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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

Tag Archives: Consumerism

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.

Is human psychology keeping up with our technological times?

18 Monday Feb 2013

Posted by lnedelescu in human capital, Organizational Development, society, technology

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Capitalism, Consumerism, Innovation, Society, Technology

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We live in a world with instant access to vast amounts of information, and to each other. Information used to be held by a privileged few. Now it’s available to the masses at large. And so a number of information age visionaries are predicting the end of the world as we know it, and the beginning of a new and enlightened world. Michael Saylor for example predicts in his book “The Mobile Wave: How Mobile Intelligence Will Change Everything” that information technology, especially when coupled with mobile devices that provide continuous instant access, will revolutionize the world. I am inclined to say “not so fast” to these claims.

Here’s a key reason. Human psychology is important in helping us disseminate between the important and the trivial: it is a remnant from the fight or flee instinct that kept our stone age ancestors alive in the face of deadly danger. Our beliefs bias our judgement. And our behavior has been conditioned for too long to respect power, prestige and authority. We are conditioned to trust persons in positions of authority. We are conditioned to follow mostly what successful people say or do. We are conditioned to flock around role models ever since the tribal dawn of our social civilization. The king is dead, long live the thought leader!

So in a competition with the Harvard Business Review’s (HBR) blog, my  blog stands no chance, even if it may contain comparable wisdom. The entire promise of the information age revolutionizing the world rests on a process of democratization of the right to access and more importantly produce knowledge content. Thomas Friedman, author of “The World is Flat”, mirrors this democratic move away from established institutions and to the individual. He differentiates between the current Globalization 3.0 (individual as main protagonist) and and previous Globalization 1.0 (countries and governments were the main protagonists) and Globalization 2.0 (multinational companies led the way in driving global integration). The information age can be a democratic platform for a really smart individual to compete asymmetrically with established authority, say HBR, on equal footing. And technologically speaking, this is indeed possible.

But technology is only as useful as we make it to be, and our psychology may not have been keeping up with the times. For example, we are not yet blind to prestige.  Nor has our wisdom increased to the degree that we can discern value outside of brands. So even though a wealth of wisdom is available to us from a myriad of sources that are competing asymmetrically with established players for our attention span, we continue to flock around the HBRs of the world like ancient Greeks flocked around oracles. Every once in a while something goes “viral”, but the established players have nothing to worry about: it is usually the picture of the morning cereal that resembles Hillary Clinton that qualifies for exponential popularity. So what will truly revolutionize the world in my opinion is getting away from the sheep mentality so we can take full advantage of knowledge proliferation.

So where does that live me and you dear reader? Well, in order for me to gain access to you, or for you find my thinking, we likely will still have to go through an HBR-like middle-man. Even though technology has leveled or “flattened” the playing field as Friedman might say, psychology still provides job security for the middle-man.

A few thoughts on humanity’s future

18 Monday Feb 2013

Posted by lnedelescu in future, philosophy, society

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Capitalism, Consumerism, creativity, democracy, Economy, future, human, Nature, philosophy, politics, Society

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“Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world” is a well known quote of Albert Einstein. The insights one can derive from Einstein’s wisdom are powerful enough to shed light into humanity’s future.

But before jumping to the future, let’s take a step back and attempt to frame, in general terms, humanity’s current state. The multiparty democratic construct supported by a free market economy was challenged in the last hundred years by at least two competing totalitarian ideologies and thankfully, it has been reaffirmed as the best model for human organization we know. So Winston Churchill was probably right when he declared in 1947 that “democracy is the worst form of government except for all those others that have been tried”. Diversity and competition, two mechanisms that served the natural world so well, appear to be the most viable means by which social systems can also evolve. But social systems are different than natural systems. Besides diversity and competition, social systems also include compassion. And so, the modern democratic construct is itself polarized around two dominant ideologies, which are more aligned with either compassion or competition. So far so good. Now let’s take a closer look at the competitive mechanism.

An opportunity usually arises when a competitive advantage is created. And a competitive advantage can itself come in two flavors. First, it can come from exploiting a physical or knowledge differential (I have access to a physical or knowledge resource that you need). But physical resources are limited, and, if we believe Einstein, so is knowledge. So, as long as it competes primarily in the physical and knowledge domains, humanity is playing a zero sum game. Enter the Internet age with all the related technologies and barriers to physical and knowledge resources are rapidly dissolving. That means that competitive advantages based on limited resources will become increasingly harder to exploit and defend. Which brings me to the second flavor of competitive advantages, those derived from an unlimited resource: creativity.

Creativity is one of the most unique, and arguably most beautiful facets of the human condition. Its sources are curiosity and passion, human characteristics which are hard to incentivize. Material compensation and reward will not necessarily increase curiosity or passion. Curiosity can be instilled and nurtured, but not bought or coerced.

And so, in my opinion, humanity’s future is predicated on a competitive construct based on an unlimited resource: creativity. This is the next step beyond the so called “knowledge economy”. This type of competitive construct is also in alignment with the best that human nature has to offer; curiosity, passion, dedication, are all positivist sentiments in alignment with compassion, trust and respect. This evolution does present significant challenges to the current bi-polar democratic construct that poises compassion against competition. Consumerism, a key component of the economic engine on which the current democratic construct’s viability depends, is primarily based on limited resources; it will also have to evolve to where humanity becomes a primary consumer of ideas, truth and beauty.

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