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The art and science of the possible

Tag Archives: management

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.

Davos, innovation and the future of capitalism

23 Wednesday Jan 2013

Posted by lnedelescu in capitalism, democracy, future, innovation, society, taxonomy

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Ackoff, Capitalism, Christensen, Davos, Drucker, effectiveness, Innovation, management, Martin, Responsibility, Thought Leader

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Many of the sessions at Davos 2013 contain “innovation” in the title. Two of the top names in management and innovation are present as well: Clayton Christensen and Roger Martin. Unfortunately, the fact they speak with separate voices about the same underlying phenomena is not helping their cause, which holds more potential for true transformation of the world economy than many of the purely economic insights of the typical Davos crowd:

http://edition.cnn.com/2013/01/21/business/opinion-clayton-christensen/index.html

http://www.rogerlmartin.com/wp-content/themes/rm2009/pdfs/strategy_issue23_thinkingbydesign.pdf

Peter Drucker and Russell Ackoff have 20-30 years ago explained the fundamentals behind the phenomena observed by both Christensen and Martin: in essence effectiveness trumps efficiency. Christensen and Martin thus have a great responsibility, that of acknowledging each other so as to not fragment the legacy of Drucker and Ackoff’s schools of thought; in today’s environment the urgency is such that we can’t afford recreating the Tower of Babel experiment. But even if they and others like them (Dave Snowden, David Hurst, Fredmund Malik, etc.) were to speak with one voice, the real decision makers at Davos will have little clue as to what these two guys are talking about. That is because one can only fully absorb something one can relate to personal experience. Decision makers cannot be taught, even if they had the humility to listen (relevant Ackoff quote: “We don’t recognize that teaching is a major obstruction to learning […] Who in the classroom learns the most…. the teacher. See the classroom is upside down.”).

How bureaucracies continue to grow or the second law of “organizational” thermodynamics

20 Thursday Dec 2012

Posted by lnedelescu in capitalism, democracy, future, human capital, management, Organizational Development, problem solving, society

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Behavior, bureaucracy, management, Organizational Development, thermodynamics

Is there a reason bureaucracies seem to always expand? Is there a reason why a committee that was set up to resolve a problem often time gets of life of its own and outlives the problem? Is there an organizational equivalent to the second law of thermodynamics in physics that says that the entropy or disorder of a system always tends to grow? What are the equivalent mechanics that fuel bureaucratic expansion?

I present in this blog entry a generic bureaucratic growth scenario that is inspired by real experiences. The scenario is organized in a number of steps and most steps are conceptually reinforced by the words of a few individuals who are held in high regard by society.

(Step 1) The bureaucracy’s leadership defines a grand and worthy-sounding vision that needs to be pursued.

Because the leaders don’t have a complete and clear understanding of all the implications of the vision they propose, there is usually some degree of ambiguity associated with an otherwise worthy-sounding pursuit. A sound vision requires a deep understanding of the context. And a prerequisite to understanding in complicated domains requires clear organization of the complete knowledge in that domain, or an ontology. But there are many bureaucracies which operate without an awareness of the total knowledge they are supposed to possess and manage. And there are many leaders within those bureaucracies who do not possess the understanding required. An applicable quote from Profession John Gero is: “ontologies provide a domain with a structure for the knowledge in that domain. Domains without ontologies are constantly inventing new terms for existing knowledge and find it difficult to develop foundations on which others can build.”

Nevertheless, even with an ambiguous or incomplete vision…

(Step 2) Planning the work to achieve the vision begins.

Because the true implications of the ambiguity and incompleteness of the vision are not thought-through, there is usually a disconnect between the vision and the time and budget allotted. This increases the pressure on executing the vision, decreasing the opportunity to question the context, the validity of the vision. Because the subordinates are judged by checking off the vision or goal, they concentrate on just that. In a strive for efficiency (get the product out, meet the deadline so we can check off the box) effectiveness (i.e. context) becomes skewed. An applicable quote from Peter Drucker is “efficiency is a matter of doing things right; effectiveness is a matter of doing the right things.” But doing the “right things” takes enough up-front thinking, and it also takes pushing back on a vision or goal that doesn’t make sense.

But it’s already too late for that…

(Step 3) The initiative/project/product gets a life of its own.

This happens because it starts being tracked in the operational systems of the bureaucracy. These are however by definition not designed to be sensitive to context. That is because context takes thinking, and it cannot be easily measured with simple metrics: there is no such thing as a kilogram of context. The chance for someone noticing a fault with the initial vision diminishes at this point exponentially. That is because these context-blind operational systems have a direct impact on the employee’s performance, and they don’t measure context and validity. So arguing that the work doesn’t make sense, can only get one in trouble, since “doesn’t make sense” is not something that operational systems track.

And so, Drucker’s “doing the right things” turns decisively into “doing things right”, or else!

(Step 4): The vision cannot be wrong!

The initiative/project/product is clearly out of tune with the initial vision. The results are just not conclusive and the output isn’t useful. But it has since acquired a life of its own, and even if its ineffectiveness is obvious, no one dares to take the blame for fear of punishment. The disconnect eventually becomes apparent to the leadership, but even the executives who initiated the vision don’t have the political courage or power to declare the vision erroneous.  Doing so would mean taking the blame for X millions/billions spent in vain. And so, attempts are made to fix the initiative/project/product from within rather than scrapping it altogether, acknowledging the financial loss, and re-examining the initial premises. The same thinking and methods that created the problem are used to attempt to correct it, which is a futile exercise. Albert Einstein has a powerful insight for this type of situation: “we can’t solve problems with the same type of thinking that was used to create them”.

(Step 5): Fear and stubbornness are good companions.

Stubbornly refusing to acknowledge blame and scrap the project, the organization continues to try to do the wrong thing righter. But Russell Ackoff rightly cautions against this approach:  “most large social systems are pursuing objectives other than the ones they proclaim, and the ones they pursue are wrong. They try to do the wrong thing righter, and this makes what they do wronger. It is much better to do the right thing wrong than the wrong thing right, because when errors are corrected, it makes doing the wrong thing wronger but the right thing righter”.

(Step 6): Outside intervention!

An outside intervention is eventually necessary, and this usually takes the incarnation of a new committee. New procedures and processes are set up to prevent this “type” of problem from occurring in the future. The new procedures and processes themselves get a life of their own and have to be maintained which means new job roles or at the very least new job responsibilities are added, and the bureaucracy expands.

(Step 7 and 1) A new bold vision is defined…

And the rest is…déjà-vu!

Russell Ackoff: the Albert Einstein of Management

24 Wednesday Oct 2012

Posted by lnedelescu in consulting, knowledge, learning, management, problem solving, strategy

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Ackoff, business, Einstein, Leadership, Learning, management, problem solving, strategy

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Russell Ackoff is likely the Albert Einstein of management. The reasoning is this: he created what is in essence a Generalized Ontology of Problem Solving just as Einstein created the Generalized Theory of Relativity.

By comparison,  most management gurus, consulting principals and executives only master a special case problem solving heuristic. Lower level managers and consultants are only able to reproduce a priori defined special case problem solving algorithms.

Professor John Geto of Krasnow Institute of Advanced Study cautions that without an ontology we are liable to continually reinvent new terms for existing knowledge, making it difficult to achieve a strong foundation on which to build. Management in general and management consulting in particular can in large part be paraphrased as problem solving common sense; yet, the generalized problem solving ontology carefully crafted by the genius of Ackoff has not been widely adopted. In a hierarchy management masters Ackoff’s generalized and universal thinking pedestal is permanent and situated on significantly higher ground than the altars at which most of us currently worship: innovation and Clayton Christiansen, Design Thinking and Roger Martin, Gary Hamel and Management 2.0, etc.

As in the popular “Matrix” movies, Ackoff is “the one”. But, it appears we may need a Morpheus character like advocate within the management discipline. And we need to overcome our latest infatuation with progress only possible in teams; the Theory of General Relativity could not have been a crowd sourced innovation on Facebook. Sometimes it takes “the one”.

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