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Hindsight cannot lead to foresight, but neither is history bunk

If you look at most companies and government agencies (and nearly all management textbooks) they assume that a study of the past will enable them to set targets or create processes that will either prevent the repetition of past failure, or produce some designed and ideal future state. Now for highly structured and stable environments this may be true. But for a complex system with high levels of uncertainty it is dangerous. There is a wonderful quote from Robert M. Pirsig.seminal 1974 book Zen and the Art of Motorcycle Maintenance which I use to illustrate this:

Traditional scientific method has always been at the very best 20-20 hindsight. It’s good for seeing where you’ve been. It’s good for testing the truth of what you think you know, but it can’t tell you where you ought to go
Now most of our methods, in particular those derived from cases assume the opposite. They create best practice models based on a study of what did several organisations did, then propose that other organisations should imitate said best practice. This is bad enough in Industry, but is more dangerous in Government.

Foresight is achieved not through analysis, but through safe-fail actions or probes that make what is possible more visible; we can then reinforce what is good, disrupt what is bad. This issue of shifting from a fail-safe to safe-fail approaches is (I think) critical to survival for any organisation. The problem is that we only focus on evidence and attempt to target people on outcomes then in effect we assume that hindsight can lead to foresight. Hindsight, or history is of course vital for learning (as Pirsig says) and gaining perspective. Paton was a successful military commander as least in part because he was a military historian. But he did not repeat history, he blended its multiple patterns to create an adaptive and resilience approach to warfare. I think we need to shift our concept of evidence to include experiment and critically move from focus on outcome to impact, a subject to which I will return tomorrow.

To ignore the lessons of history is foolish, but to assume that history can give you a recipe for the future is not just sad, it is plain bloody dangerous. Hindsight informs, but can not determine foresight. Blending the two is insightful and inventive.

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» The role of past patterns in discontinuous change from Anecdote
Dave Snowden has written an excellent post warning of the dangers of simply looking at the past and attempting to apply, without adaptation, what happened then to what is happening now. After reading Dave’s post jumped on a plane t... [Read More]

Comments (2)

Dear Dave,

Thanks for the enlightening seminar this afternoon at the IDSS.

I am taking the Msc course on a part-time basis and for my day-job, I am in private practice, managing an accounting firm. Thus the subject matter of your seminar had great relevance not only for my course, but also seemingly, for my professional work.

I was thinking that the concepts you shared with us would have great relevance in the field of auditing. In auditing, we typically conduct risk assessments as part of our audit planning prior to commencement of fieldwork. Our fieldwork is then typically based on structured work programs and the data gathered in the planning phase. A common problem encountered is that the questions asked in the planning phase and the steps used in our programs more than often serve the purpose of managing our own risks (against possible litagation in the event of fraud/mis-statement of the financial statements) as professional auditors rather than help detect fraud or mis-statements in our clients' financial statements.

I was wondering if you had done any work or research in relation to the auditing and/or accounting field and whether you could share any thoughts on that.

Thanks and regards
Edwin

Dave Snowden [TypeKey Profile Page]:

Thanks Edwin - it was a dense two hours
I fully agree with you on the auditing question. We are looking at some applications that would allow us to do a narrative basde audit of a company to understand the underlying ideation culture as a way of targeting audit type work. Early days but we are interested and may look to work with a partner on this within the profession
Any ideas welcome

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