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The art and science of the possible

Category Archives: management

The mechanistic world view continues to be reinforced by Information Technology

22 Wednesday May 2013

Posted by lnedelescu in business, management, society, technology

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Analytics, Big Data, business, creativity, Frederick Taylor, Humanity, Information Technology, Knowledge Economy, Machines vs. Humans, management, Manufacturing, Mechanistic Thinking, Process, Production, Research and Development, Workflow, World View

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This will be a very short blog post. I am not going to make an elaborate argument. Rather, I would like the “evidence” to speak for itself. My thesis is that Information Technology (IT) continues to proliferate mechanistic thinking in business, more than a century after Frederick Taylor fathered the science of workflow analysis and labor productivity in a manufacturing intensive economy. While we’ve since moved on to the knowledge economy, we have yet to abandon manufacturing thinking.

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Why the “individuality disorder” is the great tacit crisis of our times and how complexity informed management can help resolve it

18 Saturday May 2013

Posted by lnedelescu in business, Communication, complexity, Crisis, future, human capital, management, Organizational Development, paradox, philosophy, society

≈ 1 Comment

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Ackoff, Ambiguity, Black Swans, business, complexity, Corporations, Disorder, Dissonance, Drucker Forum 2013, False Comfort, future, Hamel, Hollnagel, Humanity, Individuality, Industrial Revolution, management, Organizational Development, paradox, philosophy, Predictability, Professional Fulfillment, Resilience, Resonance, Scale, Snowden, Society, Taleb, Variance, Wall Street

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With all the benefits derived from the advances in standard of living, our modern society suffers from an apparent paradox which can be best paraphrased as “if everyone is special, then no one is”.

We strive for individuality even as the economic affluence required to express ourselves is increasingly tied to economies of scale and the uniformity they foster. We do our best to proclaim our uniqueness to the world on social media pages, but have to make use of highly standardized templates in the process. We share in the belief (and rightfully so) that the very success of our modern society depends on scale, yet it is precisely scale that appears to generate confusion when it comes to the most intimate aspects of our human identity.

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A visualization of “discontinuous evolution”

08 Wednesday May 2013

Posted by lnedelescu in complexity, design thinking, knowledge, management, Organizational Development, problem solving

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complexity, Discontinuous Change, Innovation, management, phase transitions, strategy

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In my blog entry arguing for a unified theory of management, I proposed that most top management reference a fundamental distinction between exploration of new knowledge (i.e. innovation) and exploitation of existing knowledge (i.e. efficient operations).

Business and indeed the entire society is caught in an evolutionary dynamic that balances exploration and exploitation – see David Hurst’s ecological perspective. While the exploitation cycle is amenable to incremental thinking, exploration appears to be prone to discontinuities – hard to predict leaps of logic.

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Towards a unified theory of management

07 Tuesday May 2013

Posted by lnedelescu in innovation, management, taxonomy

≈ 1 Comment

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Ackoff, Christensen, complexity, Dave Snowden, David Hurst, Design, Fredmund Malik, Innovation, management, Management Theory, Peter Drucker, Roger Martin

Drucker-reading

Exploration vs. exploitation is a common thread amongst top strategy and management thinkers. Exploration is aimed at the future (strategy, innovation) while exploitation is more aligned with business operations, i.e. efficiency. Does this point to a unified management theory?

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Complexity forces the distinction between strategy and planning

02 Thursday May 2013

Posted by lnedelescu in complexity, design thinking, management, strategy, taxonomy

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Ackoff, business, complexity, Cynefin, Design Thinking, Idealized Design, Martin, Planning, Playing to Win, Roger Martin, Snowden, strategy

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Following the publishing of his latest book, “Playing to Win”, Roger Martin has made a paramount distinction between strategy and planning. Having the greatest respect for Roger Martin’s thinking, I usually take his insights as foundational. Since foundational insights are few and far between, there’s a likelihood that other thinkers have come across similar distinctions. I didn’t have to search for long to find echoing insights in the work of Russell Ackoff, systems thinker emeritus, and Dave Snowden, complexity guru.

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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

≈ 2 Comments

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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.

Why bureaucracies and effective solutions don’t mix

24 Sunday Mar 2013

Posted by lnedelescu in management

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authority, budget, bureaucracy, business, Innovation, noneffective, opinion, politics, public sector, solution

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Let’s take the perspective of a bureaucrat. His or her authority is in large part derived from the budget he or she commands, and the number of people managed. What is therefore his or her unstated objective? To increase the budget commanded, or at least, to ensure the budget is maintained. Spend less one year but attain the job’s objectives, and superiors could reduce next year’s budget, with a corresponding reduction in authority. No good.

So to simplify, the assertion is that bureaucracy’s objective is to spend. Now the private sector also spends. A private enterprise spends on business solutions. In that environment, solutions are judged by the ability to address a problem more effectively, which usually includes a reduction in cost. And so, if a bureaucrat would spend on effective solutions, these would point out inefficiencies and the fact that the same job could be done with less. This is in direct conflict with a bureaucracy’s survival. And so, a bureaucracy not only has an interest to increase spending, but it has to make sure that whatever “solutions” it acquires never reveal its own inefficiencies.

Bureaucracies will of course advertise their appetite for solutions. But saying something and meaning it are different things. And so, there are many more than willing to sell just such “solutions” to bureaucracies: the ineffective type. These are usually the out of context type “fixes” concentrating on “blind” efficiency, measuring quantity but not quality. As an example, instituting a workflow management solution that tracks the number of meetings as proof of work being done. Never-mind whether worthwhile conclusions or good decisions are being reached.

Now let’s step back to effective solutions. The ultimate in solution effectiveness renders a job obsolete. In the private sector that works out well since innovation creates new problems to be solved and thus new jobs (Clay Christensen of course contends that even the private sector is not investing in sustainable innovation lately, but let’s leave that aside for now). So unlike the private sector, bureaucracies have to be ever vigilant they don’t work themselves out of a job. That is because they do jobs which are supposed to be around forever addressing unchanging societal needs, like social security.

But from what we know so far about the universe and the life it supports, nothing is forever. So why should bureaucracies? What if societal needs are changing and not static as bureaucracies appear to assume? Why shouldn’t bureaucracies adopt solutions that put them “out of business” and force them to innovate new jobs that address more complex problems beneficial to the improvement of society at large? What if we found a way to incentivize bureaucracies to reward innovation and risk? What if the bureaucratic concept itself is an “unnatural” invention that doesn’t reflect the true characteristics of social systems? What if bureaucrats themselves live a false sense of fulfillment that resumes to stability and job security but traps their higher human aspirations for creativity, competitiveness and continual renewal, for challence and change? What if bureaucracies are bad for everyone involved and there is a smarter way to fulfilling the purpose they presumably serve?

Can we stop already with management by popular opinion?

05 Tuesday Mar 2013

Posted by lnedelescu in management, society

≈ 1 Comment

Tags

business, Celebrity, culture, Hollywood, Leadership, Marissa, Mayer

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Let me start by asking: aren’t you tired already of seeing Marissa Mayer’s face on every online media channel every single day? Since when did management become a popularity contest in the court of public opinion? Do we all have nothing better to do? It seems to me we are slowly transforming the profession of management into a circus, complete with soap drama. If we are looking for role models, I would say we are looking in the wrong place. We have a new breed of executives, namely the “celebrity” CEO. I am sure she is a good human being and of above average competence and intelligence, but to me a role model has to have done significantly more than taken full advantage of the opportunity of being at the right place at the right time. Role models to me have to somehow embody that Greek tragedy hero quality of fall from grace and resurrection.

Now management is an endeavor that aims for long term results. Results speak louder than words, and long term means that an observer shouldn’t judge one micro-decision at a time. So if I were Marissa, I would respectfully ask everyone to please abstain from having an opinion about the duration of my lunch, or my working hours, or other similar triviality. But to me she appears to at least partly enjoy the attention. CEOs are not alone in the quest for “celebrity”. CNN anchors and many others are helping to spread the Hollywood phenomenon outside of the entertainment industry.

Counter-intuitive management tips: excessive transparency can lead to anarchy

02 Saturday Mar 2013

Posted by lnedelescu in management, Organizational Development

≈ 1 Comment

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business, Leadership, Organizational Development

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The brain is a problem solving device. It is in a constant pattern search, even when there are no patterns to be found. This reality has a heritage in survival anthropology: the fight or flee decision had to be computed even with incomplete information. Waiting for all information to be available could be fatal (by the time one of our ancestors would pause to carefully analyze whether a moving bush meant there was a tiger behind it would have been too late). And so the brain, if it has to, will make up fictitious information to fit a pattern.

But this ability presents an inherent risk: we all have the potential to reach incorrect conclusions by forcing the wrong pattern to a situation we don’t understand. The leap from conclusion to strong opinion is effortless, as is attaching emotional value to a certain opinion. And with strong opinions comes the potential for questioning authority. Want proof? Consider how often you hear the conspiracy theory. What is the conspiracy theory if not a pattern that provides a simple way out for complex situations which are beyond the ability of simple comprehension?

So what does this have to do with management, transparency and anarchy? Well transparency is seen as a key ingredient of enlightened modern leadership. But consider this; the leader has an additional ability for perspective, which is why he or she is the leader in the first place. Call it a more powerful pattern fitting ability. And so, if the leader shared all the information he is exposed to with his subordinates in an effort to build consensus and rally the team around a purpose, the opposite may happen. That is because, given access to the same information the team is likely to fit simpler patterns to a given situation. And regarded from a simpler perspective, the leader’s actions won’t make sense. Questioning the leader is only a step away, and anarchy is always close by. Consensus may indeed be reached, against the leader’s authority.

And so, the solution? Give people an inspiring vision and share with them enough so they can do their jobs effectively in support of the vision.

The insights presented have to be of course tailored to the situation at hand. Office situations are seldom heated enough to qualify for the “anarchy” appellation. Also, in organizations where politics trumps competence, leaders are often less competent in perspective than their subordinates. In other words an incompetent leader may give the team good reason to question his or her decisions.

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