By John Raddall on Friday, 03 December 2021
Category: Leadership

How smart is your organisation? QAnon smart? Or Einstein smart? It matters....

"Human energy is subject to the laws of physics.  It is the product of intelligent thinking and intelligent action.  Both can be increased indefinitely."

Nikola Tesla

Organisational IQ drives all performance.  Period. 

Richard Feynman, one of the greatest scientists of the modern era, once stated that 'energy' drives the entire universe.  But we don't know exactly what it is.  

It remains a mystery.

In the meantime we cope by measuring the impact of energy on the world around us.

This includes gravity and energy from the sun for example.

In the organisational world we have developed a tool to measure both organisational energy and organisational intelligence.  We have used this for several decades.

Recent Org IQ Breakthrough 

At an individual level we know that IQ is the strongest indicator of future performance.​  EQ considerably less so.

We prefer to go with Tesla on this issue.  IQ is the primary performance driver in a broader sense.  It depends on the type of intelligence required for the 'job to be done.'

For example, EQ may or may not be required depending on the job.  Sales vs Dentistry.

Just as individual intelligence matters, so too does organisational intelligence.  It is the most powerful of future performance indicators.

Connecting Org Energy to Org IQ 

​Recently we compared the distribution curve of global IQ to our distribution curve of organisational energy and found a high correlation.

And as we know what each Org Energy score predicts in terms of system intelligent thinking and intelligent action - in other words the kinetic energy potential of the system - we can now link Org Energy to the the concept of Org IQ.

In practical terms for example we know that an Org Energy level of 68% equates to an average Org IQ score of 100.

We now have an important new metric that leaders can more easily understand and use to generate new levels of Organisational IQ and performance.

Why Org IQ Matters 

​You cannot make a silk purse from a sow's ear.

If your Org IQ is 100 or less, we predict you are already a dead man walking.  

High IQ organisations are naturally smart, creative and innovative.  They fully understand the laws of physics.  Low IQ organisations less so.

All those fine exhortations about great leadership, creativity, disruptive innovation etc, that we read about every day - they don't live in low IQ systems.

Writers, academics. psychologists, consultants examine the smart, high IQ companies and generally cherry pick the actions that they think can be sprinkled upon the less intelligent companies.

There is just one very big problem.  This can never work.

The Org IQ is the primary determinant of future kinetic energy and performance.  The laws of physics determine the future.  Not magic.  Not witchcraft.  

Let's be brutal.

There is a growing trend towards defining leadership in terms of EQ.  That is being a good listener, wise, empathetic, consistent and in general being a decent human being and not an ​asshole - ​as defined by Prof Robert Sutton in his book ​The No Asshole Rule.

​All of these fine attributes will surely be most comforting for the employees.  However if the overall Org IQ of this now much happier company remains 100, it is still dead in the water.

Happiness therefore may not be a driver of Org IQ.

Can we increase Org IQ?

​Yes.  No question.  No debate.

Nikola Tesla provides the framework summarised as follows.

  1. ​Employ the most intelligent leaders you can afford.  These are the game changing strategists who have the cognitive ability to manage complexity and create new futures.
  2. Remove roadblocks that clog the systemic arteries. Such as incompetent and unpleasant leaders, poor systems and methods etc,
  3. And here is the gold.  Continuously explore new and better ways of doing things.  It is a lifelong journey.  Remember that Org IQ is a function of Intelligent Thinking and Intelligent Action.  Both are measurable.  Both can be taught.  Both can be improved indefinitely.

Conclusion.  Org IQ Matters 

​Global companies that fully understand the concept of Org IQ include Google, Apple, Tesla, Microsoft, Amazon and Facebook.

It is no coincidence that these high IQ Organisations have been founded and driven by high IQ individuals.

It is also no coincidence that they employ the smartest kids on the block.

Here is the good news.  Every leader, every team and every organisation can customise and implement a successful and sustainable Org IQ strategy that will continuously increase their current Org IQ.

The laws of physics are there.  We just have to use them correctly.

Let 'being smart' become your new vision and purpose.

Your survival depends on it.


Future articles connected to
Org IQ 

​Why HR needs a total overhaul to become the architects and engineers of Organisational Intelligence.

Creating the revolutionary Leadership Lab to drive Org IQ.  Continuously and sustainably.

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