Karl Albrecht on Organizational Intelligence

Karl Albrecht has defined seven characteristic features of an
intelligent organization, and has designed a self-assessment
questionnaire for creating a profile of the intelligence of an
organization.

1. Strategic Vision: do we know where we’re going?
2. Shared Fate: are we all in the same boat?
3. Appetite for Change: can we face the unexpected challenges?
4. Heart: do we have the spirit and energy to succeed?
5. Alignment and Congruence: do the organization’s “rules and tools”
help us succeed?
6. Knowledge Deployment: do we share our information, knowledge, and
wisdom?
7. Performance Pressure: are we serious about getting things done?

Some of his questions are useful, but I don’t think they provide a
rounded view of the intelligence of an organization.

1. By strategic vision, Albrecht is referring to the capacity to
create, evolve, and express the purpose of the enterprise. This is
certainly an important aspect of sense-making, but overlooks an
equally important aspect of sense-making, which is to understand the
evolving demands of the environment and to align vision and purpose
to these demands. In Albrecht’s model of organizational
intelligence, there is no explicit connection between vision and
reality, and no mention of the extent to which organizations (and
their leaders) understand and anticipate the present and future.

2. A stupid organization can still have a sense of community, and a
strong collective affiliation to an outdated or unrealistic vision,
leading to a collective refusal to face facts.

3. An appetite for change is important, but profound change also
requires a degree of patience and a willingness to tolerate
uncertainty and inconsistency. Albrecht talks about discomfort, but
many organizations try to avoid discomfort by rushing through
changes as quickly as possible, often resulting in a series of
failed initiatives.

4.  Heart. This may well be a consequence of organizational
intelligence – an organization that values and engages the
intelligence and creativity of its employees should end up with more
satisfied and engaged and committed employees. But this is also strongly connected to trust.

5. Alignment and congruence. This is to do with the architecture of
collaboration, which is perhaps the most difficult aspect of
organizational intelligence. The most intelligent organizations
typically don’t display complete congruence, but manage with a degree of
creative tension and conflict between different functions or positions.

6. Knowledge deployment. Albrecht concentrates on generating and sharing
knowledge (flow of knowledge, conservation of sensitive information,
the availability of information at key points of need) but I see the key
capability for organizational intelligence in terms of linking
knowledge to action. How has this knowledge helped us do things better,
or to do better things?

7. Performance pressure – a preoccupation with the performance of the enterprise, in terms of the achievement of identified strategic objectives and tactical outcomes. This preoccupation is found
in many bureaucratic organizations, especially those dominated by the
so-called target culture which often militates against organizational
intelligence. I therefore cannot see any necessary correlation between
performance pressure and organizational intelligence.

A company like Enron would probably have scored fairly high on
Albrecht’s questionnaire, but it also provided a spectacular illustration of
Albrecht’s Law, namely that “intelligent people, when assembled into
an organization, will tend toward collective stupidity”.

Albrecht identifies two kinds of stupidity, which he calls the
learned kind and the designed-in kind.

  • The learned kind prevails when people are not authorized to
    think, or don’t believe they are.
  • The designed-in kind prevails when the rules and systems make
    it difficult or impossible for people to think creatively,
    constructively, or independently.

I believe there is a third kind of stupidity, which I call the
disconnected kind. This is where there are many talented people, but
they don’t talk to each other; where the feedback and learning loops are
broken; and where management fails to connect the dots. This is the
Enron model of organizational stupidity, and in my view it is the most
powerful explanation for the kind of organizational stupidity that
Albrecht identifies in his eponymous
law. But Albrecht’s questionnaire is not designed to detect this
kind of stupidity.


Karl Albrecht, The Power of Minds at Work: Organizational
Intelligence in Action (2002)

Karl Albrecht, Organizational
Intelligence & Knowledge Management: Thinking Outside the
Silos. The Executive Perspective
(pdf)

Karl Albrecht, Organizational
Intelligence Profile: Preliminary Assessment Questionnaire

(pdf 2002)

See also OrgIntelligence in Iran

Modernizing Enterprise Architecture: Address The Neurosis of IT

“TCP/IP and Ethernet will not be accepted as a valid network implementation as SNA and Token Ring are our preferred standards.” – circa 1993 by nameless corporate Information Systems expert.
I was shocked when I had heard this, and images …

Modernizing Enterprise Architecture: Address The Neurosis of IT

“TCP/IP and Ethernet will not be accepted as a valid network implementation as SNA and Token Ring are our preferred standards.” – circa 1993 by nameless corporate Information Systems expert.
I was shocked when I had heard this, and images …

Modernizing Enterprise Architecture: Address The Neurosis of IT

“TCP/IP and Ethernet will not be accepted as a valid network implementation as SNA and Token Ring are our preferred standards.” – circa 1993 by nameless corporate Information Systems expert. I was shocked when I had heard this, and images of ostriches with their heads in the sand immediately came into mind. I was new…

On enterprise blueprinting — entrenchment

It is naive to believe one can, or should, blueprint an enterprise. An enterprise is a complex system that must continually, adapt to survive and thrive.

For any system to sustain, shift, and grow, over time, it requires energies (accelerants), efficiencies, connectors (& disconnectors), and means to remove waste.

Enterprise architecture should focus its attention on fortifying these core functions of the enterprise system, via the infusion of intellectual and digital capability.

Enterprise architecture should capacitate fluidity, not rigidity.
Related posts:

  1. Entrenchment: What we have is a thinking problem

Entrenchment: What we have is a thinking problem

On May 1 — while sacrificing yet another shirt to a hotel iron — I had an epiphany of sorts, which I immediately tweeted:

“Legacy isn’t the big IT problem. Entrenchment is. Entrenched investments, mindsets, skills, business process & information wiring. -me, now”

Shortly afterwards, I followed up with:

“what we have isn’t a technology problem, it’s a thinking problem.”

Based on the huge (positive) response from the community on twitter, I shared that I was inspired to elaborate my tweets to an Entrenchment essay.

So far though, the time for long-form thinking and writing alludes me. [Not to mention good hotel irons].

In the interim, I’ve been tweeting under an #entrenchment hashtag, and more recently, scribbling entrenchment bursts.

Convincing myself these bursts could be considered micro-essays, I’m going to share them on elemental links, under a new entrenchment category.

Someday, they may evolve into a cohesive essay, or daresay something longer. But for now, I’m going micro.

I hope they provoke some re-thinking. Feedback encouraged.

Series starts with On enterprise blueprinting

On the road to a Business Architecture Manifesto

One very powerful metaphor that has reverberated throughout the technical community, in the past few years, was the Agile Manifesto.  Created by a group of folks who wanted to communicate the principles that drove their thinking, the Agile Manifesto has been a very useful tool for deciding if a particular practice is being done well.  I think it may be time to build one for the Business Architecture space.

That said, I am by myself, sitting in my living room.  I am in no position to speak for the community of business architects.  So, this submission is a suggestion for content that could be useful when the conversation begins.  It is my personal opinion about the principles of business architecture.  I would hope to bring this material to a group of other BA practitioners, as my contribution, to develop a full consensus on business architecture manifesto.  

First off, in order to develop principles for business architecture, we need to describe the problem that we are trying to solve. 

The problem that business architecture solves

Business architecture is a relatively new field that addresses an old problem.  Most business people recognize the underlying truth: the structure and practices of your organization directly impacts your ability to deliver the intended value.  Whether we are talking about a military service, a civilian government agency, a non-profit organization, or a for-profit business, the structures and processes that a leader chooses to employ will impact the results that the organization will produce.  That includes both intended and unintended results.  So the basic problem is this: how do we deliver on our mission while maintaining our values?

Business architecture gets to deal with a slice of that problem.  As people, we need to organize around a common shared mission.  We need to know what we want, and we need to go get it.  Humans can be pretty haphazard.  Business architecture does not address every issue.  Business architecture attempts to answer this question: what is the optimal way to organize?  Business architecture typically does NOT answer questions around the integration of corporate controls, or supporting activities like how to find staff to fill new roles.  Business architecture is focused on the narrow slice of “how to organize.” 

So why do we need business architecture to solve this problem?  There are literally hundreds of good, well researched, books that offer useful insight for solving this problem.  Why use a business architecture approach?  Because BA brings a novel approach, one based on the rigorous application of conceptual traceability, process improvement, information science, and mathematics.  While most of the business analysis methods prior to business architecture were founded, fundamentally, in social science, mechanical engineering, and even education, business architecture focuses on the newer sciences that have emerged in the computerized age. 

How does business architecture solve the problem

Business architecture’s unique value proposition is to focus on answering the questions of business structural and organizational effectiveness in a way that is rigorous, quick, clear, consumable, and value-focused. 

We are uncovering better ways of developing business insight by doing it and helping others do it.  Through this work, we have come to value:

Consistently reusable methods over Piecemeal assortment of best practices

Rapid insight over Deeply accurate models

Clear choices over Nuanced decision trees

Consumable deliverables over Consistency with external frameworks

Value-driven prioritization over Justification of the status quo

 

That is, while there is value in the items on the right, we value the items on the left more.

 

To break that down:

  • Repeatability, Reuse, and Rigor.  There are many ways to understand a business.  Business architects will expect you to pick one of those ways (one conceptual model) and then stick to it.  The rigor comes from sticking to the model.  If your enterprise is focused on creating a smooth customer experience, then the business architect will leverage the customer experience work done elsewhere, and will drive a business stakeholder to follow along rather than make something up.  While products must be creatively and freely developed, the organization itself must be architected and engineered.  Rigor matters.
     
  • Rapid Insight. There are many ways to analyze a business.  Business architects will work to reduce the overhead of their analysis methods so that they can produce valuable answers in a very timely manner.  Business people are not rewarded for taking a long time to do an excellent job.  Most will be better rewarded if they do a reasonably good job in a shorter timeframe.  While accuracy is great, the value of information is inversely proportional to the time needed to produce it.  Speed matters.
     
  • Clear Choices. If a business person cannot tell what the recommendation is, they won’t follow it.  If the business architect cannot produce insight that is clear for the business stakeholder, the architect will not effect change.  It is not good enough for a business architect to be quick and correct… they must also be clear. 
    The amount of information, and the coarseness of the decisions, depends on the level of the stakeholder.  At any level, a decision maker should be provided a short list of options (often 2 or 3) where the distinctions between them are clear.  This rule applies at all levels of the organization.  One strategy from a senior manager may require a choice among three different tactics for a department head to choose from.  No one person needs to be concerned with the entire decision tree, except perhaps the business architect himself.   The ability to make decisions is proportional to the clarity of the choices.  Business architecture favors clarity over nuance.
     
  • Consumable Deliverables.  In order for business architects to be successful, they must deliver a plan for the execution of business strategy.  That plan has to be something that the impacted stakeholders can understand and use.  In other words, the output of business architecture must be consumable.  Reams of technical detail are rarely useful.  At the other end of the spectrum, vague goals and promises of value may be just as inappropriate.  Recommendations must be provided using words and metaphors that the actual impacted business stakeholders understand.  They must be provided using forms and templates that the existing organization will recognize and can quickly use.  While consistency with frameworks and practices are important, business architects value consumability more.
     
  • Priority based on Business Value.  Business architects can spend their time on many tasks.  In addition, they can recommend that the organization spend time on many tasks.  Sometimes, even an efficient use of business architecture would be a waste of time if the resulting advice is unlikely to deliver strategic insight.  The selection of tasks, which to do now and which to do later, is of critical importance to a business architect.  While all supporting tasks can be justified, business architects will give priority to tasks that directly lead to actionable, consumable, value-driven business advice.

 

I’m always looking for insight and feedback from the community, so please feel free to add your comments. 

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