Organizational IQ: Characteristics Common to Smart Organizations and Applicability to the U.S. Military

Abstract

Abstract : Learning how to build a smart organization was the goal of this project. The objective was to collect and analyze experiential data on how to harness the collective intellect of a group in order to learn and adapt to changing environments. Personal interviews and a questionnaire were used to collect data from seven successful leaders in private industry. The research concluded that there are three necessary attributes of a smart organization. First, smart organizations have a clear strategic vision that has been communicated throughout. Second, smart organizations have a culture of meritocracy that respects each individual's ideas. Third, smart organizations have incentive programs that support the vision and culture. The author concludes that these three attributes are necessary, but not sufficient, to build a smart organization. High organizational intelligence can be realized only when the right people are brought together within a framework of strategic vision, meritocratic culture, and proper incentives. The principles for building a smart organization in private industry can be applied to the military hierarchy without disrupting the discipline and effectiveness of units organized for combat effectiveness.