ENERGISING ORDER-CREATING NETWORKS OF DISTRIBUTED INTELLIGENCE: IMPROVING THE CORPORATE BRAIN

Abstract

Human and social capital developments are discussed in the context of increasing corporate IQ, defined as distributed intelligence (DI) in firms, as the basis of economic rent generation. A review of current multilevel leadership theories shows that charismatic visionary CEOs more often than not create conditions likely to inhibit the development of DI. Complexity science theory indicates that "adaptive tension" dynamics (analogous to Bénard cell energy-differentials) may be used to foster adaptively efficacious DI appreciation. The optimal region for rapidly improving adaptive fitness occurs "at the edge of chaos". This region — in which emergent self-organisation occurs — exists between the 1st and 2nd critical values of adaptive tension. Below the 1st value, there is little change; above the 2nd value, the system becomes chaotic and dysfunctional. Various activities available to rent-seeking CEOs wishing to create or enlarge the region of emergence are discussed.