Archive for the ‘failing institutions’ Tag

Signs of the Times – 1/19/12

I often come across items that I believe reflect the changes I’m describing on this blog. To me they are “signs of the times.” Here are a couple.

“The Rise of the New Groupthink”

The New York Times recently ran an article about a paradox in the way we work today. For many organizations, there is an emphasis on the idea of collaboration. As author Susan Cain notes:

Most of us now work in teams, in offices without walls, for managers who prize people skills above all. Lone geniuses are out. Collaboration is in.

However, she notes that there is a problem with this approach:

Research strongly suggests that people are more creative when they enjoy privacy and freedom from interruption. And the most spectacularly creative people in many fields are often introverted, according to studies by the psychologists Mihaly Csikszentmihalyi and Gregory Feist. They’re extroverted enough to exchange and advance ideas, but see themselves as independent and individualistic. They’re not joiners by nature.

Later in the article she says:

…I’m not suggesting that we abolish teamwork. Indeed, recent studies suggest that influential academic work is increasingly conducted by teams rather than by individuals. (Although teams whose members collaborate remotely, from separate universities, appear to be the most influential of all.) The problems we face in science, economics and many other fields are more complex than ever before, and we’ll need to stand on one another’s shoulders if we can possibly hope to solve them.

But even if the problems are different, human nature remains the same. And most humans have two contradictory impulses: we love and need one another, yet we crave privacy and autonomy.

To me this is an example of a basic principle of the Quantum Age: contrary to the popular myth that we must choose between individualism and collectivism, we are inherently both individualistic and collective by nature.  We often have a hard time grasping this because it’s impossible to see both qualities simultaneously. You can see a group or you can see a person in that group; you can’t see both at the same time. But just as subatomic particles have an intrinsic dual particle/wave nature, we humans have a dual individual/collective nature. We will only resolve many of our current problems when we recognize this fact and proceed accordingly, disposing of the prevalent mythology regarding individualism versus collectivism.

Country in Crisis: Looking to America’s Mayors to Rise to the Challenge

Arianna Huffington recently wrote an article regarding how America’s mayors are working to develop solutions to problems that seem to be stumping the politicians in Washington. As she notes:

We’re now in the midst of a battle to see who will sit atop the pyramid in official Washington. This battle will dominate the media in the year ahead, but what the last year showed is that the more important story is what’s happening outside Washington. It was a year in which Time declared “The Protester” its Person of the Year and “Occupy” was named Word of the Year by the American Dialect Society. It was a year of solutions and energy and activism from the bottom up. And given that top-down thinking not only brought us a Depression-level crisis, but also shows no signs of getting us out of it, it’s bottom-up innovation that will be more relevant.

The rest of her article offers examples of such bottom-up innovation.

These examples demonstrate the power of emergence, the principle that living, self-organizing systems develop from the bottom up, within the context of their environment. As I’ve written here and here, many heads of institutions believe things are best run from the top down; that is a major reason why many of those institutions are in trouble. The solution will not be to accord more power and wealth to the heads of those institutions. The solution will be to recognize the power of emergence, and to learn how to rebuild our institutions in a way that harnesses that power.

Where Are The “Deciders”?

In yesterday’s New York Times Thomas Friedman asked “Who’s The Decider?” He observes:

No leaders want to take hard decisions anymore, except when forced to. Everyone — even China’s leaders — seems more afraid of their own people than ever. One wonders whether the Internet, blogging, Twitter, texting and micro-blogging, as in China’s case, has made participatory democracy and autocracy so participatory, and leaders so finely attuned to every nuance of public opinion, that they find it hard to make any big decision that requires sacrifice. They have too many voices in their heads other than their own.

Friedman apparently believes that today’s leaders’ reluctance to make hard decisions is due to their “fear of their own people” – that they’re listening more to the opinions of others than to their own inner voices. The implication is that if these folks just mustered the courage to take a stand then everything would be better. He concludes:

Yes, it’s true that in the hyperconnected world, in the age of Facebook and Twitter, the people are more empowered and a lot more innovation and ideas will come from the bottom up, not just the top down. That’s a good thing — in theory. But at the end of the day — whether you are a president, senator, mayor or on the steering committee of your local Occupy Wall Street — someone needs to meld those ideas into a vision of how to move forward, sculpt them into policies that can make a difference in peoples’ lives and then build a majority to deliver on them. Those are called leaders. Leaders shape polls. They don’t just read polls. And, today, across the globe and across all political systems, leaders are in dangerously short supply.

That all sounds great, and in a way kind of easy. “C’mon folks, just suck it up and decide!”

The only problem with Friedman’s argument is that it totally ignores another angle on today’s leaders: they actually are making lots of decisions – frequently with disastrous results. These decisions have resulted in the omnipresent stench of institutional failure that has permeated our world today – something I’ve already written about here and here. As Jeff Jarvis wrote recently:

We don’t trust institutions anymore. Name a bank or financial institution you can trust today. That industry was built entirely on trust — we entrusted our money to their cloud — and they failed us. Government? The other day, I heard a cabinet member from a prior administration call Washington “paralyzed and poisonous” — and he’s an insider. Media? Pew released a study last week saying that three-quarters of Americans don’t believe journalists get their facts straight (which is their only job). Education? Built for a prior, institutional era. Religion? Various of its outlets are abusing children or espousing bigotry or encouraging violence. The #OccupyWallStreet troops are demonizing practically all of corporate America and with it, capitalism. What institutions are left? I can’t name one.

While the leaders of these failing institutions may be concerned about what the common folk think, it’s not a matter of waiting to see what people want and then doing it. After all, most Americans want the rich to pay more taxes. So why are so many politicians resisting raising taxes on the rich?

Rather than tailoring their behaviors to accomplish what “their people” want, today’s leaders all too often focus on their own agendas and try to shield their decisions and objectives from the prying eyes of the public. When I first wrote about this, I mentioned the problems confronting institutions like Toyota and the Catholic Church. But we regularly get news of new cases of institutional cover-up of embarrassing and inexcusable behaviors. Right now the focus is on Penn State. Does anyone doubt we will soon learn of others?

Unlike Mr. Friedman, I don’t think today’s problems are stymied by leaders’ fear of making decisions. Rather, I think the problem today is that our world has changed profoundly; as a result, the rules for how things work have changed. However, most of our leaders are products of an earlier time, with different rules.

While we live in an interconnected world, our leaders are largely products of a culture rooted in individualism. As a result, while they may be aware of what the public thinks and wants, many of these leaders value their own interests and beliefs over the greater good. Meanwhile, those who are focused on the greater good are still stymied by the fact that they don’t know what the new rules are.

So what are we to do? We might start by recognizing that while we live in a brave new world, it’s not the first time humans have been confronted with profound change. Much of what we’re seeing today – some desperately clinging to the past while others flounder around looking for different options – is probably standard fare in such situations. Change is hard, and it takes time.

At first, nobody has the answers. But as time goes on and people become more familiar with their changed world, they begin asking the right questions and finding answers in sometimes unexpected places. They learn to adapt to change, and show others the way.

Some of those who most benefited from the way things were before would be the most resistant to change; this would include many leaders who find themselves confronted with today’s strange new world. In such a world, they would have the most to lose. But sooner or later they will be confronted with a choice: adapt or fail. That choice will be pressed upon them by others who have little to lose and much to gain under the new rules.

Contrary to what Friedman might think, leaders willing to confront today’s world are not in short supply. We just don’t know who many of them are right now; the world is still being run in many cases by members of the old guard. But they’re out there.

The growing impatience expressed with today’s leaders could be a sign that we will soon have a changing of the guard. Time will tell.

OccupyWallStreet and Failing Institutions

Jeff Jarvis has written about the OccupyWallStreet movement:

#OccupyWallStreet, to me, is about institutional failure. And so it is appropriate that #OccupyWallStreet itself is not run as an institution.

We don’t trust institutions anymore. Name a bank or financial institution you can trust today. That industry was built entirely on trust — we entrusted our money to their cloud — and they failed us. Government? The other day, I heard a cabinet member from a prior administration call Washington “paralyzed and poisonous” — and he’s an insider. Media? Pew released a study last week saying that three-quarters of Americans don’t believe journalists get their facts straight (which is their only job). Education? Built for a prior, institutional era. Religion? Various of its outlets are abusing children or espousing bigotry or encouraging violence. The #OccupyWallStreet troops are demonizing practically all of corporate America and with it, capitalism. What institutions are left? I can’t name one.

He goes on to say:

What’s happening is an attempt to define a new public, now that we can. Iceland, Tunisia, Egypt, and Libya are all countries being reimagined and remade: start-up nations. Hear Icelandic MP Birgitta Jonsdottir talk about building a new constitution, using Facebook, on the principles of “equality, transparency, accountability, and honesty” — liberté, égalité, fraternité, updated for the networked age.

In the end, this is why I wrote Public Parts, because we have the tools and thus the opportunity to rethink and reorganize our publics and decide what they stand for. The power and freedom that Gutenberg’s press brought to the early modern era, our networked tools now bring everyone in this, the early digital age. “They empower us. They grant us the ability to create, to connect, to organize, and to aggregate our knowledge…. They lower borders, even challenging our notion of nations.” That’s what the youth of these countries are doing.

I agree with the observation that many of our institutions are failing in important ways. However, I think this failure is symptomatic of larger changes happening in our world.  It’s not a matter of intent – the leaders of these institutions aren’t trying to be evil.  Rather it’s a reflection of the fact that those in charge are products of a different era and mindset, which is incapable of understanding and adapting to our changed world. As I have written before:

…many institutions are failing because they haven’t adapted to the ways our world has changed. One thing that’s striking about many of the big institutions finding themselves in hot water these days is that a big part of their problem appears rooted in a mistaken belief that they are able to tightly manage/control the information about problematic issues. Toyota had problems with car defects; it tried to hide them. The Church had problems with perverted priests; it tried to hide them. Goldman Sachs had problems with very risky investments and very shady dealings to get rid of them; it tried to hide them. Tiger Woods had a thing for cocktail waitresses; he tried to hide it.

In an earlier, less connected time, perhaps these things wouldn’t have become such big deals. Probably past experience in hiding problems had led the leaders of these institutions to try a similar approach in these cases.

However, they apparently didn’t realize that in today’s hyper-connected world it’s almost inevitable that bad things will come to light – whether it’s vehicle flaws, priests behaving badly, devious investment strategies, or adulterous affairs. And now when the news DOES come out, the impact is likely to be much greater than it might have been before the Internet and global communications – especially if it’s apparent there was a cover-up involved.

As I noted last year, the end result for all of these failing institutions will depend on their ability to adapt to our changed world:

I think this time is like any other in which great change has taken place. Some people and institutions will adapt to change and thrive; others will fail to adapt and fall by the wayside, deserted by their former supporters and clients.

Some may loudly protest the change and uncertainty of today’s world. They may even gain enough influence to hamper some institutions’ ability to adapt to these changes. But they can’t stop the change itself. In attempting to turn back the clock and to resurrect an illusory past they will be much like a bunch of Americans in the Panama Canal Zone back in 1964: all they are likely to accomplish is a quicker demise of the institutions they had hoped to preserve.

I’ve never been a believer in the so-called “Wisdom of the Market” as the term applied to Wall Street. But I do believe in the idea as it applies to transformational times and ideas. When the times are changing, the ones who understand and adapt to those changes will be the ones who thrive in what comes.

In the end we will be left with a combination of old institutions that adapted and new institutions that saw a better way and followed it. Everything else will just be history.

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