Skip to main content

How Organizations Thrive In This Age Of Algorithms Without Losing Their Humanity

In Re-Humanize: How to Build Human-Centric Organizations in the Age of Algorithms, author Phanish Puranam explores how we can design organizations that harmonize digital efficiency with human-centric values, ensuring that both productivity and meaningful work coexist. 

Drawing from a rich well of research and real-world insights, the book’s three sections include: 

Section One: Basic assumptions about what is changing in organizations and what will not. 

Section Two: How digital algorithms can change each aspect of how we organize, in both undesirable and desirable ways. 

Section Three: A vision of how we can rethink the process of organization design to explicitly balance human and goal centricity. 

As you read the book, you will learn more about: 

  • The paradox of digitalization: how it can both enhance and erode human-centricity.
  • Strategies for a digital division of labor that respects human dignity.
  • The potential for digital tools to democratize organization design.
  • Digital algorithms could reinforce or dismantle hierarchies: what do we want?
  • Practical frameworks for integrating algorithms into organizational life without compromising on humanity. 

Re-Humanize is not only a guide for navigating digital transformation but also a manifesto for preserving what makes organizations truly human in an increasingly algorithm-driven world. 

 

Phanish Puranam 

Puranam shares these additional insights with us:

Questions: Why must organizations stay human-centric in an age of algorithms? 

Puranam: Think about the best job you’ve ever had, what made it special? Was it just the paycheck? Or was it the sense of belonging, the feeling that your work mattered, and the connections with people who inspired you? Organizations are not just systems for achieving goals, they’re communities where people find meaning, connection, and purpose. People want these things from their workplaces, not just salaries! Organizations that neglect this risk turning into soulless machines where people feel like cogs, leading to disengagement, high turnover, talent shortages and ultimately, poor performance. 

Questions: What happens if we fail to balance digital efficiency with humanity? 

Puranam: Humans still do many, many things that algorithms do not - and cultivating that human advantage is how organizations can differentiate and compete. And to do that, you have to build organizational contexts that allow you to attract and keep motivated and talented people. Organizations that ignore this and chase digital efficiency alone are trying to outcompete algorithms by becoming algorithms- that’s a losing game! 

Question: How do algorithms reshape leadership and decision-making? 

Puranam: In bionic organizations- where humans and algorithms work side-by-side leaders must, first of all, be algorithm-savvy. They need a “functional” understanding of the technology—what it can do (not necessarily how it works). 

Second, they must know exactly what to rely on algorithms for and where human judgment is indispensable. 

Third, and most critically, they must recognize they are the custodians of human-centricity, ensuring the organization attracts, retains, and motivates talent by fostering intrinsic motivation, and not just good salaries. In this view, leadership isn’t just about hitting targets or driving profits, but also it’s about building communities that people want to belong to and contribute to. 

Question: How can AI enhance rather than harm the human work experience? 

Puranam: AI doesn’t have to be the villain in the story of the future of organizations. AI can enhance rather than diminish human-centricity by empowering autonomy, fostering connectedness, and boosting competence. Instead of using AI for increased monitoring and control, we can design it to help people work more effectively without the need for constant supervision. Rather than replacing human interaction, AI systems can be designed to improve group processes and reduce the frictions that often arise in teamwork. Instead of deskilling humans by taking over ever more of their current tasks, we can build AI systems that enhance human competence and support continuous learning. 

Question: What are examples of human-centric digital transformations? 

Puranam: In my conversations with leaders, I've encountered several notable examples. Microsoft is leveraging advanced people and interaction data to boost productivity. Their suite of products draws data from MS Office, for which they have a large installed base. But they are trying to do all this while maintaining a strong commitment to privacy. Salesforce explicitly focuses on using digital technology to enhance collaboration, not replace it. They use technology to improve collaboration across locations and build virtual communities. DBS Bank in Singapore is renowned for leading digital transformation by empowering customer service officers with AI tools rather than using them as a replacement. 

Question: What is the first step to building a human-centric workplace tomorrow? 

Puranam: Surprisingly, the first step to building a human-centric organization is a seemingly goal-centric task: creating a skills map to identify the capabilities your organization needs now and in the future. But this is precisely what anchors human-centricity—because once you know the skills required, you can design a workplace that attracts, engages, and helps people develop those skills, aligning organizational goals with individual growth and motivation. When you start with this mindset, you’re not just designing an organization, you’re nurturing a community where people can thrive.

___ 

Puranam is the Roland Berger Chair Professor of Strategy & Organization Design at INSEAD. He is also Academic Director of the INSEAD-Wharton Alliance. Phanish's research focuses on organization design and corporate strategy. 

Thank you to the book’s publisher for sending me an advance copy of the book.

Comments

Popular posts from this blog

Book Review: The Elephant In The Room

Diana McLain Smith's new book, The Elephant in the Room , explains how relationships make or break the success of leaders and organizations. It's not a light right.  For those who really want to understand relationships, however, this book, based on Smith's clinical research and a wealth of in-depth observational studies, is both insightful and worth the effort. Smith explains that when people click or clash, we typically chalk it up to chemistry and leave it at that.  But, she knows there are many dynamics within that relationship that need understanding by a leader to create success. In fact, she says it's possible to identify and analyze the seemingly mysterious ingredients that go into the makings of a relationship.  And, given the right tools, it's possible to understand what happens when a relationship forms, and then to actually anticipate what might happen next .  That anticipation is critical, claims Smith. Smith also shows read...

How To Uncover Your Blindspots To Become A Better Leader

What you don't see about yourself can hold you back as a leader. That's typical for many leaders. What we don't see is what we  can't  see: we have  blindspots . Your blindspots prevent you from achieving your greatest success.  “It turns out that we're often not great judges of ourselves, even when we think we are. Sometimes we're simply unaware of a behavior or trait that's causing problems,” explains  Martin Dubin , author of the new book,  Blindspotting: How To See What’s Holding You Back As A Leader . “Bottom line: until we uncover these blindspots, we can't move forward. The good news is that you can learn to do your own  blindspotting .”   “Most of us understand the idea of blindspots in a general sense—areas we can’t see, to take the term most literally, or places we have gaps that we may not even realize, to be a little more abstract,” says Dubin.  “But in the context of this book, I’m defining blindspots quite specifically: They are...

Decision-Making Lessons From History

As seen on Public Television, the book,  Decisions , by   Robert L. Dilenschneider , features vignettes on 23 individuals who made decisions that shaped the world. Each chapter offers practical thinking on how these women and men made decisions. You can use their decision-making skills as guidance at work, in your leadership role, and in your daily life. You’ll learn decision making tips from  Harry Truman ,  Margaret Thatcher ,  Mohammed Ali ,  Rachel Carson ,  Pablo Picasso  and others who made decisions during war and peace, and in fields of science, commerce and invention. Author Dilenschneider suggests takeaways about decision-making from each featured historical figure. Some of my favorite decision-making lessons from history and from the book include these:   Own your decisions . Be responsible for them and for their implications. Do not be reactionary—that is, making decisions to spite others or because of outside pressure—but do be r...

Q&A With Best Selling Author And Expert Storyteller, Paul Smith

Paul Smith Paul Smith's book, Lead with a Story , is one of the top 10 books I recommend every leader should read. In his book, Paul demonstrates how  storytelling is a powerful business tool that can mean the difference between mediocre results and phenomenal success.  Since the book was published about three years ago, my admiration for Paul's passion for storytelling and helping to teach people how to effectively tell stories has only but grown. Today, Paul was kind enough to share his thoughts about: that best-selling book how storytelling is growing in the business world his latest book how to use stories during job interviews how Lead with a Story totally changed his carreer 1.  How would you summarize the overall reaction to your Lead with a Story book? Any surprises? Paul :  Everything is a surprise with your first book. Being a new author, you don’t really know what to expect in terms of book sales, marketing effort...

One Minute Mentoring

Fortunately, I've benefited from having great mentors throughout my career. And, I've have the honor and good fortune to be a mentor, both formally and informally, for various individuals the past few decades. Mentoring is powerful. Both being a mentor. And, being mentored. That's why I became an instant fan of the book,  One Minute Mentoring: How to Find and Work With a Mentor -- and Why You'll Benefit from Being One . The book presents a fictional parable about the power of finding, or being, a mentor. In what is about a one- to two-hour read, you'll gain knowledge and easy-to-use tools for  how to find and leverage mentoring relationships . Ken Blanchard You'll also learn why developing effective communication and relationships  across generations  through mentoring can be a tremendous opportunity for companies and individuals alike. Bestselling author,  Ken Blanchard, Ph.D . teamed up with  Claire Diaz-Ortiz  to write  One Mi...

The Three Pillars Of Executive Presence

After two years of research, forty focus groups and a national survey, author  Sylvia Ann Hewlett  contends the  three pillars  of  Executive Presence  are: How you act ( gravitas ) How you speak  (communication ) How you look ( appearance ) All three work together to help you  telegraph  (signal) to others that you have what it takes and that you're star material.   "One thing to note at the start is that these pillars are not equally important--not by a long shot," explains Hewlett.  "Gravitas is the core characteristic." And according to the senior leaders that Hewlett researched the  top aspects of  gravitas are : Confidence and "grace under fire" Decisiveness and "showing teeth" Integrity and "speaking truth to power" Emotional intelligence Reputation and standing/"pedigree" Vision/charisma In her book,  Executive Presence , she teaches how to act, communicate and look your best while  avoiding the most comm...

The Rainmaker's Credo

  How To Become A Rainmaker  is a quick, instructional book that reveals the rules for getting and keeping customers and clients. Written by  Jeffrey J. Fox , the handbook format provides you the best approaches to take to become a true rainmaker – one who brings clients, money, business, or even intangible prestige to an organization.  One of the real gems in the book is Fox’s  The Rainmaker’s Credo , which includes:  Cherish customers at all times. Treat customers as you would your best friend. Listen to customers and decipher their needs. Make (or give) customers what they need. Teach customers to want what they need. Make your product the way customers want it. Get your product to your customers when they want it. Give your customers a little extra, more than they expect. Thank each customer sincerely and often.

Business And Life Lessons From Entrepreneur Miguel Leal

What I like most about Miguel Leal ’s memoir, aside from its overall compelling and inspiring information, are the business and life lessons he shares.  Those lessons are found throughout his recently released memoir, The House That Cheese Built . The book is a quintessential American dream story from a Mexican entrepreneur who shares the tale of building a multi-million-dollar business from scratch, complete with both success and failure, and always a vision of hope.  Leal came to the U.S. penniless as a teenager, speaking almost no English; he literally slept in the boiler room of a Wisconsin cheese factory for months before he was caught. Through hard work, grit, and ingenuity Leal would go on to launch his own business. He is widely credited with introducing Mexican cheeses to the U.S. market and grew his company to a multimillion-dollar success story that defined an industry. Yet, like many successful entrepreneurs, Leal’s great successes were matched by a variety of ...

Book Review: Conflict 101

Handling conflict is one of the most difficult things a leader has to deal with.  Unfortunately, conflict in the workplace is inevitable.  In fact, research shows that 42 percent of a manager's time is spent addressing conflict .  And, over 65 percent of performance problems are caused by employee conflicts . Managers new in their leadership role typically have had little to no training on how to deal with conflict. Fortunately, in Susan H. Shearouse's new book, Conflict 101 , you can learn: How conflict is created How we respond to conflict How to management conflict more effectively Shearouse explains that even though conflict is inevitable, it can lead to both growth and progress .  "There is little progress that is not preceded by some kind of conflict," says Shearouse. I found particularly helpful in the book the definitions of the following five different types of conflict and then how best to deal with each: Problems to solve Disagreem...

How To Achieve Success Through The Power Of One More

  “You are one more intentional thought and action away from discovering your best life,” explains author of the new book, The Power Of One More , by Ed Mylett – released earlier this summer.  “You can find your best life by doing ‘one more’ than the world expects from you,” he adds.  In his book, he further explains that your individual thoughts and actions you take don’t need to be profound. However, when you compound these small thoughts and actions and stack them up on top of each other, the resulting changes over time are profound.  Mylett reveals strategies chapter by chapter and covers goal setting, habits, emotions, relationships, are more.  Strategies include those on how to: Slow down time and spot new opportunities Use time to your fullest advantage Find deeper purpose in life  Be sure to check out Chapters 15 and 16, which focus on leadership . Within those, Mylett shares his thoughts about leadership:  You are a leader if y...