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Institutional Intelligence: How to Build an Effective Organization
Institutions matter. They give us an opportunity to have an influence for the common good that far outlasts us. But we often assume that institutions are at cross-purposes with dynamic communities, with personal vocational calling, and with core human values. We view them somewhat cynically as, perhaps, a necessary evil.
Institutions, far from that, remain essential to human flourishing. They are the very means by which communities thrive, individual vocations are fulfilled, and society is changed for the good. As a result, we all need to learn how to work effectively within institutions.
That is just what Gordon Smith provides. He unpacks the core of institutional intelligence—the wisdom of working effectively within an organization. At the same time, he shows how team leaders, directors, executives, board members, key stakeholders, and employees can avoid what is often their greatest source of stress on the job—working with the institutional character of their organizations.
Focusing on the nonprofit sector, Smith unlocks the essential elements of how institutions function in a productive, healthy manner. Church staff, educators, and those in service agencies can all thrive by understanding these dynamics instead of fighting against them. By developing this essential vocational capacity, we and those around us can not only fulfill ourselves but also a mission that is larger than we are.
Institutions, far from that, remain essential to human flourishing. They are the very means by which communities thrive, individual vocations are fulfilled, and society is changed for the good. As a result, we all need to learn how to work effectively within institutions.
That is just what Gordon Smith provides. He unpacks the core of institutional intelligence—the wisdom of working effectively within an organization. At the same time, he shows how team leaders, directors, executives, board members, key stakeholders, and employees can avoid what is often their greatest source of stress on the job—working with the institutional character of their organizations.
Focusing on the nonprofit sector, Smith unlocks the essential elements of how institutions function in a productive, healthy manner. Church staff, educators, and those in service agencies can all thrive by understanding these dynamics instead of fighting against them. By developing this essential vocational capacity, we and those around us can not only fulfill ourselves but also a mission that is larger than we are.
240 pages, Hardcover
Published July 11, 2017
25 people are currently reading
121 people want to read
About the author
Gordon T. Smith
30 books36 followersGordon T. Smith is the president of Ambrose University and Seminary in Calgary, Alberta, where he also serves as professor of systematic and spiritual theology. He is an ordained minister with the Christian and Missionary Alliance and a teaching fellow at Regent College, Vancouver, British Columbia. He is the author of many books, including Courage and Calling, Called to Be Saints, Spiritual Direction, and Consider Your Calling.
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Displaying 1 - 17 of 17 reviews
December 3, 2022
Wise. Practical. Theological.
October 3, 2017
This book was extremely helpful! I would recommend it to anyone who is trying to wrap their mind around why nonprofit and denominational life matter. And why we need to be a part of healthy institutions. I enjoyed every single chapter in the book. It's published by IVP Academic so for pedagogical reasons he can be a little repetitive. But overall this is one of the best books I read this year. Read his chapters on "Recruiting, Developing, and Empowering" and "Built Space". They are worth the price of the book by themselves. Ha! And Evangelicalism desperately needs to heed the wisdom in his chapter on "Strategic Partnerships", and find ways to implement it.
March 11, 2021
Summary: Believing that institutions are essential to human flourishing, unpacks the intelligence necessary to work effectively within organizations, and the different elements of organizational life that must be navigated wisely.
Institutional intelligence. On first hearing, some would think this is an oxymoron. Institutions have gotten a bad name. One thinks of words like bloated, hidebound, unfeeling, and corrupt. Gordon T. Smith, president of Ambrose University, thinks differently:
“But is there another way to think about institutions? Can we perhaps actually recognize that institutions are essential to human flourishing? Rather than see them as a problem or as a necessary evil, can we appreciate instead that institutions are the very means by which communities thrive, individual vocations are fulfilled, and society is changed for the good? Can we consider that we are all enriched and we all flourish when we invest in sustainable institutions? And more, could it not be that we can view this capacity as a good thing–as vital part of our personal development? Could it be that institutional intelligence–the wisdom of working effectively within an organization–is an essential vocational capacity for each of us?" GORDON T. SMITH, P.3.
Gordon T. Smith would answer all these questions in the affirmative, and after his apologetic for the importance of institutions, he addresses how we might work effectively within them, exercising institutional intelligence.
He does this by addressing the key elements of institutions we must learn to navigate intelligently:
Missional clarity and understanding how our role in the organization relates to its mission.
Governance processes and how to engage these constructively
Recruiting, hiring and developing top notch talent, and managing transitions out of the organization constructively and gracefully.
An institutional culture of hopeful realism fostered by all connected with the institution.
Financial health and resilience to which all are committed.
Built spaces that enhance the flourishing of those who work within them.
Strategic partnerships and collaborations consistent with the organization’s mission
Smith delineates in great detail the intelligence needed with each of these elements with examples drawn particularly from churches, non-profits, and educational institutions, but also relevant to for-profit enterprises.
This is a surprising book from an author whose other publications focus around one’s spiritual formation. Yet on further consideration, this makes sense for someone who cares for such matters but also leads significant organizations, like a Christian university. While one finds many of the same issues addressed here that one would find in many business texts, the attention throughout is on the formation of an institutional character, as well as of the persons working within it or served by it.
One of the places, early in the book, where this stood out was his discussion of institutional charisms. He admits that this is much like discussions of “brand” but distinguishes it as the distinctive gift God is giving the world through a particular organization, that extends through the organizational history to the present. Understanding this charism and stewarding it under God is critical for those who work in institutions and it elevates an organization’s vision. I appreciated the attention to governance structures and the recognition that organizations cannot be leaderless in some “we are all servants” ideal. Likewise, the cultivation of an organizational culture of hopeful realism recognizes both the flawed nature of all human efforts and the redemptive element of hope that fosters joy, laughter, and esprit de corps among people in an organization.
Most fascinating to me was the attention given to built spaces. Implicit in his discussion is a theology of built spaces reflecting how physical space reflects identity, is hospitable to people, enabling them to flourish, and aesthetically and environmentally is sustainable in its physical setting. In so doing, he invites us to look beyond building construction and maintenance to who and what is served by our built spaces, considerations at once both noble and practical.
Don’t skip the appendices. The first contains valuable wisdom about the relation of boards and presidents and their executive leadership and the tasks of each and avoiding confusion. The second more specifically addresses the spiritual dynamics of organizations. The last is a bibliography of essential works on the matters covered here.
Lack of trust in our institutions and the people who lead them is endemic in our time. Perhaps one of the reasons people so question truth is that its purveyors are perceived to front for toxic organizations, and perhaps embody hypocrisy themselves. Might part of fostering a culture of truth amid a world of lies consist of building institutions like those described in this book, where an institution’s messaging is simply reflective of its mission, and its truth is reflected in the flourishing of both the employees and clients of the organization? This book serves as an excellent primer for this good and godly work.
____________________________
Disclosure of Material Connection: I received a complimentary review copy of this book from the publisher in exchange for an honest review. The opinions I have expressed are my own.
Institutional intelligence. On first hearing, some would think this is an oxymoron. Institutions have gotten a bad name. One thinks of words like bloated, hidebound, unfeeling, and corrupt. Gordon T. Smith, president of Ambrose University, thinks differently:
“But is there another way to think about institutions? Can we perhaps actually recognize that institutions are essential to human flourishing? Rather than see them as a problem or as a necessary evil, can we appreciate instead that institutions are the very means by which communities thrive, individual vocations are fulfilled, and society is changed for the good? Can we consider that we are all enriched and we all flourish when we invest in sustainable institutions? And more, could it not be that we can view this capacity as a good thing–as vital part of our personal development? Could it be that institutional intelligence–the wisdom of working effectively within an organization–is an essential vocational capacity for each of us?" GORDON T. SMITH, P.3.
Gordon T. Smith would answer all these questions in the affirmative, and after his apologetic for the importance of institutions, he addresses how we might work effectively within them, exercising institutional intelligence.
He does this by addressing the key elements of institutions we must learn to navigate intelligently:
Missional clarity and understanding how our role in the organization relates to its mission.
Governance processes and how to engage these constructively
Recruiting, hiring and developing top notch talent, and managing transitions out of the organization constructively and gracefully.
An institutional culture of hopeful realism fostered by all connected with the institution.
Financial health and resilience to which all are committed.
Built spaces that enhance the flourishing of those who work within them.
Strategic partnerships and collaborations consistent with the organization’s mission
Smith delineates in great detail the intelligence needed with each of these elements with examples drawn particularly from churches, non-profits, and educational institutions, but also relevant to for-profit enterprises.
This is a surprising book from an author whose other publications focus around one’s spiritual formation. Yet on further consideration, this makes sense for someone who cares for such matters but also leads significant organizations, like a Christian university. While one finds many of the same issues addressed here that one would find in many business texts, the attention throughout is on the formation of an institutional character, as well as of the persons working within it or served by it.
One of the places, early in the book, where this stood out was his discussion of institutional charisms. He admits that this is much like discussions of “brand” but distinguishes it as the distinctive gift God is giving the world through a particular organization, that extends through the organizational history to the present. Understanding this charism and stewarding it under God is critical for those who work in institutions and it elevates an organization’s vision. I appreciated the attention to governance structures and the recognition that organizations cannot be leaderless in some “we are all servants” ideal. Likewise, the cultivation of an organizational culture of hopeful realism recognizes both the flawed nature of all human efforts and the redemptive element of hope that fosters joy, laughter, and esprit de corps among people in an organization.
Most fascinating to me was the attention given to built spaces. Implicit in his discussion is a theology of built spaces reflecting how physical space reflects identity, is hospitable to people, enabling them to flourish, and aesthetically and environmentally is sustainable in its physical setting. In so doing, he invites us to look beyond building construction and maintenance to who and what is served by our built spaces, considerations at once both noble and practical.
Don’t skip the appendices. The first contains valuable wisdom about the relation of boards and presidents and their executive leadership and the tasks of each and avoiding confusion. The second more specifically addresses the spiritual dynamics of organizations. The last is a bibliography of essential works on the matters covered here.
Lack of trust in our institutions and the people who lead them is endemic in our time. Perhaps one of the reasons people so question truth is that its purveyors are perceived to front for toxic organizations, and perhaps embody hypocrisy themselves. Might part of fostering a culture of truth amid a world of lies consist of building institutions like those described in this book, where an institution’s messaging is simply reflective of its mission, and its truth is reflected in the flourishing of both the employees and clients of the organization? This book serves as an excellent primer for this good and godly work.
____________________________
Disclosure of Material Connection: I received a complimentary review copy of this book from the publisher in exchange for an honest review. The opinions I have expressed are my own.
June 25, 2017
Institutions matter. Millennials—often perceived as being anti-institutions—actually want to give themselves to something larger than themselves. Institutions allow this to actually take place, allowing us to effect change that we’d never be able to do individually. “Ideas … are only going to make a difference when they are embodied, given a social structure, within a dynamic and effective institution.” Such a helpful book—good fodder to think at a personal level but also for my various roles in our local church and work in a Christian nonprofit.
May 4, 2021
Institutions matter. This book explains why institutions matter what what it means to lead, work for, or serve in an institution with “institutional intelligence” - with purpose, wisdom, clarity, and effectiveness. Though written from the perspective of a Christian university president, there are many helpful principles for pastors and other non-profit organizational leaders to profit from.
November 22, 2023
I wasn’t expecting to enjoy this book so much. A beautiful call to see the true importance of institutions, despite the flaws of some, with beautiful theological truths of embodiment and human flourishing woven throughout. The chapter on place and the appendix B on institutions as soul-forming were worth the cost of the book.
August 9, 2018
“Institutions matter,” writes Gordon T. Smith. “Vibrant institutions—effective organizations—are essential to our personal lives and to the common good.” Institutional Intelligenceidentifies seven elements of such organizations: mission clarity, appropriate governance, quality personnel, vibrant culture, financial resilience, generative built spaces and strategic alliances. Smith shows Christian leaders how to implement these elements in their organizations. In a day when public trust in institutions, including churches, is low, this book offers a hopeful, helpful view of trustworthy institutions that contribute to human flourishing.
Book Reviewed
Gordon T. Smith, Institutional Intelligence: How to Build an Effective Organization(Downers Grove, IL: IVP Academic, 2017).
P.S. If you found my review helpful, please vote “Yes” on my Amazon.com review page.
P.P.S. This is cross-posted from InfluenceMagazine.comwith permission.
Book Reviewed
Gordon T. Smith, Institutional Intelligence: How to Build an Effective Organization(Downers Grove, IL: IVP Academic, 2017).
P.S. If you found my review helpful, please vote “Yes” on my Amazon.com review page.
P.P.S. This is cross-posted from InfluenceMagazine.comwith permission.
February 12, 2018
Where Have You Gone, Institutional?
As the 2017 roller coaster comes to a complete stop, a variety of circumstances fight for the label of a year’s defining moment. The world feels miles different from what it was merely a few years ago. Of the many elements out of the norm, the diminishment of institutions seems to be a clear front runner. If I had to define 2017, I would argue that society has decided that institutions have become too powerful and too big to fail. In fact, it appears one of the main reasons the current Commander-In-Chief holds his positions links closely to his promises to break the institutions of which he governs. And he has, to a certain extent, kept his promises. I find it fascinating that almost every appointment appears to be someone intent on breaking apart the very organization they manage.
Given this existential threat to institutions, I wanted to read more about institutions. Are they something worth saving?
An Institutional Manifesto
For Gordon T. Smith, institutions represent the ways in which a community works together to benefit society in ways much larger than someone can do singularly. Institutional Intelligence represents his manifesto on the importance of institutions.
Echoing Goleman’s Emotional Intelligence, Smith argues for the importance of institutions in society. The book spends half its time making the case for institutions, and the other half outlining how leaders can build effective organizations behind the principles of institutional intelligence.
Ultimately, Smith’s argument rests on the notion of purpose. Institutions exist, ultimately, as a vehicle of fulfilling a given purpose.
Institutions, therefore, function as the embodying of a clear purpose that drives people to work together toward a common goal. Smith argues, metaphorically, that the institution is the body that acts out the intentions of its people.
Institutional Leadership
From this premise, Smith builds a pragmatic toolkit for executives to use to lead with institutional intelligence. In shorthand, Smith suggests the institutionally intelligent leader will develop mission clarity, build appropriate governance structures, hire well, develop a vision of hopeful realism, balance a budget with financial resilience, place the organization within an optimal physical space, and form value-adding strategic partnerships.
The strength of Institutional Intelligence lies in Smith’s theological framework that defends the value of institutions. The first half of the book builds on Smith’s background as a theologian and a leader of an educational institution.
The back half, however, falters as it extends generalized examples of effective leadership seemingly as an attempt to extend a scholarly article into full-book format.
Nevertheless, Institutional Intelligence makes a compelling case for the value of institutions. In a society where institutions in all forms appear under attack, Gordon T. Smith’s Institutional Intelligence reminds us of how institutions leverage the collective to meet the needs of our communities. Recommended for people in leadership positions.
Originally published at http://www.wherepenmeetspaper.com
As the 2017 roller coaster comes to a complete stop, a variety of circumstances fight for the label of a year’s defining moment. The world feels miles different from what it was merely a few years ago. Of the many elements out of the norm, the diminishment of institutions seems to be a clear front runner. If I had to define 2017, I would argue that society has decided that institutions have become too powerful and too big to fail. In fact, it appears one of the main reasons the current Commander-In-Chief holds his positions links closely to his promises to break the institutions of which he governs. And he has, to a certain extent, kept his promises. I find it fascinating that almost every appointment appears to be someone intent on breaking apart the very organization they manage.
Given this existential threat to institutions, I wanted to read more about institutions. Are they something worth saving?
An Institutional Manifesto
For Gordon T. Smith, institutions represent the ways in which a community works together to benefit society in ways much larger than someone can do singularly. Institutional Intelligence represents his manifesto on the importance of institutions.
Echoing Goleman’s Emotional Intelligence, Smith argues for the importance of institutions in society. The book spends half its time making the case for institutions, and the other half outlining how leaders can build effective organizations behind the principles of institutional intelligence.
Ultimately, Smith’s argument rests on the notion of purpose. Institutions exist, ultimately, as a vehicle of fulfilling a given purpose.
“There is no such thing as a generic institution. Each organization has a unique identity, calling, and purpose—a reason for being. Institutional vitality depends on finding and living with clarity precisely at this point: Who are we, and what is our purpose, our mission, our calling” (19)?
Institutions, therefore, function as the embodying of a clear purpose that drives people to work together toward a common goal. Smith argues, metaphorically, that the institution is the body that acts out the intentions of its people.
“Just as a soul cannot exist except as embodied, there is no community, no vision, no mission without institutions. The idea, the vision, will not happen, will not make a difference until and unless it is housed in an institution” (4).
Institutional Leadership
From this premise, Smith builds a pragmatic toolkit for executives to use to lead with institutional intelligence. In shorthand, Smith suggests the institutionally intelligent leader will develop mission clarity, build appropriate governance structures, hire well, develop a vision of hopeful realism, balance a budget with financial resilience, place the organization within an optimal physical space, and form value-adding strategic partnerships.
The strength of Institutional Intelligence lies in Smith’s theological framework that defends the value of institutions. The first half of the book builds on Smith’s background as a theologian and a leader of an educational institution.
The back half, however, falters as it extends generalized examples of effective leadership seemingly as an attempt to extend a scholarly article into full-book format.
Nevertheless, Institutional Intelligence makes a compelling case for the value of institutions. In a society where institutions in all forms appear under attack, Gordon T. Smith’s Institutional Intelligence reminds us of how institutions leverage the collective to meet the needs of our communities. Recommended for people in leadership positions.
Originally published at http://www.wherepenmeetspaper.com
May 1, 2018
Not exactly a gripping read, but a lucid, thoughtful, comprehensive argument for an awareness of healthy institutional thinking. The chapters are organized helpfully, starting with governance before moving through topics like culture, structures, funding, built spaces, etc., and Smith never strays too far from practical considerations. There are frequent references to personal stories, as well as nuts-and-bolts explanations for how to apply his working knowledge. He also manages to balance considerations for "religious" institutions right alongside non-profits, schools, and businesses. He also includes a very helpful "further reading" section, and the appendix specifically on the "spirituality" of institutional thinking was actually my favorite section of the book.
Smith is clearly a thoughtful presence in the academic world. This book is a great resource, and will be a helpful reference point for anyone in ministry, non-profit work, education, or business (so, really, most people in general!).
Smith is clearly a thoughtful presence in the academic world. This book is a great resource, and will be a helpful reference point for anyone in ministry, non-profit work, education, or business (so, really, most people in general!).
June 15, 2019
Institutional Survey
I like Smith's books, and this one provides guidance from another angle, based on his experience. This provides a survey of what kind needs to be thinking about when leading within institutions. Everything from people to money is covered. This within not-for-profit organizations are the primary audience, and this within Christian educational institutions will especially see themselves within the examples and applications.
I like Smith's books, and this one provides guidance from another angle, based on his experience. This provides a survey of what kind needs to be thinking about when leading within institutions. Everything from people to money is covered. This within not-for-profit organizations are the primary audience, and this within Christian educational institutions will especially see themselves within the examples and applications.
September 11, 2019
A reasoned and mature look at institutions. He states that institutions "can be good for the soul" and that on occasion can be otherwise. Smith begins by discussing mission clarity, and then discusses governance, financial equilibrium and partnerships, to name several topics. As a college President, he speaks to the field of higher education, but also brings in churches and non-profit organizations.
Read
March 18, 2023How to build an effective organization. I usually don’t like books that are too technical about a certain topic. I was afraid this was going to be one of them. For the mentoring I receive for the youth ministry we are setting up, this was a recommended book. I must say that it was really helpful in understanding more deeply the functions of an organization. It was quite general which makes its content applicable to many different types of organizations. A great read!
August 28, 2018
This is a well-thought-out book written from a Christian perspective for leaders in the non-profit sector. It's a good read for those at any level of leadership involvement in this type of institution.
January 30, 2022
Very helpful categories and insightfully written where non-profits are concerned.
March 30, 2022
Hard get past the elephant in the room: the patriarchy in religion. Quoting the charism of Catholic Church and other only referring to male orders is telling.
November 29, 2023
It's probably a good book for its audience, but it wasn't for me.
September 1, 2025
I had to read this book for a graduate studies course and write a paper. I'll include my final concluding paragraphs here as my review:
"Similarly, even those who understand his work may find his style off-putting due to its academic and elitist tone. Much like his interwoven faith narrative, Smith does not necessarily indicate he means to do otherwise; he even argues others should “be elitist–unapologetically so” in their choices (p. 92). This conveys something different than: be perceptive, discerning, and, with careful consideration, selective for best institutional fit and outcomes (1 Kings 3:9; Jms. 1:5; Jhn. 7: 24). It renders his ideas to a singularly specific audience and affirms one’s position in that audience. Others could potentially benefit from Smith’s gained experience if it were more accessible, enhancing their own leadership capabilities or better understanding those they follow. Larry Osborne (2010) addressed this kind of disparity in his book Sticky Teams: Keeping Your Leadership Team and Staff on the Same Page, which covers much, if not all, of the content and concepts as Smith does but with a strikingly different approach. In Sticky Teams, Osborne discusses “the danger of educational separation:” …most boards and staffs suffer from some degree of educational separation. This is an organizational disease that occurs when a leader has significantly more education and training than everyone else….At its worst, this dynamic produces arrogant pastors and distrusting lay leaders. (pp. 128-129)
Smith’s work is somewhat paradoxical in this regard, since the enduring institution of the Christian church started with those who seemed the least elite candidates possible, spent much of their time confused or quarreling, and necessitated considerable patience and guidance to become what can only be viewed as elite founders with historical perspective (The Gospels & Pauline epistles). This assessment may have more to do with personal interpretation, though, as written works are subject to individual connotation and influences unassociated with the page.
Conclusion
Institutional Intelligence serves as an insightful and detailed guide to discovering and employing seven essential building blocks necessary for creating and maintaining smart, healthy, sustainable nonprofit and educational systems alike. Committed to generativity, Smith provides reflective, guiding questions for present and future use along with substantial references to other works for further reading and enhancing understanding of the essential building blocks and overall institutional possibilities. If mission fulfillment through an actively engaged and committed workforce, intentionally aligned partnerships, sustainable economics, accommodating spaces, and a well-governed, notably superior institution are desired, then Smith’s book meets the mark. It would serve as an informative and useful tool for any leader along the way."
If it isn't clear, I only recommend this to those who want to reinforce their own self-assessed status and beliefs.
"Similarly, even those who understand his work may find his style off-putting due to its academic and elitist tone. Much like his interwoven faith narrative, Smith does not necessarily indicate he means to do otherwise; he even argues others should “be elitist–unapologetically so” in their choices (p. 92). This conveys something different than: be perceptive, discerning, and, with careful consideration, selective for best institutional fit and outcomes (1 Kings 3:9; Jms. 1:5; Jhn. 7: 24). It renders his ideas to a singularly specific audience and affirms one’s position in that audience. Others could potentially benefit from Smith’s gained experience if it were more accessible, enhancing their own leadership capabilities or better understanding those they follow. Larry Osborne (2010) addressed this kind of disparity in his book Sticky Teams: Keeping Your Leadership Team and Staff on the Same Page, which covers much, if not all, of the content and concepts as Smith does but with a strikingly different approach. In Sticky Teams, Osborne discusses “the danger of educational separation:” …most boards and staffs suffer from some degree of educational separation. This is an organizational disease that occurs when a leader has significantly more education and training than everyone else….At its worst, this dynamic produces arrogant pastors and distrusting lay leaders. (pp. 128-129)
Smith’s work is somewhat paradoxical in this regard, since the enduring institution of the Christian church started with those who seemed the least elite candidates possible, spent much of their time confused or quarreling, and necessitated considerable patience and guidance to become what can only be viewed as elite founders with historical perspective (The Gospels & Pauline epistles). This assessment may have more to do with personal interpretation, though, as written works are subject to individual connotation and influences unassociated with the page.
Conclusion
Institutional Intelligence serves as an insightful and detailed guide to discovering and employing seven essential building blocks necessary for creating and maintaining smart, healthy, sustainable nonprofit and educational systems alike. Committed to generativity, Smith provides reflective, guiding questions for present and future use along with substantial references to other works for further reading and enhancing understanding of the essential building blocks and overall institutional possibilities. If mission fulfillment through an actively engaged and committed workforce, intentionally aligned partnerships, sustainable economics, accommodating spaces, and a well-governed, notably superior institution are desired, then Smith’s book meets the mark. It would serve as an informative and useful tool for any leader along the way."
If it isn't clear, I only recommend this to those who want to reinforce their own self-assessed status and beliefs.
Displaying 1 - 17 of 17 reviews