Northcentral UniversityDeborah Adams

November 19, 2015

Organizational Intelligence

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INTRODUCTION

Now more than ever, leaders are challenged to make timely and precise decisions in capricious situations. Data and information is so numerous it can boggle the mind when mining for facts to enhance decision-making. Having a “good mind” is more than just a saying it is considered a highly desirable trait of top leaders across all industries. Possessing knowledge and knowing how and when to use it is essential to organizational intelligence. Distinguishing how to access pertinent information, while using it successfully for comprehensive benefits is sought after tangible knowledge. Interactions, assessments, and case studies are presented to provide answers to difficult questions on how the intelligence of an organization is used for making decisions.

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DECISION-MAKINGSTRATEGIC DECISIONS• Numerous processes are deliberated in

making a decision• Identifying integral results and the

anticipated outcome measured against the variables are essential to the decision process.

• A decision maker uses his or her character traits of focus, motivation, self-awareness during a mental process to choose a conclusion.

• Market place decisions usually entail retrieving and maintaining proper knowledge.

DECISION MAKING PROCESS• Identification of knowledge using

established principles.• Spiraling dynamics of decision making uses

human influences affecting values and decisions.

• Focal point for decision makers is what retains or increases profitability.

Selling

Expansion

Downsizing

Buying

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HOW COMPETITION AFFECTS DECISIONS…

• There are challenges in the creation of value. Advantages in competition may erode due to the undermining that imitation creates to the resources uniqueness. Additionally, valuation of distinct differences by consumers may decline. The differences between a company’s resources, consumer heterogeneity and the environment for demand are the roots of strategic heterogeneity.

(Adner, & Zemsky, 2006)

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ACCUMULATION OF KNOWLEDGE

How knowledge is accumulated? Information/data at its essence is

knowledge. It can be extracted from experiences, research findings, mathematical results, etc.

What is the knowledge used for making decisions?

Decision making calls upon all forms of knowledge relevant to the situation. Knowledge in any form or fashion may be effective when making choices. One size does not fit all.

How is knowledge best stored for later retrieval?

Knowledge is typically stored in databases, on the ‘cloud’, contained in policies/procedures/principles, historical records, or paper files.

• Knowledge is fashioned into principles for efficient/timely retrieval to make decisions.

• It focuses on abstracts or tangibles.• It uses objective over subjective

thinking. • Rational decision making uses

logical analysis of all the evidence available at the time.

What is knowledge?

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WHAT GUIDES GOOD DECISIONS…• Leaders are said to act as decision architects.• Poor decisions can be caused by either insufficient motivation or cognitive

biases.• Know how decisions are made and how the process influences decision making:

1. Remember that thinking is automatic, instinctive, and emotional using shortcuts to produce instinctive responses.

2. Never forget that the thinking process is slow, logical, and deliberate.

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HOW DECISIONS ARE MISGUIDED…

• Lack of compromise – My way or no way at all• Judgement based on feelings – Personal agendas may conflict with business

objectives• Methodological issues – Not possessing structured reasoning for making

decisions• Lacking rationale for choices – Actions have consequences• Discriminating criteria – Restricting information flow limits good choices

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WHO’S AT FAULT INDIVIDUALS OR BUSINESSES

INDIVIDUAL DECISIONS • Although decisions are made by

individuals the process of decision-making is not in a vacuum. Whether it be ethical or unethical, decisions are not made without influence from the organizational culture or environment in which is served. The contextual ‘bubble’ in which decisions are made influence the decision-making process.

CORPORATE CULTURE• The contextual organizational culture

shapes, while influencing individual decision-making processes within the structure over which it has control internally or externally. Individuals are commissioned to make-decisions that full-fill the company’s objectives and follow well-defined company principles that shape decisions.

(Jackson, Wood, & Zboja, 2013).

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THE ORGANIZATIONAL STRUCTURE

VALUES • Traits that are either overt or implicit

influencing the action of selection from either modes, means and or ends. It is also known as the normative beliefs about standards of preferred or desired conduct results.

BEHAVIORS• Values or the method of selection by

an individual based upon points of interests or views influences and directs behaviors/actions. Research on value structures or value sets conclude that values are not apparent in the role of importance when examining ethical dimensions in decision making.

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INTERVIEWS

• Interviews were fashioned by creating a series of questions then sending them to associates/connections via LinkedIn for response via the messaging connections feature. Participants were senior vice presidents, owners, CEO, HR Executive Talent Acquisition Consultant, and Financial Services Management Consultant of various companies (GE, Tech Wave Group, Swiss RE, Attack Your Day, and Talent Acquisition). The questions were composed as a survey in Survey Monkey.com with a brief message summarizing the survey process, reason for the survey and how the information from the survey would be used explained in the message body including the survey link (https://www.surveymonkey.com/r/8Q8CPT7), and my contact information for feedback or questions. The designed questions were a combination of multiple choice and explanation text. Exploring areas of organizational/departmental decision making processes, training provided to decision makers, how knowledge is transferred and managed, how decisions are based, and the type of research used to support decisions, etc.

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CONCLUSION

• As previously stated, data and information is so numerous it can boggle the mind when mining for facts to enhance decision-making. The presentation reviewed how various individual and business aspects play influential roles in decision-making. Responses from the survey concluded that leaders are shaped either explicitly or intrinsically to consider the weight of decisions against the consequences to the company and its clients/customers. In short, the presentation/survey concludes that ethical decisions are and should be made because it is the best thing to do for everyone.

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References Adner, R., & Zemsky, P. (2006). A demand-based perspective on sustainable competitive advantage.

Strategic Management Journal, 27(3), 215-239. doi:10.1002/smj.513

Beshears, J., & Gino, F. (2015). Leaders as decision architects. (cover story). Harvard Business Review, 93(5), 51-62.

Ding, X., & Huang, R. (n.d). Effects of knowledge spillover on inter- organizational resource sharing decision in collaborative knowledge creation. European Journal of Operational Research, 201(3), 949-959.

Fritzsche, D., & Oz, E. (2007). Personal values’ influence on the ethical dimension of decision making. Journal of Business Ethics, 75(4), 335-343. doi:10.1007/s10551-006-9256-5

Jackson, R., Wood, C., & Zboja, J. (2013). The dissolution of ethical decision-making in organizations: A comprehensive review and model. Journal of Business Ethics, 116(2), 233-250.

Woiceshyn, J. (2009). Lessons from “Good Minds”: How CEOs use intuition, analysis and guiding principles to make strategic decisions. Long Range Planning, 42298-319. doi:10.1016/j.lrp.2009.05.002