how to create a neural organization
Post on 11-Aug-2014
Embed Size (px)
DESCRIPTIONNeural Business refers to a company's decision to mimic brain design and structure rather than the traditional power sharing structure around functional lines. Neural companies organize around distinct processing nodes and spheres designed to handle messages from highly specialized sensors. By organizing around learning, decision making, and recall the company remains adaptive and is capable of maintaining its edge in a rapidly changing world. Is your Organization Neural?
Neural Business and OODA,
21st Century BusinessIn the Evolving
Network Centric World
LTC(R) Michael A. “Lucky” LaChance
Neural: having the characteristics of an electrically excitable cell that processes and transmits information to the cortex Network: a group of two or more cells with interconnecting lines of communication
O-O-D-A The cyclical process of Observing, Orienting, Deciding and Acting to gain insight, knowledge andultimately a position of advantage.
Both structures are composed of distinct nodes processing regions and communication channels to accomplish any set of tasks. Both receive inputs from highly specialized sensors, and each is capable of rapid learning and adaptation Is your Organization Neural?
Neural Organizations Are:AdaptiveCreate vast interconnected functional spheres of influence and connectivity in order to learn and maintain .
CollaborativeReadily share knowledge between nodes and seeks out cross functional assessments and engagement
SpeedyMaintain speed of decisions in order to learn, observe and orient faster
DecisiveActs to shore up assumptions and initiate the next OODA cycle4
Knowledge NodesPeople or Systems in the organization where functional information is exchanged, observed, or transmitted to another part of the organization. Nodes serve as highly specialized sensory transmitters and receptors of data and knowledge across the organization.
Lines of CommunicationRoutes of information and knowledge transmission between nodes (internal and external to the organization) and knowledge spheres
Knowledge Spheres Like the brain, knowledge spheres (processing centers) receive sensory data from highly specialized collection of sensory cells (knowledge nodes). Knowledge spheres provide unique perspective and highly specialized processing to the cortex (company).
The Skills (Enzymes)Information ManagementThe art and science of cataloguing and retrieving elements of data and knowledge
Sense MakingThe art and science of discerning meaning and purpose from seemingly purposeless action, facts and data.
Knowledge ManagementThe art and science of assessing critical insight gaps and the targeted acquisition of new insight
Decision ManagementThe art and science of knowing when and if to decide and the art of anticipating outcomes
Action and Situation ManagementThe art and science of synchronizing activities and monitoring progress to achieve desired outcomes
The ProcessObserveCompare assumptions against reality
OrientDiscover patterns, consider options, anticipate immediate outcomes
DecideMake a choice to do something differently
Acttake positive measureable steps towards accomplishing the indented outcome4
Repeat - QuicklyAir Force Colonel John Boyd (1927-1997) first coined the term OODA Loop to describe a high stakes, tactical combat decision-making pattern.
O-O-D-A Principles 75% is a “GO!”Do not waste precious time and momentum on 100% certainty. Action will beget the last 25% insight – and more
One OODA cycle per quarter (minimum)The rate of decision making determines the pace of organizational learning, insight, adaptation and advantage
Create an action cultureAction begets knowledge which in turn provides market advantage
OODA dislocates competitorsWhen a company acts faster they dislocate and confuse the competition (market and temporal)
OODA creates adaptive organizationsBecause Neural-Co is based on neural networks and focused on action, we are more able to adapt to the changing nature of the market
Situational Awareness/ Management(Reporting and Communicating)
Information Management(Catalogue and Retrieve)
Sense Making (Meaning and Purpose)
Knowledge Management (Assessment, Targeted Learning)
Business Action(Synchronized, on Time/Budget)
Decision Management (Right Choice, Right Time)
Neural Spheres, Purpose and OODA Alignment Neural-Co
Ops Data Steward
IT Data Steward
Ops Data Steward
IT Data Steward
MissionThe information management sphere identifies, tags and indexes business critical knowledge and data to support decision makers and analysts with timely information
• Identifies, tags, and indexes key data for the company.• Manages data and system access • Establishes security rules (HIPAA etc)• Manages User Profiles• Manages the company help desk
Sphere Sponsor : CIOPrimary Node: Corporate InfrastructureSphere LOCS: Data Stewards
Sense MakingMissionReview and present plausible explanations, vignettes and or stories to reduce uncertainty. Monitors incomplete or unusual data and market phenomenon to support speedy decision making
• Serves as Neural-Co’s primary analytical cell• Utilizes enterprise data, collection and analysis and BI tools • Reduces uncertaintyanomalies that prevent decision making• Presents plausible explanations for observed activities & data• Recommends methods to validate or invalidate conclusions
Sphere Sponsor : CEOPrimary Node: VP Business IntelligenceSphere LOCS: Analysts
Knowledge ManagementMission: Identify, catalogue, prioritize and link to pending decisions, the most vexing and impactful questions that must be answered to facilitate further decision making. These requirements are called Priority Intelligence Requirements
Sphere Sponsor : COO Primary Node: VP of Planning/StrategySphere LOCS: VPs
• Neural-Co’s primary Strategic/ Operational Planning Sphere• Identifies knowledge gaps associated with courses of action• Develops collection and analysis plans to fill gaps• Proposes courses of action to achieve Neural-Co vision• Proposes success metrics for COA• Conceptualizes future states and alternative futures
Decision ManagementMission: The Decision Management Sphere provides company vision, guidance, and decisions for Neural-Co so as to establish the market momentum, increase company value and retain temporal and positional advantage.
Sphere Sponsor : BOD Primary Node: CEOSphere LOCS: Executives
• Communicate the Neural-Co vision• Coordinate and approve the Neural-Co mission statement• Provide strategic direction and operational guidance• Establish & monitor the Common Operational Picture (COP)• Establish, track and report on decisions in time and space• Make decisions in a timely manner
Action ManagementMission: The Action Management Sphere plans and synchronizes operational goals and tactical programs, projects, plans, product development, and other business processes in order to achieve the collective effects and objectives of the Strategic plan
Sphere Sponsor : CEO Primary Node: COOSphere LOCS: VPs
• Develops, executes and reports on programs, projects, initiatives• Coordinates action between spheres to accomplish the mission• Responsible for Neural-Co’s PD and training programs• Manages daily activities
Situation ManagementMission: The situation management Sphere monitors, and reports on internal and external events, activities, goals against key performance indicators to provide actionable data and situational awareness to the organization as discreet observations and data.
Sphere Sponsor : BOD Primary Node: Communications Sphere LOCS: Spheres and BOD
References:• Col John Boyd : Discourse on Winning and Losing accessed
20 July 2014 http://www.ausairpower.net/JRB/intro.pdf
• LTC(R) Michael A. LaChance. Whiskey and Decisions Blog. “Beer is to Whiskey” http://organizationaldecisions.blogspot.com/2013/08/beer-is-to-whiskey-as-planning-is-to.html, Accessed 20 July 2014.
• Network Centric Organizations. Wikipedia accessed 20 July 2014, http://en.wikipedia.org/wiki/Network-centric_organization.