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The art and science of the possible

~ A celebration of non-zero sum thinking

The art and science of the possible

Category Archives: society

It is through strategy and invention that morality and profitability become symbiotic

21 Friday Jun 2013

Posted by lnedelescu in business, capitalism, Organizational Development, society, strategy

≈ 2 Comments

Tags

2008 financial crisis, business, Enron, Invention, Machiavelli, Morality, Society, Speculation, strategy, Wall Street

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With Enron still in recent collective memory, business has not fully recovered its morality and ethics standing. And the 2008 financial crisis didn’t help, in fact lowering trust in the world’s business establishment. So the question of whether morality and profitability in business can be symbiotic is fair. I had not really formed an opinion on this issue until the very recent past, when several incidents in my professional life gave me no choice but to do so.

And so, having pondered the issue, I believe there is an answer that constructively transcends the growing divide between the pro-profit and anti-corporate, anti-globalization groups. In short, business success doesn’t have to be synonymous with immorality. The key to achieving a symbiosis between profitability and morality is in my opinion a combination of strategy and invention.

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Self-awareness: a phenomenon exclusive to the natural world?

13 Thursday Jun 2013

Posted by lnedelescu in human capital, learning, science, society, technology

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Artificial Intelligence, Cognition, complexity, Double Loop Learning, Intentionality, Meaning, Natural World, Neural Algorithms, Perception, Purpose, Reality, Reflexivity, Self-Awareness, Singularity, Social Science

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Self-awareness, key to intentionality, meaning and purpose, may be restricted to the natural world. In social theory, reflexivity refers to a circular relationship between cause and effect in human systems. The latest in complexity and cognitive science – themselves related disciplines – appears to confirm this assertion by social scientists. By the simple act of perception humans can alter the reality they attempt to observe, and in that sense reality and sentient man can be said to intertwine. Out of this inference an emergent phenomenon we call the future limps forward.

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The rising toll of the (still) predominant mechanistic mindset in a complex world

11 Tuesday Jun 2013

Posted by lnedelescu in complexity, Crisis, democracy, future, society

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causality, Cause and Effect, Charles Handy, complexity, David Hurst, democracy, Ecology, future, Mechanistic, Mindset, Resilience, Robustness, Society, Thinking

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Thesis: there is I believe a meta-societal, global shift from robustness to resilience (see this for an intuitive illustration of the difference). This is fueled by an underlying transition from a mechanistic (Industrial Revolution) to a complex-adaptive (Conceptual Economy) worldview.  We have managed to design robust systems (economy, air traffic, healthcare, energy), but not resilient. Robust systems are great for quasi-stable environments, but the price for not having resilience in highly dynamic, networked environments is staggering: $12 trillion for the 2008 financial crisis, and counting. Unless we learn how to design resilient systems, likely through the application of complexity principles, democracy itself may be at risk.

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Post-causality: a quiet global revolution in the making

05 Wednesday Jun 2013

Posted by lnedelescu in business, capitalism, complexity, consulting, democracy, future, human capital, innovation, knowledge, management, philosophy, problem solving, society, taxonomy, technology

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Big Data, business, Categorization, causality, Cause and Effect, complexity, creativity, Cynefin, Daniel Pink, Dave Snowden, Drucker, Drucker Forum, Emergence, future, Imagination, Innovation, Knowledge, management, Methods, models, Motivation, Peter Checkland, Resilience, Revolution, Roger Martin, Russell Ackoff, Safety, Sense Making, Social Systems, Society

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If one were to cut a global cross-section through social classes, nationalities, ethnicities, ages, professions, genders, and so forth, very few commonalities would emerge. And yet, there is I propose just such a common thread: a shared causality mindset, a globally predominant belief in the supremacy of cause and effect.

Since it is people who run our institutions, this belief continues to shape our modern society and even influence to a large extent the technological outcrops of our knowledge economy. From business strategy to macroeconomic models, and from political debates to Big Data, causality is pervasive and its implications profound.

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The irony of supply and demand in emerging economies as seen through the eyes of design thinking

22 Wednesday May 2013

Posted by lnedelescu in business, design thinking, Emerging Markets, human capital, society

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Abductive Reasoning, Absurdity, Advanced Economies, Centralized Economies, Centralized Planning, Design Thinking, Emerging Markets, Globalization, Ilf and Petrov, Information Technology, Innovation, Multinationals, Roger Martin, Supply-Demand, Validity Thinking

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Many of the countries now part of the emerging economies club can trace their recent history to totalitarian regimes and centralized economies. What centralized political and economic paradigms have proven to have in common is a proliferation of material shortages coupled with propaganda driven, unrealistic plans. And so, under such regimes, populations found creative ways to adapt by learning to by-pass absurd rules and plans and to find ways of obtaining much needed resources outside of official distribution channels.

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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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How subtle is the psychology of communication

14 Tuesday May 2013

Posted by lnedelescu in business, Communication, complexity, consulting, human capital, learning, Organizational Development, society

≈ 2 Comments

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Coercion, Communication, Complex Adaptive Systems, complexity, culture, Cynefin, Dave Snowden, Human Behavior, Language, Leadership, Psychology, Resonance, SenseMaker, Slogans

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I ran into this blog by Dave Snowden and I was absolutely impressed with the insights he introduces on communication being a double edged sword: illuminating on one hand, or having the potential to be used to coerce. He proposes that context-devoid slogans found on corporate posters and value statements don’t serve any educational or inspirational purpose, and rather quite the opposite: they often become tools for coercion driving a compliance organizational culture.

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Current HR practices, a significant liability for the world’s future

06 Monday May 2013

Posted by lnedelescu in business, capitalism, future, human capital, innovation, science, society

≈ 4 Comments

Tags

Christensen, Design, HR, human capital, Innovation, Roger Martin

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Some of my blog entries may be taken as theoretical exercises. While I make use of the latest thinking, most of the things I write about are in fact directly extracted from personal experience. It is my attempt to turn what could otherwise be called frustrations into constructive insights. I felt this short introduction was necessary simply to add a degree of credibility to what follows. Now let’s get back on topic.

Let’s start with a preview of my thesis. My argument rests on three observations: (1) innovation is vital to our future; (2) innovation is slowing down; (3) current HR practices are a contributing factor. Having argued my case, I will end by providing a few ideas on possible solutions.

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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.

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