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Chapter 3: Leading by Algorithm: Rushing In
Recognized as the new big thing, algorithms are ready to penetrate many of our daily activities and tasks. The reality, however, is that algorithms are not just preparing to dominate our lives, they already do.
Algorithms drive machines by telling them what to do to in order to produce what humans want to see. Yes, algorithms are not only the eagerly awaited, super intelligent aspect of the AI hype, but also the driver of ubiquitous machines we use today in a routine way, such as computers. Algorithms are thus already a pivotal part of our society, and their level of influence is only expected to increase over time.
I am emphasizing this omnipresence of algorithms today and in the future since many people in reality have no clear idea of what algorithms are and, as such, miss out on how we should assess the real value and application of algorithms in our work settings. This is an important observation to note because businesses seem happy to embrace the idea that leadership by algorithm will be the next evolutionary step to take. And if we plan to delegate the influence that leaders have over others to an algorithm, then we also need to understand who these leaders are.
If we think about leadership, we quickly arrive at specific types of individuals with specific skills, or, in other words, we have clear expectations and views on the identity of the people we consider to be leaders. Because we have those expectations, humans are able to quickly decide what kind of leader we need when situations change. Or, to put it differently, human psychology works in such a way that when a situation with specific demands presents itself, we can quickly infer the kind of leader that is needed. Given these situational demands, we will easily accept a leader with certain skills as the one in charge and comply with their directives.
Business today is confronted with much uncertainty, a volatile market, and rapid changes requiring leadership that is able to deal with complex and ever-changing situations. Algorithms and their unique capabilities of being rational and consistent in dealing with complex and highly ambiguous events seem to fit the bill to lead in such business situations. In fact, as I have documented earlier, today’s changing business environment is making the algorithm a prime candidate for tomorrow’s leader.
But is this really true? Can we make such a decision based on our perceived understanding of what the situation demands and the abilities an algorithm presents? Especially if we are not even clear how the algorithm is to be defined within the context of our society?
When it comes down to putting algorithms on the world stage as leaders-to-be, we need to become better informed about the
