|"Brain as Business Model": The European Financial Review|
Here is an excerpt:
The human brain and “brains” of business enterprises have a lot in common. Both set goals, create situational awareness, and use experience to refine and execute plans. Both have distinct yet highly intertwined parts with complementary roles. The classification of people’s cognitive strengths and weaknesses has useful parallels to those of companies.
Akin to successful individuals, thriving organizations exhibit a rich and balanced collaboration between different parts of their corporate brains. This enables them to understand “the future that has already happened,” evolve strategies, and remain competitive and relevant...
Executives and board members who constitute the “top brain” of a company put forth strategic vision and goals, set up processes and plans, direct execution, and revise plans when expected events do not occur. They react to changes in the operating environment through changes in strategy, new products, and business model transformations.
In complementing these “top brain” activities, employees and divisions who form the “bottom brain” of a company classify and interpret what they perceive – in terms of changing customer needs and feedback as well as emerging dangers and opportunities. These “bottom brain” activities allow companies to execute the evolving strategy, innovate, and improve methods and processes – all while helping executives and boards evaluate and refine strategies.
Read the full article here.
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