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This is the dawning of the age of praxis?

As part of the book writing (and the Cognitive Edge business plan) several of us have been looking at models of change over time. I have always been an admirer of Charles Handy and had the privilege of speaking on the same platform in Dublin. In his classic book The Empty Rain Coat he elaborated his concept of the sigmoid curve. These can be used to describe any life cycle. The basic idea is that all new ideas start slowly, often staggering through the adoption phase on raw belief alone, then they rise to a pinnacle of success followed by decline. The secret of success is to adopt the next curve early (the yellow areas on the diagram below); not too early and not too late. The paradox is that you should make changes while the old model is still working, and commit the resources to take it though the early stage. The longer you leave it the hard it comes and if you wait until you are past the yellow zone the cost is massive and many organisations at this point fail.

I've attempted to apply sigmoid curves to the wider history of management both for understanding and to give a perspective on where we go next, and an optimistic take on the current recession. A rough summary below which will be greatly elaborated in the preface to the book. All and any crticism (constructive or otherwise) would be appreciated, either as comments or by email

Sigmoid%20curves.png

As you can see I have elaborated three signmoid curves. The first is the period of scientific management from Taylor through until the 1980s where we see the adoption of process based approaches. We move from the functional structure of the traditional manufacturing environment with its separation of marketing, from sales, from production to the process orientation triggered by Hammer and Champy's Re-engineering the Corporation . With that we see the growth of management consultants, ERP systems and a radical transformation of companies. That period includes knowledge management which adopted the same codification strategy that was implicit in process management, and utilised similar consultancy methods and approaches to the use of technology. Interestingly the old functional form was maintained, but matrix organisations emerged and there was a general downsizing of middle management.

Companies late to adopt the change suffered, and the dominant software of the period was probably SAP. Now while we may think of process as common place and even at times carried to excess in approaches such as Sick Stigma back then it was a revolutionary new idea. IBM rejected a German business plan to create the first ERP system (SAP). It took a recession and the need to reduce costs to trigger a move to process. In general the move was late and the cost was high, and that cost rose as time went on for more conservative organisations.

While those two periods were different, at their heart they assumed an ordered system and the discoverable existence of best practice. The next sigmoid is I think a phase shift (I am trying to avoid the paradigm word). It involves the move to an understanding of complex system, with their inherent un-causality, their nature requiring an approach based on the three basic characteristics of distributed cognition, fine granularity objects and disintermediation. I have previously elaborated those here and will expand further on their application in that series over the next few months. This shift has been characterised by the phenomena of social computing, but until recently that has not been a corporate tool, more a private one. Now we have a recession, we have an immediate a chronic need to rethink our organisations and markets and that needs a new way of perceiving the world.

For me that has always been the natural science based approach to sense-making, incorporating complex adaptive systems, narrative and the like into a vody of method and tools that allow us (as process did before) to do more with less. That new paradigm is emerging and in case you hadn't realised it Cognitive Edge and SenseMakerâ„¢ were a rejected IBM business plan ....

One of the major changes here is the shift from attempting to replicate what has worked for others with the inevitable confusion of correlation with causation and the failure to appreciate the criticality of context, to an approach in which sound theory is applied to practice. When we understand the principles of complexity, such as agent interaction, attractors etc. then we can apply that theory to a novel situation with some confidence of a good outcome. It will not replicate past success, but will be appropriate to the current context. That used to be called praxis and is I think at the heart of this new age, and a key and controversial skill so its adoption will not be easy. Back in the seventies we used to joke that praxis makes perfect. In an age of uncertainty that is not longer a joke, its a key opportunity.

Comments (11)

The vertical axis worries me not a little, as any progressivist "ascent of man" suggestions do, especially if there is not a great deal of historical depth in it... isn't "effectiveness" highly contextual? What does the implication of increasing effectiveness mean here?

I understand Patrick's concern, but somehow the vertical axis seemed intuitively correct to me. In my mind it refers to the relative effectiveness of a business using a particular paradigm. That is, Henry Ford's original mass-production factory would have been hugely effective at the time, but would be fairly ineffective (relatively speaking) now.

christianhauck [TypeKey Profile Page]:

I wonder a little bit about the shape of the sigmoid curves. It makes sense that they peak and then go down again (right part). But why do they start at a certain level and then first go down before going up? Yes it makes a more visible yellow overlap with the next curve, but I think that they should start flat. Maybe: start flat and very thin, then go horizontal becomming thicker (normal), and then start to go up?

Mark: as you describe it, I can see effectiveness (maybe) following the curve, but not the vertical along a continuum and across phases. Are we better now at being effective as organisations than then? I'm really not sure.

Kirby Wright:

Three quick points:
As I see them, the shape of the curves is useful but in an illustrative rather than a quantitative manner.
One of the ah ha elements is that the curves could be interpreted in multiple ways - representing society, sectors, industries in a particular region or individual firms. Thus a small firm like Cognitive Edge (looking for brownie points!) could be at level three while another firm (Laggard Six Stigma Services.inc) could be stranded in level one or two.
The world globalization in the third curve is slightly problematic. For too many of us, globalization represents container ships full of junk steaming across oceans to fill Wall Marts; for economic, environmental and even ethical reasons, I hope this is not what we reach for in level three. On the other hand, virtually connected firms that build on local expertise to serve global markets creates an entirely new and more responsive/appropriate version of globalization.

Christian

I think the initial dip is something that's very commonly seen in the introduction of new ideas/technologies - as Dave referred to the other day when talking about Crossing the Chasm.

It strikes me that it corresponds with initial enthusiasm among those at the forefront of the technology - related to the raw technology itself. then, as it fails to ignite teh world immediately, it drops away until it re-emerges as products that inspire with the "what" rather than the "how."

I remember writing articles about VoIP 12/13 years ago - how it was going to change the world of telecoms, etc. All went quiet for a few years once it became apparent that while the technology might be there (although it actually wasn't quite) until eventually Skype and Gizmo arrived.

Initial high enthusiasm, dip, return and growth...

Sally Bean:

2 Gartner Analysts (Fenn and Raskino) have just published a book called Mastering the Hype cycle, which explains how that cycle is actually made up of 2 curves, one of which is the S curve and the other (the peaky bit on the left)is a result of the 'initial enthusiasm' effect described by Tony. The hype cycle is the consumer reflection of the Crossing the Chasm Model. In their book, the S curve is shown as being flat at the beginning.

The book goes on to describe how to use the model to make better decisions about innovation.
(Mark Raskino is a former colleague of mine)

Dave Snowden [TypeKey Profile Page]:

Thanks all - expect another iteration later today EST
That will link Moore and Handy - I was working on that yesterday so nice to see others have combined. I will buy the book

Matt Moore:

How about the x-axis. Wave 1 lasts 80 years, wave 2 lasts 20 years. Does that imply wave 3 lasts for 5?

Dave - The model is in intuitively right but I'd make one suggestion. Can we have some of the narrative from the blog post incoporated in the model? What's landscape/context in which these ideas operate? Otherwise it seems that they rise and fall of their own accord.

Kia ora Dave

I commented on Clark Quinn's post that linked to your post here. In the comment I made a prediction about society which embraced the emergent nature of the way societies (tend to) work.

I see the yellow transition links in your sigmoidal graph(s) as a manifestation of this emergent nature of oganisations/societies/groups-of-people.

You mention in passing, complex systems and their adaptability. Your idea, "sense-making, incorporating complex adaptive systems", and the emergent nature of communities, points to only one idea that I can bring to mind, and that is the concept of a complexity system per se.

Complexity systems do tend to be robust, but they can expire or be destroyed, either through an outside agent or from an inability to adapt from within (or both). My guess is that this is what happens to organisations that, as you say, are past the yellow zone. Though some will certainly fail due to the sheer cost of failing, this is also almost certainly brought about by a lack of ability to adapt quickly enough.

I also feel that failure can be caused through such organisations not being sufficiency oriented enough, as well as perhaps not being proficiency seeking. This latter quality links directly to what you say about praxis makes perfect being no longer a joke.

Catchya later
from Middle-earth

WalterRSmith:

Dave,

1. Maybe "Marginal Effectiveness..." on the Y-axis?

2. Don't know if this is relevant, but I find it interesting how new communication & transportation technologies (along w/ the associated standardization activities) were key enablers of these three waves...I've started calling this aspect of the third wave "hyperconnectivity" in presentations I've done on the topic.

3. Seems like the early "hype" phase of each of these waves rarely involved much discussion of the dangers/risks that were likely to emerge from the change...

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