The Rise of Intuitive Intelligence
An Interview with Francis Cholle
by Christian Sarkar, managing editor

Francis Cholle is an international author, speaker, seminar leader, and consultative advisor with extensive business experience in a variety of industries from beauty and luxury to communication and IT. The founder of The Human Company, based in L.A., New York, and Paris, he advises companies and organizations on how to nurture and better leverage their creative assets to drive sustainable growth. His clients include Ralph Lauren, L'Oreal, Firmenich, Nestle, Louis Vuitton, Business Objects, and Siemens. We caught up with Francis and asked him a few questions about intuitive intelligence, and the new imperatives faced by leaders in this turbulent economy.

What is intuitive intelligence, and how did you get involved in this field?

Francis Cholle: When I first became involved in researching intuitive intelligence and its relationship to business, I was surprised to discover the disconnect between what leaders wanted to do--innovate and create sustainable value--and what they actually accomplished--scarce innovation and unsustainable value.

Often they were doing everything right (by the book) and still failing.

As I studied the root cause of these failures, a common thread appeared over and over again, and still appears today. Executives manage their companies in analytic ways, focusing on shareholder value. By focusing on the business results, they fail to do what is required to achieve the very results they desire. They can't engage their key stakeholders, whether employees or customers.

Two essential truths about human nature are deeply overlooked in most companies:

• Our minds are essentially unconscious (80% of our grey matter is dedicated to subconscious thinking)
• Play gives access to our unconscious
  
  Now we know that:
  
  
• Most innovative solutions are limited by our analytical minds, because our analytical mind knows only what it knows
• Creativity originates in our unconscious
• Breakthrough ideas often elude the rational mind
• People can rise above their perceived limits when they are inspired

Our western approach to education, work, collaboration, or solutions for the future is dominantly led by rational thinking. We have handicapped ourselves.

Where does intuitive intelligence come into the equation?

Our intuitive aptitudes enable us to notice and take in information which may not make sense to the rational mind. This is our gateway to new and paradoxical information. They are the conduit to creative ideas.

Intuitive intelligence is the ability to combine our analytical mind with our intuitive aptitudes to solve problems in an innovative way and succeed in the new economy.

Because we now live in a network-based society consumers have gained an active voice in our businesses. Relationships with consumers are on a reciprocal basis. We need to speak to their minds, their emotions and their guts. Authenticity is now at the heart of commerce. Advertising is about creating relevant narratives for consumers as much as it is about factual information about products and services.

We must respect our ecosystems and understand that business is part of an interconnected global web.

Modern society is predominantly ruled by our analytical mind and we see today the social, environmental and economic consequences. Instinct is essential to the survival of our species and its ecosystems. Leaving out our instinct and intuition endangers our future.

These are the primary reasons why I authored the book Intuitive Intelligence, (editor's note: English edition coming soon) and its application model The Intuitive Compass™.

Can you tell us a little more about how you define Intuitive Intelligence in the business world?

How many times do we see a business leader make a decision without a lot of data, seemingly without deliberation, and make the right call?

Not very often, in the "western" world.

But every so often we encounter that rare leader who makes impossible decisions and, time and again, gets it right. This is not an accident, we tell ourselves, as we look for clues to try to understand this phenomenon we are witnessing. What we are experiencing is intuitive intelligence in action.

Intuitive intelligence lies beyond the boundaries of science and analytics. It bridges the realms of reality and imagination, reason and instinct, material and spiritual dimensions of human existence. Intuitive intelligence is non-linear. It is a key skill for success in the new economy, an economy driven by constant disruption and chaos.

Intuitive Intelligence is defined as the combination of 4 abilities:

• The ability to think holistically
• The ability to think paradoxically
• The ability to listen and connect to oneself and others
• The ability to lead by influence rather than design

Perfect. Can we talk a little about each one of these abilities?

Yes, of course. Let's see.

THINK HOLISTICALLY: Business is not about money. It's not even about shareholder value (ask Jack Welch!).

Business is about servicing our communities and allowing people to express their talents and genius for the betterment of our society. Money is one very necessary component of business and it keeps the human engine going but it is not the engine. It's not our raison d'être, you know.

Business success is achieved through the power of human creativity and organization and depends on individuals - people - complex beings in relationship with an unpredictable environment called nature. No human experience can be fully represented by a mathematical equation (just ask artificial intelligence experts!) and the unpredictability of nature cannot be comprehended, let alone mastered.

Yet we realized only recently that besides the financial bottom line there should be other criteria to set business goals and measure the results of human organizations. The business impact on the surrounding ecosystems and its influence on humans are factors rarely placed at the center of corporate strategy.

Intuitive intelligence helps us move from a conservative fragmented business approach that focuses on financial results as the ultimate goal, to a wholesome business view where people, society and natural ecosystems are all part of the same picture, with money seen simply as a resource, a means to an end. All aspects of business are inseparably taken into account as a whole for maximum efficiency and sustainability.

THINK PARADOXICALLY: As much as business can be taught, it is still a rather random process similar in this to the creative process of life. Many leaders focus on economic results believing that it is the shortest way to achieve their goals.

The paradox is that empowering people and relationships are the key to better financial results. In 2004 neuroscience was finally able to establish a fact known for millennia by ancient civilizations: the human mind is more unconscious than it is conscious.

For that matter, engaging the unconscious in people is more effective than focusing on the conscious part of their mind. This is the paradoxical thought process. As psychologist David G. Myer puts it: "under the surface lies a lot of intelligence above a lot of delusion."

LISTEN FOR THE UNUSUAL: In order to be in touch with the unconscious aspect of our lives we need to pay attention to subtle details and to our emotions, which are indicative of our perceptions, whether conscious or unconscious. Our emotions fashion our thoughts, which lead to our actions; our actions turn into habits that finally shape our character.

And as we know, character is essential to leadership. A charismatic leader will communicate without necessarily taking in the other person's emotions, perceptions and environment and will attract dedicated followers; a leader who demonstrates self-awareness and manifests empathy will empower and inspire people with character who are more likely to take risk and think autonomously - two attitudes well needed to succeed in times of radical change.

This kind of sensitivity operates at a fundamental level of equality between individuals and induces trust, respect, and interdependence three necessary factors to foster creativity and lead a culture of high performance. Moreover when a leader is able to listen to others and oneself with such a sensitivity he or she takes in all sorts of creative information about consumers and their environment, about an industry and its trends.

LEAD BY INFLUENCE: Innovation is one of the most critical factors for success in today global economy. It relies on systems and processes, yet it depends even more on the creativity of people and corporate cultures. Creativity finds its inspiration beyond the motivation of financial gain or economic achievement. It stems from dreams and ideals and pertains more to utopia than pragmatism.

Organizations seeking innovation cannot rely only on a pragmatic leadership model rooted in a purely economic approach (leadership by design). Such a leadership model sets goals and objectives, covers budgets and schedules and relies on the alignment of teams to execute the corporate vision.

Leadership by influence, however, is on the opposite side of the spectrum. It perceives any human organization as a living interconnected web and the relationship with consumers as a dynamic collaborative system.And for that matter it focuses on facilitating and guiding the natural emergence of creativity to reach innovative business solutions. It puts the emphasis on engaging and influencing teams and consumers rather than motivating and controlling them. It conveys a strong sense of meaning within visions and goals to reach that place in each one of us where creativity thrives and can be awakened.

In practical terms, a leader guided by intuitive intelligence ensures that all systems and processes are in the service of the human factor and its ecosystem rather than an isolated attempt to rationalize business and reach financial goals. He or she inspires uniquely magnetic organizations fired up with enthusiasm and a strong sense of possibility. In this way, leading with intuitive intelligence creates virtuous circles and enables teams to believe, manifest autonomy, and succeed.

Intuitive Intelligence is a powerful leadership attribute. It is not a tool to devise the future, but an instrument that points our attention towards the invisible.

Intuitive intelligence brings us closer to understand the transformative and creative nature of our organizations as well as their interdependence with their environments. It is a means to take in unexpected information or paradoxical data and to feed our analytical and rational thinking with subtle creative perceptions.

In this way intuitive intelligence bridges the rational and the irrational realms, the conscious and unconscious dimensions, the inner and the outer, the material and immaterial aspects of any business and allows for truly evolutionary leadership.

Which leads us to the tool you have created – the Intuitive Compass™ – how does it work?

We know that innovation is more about people and culture than it is about process and structures. Yet many executives find themselves unable to inspire their teams and foster a culture of innovation. This is not a new theme in management thinking, but it is one that has never been more important.

Early on, as my work took me deep into this realm - the world of intuitive intelligence. I struggled to build a model to explain why this was so. And so it was by ‘accident’, and by now we know that there are no ‘accidents’, that the model of The Intuitive Compass™ took shape:

Oddly enough, I was using Cartesian coordinates to explain the flaws in our linear thinking. The two principal axes, Play-Results and Instinct-Reason, give us four quadrants (NE, SE, SW, NW). Each of these quadrants represents a function or even a mindset in an organization.

Let's make a few generalizations to explain the framework:

The NE quadrant is the area where reason and results prevail. This is the realm of business administration and management. Most companies excel in this department, led by the twin beacons of "maximizing shareholder value" and "cost management."

The SE quadrant is the area where instinct is at the core and results are the rule of the game. This is the mindset one finds in a sales department, or in an athlete.

The NW quadrant is the area where reason engages in a creative thinking process as in strategic planning or marketing (think of an architectural firm or engineering company).

Finally, the SW quadrant is the area where instincts are at the heart of the creative process to invent and create from the unknown and the depth of the unconscious. This is where creators, scientists, researchers, and inventors experience eureka moments. Most executives and almost all companies, even those engaged in creative fields, lack a way to connect this quadrant back into the rest of the business.

So how do you use this Intuitive Compass™?

The Intuitive Compass™ becomes a tool we can apply to assess and chart progress as companies (and executives) learn to harness intuitive intelligence in four key areas:

Strategy: how to employ intuitive intelligence to create sustainable, innovative business models which deliver real value to customers in their specific environment.

Leadership: the transformative power of intuitive intelligence energizes, and builds movements - with clarity of vision and purpose.

Work Culture: the ecosystem health of your business culture is reflected in your bottom line results. The Intuitive Compass™ helps create the open culture you need to succeed in the new economy.

Consumer Needs: map your customers needs and wants using The Intuitive Compass™ - creating a value innovation agenda for your customers.

The goal is maximum convergence between customers, employees, management and leadership.

How is it used in branding, in marketing?

Good question. As such we know that different tribes or groups of people live in different areas of the quadrant. But every consumer is lead by an unconscious force: the reptilian brain - because it ensures the survival of every one of us.

So I always seek meaning beyond the rational and the emotional realms. They’re not where the real decisions are made. Research and studies substantiate this fact.

I just completed an assignment for a major American fragrance brand. The category is suffering loss of customers and too many new launches. So obviously brands on the US fragrance market are facing a double challenge: how to deliver better products than their competitors and how to engage a shrinking platform of consumers often overwhelmed with too many choices.

On top of this comes another problem with distribution: in store purchase experiences are more often than not unpleasant and because it is a very sensorial product the alternative of online distribution is quite a challenge.

Using the Intuitive Compass™, I am helping the company to think differently:

• Bring more analytics to decision-making (NE quadrant)
• Think beyond fragrance category (NW quadrant)
• Create a 360 purchase experience that matches the brand experience (SE quadrant)
• Put back the fragrance at the heart of the product mix because our olfactory sense hits us at an unconscious level so it is the most powerful aspect of the mix (SW quadrant)
  

The fragrance has not been yet launched on the global market. It will come out in 2010. But I can tell you than any presentation to the head of countries who will have to sell it was a great success in the US, in Asia and in Europe. So prospects look very promising!

Can you give us an another example?

Sure, let me tell you about L’Oreal.

According to a recent report in the Wall Street Journal, L'Oréal, the world's largest cosmetics maker, reported flat sales for the first quarter of 2009 as consumers shied away from its luxury skin creams and shampoos in favor of its more affordable brands.

The maker of products ranging from Giorgio Armani perfume to Lancôme skin cream and Maybelline eye shadows said sales increased 0.3% to €4.37 billion ($5.83 billion) in the first three months of 2009.

Jean-Paul Agon, L'Oréal's chief executive, said that he would not offer specific guidance for the year but that results would "improve" during 2009. After accounting for the effect of currency fluctuations, sales fell 9.3% in Western Europe and 5% in North America. This shortfall was partly offset by an increase in revenue in Asia. Sales at L'Oréal's luxury cosmetics division fell, while sales of its consumer drugstore lines increased slightly.

This is an unfortunate turn for L'Oréal which has always been known for its commitment to scientific research and exceptional financial results. In fact, you might say there is an challenging tension in its culture between creativity and business results.

This tension is visible even on its website. If you read about the "profiles they are looking for" under the marketing category, here's a description you'll find:

• Creativity, imagination, openness to new ideas - coupled with the highest professionalism.
• Project-oriented, natural team player, at ease working with others in an environment of entrepreneurial challenge.
• Global-minded, flexible, able to juggle multiple priorities.
• Strong analytical thinker, excellent communicator. You have a keen eye on the latest fashions, a finger on the pulse of emerging consumer and cultural trends. Highly developed interpersonal skills, a passion for results. The personality to make a difference.

For the past few years I have been working with L'Oréal to optimize this dynamic tension so that creativity is not eluded by the pressure of financial excellence.

Our diagnosis: L'Oréal - When East dominates West...

The challenge: help marketers and managers develop a sensitivity to the creative nature of the beauty product development process and specifically gain an understanding for the process of research and development.

When the cosmetic group decided to develop a world wide talent appraisal process Sir Lindsay Owen Jones articulated the need to develop a competence key to the success of the group in the eye of the CEO, and that is: sensitivity to métier.

What Sir Lindsay Owen Jones was aiming for was to develop a global, shared understanding for beauty products development, for L'Oréal customers, and for a number of other confidential important characteristics identified by the CEO as key factors for success in the beauty industry.

We were commissioned to research how to define this specific aptitude and how to develop it and train for it. We developed an international training track that is seen today as one of the most successful and inspiring training program available at L'Oréal. Our approach consists in helping marketers understand how to engage and inspire creative people to contribute the best of their creativity. We used the The Intuitive Compass™ to highlight the tension between results-driven managers and creative teams.

Our analysis: L'Oréal has a product innovation driven business model whereas most of its competitors have often a market-driven model. The company believes in scientific innovation to promote growth. Its founder was a scientist. It is how L'Oréal sustained 20 years of double-digit growth and became the world leader in cosmetics. There is, as I mentioned earlier, a tension in its culture between creativity and business results.

Results: We helped L'Oréal executives understand the perspective of the different teams. The creative teams learned about the business aspects they had neglected, while the managers and marketers were helped to understand the creative process. The bridge is intuitive intelligence. Our training program is seen today as one of the most successful and inspiring training program available at L'Oréal. (Latest rating: 19.5/20) because it is very relevant with the innovation imperative prevailing in the beauty Industry, articulated by the CEO Jean Paul Agon in his mandate.

The limitation though is that this seminar is not yet part of the mandatory training track and that the organization has not yet designed a compensation system that rewards creative leadership with at its core respect and trust. But I’m working on it…

Thank so much for your time Francis. Let's hope we see your holistic approach take root at companies everywhere.

Thank you, Christian.

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Christian Sarkar is the managing editor of this site. He is the founder and CEO of Double Loop Marketing LLC, an online company specializing in ecosystem marketing and thought-leadership-based campaigns.