Everyone likes formulae. Once we can quantify, we can measure, we can compare, equalize or subtract, we believe it to be closer to the truth. Our understanding is amplified with the supporting data that we can verify and validate…
It is true for most of us, we like to place the world in boxes, we like to name things, we like it when data give us the baseline, we need numbers to prove something is right or wrong and where we stand opposite a constant or a given… In business more so, we have efficiency and effectiveness performance management for anything that is valuable to measure: sales metrics, marketing metrics, procurement measures, financial ratio’s, operational throughput and even personal measures.
But what is value? It is used randomly, but what does it mean and how can it be measured?
Wikipedia tells us that Value or values may refer to:
- Value (ethics), it may be described as treating actions themselves as abstract objects, putting value to them
- Value (economics), a measure of the benefit that may be gained from goods or service
There is no point measuring everything, only measure what is of Value. So, for people who need to make strategic decisions for a living, what is Value Intelligence, how would you measure this – might it be something like this?
Where the referenced terminologies need to be understood as follows:
- IQ = Intelligence Quotient is a measure of our rational, logical, rule-bound, abstract problem-solving intelligence and refers to a style of rational, goal-oriented thinking. (Wikipedia)
- EQ = Emotional Intelligence enables us to assess the situation we are in and then to behave appropriately within it, particularly to respond appropriately to the emotions of others. (Daniel Goleman)
- DEV = Decision Execution Velocity, the speed at which an optimum decision can be reached. Execution velocity can be defined as the total number of decision where execution happened on time divided by the number of times a decision happened where delays were experienced. This value can be multiplied by 100 to get a percentage decision execution velocity.
In this measure, emotional intelligence weighs nearly twice as heavy as the rational. logical, data-driven basis on which we make a decision. Does the equation favor the Emotional intelligence because it is seldom the data that clinches the decision, it is the human interaction that is the biggest influencer?
If we can agree on the latter part of the formula, should we also be thinking more futuristic like Anders Sorman Nilsson who believes that AI and EQ should be coexisting, and therefore, should we replace the IQ reference with AI (artificial Intelligence) to measure our value?
Where the referenced AI need to be understood as follows:
- AI = the term “Artificial Intelligence” is applied when a machine mimics “cognitive” functions that humans associate with other human minds, such as “learning” and “problem-solving”. (Wikipedia)
Or finally, should we go one step further and suggest that we, as humans, are the most valuable when we focus on AI understood as “the Augmented Intelligence” we can deliver?
- AI = the term “Augmented Intelligence” is the idea that a machine (computer system) supplements and supports human thinking, analysis, and planning, leaving the intentionality to the human. (Donal Daly, Tomorrow Today)
Do you know? Is it measurable? Can we measure AI? We can measure IQ but is that the right measure for the future? Is IQ too narrow as most of the decisions are a result of a combined intelligence of many implicit and explicit stakeholders?
Is it valuable to measure? Who is it valuable to?
One final thought – Should we start measuring our value in a playbook that demonstrates our ability to play within boundaries or is it a lot more valuable to measure how we play with the rules itself, how we can challenge restrictions and we are not ruled by the current boundaries that are existing…. Maybe futuristic after all…
Interested in your thought and how you would define Value Intelligence?
PS – your point of view is very valuable.