Intelligence

Strategy: the
Evolutionary and
Co-evolutionary
Dynamics of
Intelligent
Human
Organizations
and their
Interacting
Agents
By: Calista, Imjad,
Hui-Xin, Mauroof,
Liong
 Overview
• Human minds most vital in the
knowledge economy
• Capable of processing information,
establishing knowledge structure,
conceptualizing idea and making
decision
• Human systems driven by the
intelligence of individual minds +
organizational (collective) minds
• This paper focuses on the dynamics of
an ‘intelligent’ person
 Outline
• Introduction (Evolution, Complexity and
Autopoiesis)
• 4 Aspects (the fundamentals)
- A New Management Philosophy
- A New Organization Theory
- A New Organization Form
- A New Management Strategy
• Conclusion
 The study
How intelligent human organizations
can be structured and managed more
effectively in this economy

Theorize-
Process
synthesize
dynamic
approach
 Introduction
• Evolution
• Complexity
• Autopoiesis
 Evolution, Complexity and
Autopoeisis
Two contradicting viewpoints
Darwinian theory suggests that evolution is a
gradual process
Cambrian explosion which took place
about 600 million years ago after 3 billion
years of biological silence suggests that
there was a sudden increase and richness
of life forms existing

Thus, evolution does not seem to be entirely

a gradual process
 Evolution, Complexity and
Autopoeisis
• Discovery of spontaneous order (order
for free)
- Self-organization is intrinsic of genetic
systems
- No need for external forces to execute
or influence evolution process
- latent internalized forces existing within
system are instrumental to life,
structure and human organizations
which are manifested as
intelligence
 Evolution, Complexity and
Autopoeisis
• Second law of thermodynamics states that the
- universe is expanding
- entropy is increasing
- phenomenon itself is chaotic
• The sea of chaos also includes countless “local activity
center”, each surrounded by a space of order that
defies the second law
• In each of these spaces,
- structure emerges
- entropy reduces
- predictability enhanced
These local activity centers include a crystal, an amoeba,
the human thinking system and even community of
 Evolution, Complexity and
Autopoeisis
• Linear world will continue to exist and
serve as the comfortable platform
• For human beings to further progress
intro the intelligence era, the non-linear
domain should be exploited
Example: Business functions that
encompass nonlinear activities
(strategic planning, creating
competitive advantage & structuring
organization) must exploit complexity
in the new context
 Evolution, Complexity and
• Autopoeisis
Autopoietic nature of human systems is
vital for stability and order
• Intelligent human systems exhibits self-
organizing and autopoietic dynamics
– responsible and vital for elevating
collective intelligence
– strengthens a mindful culture
– makes human organizations highly intelligent
• Continuous interactions of self-organizing
and auptopoietic dynamics enables
human organizations to evolve, co-evolve
and survive in the fast changing
environment
A New Management
Philosophy
Complex Adaptive Systems
(CAS)
• Human thinking systems and human
organizations are complex, adaptive
and non-linear
• Have distinct differences from linear
systems
– presence of butterfly effect
– able to encrypt information
 Butterfly Effect
• Presence of great diversification in surface
phenomena arising from a fairly simple set of
elementary process, due to only slight
variations in initial conditions.
- Slight disruption leading to a huge
chaos
• A person’s behaviour can be greatly altered
leading to a person to be sane and insane
depending on a slight change in a person’s
brain
• The complex behavioral/cognitive patterns
verses the same set of elementary processes
makes the brain and hence the mind a CAS
 Information Encryption
• The ability to encrypt information about
themselves and their environment
• The genetic message of human beings is
encoded in DNA.
• In current society the human brain
carries highly complex and sophisticated
knowledge structures
• Intelligent human organizations must also
possess the equivalent genetic packages
[organizational (societal) DNA]
 Our human brain is the
Snowflake
most superior knowledge
structure

With this highly sophisticated super

computer, the human brain – an intelligent
human organization should also possess the
equivalent genetic package
 Water
Ice

A slight change in condition can lead to a

great transformation
 Intelligence, Information
and Structure
• Information – the capacity to organize and
structure systems, and organized systems
contain information.
• Bilateral relationship is vital to the
emergence of life
• However embedded information by itself
may not be meaningful hence it must be
decoded with respect to a certain
environment context

Example: In a micro biological world a cell decodes information stored

in a DNA.
Likewise in socio economic and in the world of politics human minds
are the decoders.
 Intelligence, Information
and Structure
Intelligence and information are closely
associated and have mutually reinforcing
relationships

Informatio Intelligenc
n e
 Intelligence, Information
and Structure
• Intelligence is the unique intangible
energy that drives all human thinking
systems.
• This is spread over a spectrum as
follow;
Proto intelligence
Collective
intelligence
EXTREME EXTREME

Eg: molecular Eg: Human groupings

possess collective
structure embedded
intelligence, with the
in a crystal. It allows
collective intelligence
the crystal to grow
of a global nation
and reproduce if the being the optical in
condition is right this planet
 Intelligence, Information
and Structure
Superior intelligence of
humankind
• Creation of physical symbol system
and written language elevated
intelligence in human thinking
systems
• A source with low level of intelligence
is considered as a system or an
intelligent source that is unable to
create a physical symbol system
Intelligence, Information
and Structure
 Intelligence, Information and
Structure
• Intelligence and information are
closely associated and have mutually
reinforcing relationships
• Physical symbol system and written
language elevate intelligence in
human thinking systems
• Major perspective of human minds is
information processing, knowledge
acquisition, perception and decision-
making
 Intelligence, Information and
Structure
• Human mind is information
processing, knowledge acquisition,
perception and decision making.
• Organisation should execute the
intelligence associated traits better
than an individual human being.
• Nurture a corporation’s orgmind with
the associated collective intelligence.
A New Organization
Theory
 Old Organizational Science
• Old domains in organizational theory
– Executive leadership
– Management function
– Management strategy
– Operational procedure
– Organizational objective
– Productivity
 Business functions
• Managerial
– Sophisticated info processing
– Decision making perspective
– More complex

• Operative
– Single, simple act of operative
performance
– More structured
– Less complex
Execute
 Construction of a
Organizational Theory
• In order to do so, a paradigmatic
shift encompassing scientific
dimension must be established
• Take on a theoretical scientific model
– Identification of Variables and
Constructs
– How entities interact with each other
– Determine boundary
– Explore new domains
 Basics of Businesses
• Setup that pools business functions
to generate revenue
• Vital to be open system
• Prepared to accept input and deliver
output
• Primary objective to optimize profit
Basics of Business Model- Intrinsic
properties of various economic
resources
Input entities
– Physical Entities (Material, Labour)
• Direct input
– Conceptual Entity (Information)
• Indirect Input; Useless unless consumed
• Internalization when consumed
• Can be reused
– Pseudo Entity (Money)
• Used for obtaining entities
 Basics of Business Model-
Intrinsic properties of various
economic resources
Output entities
• Assumed to be more valuable than
input entities
– Product Entity
o Intangible
– Service Entity
o Tangible
 Basic Economic Entity
Transformation Subsystem:
Axioms of the Model
Axiom I: There exists a buying
function that has the ability to
transform a money entity input
state into a primary economic
entity input state.
Axiom II: There exists an, manual
and/or automated, operative
function which transforms a
primary economic entity input
state into a primary economic
entity.
 Basic Economic Entity
Transformation Subsystem:
Axioms of the Model
Axiom III: There exists a selling
function that has the ability to
transform a primary economic
entity output state into a
money entity output state.
Buying function Selling function

INPUT OUTPUT

Economic entity transformation functions

 Basic Economic Entity
Transformation Subsystem:
Axioms of the Model
Axiom IV: There exist a “production /
economic-oriented”
managerial function that
complements the production
or perative function to
increase the profit of the
organizational systems.
 Basic Economic Entity
Transformation Subsystem:
Axioms of the Model
Axiom V: There exists a “socio-
psychologically-oriented”
managerial function that
minimizes the socio-
psychological /stress and
political disturbances in
organizations.
 Basic Economic Entity
Transformation Subsystem:
Postulates of the Model
Postulate I: Law of Boundaries. The
scope of the spaces of order of
business organizations is defined
by the elements of the input
economic entity states and the
elementsof the output economic
entity states.
Information
Labor
Material Space of Order
Money
Product
Service
 Basic Economic Entity
Transformation Subsystem:
Postulates of the Model
Postulate II: Law of Interaction-
The Primary objective of a
business organization for
transforming an economic
entity input state into an
economic entity out put
state is to generate profit
 Basic Economic Entity
Transformation Subsystem:
Postulates of the Model
Postulate III: Law of Organization- The key
purpose for establishing a
business organization and hence
for setting up an economic entity
transformations system is to
optimize the law of interaction
 New Management Mindset
• Some businesses do not possess this
subsystem
• Those that do
– Possess order and complexity
– Complex Adaptive Systems
– However, structure of spaces of order is
revealing inefficiency
• Organization as a “Production Machine”
• Move from industrial intensive to
knowledge intensive render theories and
practices invalid presents new need for
change in mindset
 New Management Mindset
How to change?
• Org-mindfulness
• “Humanize” organizations rather than
“Re-engineer”
• Allocate HTS as top priority
• Emphasis on surface structure
Emphasis on non linearity and
complexity
• Spaces of complexity to be explored,
understood and exploited
 Basic Economic Entity
Transformation Subsystem:
Axioms of the Model
Axiom VI: There exists an
intelligence enhancing
function that enables latent
intelligence in organizations
to be exploited, and collective
intelligence to be nurtured.
A New Organization Form
 Local Self-Enrichment
Processes

Human Thinking System

(Elementary Unit) Intelligent Human Organization
(System)
 Local Self-Enrichment
Processes
Axiom VII : The elementary units of
intelligent human organizations, the
human thinking systems, are driven
by their own intrinsic intelligence.
Each of these units is a complex
adaptive system.
 Local Self-Enrichment
Processes
Axiom VIII : All intelligent human
organizations possess their
own collective intelligence.
Hence they are higher order
intelligent complex adaptive
systems.
 Local Self-Enrichment
Processes
• Self-Enrichment Processes
– Self-centric or autopoietic forces which
influence elementary units of human
systems
– Beneficial to the local structure and
prolongs existence of elementary units
– May be material, mental, spiritual and
self-actualization based
– Material based processes most
predominant
 Local Self-Enrichment
Processes
Axiom IX: There exist autopoietic
elementary self-enrichment
processes that constantly
enhance the stability of the
elementary units in all
Intelligent human
organizations.
 Local Self-Enrichment
Processes
• Relationship between Self-Enrichment
Processes and the Human System

– Self-enrichment processes the most vital

stabilizing forces in human systems
– Elementary units cannot make choices
which benefit the system without
benefiting oneself.
– If there is no place for the process in the
system, the system will destabilize and
collapse.
– Example of system failure – Communist
ideology
 Local Self-Enrichment
Processes
Postulate IV – Law of self-
enrichment

Self-enrichment is the most

fundamental requirement for the
successful evolution of all human
organizations.
 Global Forces
• Intelligence does exist even in non-living
world.
Hydrogen
Atom

Oxygen
Atom

Hydrogen
Atom

• Atoms and molecules come together to

steady themselves with in a much bigger
system.
• Same phenomenon exist both in animal
 Global Forces

• Among human beings people gather in

groups and participate in group activities,
which leads to self enrichment.
• People form into groups and these groups
take the form of corporations, economy or
a nation.
• Once such a stable group is established –
global forces interact and ensure the
survival of these systems.
 Global Forces

Axiom X: There exists global forces

that further enrich elementary units,
that is, global forces must enhance
self-enrichment processes if they are
to be regarded as constructive
Postulate V: Law of Global Forces
The effective global forces in
intelligent human organizations are
those that enrich elementary units of
the system, meaning that they
support the self-enrichment process.
Its presence is required as the 2nd
set of system stabilizers.
The two complex dynamics
in intelligent human
organisation

Autopoiesis Basic
Interacting intelligent
Agents organisation
Self-
organisation dynamics
 Intelligent system dynamic and
mindfulness
• Intelligent system dynamic
– Self enrichment dynamic is a local self-
centric phenomenon
– Driven by intelligence embedded in the
human thinking system and depends on
the unit’s awareness and mindfulness.
– Mindfulness refers to a uniquely human
function of focusing inwards at the mental
state of the thinking system.
– Mindfulness of the individual minds is a
vital attribute
 Intelligent system dynamic and
mindfulness
An organization is intelligent only if it
nurtures a high level of collective
intelligence
Through the following ;

Dynamic equilibrium between global and elementary

processes
• The intelligent organization must be able to bind the
individuals while the elementary units must be able to
influence the system simultaneously
• This equilibrium allows the global system to learn,
adapt and evolve to form a more effective system
which has a stable surface structure
• This entire dynamic is nonlinear and complex
 Intelligent system dynamic and
mindfulness
Just as how mindfulness is vital to an
individual
mind, orgmindfulness is crucial to an
organization
An orgmindful organization constantly
monitors the mental state of its interacting
agents - ensure they are in highly
participative and stable state
 Intelligent system dynamic and
mindfulness

Interacting
Intelligent
Orgmindfuln agents with
human
ess better mental
organization
state

The collective intelligence source is effective only if it is able to

influence the mindfulness of the individual thinking systems.
 Intelligent system dynamic and
mindfulness
Why is this important?
The relationship between the collective
intelligence source and the individual
thinking systems (orgmindfulness)
enhances connectivity and a mindful
culture
Orgmindfulnes
s

Quality
connectivity and
Orgmind
mindful culture
 Intelligent system dynamic and
mindfulness
• Intelligent system dynamic
– Self enrichment dynamic is a local self-
centric phenomenon
– Driven by intelligence embedded in the
human thinking system and depends on
the unit’s awareness and mindfulness.
– Mindfulness refers to a uniquely human
function of focusing inwards at the
mental state of the thinking system.
 Intelligent system dynamic and
mindfulness
• Orgmind
– The collective self-enrichment process
emerging from individual thinking
systems.
– An intelligent organization nurtures a
high level of collective intelligence
– Orgmindfulness is achieved when it
constantly focuses inwards to ensure
that all it’s interacting agents are in a
stable and highly participative state
 Intelligent system dynamic and
mindfulness
• Dynamic equilibrium between global
and elementary processes
– The intelligent organization must be
able to bind the individuals while the
elementary units must be able to
influence the system simultaneously
– This equilibrium allows the global
system to learn, adapt and evolve to
form a more effective system which has
a stable surface structure
The New Organization Form
• Intelligence is the fundamental force behind
evolution.
• Intelligence is inherently present in the
universe.
• Intelligence facilitates thinking and learning.
• With the use of intelligence, knowledge
structures and theories are established.
• Similar to individual human beings, the
collective intelligence of an organization
facilitates the formation of corporate knowledge
structures and organizational theories.
• Similarly, a high level of orgmindfulness must
be nurtured to elevate the organization to new
conceptual and operational domains.
The New Organization Form
The New Organization Form
Postulate VI – Law of Collective Intelligence
The collective intelligence of an intelligent
organization resides in its orgmind. It is a vital
energy source which is responsible for moulding a
coherent deep structure and an effective nimble
surface structure. The human organization is
unable to evolve without the orgmind

Postulate VII – Law of Orgmindfulness

A high level of orgmindfulness is necessary to
nurture intense, coherence and well focused
intelligence source. This allows for a high level of
evolution and co-evolution dynamics between the
organization and the interacting agents
The general structure of intelligent
business organizations
Economic Production Cycle

Intelligence

Information
flow
Self-
Input enrichme Output
nt
dynamics
Elementary
entities
Engagement
Theory Knowledg
Corporate Intelligence e
Enhancer
Corporate Intelligence
Enhancer
New Conceptual Domain
Orgmind

Orgmindfulness
Intelligence

New Awareness
Knowledg
Theory
e
New Mindset

New Direction
New Attitudes

New
New Skills and Operation
Capabilities al Domain
A New Organization
Strategy
 Intelligent Person Model
• Human thinking system is the most
important asset of a human being.
• It is comprised of the following functions.
• Consciousness – awareness of one’s own
existence as an independent entity.
• Mental Functions – such as perception,
conceptualisation, and decision making
• Sensory System – abilities to interact with
the environment
• Mindfulness – awareness of each and every
thought that arises in the mind
Human Thinking System
 An ‘Intelligent’ Person
• Does not concentrate on optimality at
all times
• Adopts the Intelligence Strategy
• Is mindful and contributes towards the
collective intelligence of the system
• Has a mindset that includes;
• continual fast learning
• longer-term survival
• exploitation of the butterfly effect
• co-evolution with their system
Inner Dynamic of an Intelligent
Person
Increase Mindfulness
Human Mind

Intelligen
ce
Individua
l
Intelligen
Informati ce
on Flow Enhance
r

Theory Knowledg
e

Self-Enrichment Dynamic
Let’s Recap
 Conclusion
• Evolution is driven by intelligence
• It is inherently embedded in the universe
• Thinking is a necessary attribute that
indicates the presence of advanced
intelligence
• An intelligent person is highly aware of the
changing environment and maintains a high
degree of mindfulness.
• An intelligent interacting agent always
attempts to establish a more supportive
culture in the organization through
improving the quality of its connectivity,
competitiveness, and evolution and co-
evolution dynamics.
 How to nurture an Intelligent
Organization
1) The dynamic of an intelligent human organization is
(integration of local self-enrichment processes +
constructive global forces)
2) The overall system dynamic is significantly impacted by (
mental state of the interacting agents + orgmind)
3) An intelligent interacting agent ensures a more
constructive system dynamic due to ( high level of
mindfulness, more concern about longer-term optimality
than shorter-term gain & highly aware of emergence
4) High priority must be allocated to mindfulness of
interacting agent and orgmindfulness of human
organization when leading and managing the
organization
- To achieve higher level of collective intelligence and