Collective Intelligence Thinking

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Collective Intelligence Thinking

Thursday, July 4, 2013
Author: Business Consultants, Inc.

Collective Intelligence Thinking

Consider the following examples of two companies: Company A was doing quite well. Top management had decided that in order to increase growth and keep the company budget in line, there would be no salary increase for the current year. They believed it would ultimately help the company, and they applauded themselves for finding the money in the budget without having to fire anyone. The decision was announced in a stand-up meeting, and emails sent out explaining their logic.

Two years later Company A had lost 80% of their staff, along with some of their most brilliant leaders. Those that had left the company expressed their disgust with the decision publicly, and the employees that had stayed, now viewed top management with distrust. Worst of all, Company A did not grow; production had actually decreased. What management thought was logical and fair had clearly not worked out.

Company B was not doing as well. In order to stay competitive in the market, and without having to lay off staff, they knew they would have to cut vacation days by over 50%. They also knew that this decision would not be popular, but it was the only way to save the company. Management braced themselves for the possible backlash, including massive resignations and possible strikes. It was at this point that they decided to change their tactics:

Rather than simply announce their decision and explain the changes to employees in a mass meeting, they brought the employees in for smaller workshops. They presented the workers with the same data that had led to their final decision. They then explained the financial situation, and their desire to retain all the workers without having to resort to layoffs. Finally, they asked for suggestions from the employees.

Guess what? The employees of Company B reached the same decision as top management! They unanimously decided to cut vacation days, and to work harder to keep the company profitable. In the end, everyone kept their jobs, the company remained afloat, and with top management working together with the employees, morale was at an all-time high.

What Did They Do Differently?

Both companies had similar goals: preventing layoffs. When you consider the situation that Company B was floundering and Company A still had growth potential, you'd think that Company A had made the correct decision. One year without a raise seems a small price to pay for the bigger (potential) payoff down the line. In a few years, everyone would see higher raises and bonuses that matched the increasing growth of the company. Meanwhile, Company B was just trying to hang in there; the employees aren't looking at salary growth down the line, they are being asked to do more work just to hang on to their jobs. So why did everyone stay at Company B while Company A sank?

The answer: Company B used Collective Intelligence Thinking, or Creativeship

Collective Intelligence Thinking, also known as Bottom-Up Thinking, puts people before the facts. Company A took the facts, made a decision, and told their employees what was going to happen. They thought it would work because it was the only logical choice, but employees felt that their needs were being put behind those of top management. Company B took their solution to the employees, but also presented them with the facts and let them come to a logical solution of their own.

How Does Collective Intelligence Thinking Work?

Small workshops are set up for core employees to be presented with a problem. All relevant data is given to them, and most importantly, top management representatives are available to answer any questions and listen to any feedback that employees may have. Even if a company has limited time and money to make a decision, when you consider the costs of production delays or even a strike, Collective Intelligence Thinking is the best option. It works because employees feel empowered and trusted, and they feel their opinions and feedback is valued by their company.

 

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