. Space of order: The space that is orderly and it is therefore usually linear and highly predictable. Most human beings are more comfortable in this space. However, such a space does not provide a niche as it encompasses nothing new.

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Strange attractor: It is one of the four states of dynamical systems. It has some kind of patterned order and boundary, and when represented by a three-dimensional phase diagram it appears like an infinite line that never passes through the same point twice but continues indefinitely within a bounded space (Lorenz’s attractor). Thought technology: It is a type of intangible technology that are adopted for nurturing better connectivity, more truthful engagement and a higher level of collective intelligence in a group of interacting agents. It includes methodologies such as Dialogue and Visual Thinking.

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Index

Adapt/Adaptive vii, ix–xii, 5–7, 9, 11–19, 23, 27–30, 35–37, 40, 42, 51, 53, 59, 63, 90, 91, 105, 107, 114, 148, 157, 169, 189, 208, 213, 239, 244, 254, 259–261, 278 Administrative man 112, 129, 137 Advanced (human) intelligence 97 Artifact 85, 89, 91, 93, 101, 102, 279 Artificial neural network 74, 94, 174 Attractor 5, 14, 15, 112, 114, 255 Autopoiesis 107, 112, 115, 133, 164, 170, 215–218, 220, 226, 238, 241, 242, 257 Autopoietic systems 147 Awareness x, 23, 25, 26, 43, 46, 53, 59, 62, 67, 68, 76, 109, 135, 136, 138, 147, 164, 167, 168, 170, 172, 176, 209, 217, 219, 229, 240, 257, 268, 273, 283 Basic entity 85, 91–93, 95, 96, 99, 100, 102, 106

Basic entity transformation function 85, 95, 96, 99 Basic (human) intelligence 93 Biodiversity system 153 Boundary 67, 85, 106, 119, 216 Bounded rationality 112, 118, 129, 137 Butterfly effect 5, 12, 13, 18, 50, 78, 111, 113, 230, 253, 254, 262 Capital 26, 124, 276, 279 Change xii, 5–8, 12, 14–16, 19, 24, 40, 42, 45, 52, 55, 70, 71, 113–115, 117, 124, 125, 137, 138, 146, 152, 157, 170, 176, 192, 197, 209, 210, 214, 225, 229, 237, 239, 244, 246, 248, 251–254, 259–262, 278 Chaos xi, xiii, 5, 10, 11, 14, 15, 17, 18, 21, 27, 28, 33, 36, 37, 50, 69, 78, 90, 113, 140, 161, 164, 168–170, 181, 209, 218, 223, 230, 242, 246, 248, 249, 251–255, 257, 260, 261, 263, 265 319

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Chaos theory xiii, 140, 181, 251, 253, 257 Chaotic state 15, 17, 168, 255 Character set 85, 92–96 Coding function 95, 96 Co-evolution 7, 59, 65, 68, 75, 107, 111, 129, 132, 134, 137, 139, 166, 170, 172, 212, 217, 226, 240, 253, 281 Collective Intelligence vii, ix, x, 19, 23, 27–29, 36, 39, 43, 51–54, 59, 61–64, 68, 70, 71, 75, 79, 81, 111, 116, 125–127, 132–134, 138–141, 145, 147, 149, 153, 163, 165–168, 170–174, 176, 178, 180, 182, 187–189, 193–195, 200, 207, 210–214, 216–220, 222–226, 229, 240, 241, 242, 257, 276, 277, 279, 281, 284, 285 Communication 8, 9, 39, 44, 45, 51, 73, 102, 145, 146, 148–150, 158, 160, 164, 174–176, 187, 189, 191–195, 197, 198, 200, 211, 223, 261, 270 Competition 8, 24, 113, 131, 164, 178 Complex vii, ix–xii, xiv, 1, 5–7, 9, 11–19, 23, 25–27, 29, 30, 35, 36, 44, 45, 48, 49, 53, 55, 57, 59–62, 65, 66, 70, 77–79, 86, 90, 91, 97, 105, 107, 111–115, 118, 119, 123, 124, 126–132, 135, 140, 148, 152, 156, 163–165, 169, 170, 172, 180–183, 189, 207–218, 230, 231, 235, 236, 239, 242–244, 251, 252, 254, 256, 259–261, 263, 268, 269, 273, 276, 287, 288 Complex adaptive systems x, 5, 9, 11, 12–17, 27, 35, 36, 57, 59, 60, 62, 66, 111, 112, 114, 115, 118, 119, 124, 127, 148, 163, 169, 170, 182, 212,

218, 231, 235, 243, 244, 254, 259, 261, 263 Complex systems 261, 263, 287, 288 Complexity theory xiii, 5, 10, 11, 15, 17, 19, 115, 182, 207, 246, 249, 255, 257, 259 Composite system 57, 75, 138, 139, 165, 212, 213 Connectivity x, xi, xiv, 5, 8, 10, 24, 27, 29, 36, 37, 46, 51, 59, 63–65, 69, 70, 72, 73, 75, 76, 78, 125, 128, 133, 136, 139, 145–149, 160, 163–169, 171, 180, 182, 187, 188, 193, 195, 212, 214, 219, 223, 227, 240, 246, 253, 254, 261, 262, 278, 283 Consciousness x, 5, 6, 10, 11, 17, 23–27, 35, 37–40, 51, 59, 61, 62, 64, 67, 69, 90, 96, 104, 114, 135, 146, 147, 163–169, 181, 182, 188, 191, 216, 217, 227, 246, 253, 268, 270, 272, 273 Corporate intelligence enhancer 164, 172, 173, 276 Cosmic mind 5, 9 Creativity x, 11, 33, 49, 50, 60, 61, 72, 104, 136, 161, 178, 191, 209, 212, 218, 223, 242, 247, 256, 270, 272 Criticality 111, 112, 138, 140, 226 Culture xi, 18, 60, 70, 71, 78, 112, 133, 139, 141, 143, 163–166, 168, 170–172, 174–176, 178–182, 187, 188, 192, 194, 195, 198, 200, 213, 219, 221–223, 228, 229, 240, 277, 279, 281, 283 Darwin/Darwinian 112 Data 43–45, 85, 91–96, 99, 105, 106, 151, 153, 154, 156–159 Data processing function 99 Data mining system 151, 157, 158

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Index Davis 117 Decision function 97 Deliberate strategy 16, 35, 52 Deterministic 5, 9–11, 15, 36, 50, 61, 252 Dialogue 81, 145, 148, 185, 187, 189–201, 223, 241, 249, 283–286 Dissipation 5, 10, 13, 27, 37, 78, 164, 168, 169, 219, 246, 253 Early warning system 151, 157 Economic man 112, 129, 137 Ecosystem 211 Edge of chaos xi, 5, 14, 15, 17, 18, 69, 78, 161, 164, 168, 209, 223, 230, 242, 246, 255, 260, 261, 265 Einstein/Einsteinian 9, 44, 83, Emergence x, 5, 6, 9, 10, 13, 23, 25, 27, 28, 30, 37, 44, 61, 75, 77–79, 93–95, 113, 131, 133, 135, 140, 146, 163, 164, 168, 169, 193, 209, 214, 215, 217, 219, 222, 229, 244, 246, 253, 256, 265, 273, 284, 287 Emergent strategy 35, 52, 53, 55, 112, 138, 140, 172, 224, 235, 236, 242–244, 276 Engagement x, xi, 36, 45, 51, 59, 62, 67, 76, 171, 187, 188, 195, 208, 209, 212, 223, 224, 229, 240, 246, 261, 275 Entropy 11, 49, 78, 106, 112, 113, 114, 215 Environment vii, x, 6, 8, 11, 13, 14, 16, 17, 19, 23, 26, 27, 29, 30, 35–37, 39–42, 46, 50–52, 54, 55, 65, 68–73, 76–78, 89, 91–94, 102, 105, 114, 124, 134, 135, 139, 143, 145, 147–149, 151, 157, 164, 167, 169, 170, 172, 173, 176, 177, 180, 182, 188, 190, 198, 200, 207–209, 212,

321

214, 217–221, 224, 225, 228–230, 235, 239, 244, 247, 259, 261, 262, 263, 269, 277, 280 Environment scanning and responding subsystem 39–42, 54, 76 Equilibrium 5, 9, 14, 17, 53, 60, 70, 78, 132, 172, 219, 254–256 Evolution ix, x, 5, 7, 11, 13, 16, 19, 33, 36, 37, 41, 59, 61, 65, 68–70, 72, 75, 77, 78, 88, 94, 97, 107, 111, 112, 129, 131–134, 136, 137, 139, 166, 168–170, 172, 212, 216, 217, 226, 238, 240, 246, 249, 251, 253, 262, 263, 265, 266, 281 Expert system 155 Externalization 86, 102 Explicit knowledge 164, 279, 280 Far-from-equilibrium system 256 Feedback 12, 36, 119, 191, 192, 199, 254, 255 First mover advantage 112, 115 Freedom 168, 209, 256 Fuzzy logic system 155, 156 General information theory 85, 86, 88, 89, 105, 106, 243 Genetic algorithm system 152, 153 Global force 242 Global/local dialectic 8 Heisenberg 11 Heterogeneous agent 12, 65, 260, Human mind ix, 11, 18, 26, 36, 63, 66, 74, 85–87, 89–91, 97, 103–105, 107, 118, 135, 154, 170, 211, 240 Human organization/system x, xi, 1, 29, 30, 35, 41, 45, 47, 59, 64, 65, 67, 74, 76, 79, 115, 125, 126, 131,

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132, 134, 140, 147, 150, 167, 172, 176, 188, 193, 200, 217, 221, 236, 260, 261 Human thinking system See human mind Humanization 70 Information x, xi, 6, 8, 9, 12, 13, 17, 24, 35–37, 39, 43–45, 47–51, 55, 60, 65, 72–74, 76, 77, 79, 81, 85–93, 95–98, 100–107, 114–116, 118, 120–122, 139, 145–154, 157–160, 164, 169, 173, 174, 176, 177, 179, 189, 191, 211, 212, 243, 247, 249, 260, 261, 267–271, 276, 281 Information processing function 99 Innovation x, 11, 49, 50, 60, 61, 104, 178, 209, 212, 218, 242, 247, 256, 270 Intangible structure 23, 29, 46, 55, 59, 64, 69–71, 74, 75, 79, 134, 148, 160, 241 Intelligence vii, ix–xiv, 5–7, 10, 16, 19, 23, 27–31, 35–44, 46–55, 59–64, 66–68, 70–72, 74, 76, 78, 79, 81, 85, 90–94, 97, 98, 101, 104–106, 111–116, 118, 119, 124–127, 143, 149, 163, 187, 200, 203, 207, 229, 236, 246, 263, 275, 285 Intelligence advantage xiii, 36, 50, 53, 59, 60, 75, 112, 115, 152, 164, 171, 180, 208, 212, 235, 236, 276, 278 Intelligence enhancer 35, 48, 49, 51, 52, 55, 164, 172, 173, 240, 276 Intelligence era xiv, 1, 5, 6, 19, 30, 63, 113, 177, 210, 218

Intelligence paradigm x, 5, 6, 23, 28, 74, 183, 235, 235, 239 Intelligence strategy 5, 16, 36, 48, 50, 52, 54, 55, 75, 164, 165, 181, 208, 214, 270 Intelligence web 35, 38, 39, 41–43, 54, 71, 72, 76, 148–150 Intelligent hybrid system 74, 156 Intelligent organization/system x, xi, xiv, 8, 23, 27, 30, 35, 37–41, 46–49, 51–55, 62, 65, 68, 71, 73, 74, 77–79, 111, 124, 131–134, 139–141, 146–150, 159, 163, 166, 171, 174–181, 183, 223, 226, 235, 236, 238, 242, 244, 246, 275–278 Intelligent organization theory x, xiv, 1, 23, 30, 35, 37, 51, 53, 62, 74, 77, 79, 134, 139, 148, 166, 235, 236, 239, 244, 246 Intelligent person (model) 81, 111, 134, 136, 137, 139, 170, 175, 217, 226, 235, 243 Intense intelligence source 27, 35, 38–41, 43, 54, 61, 62, 71, 72, 148, 228, 272 Interacting agent 59, 72, 111, 114, 131, 139, 140, 170, 192, 201, 225, 226, 284 Interdependency 23, 26, 27, 30, 78, 81, 107, 145, 147, 163, 166, 180, 182, 217, 219, 223, 235, 236, 244, 254 Internalization x, 35, 44, 86, 98–102, 120 Internalized knowledge 47, 48, 98, 99, 177, 280 Intrinsic intelligence ix, 5, 6, 24, 29, 63, 67, 74, 75, 125, 126, 164,

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Index 165, 207, 211, 213, 214, 216, 220, 229, 240 Kauffman, Stuart 14, 292, Knowledge vii, x, xii, xiv, 6, 18, 23, 29, 30, 35, 36, 39, 43–50, 55, 60, 73, 85, 105, 114, 124, 139, 143, 155, 163, 209, 218, 229, 236, 240, 249, 260, 275 Knowledge economy 131, 145, 146, 179 Knowledge management 65, 74, 163, 165, 174, 177–180, 182, 220, 249, 275–277, 281 Knowledge structure 18, 30, 36, 43, 44, 46–48, 86, 96, 101, 106, 139, 145, 164, 173–175, 178, 179, 277–281 Knowledge structuring function See internalization Kuhn 118 Langton, Christopher 14, 292 Language 35, 43–45, 48, 51, 61, 77, 83, 85, 87, 94, 95, 160, 173, 181, 270, 272, 279 Leader/Leadership xi, xiii, 16, 27, 30, 47, 53, 63, 68, 71, 73, 112, 117, 118, 124, 136, 141, 146, 149, 164, 165, 179, 181, 192, 203, 205, 207–215, 219–231, 235, 236, 239–241, 243, 244, 281 Learning organization 164, 174, Linear/Linearity 60, 78, 113, 124, 208, 219, 253 Lorenz, Edward 10, 13, 14, 253 McMaster, Michael 45, 124, 292 Mind See human mind ix, 11, 18, 26, 36, 63, 66, 74, 85–87, 89–91, 97,

323

103–105, 107, 118, 135, 154, 170, 211, 240 Mindful culture xi, 60, 70, 112, 133, 139, 141, 163, 170–173, 176, 178, 179, 182, 187, 195, 200, 213, 240, 277, 279, 281, 283 Mindfulness x, 23, 25, 36, 35, 40, 59, 62, 66–68, 103, 109, 111, 132, 133, 135, 136, 140, 164, 167, 170, 173, 217, 240, 243, 268, 272, 273 Mindset vii, ix–xii, 5, 6, 10, 13, 16–19, 23, 27, 30, 31, 46, 47, 63, 66, 67, 70, 75, 78, 112, 117, 124, 136, 140, 141, 149, 159, 164, 168, 170, 171, 174, 175, 181, 182, 187, 191–194, 200, 207–211, 213, 214, 215, 221, 222, 224, 227, 228, 231, 235, 236, 239, 243, 259 Network 37–39, 41, 42, 60, 73, 74, 76, 81, 145, 147, 149, 154, 156, 159, 160, 212, 215, 253, 265, 269 Newton/Newtonian 6, 9, 70, 78, 118, 164, 208, 259 Nonlinear/Nonlinearity x–xii, 9, 15, 17, 18, 25, 26–30, 35, 36, 60, 63, 65, 70, 78, 104, 111, 113, 118, 119, 123, 125, 138, 146, 147, 157, 181, 207, 213, 215, 216, 218, 226, 239, 244, 253–255, 259, 262, 266 Order x, 7, 9, 11, 13, 18, 26, 35, 37–39, 49, 50, 52, 59–62, 70, 78, 87, 95, 111–114, 122–124, 127, 136, 155, 159, 169, 174, 192, 203, 208, 218, 225, 235, 244, 251, 252, 256, 257, 259–261, 279 Order for free 111, 112, 256, 257, 260

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Organization theory x, xiv, 1, 23, 30, 35, 37, 51, 53, 62, 74, 77, 79, 117, 134, 139, 148, 166, 235, 239, 244, 246 Organizational learning 30, 145, 163, 165, 174–180, 182, 229, 240, 249, 275, 278, 279 Orgmind x, 23, 29, 36, 43, 46, 48, 51–55, 59, 63–70, 73, 75, 79, 132–134, 140, 147, 167, 171, 172, 188, 211, 240, 241, 277 Orgmindfulness 36, 46, 51, 53, 59, 62–65, 67, 68, 71, 76, 78, 111, 132–134, 137, 140, 145, 147, 164, 167, 168, 171, 173, 176, 182, 187, 188, 194, 217, 219, 226, 229, 242, 257, 276 Paradigm ix, xii, 1, 5, 6, 19, 23, 28–30, 68, 74, 119, 165, 183, 235, 236, 239, 246 Perception function 85, 97, 101, 102 Periodic state 15, 255 Physical structure x, 8, 23, 29, 41, 46, 54, 59, 64, 70–74, 79, 145, 147, 148, 159, 160, 241 Physical symbol 35, 44, 46, 61, 70, 85, 87, 89–94, 102, 173, 177, 243, 266, 268, 272 Point attractor 15, 255 Proto-intelligence 35, 40, 43, 91, 105, 216 Punctuated equilibrium/point 5, 14, 53, Rationality 9, 112, 118, 129, 136, 137 Red queen race 5, 14, 15, 78, 217 Reductionism 26 Relationship See connectivity Rugged landscape 78, 112, 137

Santa Fe Institute 12, 287 Satisficing 137 Self-enrichment process 112, 114, 126–132, 136, 139, 140 Self-organization 16, 52, 59, 65, 75, 107, 111, 112, 130, 138, 140, 170, 171, 215, 217, 218, 220, 224–227, 230, 242, 254, 256, 257, 260 Self-organizing system 152 Simon, Herbert 137 Smale, Stephen 10 Space of order 35, 49, 59, 60, 111, 113 Space of complexity 35, 49, 50, 59, 60, 111, 113 Stasis 14 Strange attractor 5, 15, 255 Structure x, 1, 5, 6, 8, 11, 18, 19, 23–25, 27, 29, 30, 35, 36, 39, 41, 43, 59, 63, 79, 86, 89, 113, 132, 146, 160, 164, 209, 221, 240, 256, 270, 277, 281 Tacit knowledge 164, 279, 280 Taylor 118 Thought technology 36, 51, 59, 64, 145, 187, 189, 241 Universe x, 9–11, 45, 48, 90, 105, 112, 115, 135, 166, 215, 218, 236, 237 Volition 67 Wisdom 85, 91, 94, 95, 103, 104, 106, 230, 246–248, 268 World changes 7, 19

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About the Author

Liang Thow Yick holds two first degrees in Mathematics and Physics, MSc in Remote Sensing/Computer Image Processing and PhD in Particle Physics. Currently, he is an Associate Professor at the Lee Kong Chian School of Business, Singapore Management University. Among his previous appointments, he was the Head of Technology at the Singapore Management University, and an Associate Professor at the Faculty of Business Administration, National University of Singapore. Currently, he teaches the course Intelligent Organizations that encompasses the intelligent mindset biotic structure, complex adaptive dynamic, edge of chaos, deliberate and emergent strategies, intelligence management, intelligence leadership, and nonlinear intelligence and innovation and creativity. Prof Liang is the Editor in Chief of the International Journal of Complexity in Leadership and Management (Inderscience). He is also a member on the Editorial Board of Human Systems Management (IOS Press) and the International Journal of Quality and Innovation (Inderscience). Prof Liang has over 70 publications spread over a diversification of journals including 325

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Information Processing and Management, Human Systems Management, Information and Management, Behavior and IT, Journal of Mathematical Physics, Physical Review D and Nuovo Cimento. He has also been invited to contribute articles to the Encyclopedia of Computer Science and Technology, and the Encyclopedia in Library and Information Science. Prof Liang’s research endeavor is highly multi-disciplinary especially in domains such as Complexity Theory and CAS (the Biology and Physics perspectives), Evolution Dynamic, Human Organizational Dynamic, Human Thinking Dynamic, Intelligence Management, Individual/Organizational Learning, Knowledge Management, Highly Intelligent Complex Adaptive Dynamic, Nonlinear Intelligence and Innovation and Creativity, Creativity associated with the Edge of Chaos, Innovative Sustainability, Intelligence Leadership Theory, Highly Intelligent Human Organizations (in particular, Business Corporations, Education Systems and Nations), as well as Information and Communication Technology Policies and Strategies.

Organizing Around Intelligence: The New Paradigm (2nd ed)

Organizing Around Intelligence

Growing Bone 2nd ed - Medical Intelligence Unit

Ambient Intelligence: A Novel Paradigm

Organizing the New Industrial Economy

Phytochemicals: A New Paradigm

Handbook for the New Paradigm

The European Central Bank: The New European Leviathan? (2nd ed)

Gastrointestinal Emergencies 2nd ed

Aircraft Structures, 2nd Ed

The Options Course 2nd Ed

Stoic logic (2nd ed)

Toleration, 2nd ed

Engineering Ethics, 2nd ed

Pattern Recognition (2nd ed.)

Geotechnical Engineering 2nd ed

Intelligent Systems, 2nd Ed

Understanding Depression, 2nd ed

Invertebrates (2nd Ed.)

The New Paradigm for Financial Markets

The Last Dancer (new ed)

The Long Run (new ed)

The Armageddon Blues (new ed)

The paradigm

Service Management: The New Paradigm in Retailing

Linear Systems Analysis - 2nd Ed

Clinical Forensic Medicine 2nd ed

Fundamentals of Biomechanics, 2nd ed

Principles of Aeroelasticity, 2nd Ed

Enterprise Knowledge Infrastructures, 2nd Ed

Organizing Around Intelligence: The New Paradigm (2nd ed)