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The art and science of the possible

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The art and science of the possible

Monthly Archives: April 2013

Drucker’s “doing the right thing”, Superman’s Lex Luthor and sales strategy

30 Tuesday Apr 2013

Posted by lnedelescu in business, sales, taxonomy

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Ackoff, Apple, Customer Approach, Drucker, Effectiveness vs. Efficiency, Gene Hackman, Lex Luthor, Sales, Steve Jobs, strategy, Superman

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Foundational thinkers are often politely dismissed on the excuse that “abstract” insights are difficult to apply to concrete situations. I will make use of Drucker’s paramount distinction between “doing things right and doing the right thing” to counter that popular belief using a concrete example: sales. But before tackling the sales example, let me make use of another foundational thinker of similar caliber, Russell Ackoff, to reinforce Drucker’s distinction. In Ackoff parlance, “doing things right” results in more efficiency, or improving a certain solution, while “doing the right thing” is a matter of effectiveness, or questioning the problem statement.

Now let’s move on to the sales example. In sales we are taught that the customer is king. And as long as the customer knows what he wants and what his problem is, this is great. But in many cases, particularly in today’s increasingly complex world, the customer doesn’t know what his problem is and may not even know what he wants. Continue reading →

And the nominees (for foundational thinking) are…

29 Monday Apr 2013

Posted by lnedelescu in management, taxonomy

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Ackoff, complexity, Foundational Thinkers, Human Organization, Jaques, Life, management, Ontology, Prigogine, Vester

vesterAckoff-triarchyPrigogine_6jacques_2

In a recent post I proposed a distinction between foundational thinkers and “how” teachers. While defining the generic concept, I did not give any concrete example of what I consider to be foundational thinkers. In this post, I introduce a select few. The selection criteria for these thinkers is the development of a complete and internally consistent paradigm related to life, human organization and management.

Russell Ackoff – for providing a complete ontology of the management practice and its pphilosophy,

Elliott Jaques – for providing a complete ontology for human organization,

Frederic Vester – for providing a complete bio-cybernetic model of complexity,

Ilya Prigogine – for the pursuit of the unification of natural and social sciences using complexity.

It is worth mentioning another trait these four shared: they were all iconoclastic personalities within their respective fields.

Frameworks, trade-spaces, matrices: engineering thinking in management results in big, stagnant bureaucracies

25 Thursday Apr 2013

Posted by lnedelescu in complexity, consulting, human capital, management, Organizational Development, science, strategy, taxonomy, technology

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Analytic Thinking, bureaucracy, business, complexity, effectiveness, Engineering, future, management, models, philosophy, Validity

The most important function of management, particularly executive management, is setting future direction. That implies decisions and choices about the present and future.

Because engineering thinking or more broadly speaking analytic thinking predominates in many executive and consulting circles, it is believed that decisions require a degree of rigorousness similar to that of the scientific method in natural sciences. And so, it is firmly believed that analytic tools empower managers to make sound decisions. The result is a myriad of tools reminiscent of engineering speak – frameworks, trade-spaces, matrices – packaged in neat Power Point slides.

This all very good, but, as philosopher of science Isabelle Stengers remarks  “tools are demanding – they do not confer the power of judging, they ask for the choice of the right tool for the right situation; in other words they oblige us to think and wonder”. The danger that Stengers cautions against is the rigid interpretation of the power of tools. Tool power should never be situated above human judgement. And when it does, this results in the tools getting a life of their own, and embedding the human element which is helpless to escape their hold. This ultimately results in a bureaucratic construct as the purpose of humans becomes not the seeking of meaning and validity, but rather the maintenance and upgrading of the tools. This also results in a proliferation of enforcer types at the expense of creative types, reducing the number and quality of choices about the future.

A more progressive view of management tools is as “enlightening abstractions, precious new tools for thinking” rather than “ready made instruments”. Also, in Stenger’s view, the relationship between user and tool is not one-directional; rather, “tools modify the ones who use them; to learn how to use a tool is to enter a new relation with reality, both an aesthetic and practical new relation”. In my experience, this dual directionality can also unfortunately work backwards: rigid tools can have a limiting effect on thinking.

Source of Isabelle Stengers quotations is “The Challenge of complexity: Unfolding the ethics of science – In Memoriam Ilya Prigogine”

Also check out Dave Snowden’s related blog entry.

A brief modern history of future predictions: engineers vs. social scientists

23 Tuesday Apr 2013

Posted by lnedelescu in complexity, future, problem solving, society

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Club of Rome, Cold War, Consumerism, Drucker, future, management, Management Cybernetics, philosophy, Philosophy of Science, Quantitative vs. Qualitative Predictions, Social Science, Society, Stafford Beer, System Dynamics, Toffler

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At the height of the Cold War predicting the future become serious business. A nuclear World War III was a real possibility and a literally cold and dark planet awash in radioactive ash a likely prospect. But communism wasn’t the only threat to the free world. Ideology aside, consumerism coupled with energy shortages and population growth provided good reason for questioning the very sustainability of our civilization. Ironically, communist propaganda pointed precisely to greed as capitalism’s Achilles heel.

So it isn’t surprising that by the 1970’s two schools of thought were already embarking on predicting the future. Since I have not come across this type of distinction between “futurists” in literature, I will proceed to describe it here. It is worth noting that by “distinction” I don’t mean opposition since both schools of thought can be regarded as members of the larger umbrella of systems thinkers.

First let’s loosely define the “engineers”, or better said, the engineering school of thought. Engineering had proven successful in World War II for a number of inventions, including rocket control systems. While Wernher Von Braun was working hard on getting us to the Moon, geniuses of the likes of Jay Forrester and Stafford Beer saw other uses for rocket control theory. Namely they had the insight to apply engineering thinking, particularly the mechanism of feedback, to social systems. This resulted, respectively, in the birth of two entirely new disciplines: system dynamics and management cybernetics. In parallel, Mihajlo Mesarovic, also an engineer emeritus with whom I’ve had the privilege of taking a graduate course at Case Western Reserve University, was also working on an elaborate mathematical model to predict the future state of the world. The Club of Rome, a new organization with an interest in humanity’s fate, saw the opportunity for these new methods to lend a degree of rigorousness to their own predictions about humanity’s long term future. This resulted in several publications in the early 1970’s. Limits to Growth and Mankind at the Turning Point received widespread attention since they discussed the “predicament of mankind”. The underlying belief of the engineering school of thought was that given a sophisticated enough computer model, the future could be more of less “mathematically” derived. Perhaps not surprisingly The Limits to Growth report was first introduced at a symposium in St. Gallen Switzerland, which remains a powerhouse for management cybernetics – Fredmund Malik and his consultancy continuing to this day the work started by Stafford Beer.  In essence Limits to Growth painted a pessimistic view for the world future where shortages were likely to stop and even revert human progress. Simply put, the Club of Rome’s prediction for the early 21st century, largely based in engineering thinking, spelled disaster.

At about the same time, a number of futurists emerged from the direction of the social sciences. Peter Drucker, Alvin Toffler, Charles Handy and others were by no means engineers and were not using models, at least not in the quantitative sense; however, this did not discourage them from looking into the future. The term that Peter Drucker eventually chose to describe himself, “social ecologist”, captures well this entire breed of futurists. What these futurists were is astute observers of the human condition and social ecology, the same “tools” employed by the ancient Greek philosophers whose insights still form the basis of western culture. Drucker and his peers did not use quantitative methods but made predictions derived from qualitative insights at the intersection of human psychology, technology and social constructs. Many of those predictions are still relevant today while predictions presented by the engineering school of thought had to be dismissed or significantly adjusted. In all fairness, in the Club of Rome’s 2012 update to the Limits to Growth, “2052 – A Global Forecast for the Next Forty Years”,  they have moved considerably away from hard quantifiable predictions. They have also moved in the direction of the social, describing their latest work as “educated guesses, combining data, modelling and hard science with an understanding of human nature and its systems and intuitions”.

Per this latest evidence, the two schools of thought can be said to be converging. Perhaps the best insight to be derived from the distinction presented in this piece is that we have much work to do in reconciling natural and social sciences. Until we do, and possibly even after, predicting the future will remain messy business. Elliott Jaques and Ilya Prigogine come to mind as two exponents of the social and respectively natural sciences that have made significant strides in reducing the divide between the two paradigms. I have always said that the universe preceded humans and so, the fact that we glean it through the reductionist lens of separate sciences suits our own convenience more than cosmological reality.

What about our ability to predict the future? Is it a legitimate undertaking or modern alchemy? Is the future clearly discernible through the lens of an all encompassing computer model, or does Lorenz’s and Feingenbaum’s Chaos Theory with its Butterfly Effect render any attempt at prediction hopeless? I would dare say that the work of Drucker, Toffler, and Handy among others has addressed both assertions: exact predictions of the future based in quantitative methods is indeed a hopeless undertaking, but a broad, nonspecific peak at the future is possible through the lens of qualitative thinking anchored in the constancy of human nature. But here’s the catch: only a select few appear to have the capacity for this type of undertaking, and they certainly aren’t employing a repeatable process or “best practice” in doing so. For the time being it appears that staring into the future is more art and science.

The gold standard in business communication and the link between design format and thinking

18 Thursday Apr 2013

Posted by lnedelescu in business, consulting, design thinking

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Behavior, Business Education, Communications, Da Vinci, Design, Design Thinking, Effective Decision Making, Form, Function, Impact, John Gero, Minimalism, Presentations, Public Speaking, Reliability, Roger Martin, Simplicity, Structure, TED, Validity

simplicity

I ran across this talk by Roger Martin which is, in my opinion, the quintessential example for a superlative presentation. One of my key criteria for “superlative” is that the audience is inspired and more importantly, there is a good chance the message will be remembered, i.e. that the speaker will generate an impact.

Here are the elements that make this great in my view: a single visual, a comfortable speaking pace with pauses, a few terms which are well defined as they are introduced, and lots of examples.

Unfortunately this type of presentation is the opposite of what we’re used to in the business world. The presentation norm from the likes of top consulting firms, business schools and even TED events is mind numbing data and graphics and a speaking pace rivaling that of auctions as undeniable proof of intelligence.

In his talk, Roger Martin contrasts analytical and design thinking. With a wonderful resonance between form and function, Roger Martin not only talks the design talk but walks the design walk. The format of the presentation presents a minimalist design that reinforces in form the semantics of the message.  By contrast, the 50+ slide presentations with dizzying graphics that none of us seem to be able to escape could also be said to follow in form the predominantly analytical thinking of the business community with an obsession for numbers and statistical proof.

In closing, I believe our leaders should have simplicity of form for communications as a goal. This would help avert information overload and facilitate richer dialogue and more effective decisions. Design format is not just a nice to have, it can have very concrete repercussions. As Leonardo Da Vinci has said, “simplicity is the ultimate sophistication” and we shouldn’t be afraid that a minimalist form takes away from the credibility of the message. The caveat is that simplicity can only be attained with a fundamental insight, and, in lack of a fundamental insight, many of our experts are forced to go for the volumes of data approach.

Do take 10 minutes to watch this video if you have a quiet moment, the message is as powerful as the format.

Additional pointers to the relationship between form and function:

Dr. John Gero presents a wonderful model for the relationship between function, structure and behavior in design processes.  

Dr. Elliott Jaques, inventor of the “midlife crisis” concept and the Requisite Organization Theory, developed a speech analysis method to probe mental potential.

The type of corporate hypocrisy that won’t fly in the future

15 Monday Apr 2013

Posted by lnedelescu in business, future, society

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business, Competitive advantage, corporate hypocrisy, customer experience, customer service, feedback, online surveys, Technology

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Here’s an example of corporate hypocrisy I’m sure you’ve run across. You cancel a service and you receive an email that asks for your feedback in the form of a “brief online survey”. At the bottom of the generic “no-reply” email is a link to a survey along with the signature of some corporate executive with a real name, say Fred Doe, Executive Vice President, Customer Service. Here’s the hypocrisy. If all is wanted is a stencil multiple choice feedback, then why not a generic corporate signature in line with the generic computer generated message? On the other hand, if a real person is involved, then why is the person’s email missing and the “no-reply” option turned on?

The answer is that this type of approach aims to reconcile the human with the technological. Technology is used to interface with the consumer, but there is an embedded emotional trigger. Large companies are particularly susceptible to this type of approach since they have many more consumers than employees, and so it is believed that a personalized connection to the consumer is impossible. But in this case consumers can be treated as adults rather than presented with cheap emotional tricks. I propose that in the future large companies that will find ways to address this issue, that will be able to combine economies of scale with personalized service, will have a significant competitive advantage. This is the holy grail for customer service in a world where business is becoming bigger just as the consumer is becoming increasingly aware of his individuality.

Foundational thinkers vs. “how” teachers

12 Friday Apr 2013

Posted by lnedelescu in consulting, human capital, knowledge, learning, taxonomy

≈ 2 Comments

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Coaching, Leadership, Learning, strategy, Thought Leadership, Workshops

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As the complexity of modern life grows, so does the number of seminars, workshops, coaching sessions and other “learning how to cope” events. Can there be as many “truths” as there are gurus?

To answer that question I introduce a distinction between “foundational thinkers” and “how teachers”. I see foundational thinkers as those advocating “why” models based on key notions associated with a particular issue. These type of thinkers attempt to capture the underlying cause. How teachers on the other hand concentrate on recipes for dealing with an issue, often in the form of steps, frameworks, etc.

In my personal experience and research I have come across much fewer members of the first category. This is also the category that I value the most. That is because “why” models allow and indeed demand that the student use his own problem solving skills to derive the “how” particulars for a given situation. In other words “why” models allow customization and adaption of the methods to the circumstances. “How” teachings on the other hand provide a recipe which the student is to memorize and repeat. This is bad for two reasons: memorization discourages critical thinking, and in a complex world no circumstance is likely to repeat exactly.

Many of the teachers (leadership coaches, high end consultants, etc.) I have come across wisely avoid the “why” question and go straight into “how”. “Why” questions are hard and can even be uncomfortable and what business-savvy teachers know is that many of the customers for these types of sessions come there to feel good and relax, rather than be mentally challenged beyond their abilities. Mental challenges create stress, and a stressed customer is not good for repeat business. “How” teachers are astute observers of human psychology, while foundational thinkers are scholars of knowledge and discovery.

Returning to foundational thinkers, they also come in different echelons of value. The most valuable provide complete and internally consistent ontologies for a pervasive issue. These individuals are a few a century. But in terms of generating a following, “how” teachers definitely hold the upper hand.

When going to the next seminar or workshop or coaching session, do ask yourself what category your teacher fits. If you feel too good about yourself and no hard thinking is required, you’re probably in the “how” teaching zone.

Why innovation is vital to our survival

10 Wednesday Apr 2013

Posted by lnedelescu in innovation

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complexity, future, Innovation, Nature, science, Society, Technology

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Picture technology as a “buffer” between humans and their environment. With each new scientific discovery an environmental constraint is removed, and new resources, usually in the form of energy, become available for exploitation via new technologies.

We require energy in order to counter the constant tendency of the universe to become chaotic (i.e. counter entropy), and to build ever more complex structures needed to support progress. But since any new uncovered source of energy is finite, our civilization has to keep innovating in order to uncover new types of resources. Framed as a critical survival mechanism, innovation becomes much more than a “neat” buzzword. The steady state argument of being content with what we have doesn’t fly because, at any given time, maintaining steady state requires energy we derive from finite resources, such as fossil fuels.

Just like the universe has an in-built tendency for disorder (i.e. entropy), so it seems intelligent life has a natural affinity to discovery. Said differently, progress is not something we necessarily have control over, it’s (in) our destiny.

H.G. Wells remarked that “civilization is a race between disaster and education”. In light of the above, I would say that the race is rather between disaster and innovation. Our educational systems, particularly those related to management and organization, should instill imagination rather than build “static” knowledge and skills.

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