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- Intuition in business (OA)

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>Defining Intuition
>Learning Organization
>Characeteristics of CLO
>Conclusion
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Intuition; decision-making

Introduction

Lank & Lank (1995) argue that because organizations now operate within a turbulent, complex and changing environment there is a requirement for holistic, lateral, intuitive thinking. They explain first that these right-brain skills can be improved and developed within the individual. Secondly, turning to the organization, they identify five core characteristics crucial to success.

Lank & Lank explain that business objectives today must be pursued in a world full of discontinuities where prediction of the future is a highly hazardous occupation. This has challenged the traditional form of organization and management approach described as the bureaucracy. Whilst effective in stable and predictable environments it is less effective in today's unpredictable commercial world. The question is: how do we manage constant uncertainty and change?

Finding new patterns

Lank & Lank begin by explaining that senior managers need new skills: 'the ability to see patterns rather than individual factors, systems rather than components: to rely on judgement rather than purely rational analysis. Synthesis becomes more important than analysis.' To utilize these skills they advocate use of right-brain qualities and functions with the capacity to approach experience holistically, synthetically, laterally and in network terms. They argue that "gut feel" or intuition is a skill to be developed and those organizations that foster the development of intuitive capacities in their employees will, in their opinion, acquire sustainable advantage in the market place.

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Defining intuition

Lack & Lack define intuition as:
  1. A brain skill;
  2. Operating largely from the right hemisphere;
  3. Capable of entering awareness at physical, emotional and mental levels;
  4. Whose sources are the subconscious, unconscious and /or supraconscious; and
  5. Which enters consciousness without rational thought or careful analysis and quantitative calculation.
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The continuously learning organization (CLO)

Citing Macoby's (1988) technoservice organization, authority systems are based more on competence and knowledge than on position in the hierarchy. Personalized training and self-development at all levels are major priorities. Flexibility is described as the key. Cross-networks and teams form and dissolve as the business demands and one of management's main jobs is to develop a corporate culture in which teamwork and personal - as well as institutional - learning can take place on a continuous basis. In technoservice organizations people are active, contributing, intelligent parts of an organic, evolving system.

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Characteristics of the CLO

Lank & Lank see the continuously learning organization as having five major attributes:
  • Customer-centred vision; putting people first, not only external customers, but starting with positive internal supplier customer relations that will feed through to the external customer. The role of intuition lies in the fact that success in this area is not directly measurable, it requires a leap of faith, a judgement, that the vision is the right one.
  • Systemic thinking; CLO's are realistic about the complexity of their organizations and the changing nature of the environment in which they operate. When something goes wrong they look to systems to see which may have contributed to the failure. The example of Volvo is given where self-controlled work teams responsible for their own quality control, rather than linear methods, proved a great success. Citing Peter Senge of MIT systems thinking is advocated as the key to integrating reason and intuition.
  • Alignment; lining up the physical, emotional and intellectual energies of members so that they point in the direction of the corporate vision. This is about motivation - looking for ways to keep people enthusiastic about their contribution to the implementation of the company's vision.
  • Empowerment; giving power to members of the organization to act, with a minimum of close supervision. Role of manager becomes that of coach with training and development high on his or her list of responsibilities. Sensing when and how to empower, that is the intuitive ability senior managers need to develop.
  • Openness; no right "answers" and sometimes the wrong path will be taken. Mistakes are viewed as opportunities to learn. As a role model managers should acknowledge their own mistakes publicly share lessons learned.
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Conclusion

In conclusion Lank and Lank acknowledge that rationality, analysis and linearity will continue to be vital contributors to decision-making, problem solving and organizational development. However, they argue that use of right-brain skills such as intuition must be recognized and developed in order to create a CLO successfully. Corporations that are able to tap into the full range of human capability will, they suggest, have a sustainable competitive advantage.

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