The Rise of Superorganisms: Why the Machine Metaphor is No Longer Relevant for Modern Organisations.
- samuelepremi
- Apr 28, 2023
- 3 min read
The way businesses are talked about and managed scientifically has always been shaped by the companies and challenges of their time. In the 18th century, for instance, Frederick the Great commented, "Economics is learned from farmers, not universities."
Today’s business narrative is rooted in the Industrial Revolution...
Starting with the Industrial Revolution and its resulting prosperity for humanity, the focus of the last century has been on industrial companies. These enterprises are characterized by high capital-intensive operations, which require a lot of capital, and the separation of decision-making and implementation, leading to the development of numerous hierarchical levels. Influenced by machines and the principle of division of labor, these businesses produce goods and sell them on large markets.
The law of mass production, which states that as production quantity increases, unit costs decrease, shifted the focus to efficiency. The industrial industry is still the most represented business sector in the S&P 500, but it has seen a significant drop in the last 50 years. While in 1969, 166 companies of the 500 were industrials, today there are only around 70.
Unsurprisingly, the guiding principle in the last century, Taylorism, is about analyzing and synthesizing workflows with the main objective of improving economic efficiency, especially labor productivity.
It can be concluded that the business narrative in the last century was heavily influenced by industrial companies. Phrases like "the organization needs to run like a well-oiled machine" and "every employee is replaceable", as well as the practice of looking for employees to fit a specific position, all stem from the belief that today's organizations should operate like machines. This narrative, which we tell ourselves and each other, is deeply rooted in Taylorism.
The organization as a machine
Viewing an organization as a machine leads to the following aspects:
The function of the organization is predetermined.
There is clear input and output.
If a component (like a cog in a machine) does not work, you can simply replace it.
If you want to change the output, it is a labor-intensive process because you must deeply delve into the machine itself.
Times are changing... increasingly faster
While this approach worked for most companies in the 20th century, the situation has changed today. With the emergence of the internet and the proper devices and applications to use it, the dynamics of the market are increasing, and new use cases are emerging daily. Organizations need to keep up with this changing landscape. The following graphic shows that the average lifespan of companies in the S&P 500 is decreasing. There is a clear trend towards higher company turnover.
In this blog series, we will delve deep into the subject of how and why times have changed and what kind of setup is needed for an organization to prosper. However, this blog post is focused on establishing a new metaphor that is more fitting for the challenges of the 21st century.
The organization as a Superorganism
The emerging metaphor for the new organizational model is that of a superorganism. Specifically, we can look to the flock of birds as a model. Birds form flocks to keep warm, exchange food sources, and fend off predators. When fending off predators, they move synchronously through the sky, which is called a murmuration. A flock can contain several million birds, and all of them move in perfect harmony. How is this possible? Is there a central agent telling all the others what to do? Do they discuss this breathtaking dance beforehand? Of course not. All individuals share a certain set of rules. Researchers have found evidence that each bird in the flock communicates with its six or seven surrounding birds, following their cues and adjusting their movements. So, when one bird moves, its nearest neighbors will do the same, and so on, propagating a wave-like movement throughout the entire flock.
We believe that the most effective organizational model for humans can be inspired by murmuration. In a flock of birds, every bird follows a certain set of rules without a single authority directing them on how and where to move. Instead, individuals act upon their surroundings and adapt to the given circumstances. Any bird can initiate a change in direction for the whole flock, with the goal of moving synchronously and in harmony.
We believe that this approach can also be applied to human organizations. Only with this setup can we effectively harness the full potential of current technological advancements. This new perspective creates the groundwork for establishing new rules and systems.
Outlook
In the upcoming blog posts, we will introduce companies that operate in such a setup. These organizations have established new rules and systems and are characterized by high dynamism, resulting in high success rates. Examples can be found in all industries.
In the next blog post, we will cover the Cynefin model to further explore the concepts and terminology needed to investigate the emerging organizational model known as the "Teal Organization".
Until then, have a good one.
Images: