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July 18, 2005

Flat companies

Laurence Prusak, in an article in the Harvard Business Review (June 2005), explains the popular success of Malcolm Gladwell's Blink as a "refocused attention on the perennial issue of intuition versus reason."

The age of the computer has led to the belief that the best decisions are rational. Add to that a newfound romanticism of leadership, starring the Hero Leader - making decisions, rationally, by himself, at the top.

He sees Blink and James Surowiecki's The Wisdom of Crowds as a backlash to this rational ideal. Surowiecki asserts that the many, when informed, make better decisions than the one. (Consider the success of "whisper numbers," which often predict companies' future earnings better than individual analysts do.)

Prusak believes an instinctive faith in hierarchical leadership is baked into our genes, but it's an instinct we must fight. Leaders play a role - inspiring the troops, building teams, representing the organization - but they cannot be the sole decision makers.

He ends with the thought that organizations should look to America's national motto for guidance, E pluribus unum: From many voices, one better decision.

Flat company, anyone?

Posted by Shawn Lea at July 18, 2005 03:31 PM

Comments

Christi -- I'm glad you're enjoying the conference so far. I'll pass along your compliments to the meetings and education staffs, the hard-working group who have made this possible.

I do hope it's the first of many ASAE & The Center Annual Meetings for you. And here's my tip about getting lost in this mammoth place: just keep walking, you'll get some place some time.

Posted by: ScottBriscoe at August 14, 2005 07:03 PM

1st time at ASAE conference, and a new member! So far - love it! What a wealth of well organized information in one place. If I can just find my way around. Good thing I'm a nerd and did take the time to map out my preferred destinations to the trade show booths - hope that helps. I hope I will be lucky enough to return to future ASAE conferences. Thanks for such a great show!

Posted by: christi millo at August 14, 2005 11:26 AM

I like the Blog. Thanks for posting your summary on an important topic--leadership & decision making. There can never be too much said about these important subjects.

It may be that (informed)groups make more better decisions than (informed) intidivuals.

On the other hand, in the real world, there are places (and situations) where groups may not be informed, or able to convene, individuals have to make decisions, and as individuals, are the only ones able and/or empowered to do so. Were it not so we wouldn't have queens, kings, presidents, generals, union leaders and Dilbert's boss.

Still, Tom Friedman has pronounced the world now flat, and with such a literate description, it must be so. Poor Columbus.

Thanks for starting a good discussion. Cheers!

Posted by: Virgil Carter at July 18, 2005 05:03 PM

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