UMB Overview: Chapters

The Catalyst Perspectives Group

Changing how you experience the world... ...Finding Opportunities

An Introduction: The Ultimate Business Model

The Premise

A: Evolution is the natural process that has been performing flawlessly for over 3.5 Billion years and has produced the amazing diversity of living things on our planet, each of which is optimally adapted to their time and setting.

Q: Why should you bother reading about evolution as a business model?

Organizations display the same characteristics as living things and are in settings that are comparable to those that enable evolution to occur. As such, understanding evolution and how it has shaped living things can provide insights and a unique perspective that can inform our understanding of organizations and guide organizational form, function and transformations.

The Process

There are two fundamental mechanisms that allow evolution to occur: 1) Living things have a suite of distinctive characteristics that includes processes of heritability that produce attributes of form and function that vary widely and 2) There is a wide variety of different circumstances on the planet that favor and select for different expressions of the attributes of form and function that vary across living things. The impact of selective factors is to change the genetic profile of a species. These changes in the genes result in individual living things that are different in form and function than the generations that came before. Over time, the process of evolution invariably and unfailingly results in an assortment of species that are well adapted for that particular place and time.

The Characteristics of Living Things. --- The variation in these characteristics are what enables evolution to occur and is directly analogous to essential features of any organization:

Cellular Structure and Organized - Organisms are highly organized, coordinated structures that consist of one or more cells. Even single-celled organisms are remarkably complex. In multi-cellular organisms’ similar cells form tissues, tissues create organs that work together forming organ systems.
Metabolism and Energy-processing – All organisms use a source of energy for their metabolic activities. Some organisms capture energy from the sun and convert it into chemical energy in food (photosynthesis); others use chemical energy in molecules they take in as food (cellular respiration).
Growth and Development – Organisms grow and develop following specific instructions coded for by their genes. Growth is the increase in size and mass of that organism. Development involves the transformation of the organism as it goes through a process which causes changes in their cells.
Homeostasis and Regulation – To function, cells need to have appropriate conditions and concentrations of diverse chemicals. Organisms maintain internal conditions despite environmental changes. Organisms use multiple mechanisms to coordinate functions, respond to stimuli, and cope with environmental conditions.
Response to Stimuli – Organisms respond to diverse stimuli. Movement toward a stimulus is considered a positive response, while movement away from a stimulus is considered a negative response. Responding appropriately at the right time and in the correct manner is an essential attribute for survival for living things.
Reproduction and Inherited Traits – When reproduction occurs, DNA containing genes are passed along in the form of chromosomes to an organism’s offspring. These genes ensure that the offspring will have similar characteristics to the parent(s). These processes of heritability that pass traits to the next generation are what produce the variation in the attributes of form and function

Natural Selection.--- The mechanism that drives evolutionary change is the variation in factors that favor and select for (or against) different expressions of the attributes of form and function. The essays are presented in several groups that reflect different types of selective pressures:

Trophic-level – A vital characteristic of all living things is the capability to use a source of energy for their metabolic activities. How organisms are able to produce or acquire the source that fulfills their energy needs varies widely. There are several hierarchical trophic-levels in an ecosystem, comprising organisms that share the same nutritional relationship to the primary sources of energy.
Biomes and Habitats – The varying habitability of places on earth are broadly characterized as biomes. There are terrestrial (land) and aquatic (water) based biomes. For terrestrial biomes, these regions vary based on the climate (i.e., precipitation and temperature). In a similar manner, there is variation in an assortment of factors (e.g., salinity, temperature, light, oxygen) in aquatic biomes. For all biomes, this variation results in conditions that favor different assortments of plants which, in turn, shape the other living things that inhabit that biome. The gradual variation within any given biome creates smaller areas, habitats, that are suited to a unique assortment of living things.
Ecosystems and Niche – While the physical (abiotic) factors play a role in shaping the assortment of living things in biomes and habitats, the addition of the (biotic) interactions among them in each area, creates different ecosystems. Within each ecosystem, each organism plays a different role in these interactions and occupies a different niche. The forms and functions expressed in each niche are optimally suited for those circumstances.
Inter-Specific Relationships – There is a wide variety of interactions and relationships among the living things in any particular habitat. These relationships vary from conditions that favor both species to circumstances where one species benefits to the detriment of the other.
Genetic Predisposition – The genetic composition of any living thing is a fundamental element of evolution that produces the attributes of its form and function. And yet, for some groups of living things, what’s “in their genes” has an inordinate impact on what gives that group a selective advantage.
Adaptive Behaviors – To varying degrees, all living things are capable of expressing behaviors (aka Response to Stimuli). As such, all behaviors have potential adaptive value. However, some organisms display greater plasticity in the range of behaviors and variety of responses that they can express. This broader range of “adaptive behaviors” enables them to be favored in a wider range of conditions.

The Perspectives

Characteristics of Organizations.--- As living things ourselves, it should not be particularly surprising that the “organizations” created by humans would display characteristics that are essential to being a living thing. These characteristics of living things that are fundamental to evolution are directly analogous to essential features of any organization. Below are the comparable Characteristics of Organizations, presented in the context of the process of the Evolution of Organizations.

Cellular Structure and Organized – Living things are comprised of cells. In a comparable manner, organizations are made up of individuals (aka employees). Some organizations are unicellular, that is comprised of only one individual. As with a single cell organism, these “simple” organizations with only one person must be able to perform all the functions required of living things. By contrast, the specialized cells that perform specific functions in multi-cellular organisms is entirely analogous to the varying functions performed by different departments within an organization comprised of more than one employee with specialized skills or knowledge specific to that department.
Metabolism and Energy-processing – Although organizations certainly do need to acquire and use energy to function, a more robust discussion of evolution as a model for organizations is possible if one considers money to be the fuel that powers organizational activities.
Growth and Development – Just like an individual organism, an organization can increase in size (grow) and go through changes (develop) to create specialized functions or attributes and expand their capabilities. These organizational changes can be analogous to the various life stages of a growing and developing organism.
Homeostasis and Regulation – To survive and flourish any organization needs to be able to create and maintain conditions that enable its employees (cells) to perform their functions as needed. These internal conditions must be maintained regardless of external conditions otherwise the organization will fail. Because an organization has many different activities that must be performed simultaneously, it must use a variety of mechanisms to coordinate these diverse functions.
Response to Stimuli – Organizations must be able to respond to diverse customer needs & expectations and cope with changing business conditions. This ability to respond includes being able to detect and take advantages of opportunities as they appear and being attuned to the dynamics of their external circumstances to avoid calamitous failures. Responding appropriately at the right time and in the correct manner is an essential attribute for survival for any organization.
Reproduction and Inherited Traits – Every cell in a living organism is directed by the same genetic plan. So too an organization must have a plan of comparable clarity and breadth to guide every employee to perform their function and produce the outcomes needed for the shared benefits of the organization. Moreover, to be able to sustain operations when conditions change profoundly, the organization must possess the capability to reorganize in a manner that is better adapted to the new conditions while maintaining the essential elements that make the organization unique and valued.

Organizational Selection.--- It shouldn't be a startling insight to note that every organization is under various pressures to survive, let alone flourish and grow. In a manner analogous to natural selection, there is variation in pressures that favor and select for (or against) different expressions of organizational form and function. The different types of pressures are presented in several groups based on how they impact Organizational Selection:

Trophic-level –Where do organizations get the resources needed to operate? The customer, of course. Some customers use products or services on a regular basis and offer sustaining support. In other settings there may be relatively few customers or customers who use your products or services infrequently but, these essential few are willing to pay enough to meet the needs of the organization. There are even some organizations that are able to derive value from sources other than directly from customers. Is the form and function of your organization aligned with what’s feeding your organization?
Biomes and Habitats – Some types of organizations can be found almost anywhere. There may be slight variations across locations but, the basic form and function expressed is similar. By contrast, there are other locations that are not conducive for supporting a wide variety of organizations. Indeed, organizations that are able to survive in these more challenging settings, must have form and function that is specialized and uniquely suited for these settings. Is your organization in the right place?
Ecosystems and Niche – Because where and in what settings shapes which organizations can be successful in any particular location, the mix and variation of the organizations in that location in turn impacts what other organizations can be in that space. How well does your organization fit-in where it is?
Inter-Organizational Relationships – It is one thing to operate in an area where other organizations exist that have limited direct impact on your organization. It is a different matter to be in a setting where another organization has a direct impact on your abilities and effectiveness to operate. These relationships between organizations can vary from settings where the outcomes are positive for both organizations. Or, create inter-organizational dynamics that could potentially put one organization at peril to the advantage of the other. How is your organization handling relationships with other organizations?
Genetic Predisposition – Some organizations boast that an aspect of their form or function is so fundamental to the essence of their organization that “…it’s part of our DNA.” Does your organization have such a unique attribute and are you using it to its full advantage? Or is your organization missing that special something that will give it an advantage and better able to survive and flourish?
Adaptive Behaviors – Any organization must possess the capability to act in response to a wide variety of circumstances. Lacking this ability would render the organization incapable of operating on a sustained basis. However, there are some organizations that display greater operational and behavioral flexibility such that they are better able to respond to different settings. What best describes your organization? We do it that way because we’ve always done it that way.” Or, “Let’s find a better way to do it.”?
That’s a Game-Changer – Evolution is the natural process that has produced the amazing diversity of living things on our planet, each of which is optimally adapted to their time and setting. However, human beings too easily and too often display a potentially toxic combination of capability, arrogance, ignorance and willingness to alter the world in profound and potentially irrevocable ways. These human-created changes exert inexorable selective pressures on living things that may exceed their evolutionary adaptability and cause mass extinctions. The essays in this selection are intended to offer a perspective for introspection about the role that we each individually and collectively through our organizations and communities choose to act and how we shape the world’s future.

Opportunities and Actions

Your perspective matters.--- Hopefully it is readily apparent that your perspective matters a great deal to us and is an essential element in making this essay-series something of value greater than just an intellectual exercise. There are three types of actions that we hope you will consider taking:

Connect with others. --- Please encourage your colleagues to read the essays. Then share your perspectives and enrich your learning. Deliberately use these essays and your subsequent discussions to create a new shared perspective that reflects how these ideas might apply to your organization.
Join the discussion...here. --- Please share your thoughts. If you are reading the essay with the expectation that you may gain insights into your own organization...did you? Have we described something you already are putting into practice or do you see an opportunity to do something differently that you'd like to implement. If your background is as a scientist, please offer your evaluation of the examples we've presented and give us additional ones on the topics presented or other examples for new essays. Please be gentle with your assessment and keep in mind that my academic and research background was developed in the last century and I've been away from the literature for a bit. If you happen to have more IT expertise than we do (not a high bar to exceed), please, please, please don't hesitate to suggest a format we can use linked to the website for creating a broader discussion that will work better than a Blog!
Take actions that transform. --- Our goal with these essays is to change your perspective in a way that enables you to take actions that transform your own organization. We would welcome the opportunity to work with you in that transformation and absolutely positively want to hear about what you plan and the results you have hope to achieve. Either way, please share your thoughts.

What are you?--- As you read these essays, do so while considering what your organization is...that is, what kind of living thing are you? Start your explorations of self-discovery by first reading the essays on the characteristics of living things. These reflections will help you narrow down the range of expression of form and functions of your organization. As you get a better sense of the possibilities, use the essays on the selective pressures to refine your understanding of your organization. Don' restrict yourself to just species that are extant. Your organization may be closer to a species that was superbly adapted in a different place and at a different time. Keep in mind that the process of evolution has been shaping the form and function of living things for millions of years.

Also consider the possibility that what you are is best expressed as a combination of different species. Although inter-specific unions are typically not successful for biological evolution...the selective forces and characteristics of organizations that result in organizational evolution may have a different outcome. The better you are able to see your organization in the form and function of a particular species, the greater insights you will be able to gain on how you should be operating that will give you advantageous adaptations.

This Is Jeopardy! --- As a long time aficionado of the game show Jeopardy, I am inspired when I think about using evolution as the ultimate business model. When playing Jeopardy, contestants are presented with Answers and score points when they are able to offer a correct Question. For those that agree that evolution can be the Ultimate Business Model...when you read these essays and consider a characteristic of a living thing or ponder the impact of a particular selective force, you are looking at the answer! The "game" is to come up with the question...that enables you to understand how it relates to organizational evolution. In recent years it has become impossible for me to contemplate the amazing diversity of living things without seeing an answer. Although just like when I watch Jeopardy, I often struggle to come up with a correct question. I genuinely hope that you become as much a fan of this version of Jeopardy as I have become. If you choose to play this version of Jeopardy, you won't score points or earn prize money. But, you will gain insights into your organization.

A journey of a thousand miles...begins with the first step. --- The ideas in these essays have been bouncing around in my head for many years and it is very satisfying to have finally begun this journey to share these ideas in a format that will encourage discussion and transformational actions. Don't worry, you're not going to have to read a thousand essays....a couple hundred, at most. But, I would welcome your help in deciding which topics are of greatest interest, most likely to be read and should be written sooner!

The Table of Contents offers a teaser title to entice you to read the essay. Unfortunately, it will take me some time to finish writing all the essays. In the meantime, if the title or premise of a particular essay piques your interest...please, let me know. Better yet, if you have an experience or example that will enhance the essays, please tell me about it.

The Format of the Essays

The Premise

The premise of these essays is simple. Organizations display the same characteristics as living things and are in settings that are comparable to those that enable evolution to occur. As such, understanding evolution and how it has shaped living things can provide insights and a unique perspective that can inform our understanding of organizations and guide our organizational transformations.

The Process

Each essay will offer five sections:

The Premise. --- An overview of the evolutionary learning being offered in the essay and how it applies to organizational operations.
The Process. --- The essence of the evolutionary process is that it selects characteristics that are best adapted for the circumstances. In each essay, we will describe the adaptive value to the organism of the attribute and/or selective force being considered.
The Perspectives. --- We will offer perspectives that show how the evolutionary adaptation applies to organizational dynamics. Some of these perspectives will allow direct application of the adaptation in an organizational setting. That is, it works for living things, it will work for your organization too. Other adaptations reflect a more generalized analogy to circumstances impacting organizations.
Opportunities and Actions. --- To paraphrase Carlo Rossi, I like talking about evolution as a business model but, I'd much rather help you use this new perspective to find opportunities to take action and improve your organization. Whenever possible, we will offer recommendations on specific actions you should consider taking based on your new found knowledge of evolution and the insights you have gained about your organization.
Readers' Comments. --- To make this a discussion, the reader (aka you) will need to offer your perspective. I'll add your comments directly to this section of the essay (or correct or edit other parts as needed). I'll take the liberty to edit lightly if appropriate and will include your contact information to encourage continued discussion. However, if you really, really, really prefer to remain anonymous...well, OK. But, I'll leave your name out of it and present the brilliant observation you made as MINE!

The Perspectives

In the simplest terms, there are two mechanisms that makes evolution work: The varied attributes of living things and the varied selective forces operating that shape which adaptations have value. We will group the essays to reflect either different types of attributes that characterize living things or types of related selective forces. We'll add essays to each group as our discussions progress. Currently our groups for your consideration are:

Opportunities and Actions

Just as the circumstances and selective forces are different for living things, so too what applies to your organization when compared with another will vary. When reflecting on any given essay, you may see immediately a connection with your organization and get ideas on actions you should take that will make a difference. Other essays less so. From either perspective, to prime the mental pumps, we will offer suggestions on the type and focus of actions to consider and, in many instances, specific catalysts that may apply. These areas of focus will include: