The Power Duo: Unleashing Fluid and Crystalised Intelligence for Business Success

The other day I was having a discussion with a couple of entrepreneurs about company employees - is it better to have ‘grown ups’ that have the wisdom of experience or younger team members who are enthusiastic and want to learn but without much business expertise?

My view is both and this is backed up by research.

But before we go into that, let’s take a step back and look at some rather depressing stats for people like me (i.e. heading towards 50 this year):

• According to research by Dean Keith Simonton’s, a professor emeritus of psychology at UC Davis, the trajectories of creative careers see success and productivity increase for the first 20 years. So, if you start a career at 30, expect to do your best work around 50 and then you will go into decline soon after that.

1. Benjamin Jones, a professor of strategy and entrepreneurship at Northwestern University’s Kellogg School of Management, found that after looking at major inventors and Nobel winners over more than a century, the common age for producing a magnum opus is the late 30s. The likelihood of a major discovery declines through your 40s, 50s and 60s.
2. Unfortunately, most literary achievement follows a similar pattern; Dean Keith Simonton’s has found that poets peak in their early 40s and novelists generally take a little longer (i.e. in their 40s and 50s).
3. Many tech entrepreneurs are in creative decline by the age 30. The Harvard Business Review found that founders of entrepreneurs valued at $1billion or more tend to cluster in the 20-to-34 age range. All studies in this area have found that the majority of successful start-ups have founders under the age of 50.

So, without being the bearer of bad news, if your profession requires mental processing speed or significant analytic capabilities, noticeable decline is likely to set in earlier than you imagined.

Rest assured, it’s not all doom and gloom! Instead, there’s a shift in your intelligence throughout your 40’s and beyond. British psychologist Raymond Cattell, introduced the concept of fluid and crystallised intelligence in the early 1940s.

• Fluid intelligence is the ability to reason, analyse and solve novel problems. It’s highest relatively early in adulthood and starts to diminish in your 30s and 40s. This is why tech entrepreneurs do so well when they're younger and why older people have a much harder time innovating.
• Crystallised intelligence is the ability to use knowledge gained in the past. It’s the essence of wisdom and because it relies on an accumulating stock of knowledge, it tends to increase through your 40’s and don’t diminish until very late in life.

What does this mean? According to Arthur Brooks, a Harvard professor:

“The biggest mistake professionally successful people make is attempting to sustain peak accomplishment indefinitely.”

The practical takeaway from this research is that no matter what mix of intelligence your career requires, you should think about weighting it away from innovation and towards the strengths that come later in life.

What does this mean for businesses?

Fluid intelligence and crystalised intelligence form an inseparable duo that drives business growth and innovation. The dynamic interplay between these two cognitive abilities equips organisations with the tools to navigate today's complex and ever-evolving landscape.

Fluid intelligence, the ability to think critically and solve novel problems, allows businesses to adapt swiftly to changing circumstances. It enables employees to approach challenges with agility, uncover hidden patterns, and devise creative solutions. In an era where disruptive technologies and shifting consumer preferences are the norm, fluid intelligence acts as the compass that guides businesses towards new frontiers.

On the other hand, crystalised intelligence, the accumulation of knowledge and expertise over time, provides the foundation for strategic decision-making. It empowers employees to draw upon their vast experience, industry insights, and subject matter expertise. The ability to leverage crystalised intelligence fosters better collaboration, informed decision-making, and enhanced problem-solving capabilities within organisations.

Businesses that prioritise nurturing both fluid and crystalised intelligence within their workforce gain a competitive advantage. By cultivating a learning culture, encouraging continuous professional development, and fostering diverse perspectives, organisations tap into the vast intellectual resources of their employees. This synergy leads to innovation, adaptability, and a heightened ability to seize emerging opportunities.

In conclusion, fluid and crystalised intelligence are essential ingredients for thriving businesses in today's fast-paced world. The fusion of adaptive problem-solving and accumulated knowledge drives sustainable growth, equipping organisations with the cognitive prowess to shape the future. Embracing this dynamic duo allows businesses to overcome challenges, capitalise on new possibilities, and chart a course toward lasting success.

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