To paraphrase the Nobel acceptance speech of Austrian economist Friedrich Hayek:

If managers are to do more good than harm in improving organizational performance, they must learn that in a complex environment, they can’t acquire sufficient knowledge to orchestrate the desired outcomes. Instead, they must use whatever knowledge they have not to shape results as a craftsman shapes a piece of handiwork, but to cultivate growth by providing a proper environment, much as a gardener does for plants.

PART 3: The Secret of Our Success

9: Better at Everything

“Abrahams employed a personal coach, Sam Mussabini, before his 1924 Olympic victory. This was regarded as almost tantamount to cheating, but today even club runners benefit from extensive coaching, better diet and nutritional guidance, and from the advice of friendly competitors. Bolt runs 10 per cent faster and Kipchoge 50 per cent faster than the earlier winners in their events. These improvements in productivity have been observed in an activity whose essential character has remained unchanged for thousands of years. Mussabini could train Abrahams to win Olympic gold but could never have run the race himself; Abrahams could run faster than any man alive but had no understanding of sports mechanics. The combination was more powerful than either alone. The power of combinations of capabilities is the secret of our modern athletic prowess. And of our opulence.

Runners’ times have also fallen because the pool of talent from which elite athletes are drawn has widened. The athletes against whom Abrahams competed in 1924 were white men who had received a university education in Britain or the United States. Strikingly, today most short-distance and extreme-distance champions are, respectively, of West African and East African descent. Inclusivity – which allowed people from diverse nationalities and social classes to compete for gold – together with sports engineering, the scientific analysis of the determinants of performance, nutritional advance and systematised training protocols, gave us sub-ten-second sprints and sub-two-hour marathons.

It is common, and natural, to tell the history of innovation through the exploits of men of genius, such as Edison and Tesla, and pioneers such as Berners-Lee and the Wright brothers. But if the Wright brothers had not flown in 1903, someone else would have done something very similar in some other location. Collective intelligence develops when the accumulation of collective knowledge reaches a point at which talented people identify problems that this shared knowledge can be employed to solve. And it is also common, and natural, to describe the history of innovation through the introduction of new gadgets, from aeroplanes to iPhones. I have taken running and apples as examples to emphasise that the

growth of collective intelligence has a range and applicability that extends well beyond technology.

When executives deliver that routine cliché of modern management – ‘Our people are our greatest asset’ – the commercial value of the collective intelligence developed within the corporation is probably what they have in mind. The asset is the capability of individuals and teams within the business to solve problems, to devise and deliver new products and to win

the commitment of suppliers and the trust of customers. Collective intelligence is the basis of the competitive advantage of most successful corporations, and it is enshrined in its people.