Tag Archives: instinct

Intuition as a Dynamic Adaptation Skill

mountain-morginsAside from business executives, there are other professionals who use intuition and instinct, and in some cases it is about crude survival tactics.  In war, life-and-death decisions must be made instantly, with little if any time for rational analysis.  And what’s more impressive is that the army has discovered that the ability to act effectively from gut feelings can be improved through training.

Time after time, the army has learned that “the speed with which the brain reads and interprets sensations like the feelings in one’s own body and emotions in the body language of others is central to avoiding imminent threats.”  The U.S. military has spent billions of dollars to protect against improvised explosive devices (IEDs), investing in hardware and technology to seek and destroy these homemade roadside bombs.  But experts say it is the human brain that has proven to be the most perceptive detection system.  Troops often credit their experience and perception—their gut feelings—for their ability to notice and foil IED attacks.

U.S. troops are a central focus of a large effort to understand how it is that in a life-or-death situation some people’s brains can sense danger and act on it well before others can.  Experience matters on the battleground.  If you have seen something before, you are more likely to anticipate it the next time.  Yet it is not just experience that matters.  Research suggests that something else is at work too.  “Small differences in how the brain processes images, how well it reads emotions and how it manages surges in stress hormones help explain why some people sense imminent danger before most others do.”

Unfortunately, for some time feelings have been perceived as having little to do with rational decision making.  In fact, it has long been thought that they just get in the way of it.  But according to Dr. Antonio Damasio, director of the Brain and Creativity Institute at the University of Southern California, “Now that position has reversed.  We understand emotions as practical action programs that work to solve a problem, often because we’re not conscious of it.  These processes are at work continually.”  All scientific facts point to the evidence of an inner knowing preceding our rational mind.

Gut feelings about potential threats and opportunities are not always correct, and neuroscientists debate the conditions under which the feelings precede the conscious awareness of the clues themselves.  But our instinctual skills evolved to ensure our survival, and research findings suggest that in some people those skills are exquisitely sensitive.  So although the many serious researchers who say that gut feelings are not always correct do have a point, they may be missing the most important point: gut feelings have other functions that transcend the logic of reason, and to leverage their role fully we should not evaluate gut feelings on a narrow basis of whether they are right or wrong.

When we engage in solving a problem using logical skills, we follow certain rules or protocols based on past experience with a similar problem.  The rules and protocols we follow are generally well defined and measurable.  If we succeed in solving our problem, we typically attribute it to the efficacy of the protocols we followed.  If we fail at solving our problem, we can look back and analyze the steps we took to find where our approach failed.

Conversely, when we engage in solving a problem using our instincts, we follow a path that is highly specific to our problem and ourselves at a particular moment in time.  If someone asks us how we solved the problem, we may be able to recount what we did, but even a detailed recounting of what we did will not necessarily apply to a similar problem.  And that’s fine, because instinctual problem solving isn’t necessarily about replication; it’s about dynamic adaptation to circumstances.  The problem is that when we are successful, we (and others) may attribute our success simply to luck, even though calling on our instincts is a skill we can develop.   So although we may never be able to measure the efficacy of instinct-based problem solving precisely, that doesn’t mean it is a random phenomenon.  The difference between logic-based problem solving and instinct-based problem solving isn’t necessarily efficacy; the difference lies in our ability or inability to precisely identify cause and effect.  And when we can’t identify cause and effect, we often feel out of control or inefficient, when in fact we may have  some instinctual clues to next steps or answers.

How Instinct and Intuition Can Help You Navigate Our Uncertain Times

No, no! You’re not thinking, you’re just being logical.

–Niels Bohr, Nobel Prize winner in physics

photo-1424298397478-4bd87a6a0f0cTo date, our collective approach to human intelligence often relies on outdated concepts. The misplaced expectations we place on the ability of instinct and intuition to guide us in life often obliterates their original contributions. We expect intuition and instinct to give us black and white answers that logic can evaluate. It is simply not their function. Yet this misunderstanding of intuition and instinct, which is evident in questions like, “Can I trust my intuition to make the right decision?” or “Can I rely on my guts to do this?” is often encountered in business. This in turn limits our ability to better understand the breadth and depth of a situation and make decisions with a broader perspective, which is exactly what instinct and intuition are meant allow us to do.

It is necessary to better understand how our brain functions in order to better leverage its creative capacity for in-depth reflection, original thinking, and efficient and sustainable decision making.  But with the exception of rare initiatives, business schools and educational institutions in general seem quite resistant to change in this field of interest. Our economy is highly complex and unpredictable.  This makes traditional decision making, which is predominantly guided by the laws of logic, inoperative or plain dangerous. Therefore we need to better understand our mental life–and its larger potential, which is hidden to the conscious mind yet accessible to the newly educated and insightful individual; this is where intuition and instinct com into play to help us identify in the midst of complex systems the decisive piece of information that would have otherwise eluded our rational mind.

Instinctual aptitudes can be instrumental in business.  People who employ instinct and intuition have a more and more decisive competitive advantage when navigating in the new economy. But what exactly is instinct? Here are some simple definitions to keep in mind:

– Instinct is our innate inclination toward a particular behavior (as opposed to a learned response)

– A gut feeling or a hunch–is a sensation that appears quickly in consciousness (noticeable enough to be acted on if one chooses to) without us being fully aware of the underlying reasons for its occurrence.

– Intuition is a process that gives us the ability to know something directly without analytic reasoning, bridging the between the gap conscious and nonconscious parts of our mind, and also between instinct and reason.

In everyday language these three terms can at times be substituted for one another. Some people may also understand or define these words differently. But at The Human Company, these definitions reflect the specific meaning we attach to each.

In the 1960s, Dr. Douglas Dean, along with his colleague John Mihalasky, studied approximately five thousand executives. Eighty percent of them said they believed in extrasensory perception (ESP) and used it to anticipate and seize profitable business opportunities. ESP is casually referred to as a sixth sense, gut instinct, or hunch, and for this reason ESP pertains to our subject matter: the importance and the role of instinct and intuition in decision making. This belief in ESP did not stem from the fact these highly successful businessmen had any theoretical knowledge of the subject, nor did it indicate that they would seek advice from a person with psychic abilities. It was simply the reflection of a direct experience with these abilities and their concrete applications to business. Dean and Mihalasky also studied a particular subgroup among the initial five thousand executives. They focused on 165 presidents and CEOs of American companies who had doubled or more than doubled their company profits in a five-year period. They found that 80 percent of them had above-average predictive computer test scores; that is, they demonstrated precognitive abilities. This piece of research on the use of everyday intuition for decision making in business led the authors to believe that precognitive ability was a reliable indicator of financial success. According to the authors, measuring potential aptitudes for ESP would be a much better indicator of professional success than other psychometric instruments. Some of the highly successful global companies I have worked for, like Estée Lauder Companies and L’Oréal, do give great importance to intuition. Mrs. Estée Lauder herself would rely greatly on her intuition, and today Estée Lauder Companies CEO Fabrizio Freda insists on maintaining and supporting intuition–in conjunction with a strong analytical capacity–in the work of his teams as a fundamental aspect in the success of the company. L’Oreal’s former CEO, François Dalle, who built the beauty company into a world-renowned multinational, insisted on “intuiting what is arising” as a key competence the beauty company executives had to develop and work with. This type of belief is not limited to the beauty industry. Konosuke Matsushita, Japanese industrialist and founder of Panasonic, once said. “No matter how deep a study you make, what you really have to rely on is your own intuition.”

Dean and Mihalasky’s well-known research has been available since 1974, the year of its publication. It is not new knowledge. And since then, similar studies have produced similar results. Another study was conducted in the 1980s, using two thousand managers over a period of two years. This study revealed that executives used intuition like “explorers” to “foresee” the correct path to follow, but they did so secretly. A well-known 1994 study conducted at the Harvard Business School produced a global survey of more than 1,300 practicing managers in nine countries: the United States, the United Kingdom, Austria, Brazil, France, India, Japan, the Netherlands, and Sweden. Of the 1,300 polled executives, 80 percent explained their success through decisions made intuitively, and 75 percent claimed they used intuition and logic equally. However, the study also shows that more than 50 percent of them would not publicly admit to relying on intuition. These last two examples prove that gut feelings and intuition are widely resorted to in business, but that there is definite prejudice against this type of aptitude.

So how come organizations I know and organizations I hear about still evaluate executives on criteria such as team management, interpersonal communication, entrepreneurship, and, more recently, emotional intelligence, but they do not integrate in their evaluation templates the ability to manifest as well as encourage in others instinctual intelligence and intuition at work? How come classes about intuitive skills are still so rare in business schools? A first answer seems obvious: we are culturally uncomfortable with what’s not exact and what cannot be demonstrated. Even if research shows that many successful business minds use intuition, it remains hard to conceptualize intuition and make it a tangible capacity that can be taught and measured. Besides, to share an intuitive opinion or to defend it in a fact-based environment such as a business presentation requires self-confidence and courage. All these issues are cause for leaving the challenging topic of intuition out of modern society in which the scientific mind is clearly seen as a warrant for truth and reliability.

Can I trust my gut feelings?

gut feeling 2Gut feelings about potential threats and opportunities are not always correct, and neuroscientists debate the conditions under which the feelings precede the conscious awareness of the clues themselves. But our instinctual skills evolved to ensure our survival, and research findings suggest that in some people those skills are exquisitely sensitive. So although the many serious researchers who say thatgut feelings are not always correct do have a point, they may be missing the most important point: gut feelings have other functions that transcend the logic of reason, and to leverage their role fully we should not evaluate gut feelings on a narrow basis of whether they are right or wrong.

When we engage in solving a problem using logical skills, we follow certain rules or protocols based on past experience with a similar problem. The rules and protocols we follow are generally well defined and measurable. If we succeed in solving our problem, we typically attribute it to the efficacy of the protocols we followed. If we fail at solving our problem, we can look back and analyze the steps we took to find where our approach failed.

Conversely, when we engage in solving a problem using our instincts, we follow a path that is highly specific to our problem and ourselves at a particular moment in time. If someone asks us how we solved the problem, we may be able to recount what we did, but even a detailed recounting of what we did will not necessarily apply to a similar problem. And that’s fine, because instinctual problem solving isn’t necessarily about replication; it’s about dynamic adaptation to circumstances. The problem is that when we are successful, we (and others) may attribute our success simply to luck, even though calling on our instincts is a skill we can develop. So although we may never be able to measure the efficacy of instinct-based problem solving precisely, that doesn’t mean it is a random phenomenon. The difference between logic-based problem solving and instinct-based problem isn’t necessarily efficacy; the difference lies in our ability or inability to precisely identify cause and effect. And when we can’t identify cause and effect, we feel out of control or inefficient.

How and Why to Apply Gut Feelings to Business

Screen Shot 2015-11-08 at 9.46.41 PMI know we promised you an decoding of your intuitive compass, and with our greatest apologies, it will come next week.

In the meantime…

Because our instinct is responsible for our survival, it actually makes complete sense for it to be heavily involved in sophisticated decisions. It has been doing that job for thousands of years. So it follows that, in important matters that will affect our lives, our instinct should be the first and foremost judge of whether or not a decision is good. A study conducted by neuroscientists at Princeton University confirms this fact. The aim of the study was to demonstrate how a gut feeling may rise before a person becomes conscious of what the brain has registered. In the study, students were directed to pick out figures—people or cars—in a series of photos that flashed by on a computer screen. The pictures flashed by four at a time, and the participants were told to scan only two of them, either those above and below the center point, or those to the left and right. Eye tracking confirmed that they did just that. But brain scans showed that the students’ brains registered the presence of people or cars even when the figures appeared in photos that they were not paying attention to. The brain tallies cues, big and small, consciously and not, it may send out an alarm before a person fully understands why.

A gut feeling is often the result of some part of our brain taking in and processing information that we are not conscious of having taken in and processed. This study demonstrates how we sometimes are not consciously aware of all of the information that we in fact have already registered at some level—in this case visually.

When a gut feeling arises before a person becomes conscious of it, it can enrich their ability to make a decision. Not only that, but sometimes logical problem solving is simply not the best option. Sometimes the best way to come up with an appropriate answer to a logical problem is to base it on a gut feeling. Dr. Gerd Gigerenzer, a psychologist who has studied the limits of rational thinking in decision making explains that, contrary to popular wisdom, sometimes there is no optimal strategy attainable to solve a problem. He gives the example of a presidential candidate who has to plan a fifty-city tour. The candidate would like to start and end in the same city and obviously cover the shortest distance. The candidate would like to start and end in the same city and obviously cover the shortest distance. There are so many possible itineraries that not even the fastest computer can optimize the candidate’s choice in a lifetime, a century, or even a millennium.

When optimization is out of reach we must rely on our gut feelings instead of logical deduction. And this applies to any situation in which rules are not completely explicit, uncertainty is prevalent, or rule breaking is an option. This obviously pertains to winning a negotiation, leading an organization, marketing a new product, investing in the stock market, or training executives. Of course, for every one of these endeavors good enough strategies exist, but for us to find and choose these valid strategies we need to resort to what Gigerenzer calls a “rule of thumb,” which he defines as the product of a mental process that tries to identify the most important information and ignore the rest, taking advantage of an evolved capacity of the brain to do so. For Gigerenzer, expert of the intelligence of the unconscious, “it would be erroneous to assume to intelligence is necessarily conscious and deliberate.” He adds, “We know more than we can tell.”

Excerpted from Francis Cholle’s The Intuitive Compass, Jossey-Bass

Taking Stock of Today’s Business World

Screen Shot 2015-05-16 at 10.44.13 PMThe best business leaders want to innovate, embrace change, and create new business approaches because they recognize the need to evolve.  And yet in business too many leaders still do things by the book and stick to the logic of reason and results to the exclusion of other ways of thinking.  Too many of us think and operate primarily this way, especially during difficult times.  The uncomfortable reality is that disruptive ideas come from the combination of instinct and play, so we’re pretty much thinking backward when it comes to engaging innovation.  We’re rearranging our companies rather than exploring the many ways we could create a completely different kind of company.  Organization has the potential to add the most value when it follows creative imagination possibilities, no when it precedes it.

Popular thought says that by applying more analysis, focusing more on results, and working harder to get those results, we will get to the new and different.  But that is not the case.   This is a forceful approach to change, but it’s not actually a smart approach to change.  It’s certainly not a very creative approach to change. Given this way to thinking, however it’s no wonder that we’ve developed business models that are hard to sustain.  The fragrance industry, the car industry, and the media industry, for example, have all been predominantly operating in the same way for many years, still try to innovate with reason to get results, and still hoping that if they use the same business models and the same management models they will be able to capture the market, keep sales afloat, and maintain margins.  But that is not in the cards.  In fact, the odds have been against it all along.

On an even larger scale, it’s no wonder that we’ve developed economic models that are not sustainable and that contribute to dwindling resources, climate change, and pollution.  The way we’ve been thinking about development has been through the linear, rational management systems.  But life unfolds according to very different principles.  Most likely, if we haven’t integrated the fundamentals of play, intuition, and instinct into our development models, it’s because we haven’t conceived of them in the first place.  Yet they present a huge opportunity.

It’s clear that we have evolved, progressed, grown, and prospered through a model that largely excludes the fundamentals of our ecosystem.  But we’ve reached a place where the disconnect is so big that we have no choice but to think differently–really differently–and innovate radically. Play, intuition and instinct show us how to do just that.  They show how we can think in a way that includes the fundamentals of life, the randomness of play, and the power and adaptive nature of our instinct for survival while responsibly harnessing our propensity for aggression and leveraging our valuable scientific heritage and its instrumental tool called logic.  And if we’re able to do that, then we’ll be able to innovate and change more easily.  We’ll also be able to prosper in a way that is more balanced between cooperation and competition, without compromising our ecosystems, our survival, and our legacy for future generations.

Excerpted from The Intuitive Compass, Jossey-Bass, 2011. 

The Science Behind Gut Feelings

Screen Shot 2015-03-29 at 8.50.35 PMBecause our instinct is responsible for our survival, it actually makes complete sense for it to be heavily involved in sophisticated decisions.  It has been doing that job for thousands of years.  So it follows that, in important matters that will affect our lives, our instinct should be the first and foremost judge of whether or not a decision is good.  A study conducted by neuroscientists at Princeton University confirms this fact.  The aim of the study was to demonstrate how a gut feeling may rise before a person becomes conscious of what the brain has registered.  In the study, students were

 directed to pick out figures—people or cars—in a series of photos that flashed by on a computer screen.  The pictures flashed by four at a time, and the participants were told to scan only two of them, either those above and below the center point, or those to the left and right.  Eye tracking confirmed that they did just that.  But brain scans showed that the students’ brains registered the presence of people or cars even when the figures appeared in photos that they were not paying attention to….  The brain tallies cues, big and small, consciously and not, it may send out an alarm before a person fully understands why.

 A gut feeling is often the result of some part of our brain taking in and processing information that we are not conscious of having taken in and processed.  This study demonstrates how we sometimes are now consciously aware of all of the information that we in face have already registered at some level—in this case visually.

When a gut feeling arises before a person becomes conscious of it, it can enrich their ability to make a decision.  Not only that, but sometimes logical problem solving is simply not the best option.  Sometimes the best way to come up with an appropriate answer to a logical problem is to base it on a gut feeling.  Dr. Gerd Gigerenzer, a psychologist who has studied the limits of rational thinking in decision making explains that, contrary to popular wisdom, sometimes there is no optimal strategy attainable to solve a problem.  He gives the example of a presidential candidate who has to plan a fifty-city tour.  The candidate would like to start and end in the same city and obviously cover the shortest distance.  The candidate would like to start and end in the same city and obviously cover the shortest distance.  There are so many possible itineraries that not even the fastest computer can optimize the candidate’s choice in a lifetime, a century, or even a millennium.

When optimization is out of reach we must rely on our gut feelings instead of logical deduction.  And this applies to any situation in which rules are not completely explicit, uncertainty is prevalent, or rule breaking is an option.  This obviously pertains to winning a negotiation, leading an organization, marketing a new product, investing in the stock market, or training executives.  Of course, for every one of these endeavors good enough strategies exist, but for us to find and choose these valid strategies we need to resort to what Gigerenzer calls a “rule of thumb,” which he defines as the product of a mental process that tries to identify the most important information and ignore the rest, taking advantage of an evolved capacity of the brain to do so.  For Gigerenzer, expert of the intelligence of the unconscious, “it would be erroneous to assume to intelligence is necessarily conscious and deliberate.” He adds, “We know more than we can tell.”

Excerpted from The Intuitive Compass, Jossey-Bass, 2011.

Prejudice Against Instinct and Intuition

Screen Shot 2015-03-22 at 8.59.17 PMMany of us—even when we experience success—are uncomfortable with the idea of using our instincts as a guidance tool. We are embarrassed to say that we follow hunches, we mistrust the sometimes-cryptic messages that our instincts send to us, and consequently we diminish our capacity to leverage the power of our own instincts when we need them most. Our discomfort with the idea of relying on our instinct is based on millennia of cultural prejudice.

Leaving all commentary on the value and importance of religion aside, we can still make the observation that most Judeo-Christian religions arrived, in one way or another, as the conclusion that our often crude instinct-driven impulses for food, pleasure, and aggression can stand in the way of spiritual growth and ascension. Think of the common phrase, “We are not like animals.” It tells us that the assumed difference between humans and animals is humans’ ability to reason with our instinctual impulses, and the unspoken message is that reason is a higher and better quality to possess. The thing is, not only are we like animals, we are animals. However, we are animals with the distinct advantage of having both instinct and reason at our disposal. So we don’t actually have to reject either morality of instinct, rather, we have the capacity to honor and call upon both.

What’s more, as much as we may associate “animal instinct” with predation or violent “dog-eat-dog” behavior, the truth is that animals also have an extraordinary capacity for collaboration and playfulness, even with partners who are their enemies (or their lunch) in the animal kingdom. Dr. Stuart Brown has observed animals at length. His research shows an extraordinary series of photographs taken in Manitoba, Canada, by a photographer who captured a chance encounter between a 1,200-pound wild male polar bear and a pack of huskies, the beautiful domesticated dogs that are typically used to pull sleds. In the first frame, the polar bear is seen approaching the huskies with a distinctive predatory gaze. In the next, we see one husky come forward toward the polar bear in what Dr. Brown calls a “play bow,” wagging her tail. In subsequent frames we see the polar bear’s attitude toward the husky transform from predation into playfulness. He withdraws his claws and softens his gaze. They begin to play together and dance around. The polar bear allows the husky to playfully bite his jaw, and the husky allows the polar bear to playfully bite her bared neck. The sequence ends with the polar bear cuddling the husky under his neck.

Instinct can level an otherwise unlevel playing field, as it did with the polar bear and the husky. The husky’s playful approach was the first step in shifting the polar bear’s approach from predatory to conciliatory. With instinct, a quantifiable power advantage can be disabled, which is both a fantastic realization and simultaneously daunting responsibility. What we can take away from this is that instinct is about relationships and instantaneous adaptation to circumstances, and it is about reproduction, territorial protection, and aggression alike. What matters is intention and choosing how we use instinct. As humans, it is our duty to channel our instinctual powers and put them to creative use. Repressing them or devaluing them in the name of logic, or assigning instinct roles it cannot fulfill (such as to be analytically predictive or rational) are not appropriate answers. Play is an incredibly inventive way to leverage instinct.

Excerpted from The Intuitive Compass, Jossey-Bass, 2011.

When Can I Trust Gut Feelings?

Screen Shot 2015-03-15 at 10.27.16 PMGut feelings about potential threats and opportunities are not always correct, and neuroscientists debate the conditions under which the feelings precede the conscious awareness of the clues themselves. But our instinctual skills evolved to ensure our survival, and research findings suggest that in some people those skills are exquisitely sensitive. So although the many serious researchers who say thatgut feelings are not always correct do have a point, they may be missing the most important point: gut feelings have other functions that transcend the logic of reason, and to leverage their role fully we should not evaluate gut feelings on a narrow basis of whether they are right or wrong.

When we engage in solving a problem using logical skills, we follow certain rules or protocols based on past experience with a similar problem. The rules and protocols we follow are generally well defined and measurable. If we succeed in solving our problem, we typically attribute it to the efficacy of the protocols we followed. If we fail at solving our problem, we can look back and analyze the steps we took to find where our approach failed.

Conversely, when we engage in solving a problem using our instincts, we follow a path that is highly specific to our problem and ourselves at a particular moment in time. If someone asks us how we solved the problem, we may be able to recount what we did, but even a detailed recounting of what we did will not necessarily apply to a similar problem. And that’s fine, because instinctual problem solving isn’t necessarily about replication; it’s about dynamic adaptation to circumstances. The problem is that when we are successful, we (and others) may attribute our success simply to luck, even though calling on our instincts is a skill we can develop. So although we may never be able to measure the efficacy of instinct-based problem solving precisely, that doesn’t mean it is a random phenomenon. The difference between logic-based problem solving and instinct-based problem isn’t necessarily efficacy; the difference lies in our ability or inability to precisely identify cause and effect. And when we can’t identify cause and effect, we feel out of control or inefficient.

Excerpted from The Intuitive Compass, Jossey-Bass, 2011.

Instinct and Intuition Can be Trained

Screen Shot 2015-03-11 at 10.32.51 PM

Aside from business executives, there are other professionals who use intuition and instinct, and in some cases it is about crude survival tactics. In war, life-and-death decisions must be made instantly, with little if any time for rational analysis. And what’s more impressive is that the army has discovered that the ability to act effectively from gut feelings can be improved through training.

Time after time, the army has learned the “the speed with which the brain reads and interprets sensations like the feelings in one’s own body and emotions in the body language of others is central to avoiding imminent threats.” The U.S. military has spent billions of dollars to protect against improvised explosive devices (IEDs), investing in hardware and technology to seek and destroy these homemade roadside bombs. But experts say it is the human brain that has proven to be the most perceptive detection system. Troops often credit their experience and perception—their gut feelings—for their ability to notice and foil IED attacks.

U.S. troops are a central focus of a large effort to understand how it is that in a life-or-death situation some people’s brains can sense danger and act on it well before others can. Experience matters on the battleground. If you have seen something before, you are more likely to anticipate it the next time. Yet it is not just experience that matters. Research suggests that something else is at work too. “Small differences in how the brain processes images, how well it reads emotions and how it manages surges in stress hormones help explain why some people sense imminent danger before most others do.”

Unfortunately, for some time feelings have been perceived as having little to do with rational decision making. In fact, it has long been thought that they just get in the way of it. But according to Dr. Antonio Damasio, director of the Brain and Creativity Institute at the University of Southern California, “Now that position has reversed. We understand emotions as practical action programs that work to solve a problem, often because we’re not conscious of it. These processes are at work continually.” All scientific facts point to the evidence of an inner knowing preceding our rational mind.

Excerpted from The Intuitive Compass, Jossey-Bass, 2011.

How Instinct and Intuition Can Help You Navigate the Economy 3.0 (Part 2)

In the 1960s, Dr. Douglas Dean, along with his colleague John Mihalasky, studied approximately five thousand executives. Eighty percent of them said they believed in extrasensory perception (ESP) and used it to anticipate and seize profitable business opportunities. ESP is casually referred to as a sixth sense, gut instinct, or hunch, and for this reason ESP pertains to our subject matter: the importance and the role of instinct and intuition in decision making. This belief in ESP did not stem from the fact these highly successful businessmen had any theoretical knowledge of the subject, nor did it indicate that they would seek advice from a person with psychic abilities. It was simply the reflection of a direct experience with these abilities and their concrete applications to business. Dean and Mihalasky also studied a particular subgroup among the initial five thousand executives. They focused on 165 presidents and CEOs of American companies who had doubled or more than doubled their company profits in a five-year period. They found that 80 percent of them had above-average predictive computer test scores; that is, they demonstrated precognitive abilities. This piece of research on the use of everyday intuition for decision making in business led the authors to believe that precognitive ability was a reliable indicator of financial success. According to the authors, measuring potential aptitudes for ESP would be a much better indicator of professional success than other psychometric instruments. Some of the highly successful global companies I have worked for, like Estée Lauder Companies and L’Oréal, do give great importance to intuition. Mrs. Estée Lauder herself would rely greatly on her intuition, and today Estée Lauder Companies CEO Fabrizio Freda insists on maintaining and supporting intuition–in conjunction with a strong analytical capacity–in the work of his teams as a fundamental aspect in the success of the company. L’Oreal’s former CEO, François Dalle, who built the beauty company into a world-renowned multinational, insisted on “intuiting what is arising” as a key competence the beauty company executives had to develop and work with. This type of belief is not limited to the beauty industry. Konosuke Matsushita, Japanese industrialist and founder of Panasonic, once said. “No matter how deep a study you make, what you really have to rely on is your own intuition.”

Dean and Mihalasky’s well-known research has been available since 1974, the year of its publication. It is not new knowledge. And since then, similar studies have produced similar results. Another study was conducted in the 1980s, using two thousand managers over a period of two years. This study revealed that executives used intuition like “explorers” to “foresee” the correct path to follow, but they did so secretly. A well-known 1994 study conducted at the Harvard Business School produced a global survey of more than 1300 practicing managers in nine countries: the United States, the United Kingdom, Austria, Brazil, France, India, Japan, the Netherlands, and Sweden. Of the 1,300 polled executives, 80 percent explained their success through decisions made intuitively, and 75 percent claimed they used intuition and logic equally. However, the study also shows that more than 50 percent of them would not publicly admit to relying on intuition. These last two examples prove that gut feelings and intuition are widely resorted to in business, but that there is definite prejudice against this type of aptitude.

So how come organizations I know and organizations I hear about still evaluate executives on criteria such as team management, interpersonal communication, entrepreneurship, and, more recently, emotional intelligence, but they do not integrate in their evaluation templates the ability to manifest as well as encourage in others instinctual intelligence and intuition at work? How come classes about intuitive skills are still so rare in business schools? A first answer seems obvious: we are culturally uncomfortable with what’s not exact and what cannot be demonstrated. Even if research shows that many successful business minds use intuition, it remains hard to conceptualize intuition and make it a tangible capacity that can be taught and measured. Besides, to share an intuitive opinion or to defend it in a fact-based environment such as a business presentation requires self-confidence and courage. All these issues are cause for leaving the challenging topic of intuition out of modern society in which the scientific mind is clearly seen as a warrant for truth and reliability.

Excerpted from The Intuitive Compass, Jossey-Bass, 2011.