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Knowledge is required but insufficient for wise action. To act wisely, we must understand the context in which we operate. Our understanding, however, is often limited and flawed. How do we create organizations capable of managing uncertainty well?
The following sections present some ideas to begin answering this question. It first explores means through which to develop an organization’s capacity to engage in collective reasoning. It then introduces an approach called appreciative inquiry, whose intent is to provide a framework for organizations to address exceptionally challenging problems. It then discusses the importance for organizations to adopt an experimental mindset when dealing with situations with no clear solution.
Let’s kick things off by returning to the concept of collective reasoning.
Developing an Organization’s Capacity to Engage in Collective Reasoning
Chapter IX discussed the power of collective reasoning to bring multiple perspectives together to create a more vibrant picture of our operating environment and develop innovative solutions. Doing this well requires more than putting a diverse group of people in the room and letting them debate. Indeed, merely putting a diverse group of people in the room and shutting the door may well lead to bitter arguments and animosity.
To tap into the power of collective reasoning, an organization must develop certain structural elements and foster appropriate actions and attitudes. The following sections describe these structures, actions & attitudes in more detail.
Structural Elements of a Group Engaged in Collective Reasoning
Various structures facilitate an organization’s ability to use and integrate the knowledge distributed across its members. Once an organization develops these structures, it can:
- Deepen an assessment of the operating environment in which your organization exists.
- Develop innovations or integrate knowledge to exploit.
- Implement and spread innovations throughout your organization and beyond.
These structures include the following five elements.[1]
1. Creating Credibility
To engage in collective reasoning, individuals must consider the other people they are working with as credible participants in the process. They must also find the task they are working together on as credible use of their efforts. The following steps are ways to achieve credibility
- As discussed in Chapter IX, you can achieve this credibility by using the form of rationality the organization considers legitimate (e.g. bankers favoreconomic rationality, scientists technocratic rationality).
- A person’s credentials are also an important signal of credibility. For example, we would consider a chartered accountant a more credible source for tax information than a registered nurse.
- A group leader can give the process of collective reasoning credibility through the creation of clear strategic mandates and action agendas for people entering the group.
2. Stimulating Diversity of Tho