ignorance management sydney march 2011
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© Straits Knowledge 2011 Smart People Stupid Organisation
Smart People, Stupid Organisation:
Dealing with the Social Production of Ignorance
Patrick Lambe
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Agenda
1. Collective Ignorance and Collective Stupidity
2. Three Mechanisms for Collective Cognition
3. Five Tyrannies of the Collective
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Ignorance defined
“Lack of knowledge, education or awareness”
Attitude that prevents acting on knowledge
“He’s an ignorant SOB”
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Collective Ignorance
Lack of knowledge, education or awareness
The inability to act on available knowledge
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Ignorance Management
Management actions to:
• Avoid under-exploitation of available knowledge
• Acquire requisite knowledge
• Reduce uncertainty
• Profit from others’ ignorance
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Coordination
Learning Remembering
Establishing & repairing Common Ground
Aligning objectives
Maintaining situational awareness
Making good decisions
Knowledge reuse
Maintaining common identity
Maintaining continuity & surviving departures
Maintaining consistency
Bringing people up to speed
Acquiring & spreading the right expertise
Responding effectively to the environment
Improvement
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Secrecy
Inattention Forgetfulness
Misunderstandings, conflicts, disagreements
Misunderstandings, conflicts, disagreements
Groups pulling in different directions
Groups pulling in different directions
Mistakes, slow response to mistakes
Mistakes, slow response to mistakes
Poor decisions, exposure to risk
Poor decisions, exposure to risk
Cost of reinventing the same wheel, solving the same
problems
Cost of reinventing the same wheel, solving the same
problems
Knowledge secrecy, silos, key info hard to find
Knowledge secrecy, silos, key info hard to find
Key knowledge lost when key people leave or
contracts end
Key knowledge lost when key people leave or
contracts end
Not able to recover past decisions,
agreements, policies, rationales
Not able to recover past decisions,
agreements, policies, rationalesNew hires poorly
supported, take a long time to reach effective
performance
New hires poorly supported, take a long time
to reach effective performance
Competencies and skills do not keep up with demands of the job
Competencies and skills do not keep up with demands of the job
Organisation is seen as reactive, slow to respond to needs or environment
Organisation is seen as reactive, slow to respond to needs or environment
Mistakes are repeated, climate discourages
improvement or transfer of better practices
Mistakes are repeated, climate discourages
improvement or transfer of better practices
Giving mixed signals to external parties
Giving mixed signals to external parties
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Producing Ignorance
Individually Produced
•Secrecy•Forgetfulness•Inattention
Denial Inexperience Uncertainty Agnotology Deception Misprision
Socially Produced
•Structural Secrecy•Structural Forgetfulness•Structural Inattention
CO
LL
EC
TIV
E S
TU
PID
ITY
CO
LL
EC
TIV
E S
TU
PID
ITY
Autistic vs EmotionalNon-reasoningLacks metacognitionUnintegrated consciousnessDiffusion and weakening of controlConfusion of wills at different scalesMutual ignoranceHabit and structure driven
“Social imitation of mental defects” Robert Musil
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Collective Ignorance
‘Disputes are multiplied, as if everything was uncertain, and these disputes are managed with the greatest warmth, as if everything was certain.
Amidst all this bustle, it is not reason which carries the prize, but eloquence; and no man needs ever despair of gaining proselytes to the most extravagant hypothesis, who has art enough to represent it in any favourable colours.
The victory is not gained by the men at arms, who manage the pike and the sword, but by the trumpeters, drummers, and musicians of the army.’
David Hume, Treatise of Human Nature
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Three Mechanisms for Collective Cognition
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Culture
“…an institution cannot have purposes…
Only individuals can intend, plan consciously, and contrive oblique strategies...
Institutions systematically direct individual memory and channel our perceptions into forms compatible with the relations they authorize.
They fix processes that are essentially dynamic, they hide their influence, and they rouse our emotions to a standardized pitch on standardized issues.”
Culture is “a machine for thinking and decision-making on their behalf.”
Mary Douglas How Institutions Think (1986)
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Infrastructure
On the development of mathematical notation:
“Civilization advances by extending the number of important operations which we can perform without thinking about them.
Operations of thought are like cavalry charges in a battle – they are strictly limited in number, they require fresh horses, and must only be made at decisive moments.”
Alfred North Whitehead An Introduction to Mathematics (1911)
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Mutual Ignorance
The Abilene Paradox:
“Here we were, four reasonably sensible people who - of our own volition - had just taken a 106-mile trip across a godforsaken desert in furnace-like heat and a dust storm to eat unpalatable food at a hole-in-the-wall cafeteria in Abilene, when none of us had really wanted to go. To be concise, we’d done just the opposite of what we wanted to do.”
Jerry B. Harvey The Abilene Paradox (1988)
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Five Tyrannies of the Collective
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Tyrannies of the Collective
Tyranny of role - Encyclopedia Britannica
Tyranny of plan - AfghanistanTyranny of infrastructure - US Tyre Industry
Tyranny of culture - IBMTyranny of the feast - Bernard Madoff
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Tyranny of Role
“Not less than the physical version”
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Tyranny of the Plan
Battle of Shahi Khot, Afghanistan, 2002
“The plan was based on the supposition that the Afghans and Special Forces would flush the enemy from the villages, directly into the air-assault-enabled blocking positions.
But the reality in the valley was that the enemy was dug in on the high ground, not the low, and they appeared ready to fight, not to flee.
So Jimmy gathered up all the pictures and reports and laid them out for General Hagenbeck’s chief of staff (a full colonel). ‘Sir, do not land those helicopters [there],’ Jimmy pleaded while pointing at the valley floor. ‘The current plan is not going to work out for you.’
The chief of staff replied apologetically, ‘I know, Jim, but it’s too late to do anything about it.’
Authors of the plan at Bagram would later explain that it was unreasonable to expect wholesale changes because writing the plan had been such a painful process of compromise and negotiation that nobody could face the prospect of tearing it up – or even significantly modifying it at the eleventh hour simply because the enemy might not be where they were supposed to be.”
Pete Blaber, The Mission, the Men and Me (2008)
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Tyranny of Infrastructure
1960s-1970s: bias-ply versus radials
Akron “Big Four”: Goodyear, Firestone, Goodrich, Uniroyal
“… it would cost between $600 million and $900 million in new plants and equipment for the domestic industry to convert to radials.”
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Tyranny of Culture
“With competitors seemingly vanquished, the only way for those inside IBM to measure their success was to see how high they could rise within the company…
The best way to get ahead was to make good presentations. People would say of comers: ‘he’s good with foils’ referring to the overhead transparencies that began to dominate IBM meetings.”
Paul Carroll Big Blues (1993)
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Tyranny of the Feast
“No one was responsible for the great Wall Street crash. No one engineered the speculation that preceded it.
Both were the product of the free choice and decisions of thousands of individuals. The latter were not led to the slaughter.
They were impelled to it by the seminal lunacy which has always seized people who are seized in turn with the notion that they can become very rich.”
J.K. Galbraith The Great Crash 1929 (1954)
“One group of senior Chase bankers was pursuing profitable credit and derivatives deals with Mr. Madoff and his big feeder-fund investors, the hedge funds that invested their clients money exclusively with him.
Another group was arguing against doing any more big-ticket “trust me” deals with a man whose business was too opaque and whose investment returns were too implausible.” New York Times Feb 3 2011
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Tyrannies of the Collective
Tyranny of role - Encyclopedia Britannica
Tyranny of plan - AfghanistanTyranny of infrastructure - US Tyre Industry
Tyranny of culture - IBMTyranny of the feast - Bernard Madoff