“The mainstream ways of thinking about management are based on the sciences of certainty. The whole system of strategic choice, goal setting and choosing actions to reach the given goals in a controlled way depends on predictability. The problem is that this familiar causal foundation cannot explain the reality we face. Almost daily, we experience the inability of people to choose what happens in their organizations – or in their countries. We live in a complex world. Things may appear orderly over time, but are inherently unpredictable.
Complexity refers to a pattern, a movement in time that is at the same time predictable and unpredictable, knowable and unknowable. Healthy, ordinary, everyday life is always complex, no matter what the situation is. There is absolutely no linearity in the world of human beings.
Human patterns that lose this complexity become repetitive and rapidly inappropriate for dealing with life. Unlike mechanical systems, human systems thrive on variety and diversity. An exact replication of behavior in nature would be disastrous and seen as neurotic in social life. For example, a failing heart is typically characterized by increasing loss of complexity.”
Esko Kilpi
Month: April 2012
A good enough outcome
“Forest management is unexpectedly complex. The regimented plantation proved as unsuccessful as the planned city, and ecologists today are tearing such plantations down. Monocultural forests are not only dull to look at, but vulnerable to disease and fire. Managed woodlands are economically and environmentally superior. But no one knows the best way to manage a forest, or even what “best” means in this context. Our objective in a complex system is not to find the optimum, because no one can know before or after whether such an optimum has been achieved. We can and should be satisfied with an outcome that is good enough.
What is true of forests is equally true of businesses. The great corporations of the modern world were not built by people whose overriding interest was wealth, profit, or shareholder value. To paraphrase Mill: their focus was on business followed not as a means, but as itself an ideal end. Aiming thus at something else, they found profit by the way.
This is how Hewlett Packard described it: “Profit is a cornerstone of what we do… but it has never been the point in and of itself. The point, in fact, is to win, and winning is judged in the eyes of the customer and by doing something you can be proud of.””
John Kay
My kind of economics
“I think we need a bigger, more integrated view that economists tended to look for, in the past. We have to see the totality of the concerns that make human beings want a good economy. The kind of economic thinking that I would like to see pays a lot more attention to issues of human freedom. What I have in mind is real freedom, not just formal liberties but also what kind of lives people manage to achieve, what they can do with their lives, and what help of the state they need for more substantive freedom. The basic question economists should ask themselves is: What can we do to have a decent society where people get much more freedom to live the kind of lives of which they would have reason to be proud and happy.”
Amartya Sen
Something very close to grace
“…The ability to pay attention, to focus, to concentrate, to resist distractions, is as essential to the design process as it is to successful life generally. It is the quality of attention that distinguishes design detail, that enables an architect to design a building that belongs where it is. For attention to detail does not mean fussiness, but an appropriate locating of energies.
In the end, it is something very close to grace.”
Ralph Caplan “Cracking the whip: essays on design and its side effects”