Are you Wisdom Economy ready?

John Findlay & Abby StrausMaverick & Boutique/Zing

1.

This presentation

1. A complex and uncertain future

2. What stage is your organization or school?

3. The pace of innovation has changed.

4. Thinking like a complex adaptive organization

5. Wisdom Economy criteria

6. What next?

Leveraging accelerating change, complexity and uncertainty

In 1982 John Naisbit identified these major trends….

Industrial Economy Information EconomyForced technology High-tech, High-touch

National economy World economy

Hierarchies NetworkingShort term Long termCentralization Decentralization

Institutional help Self-helpRepresentative democracy Participatory democracyNorth South

Either-or Multiple choice

Last year it was change,now it’s complexity

• ARMONK, NY, - 18 May 2010: According to a major new IBM (NYSE: IBM) survey of more than 1,500 Chief Executive Officers from 60 countries and 33 industries worldwide, chief executives believe that -- more than rigor, management discipline, integrity or even vision -- successfully navigating an increasing complex world will require creativity.

Faster, more complex and uncertain…

• Globalization of relationships.• Growth in interconnectedness..• Acceleration and democratization of the

knowledge creation process.• Divergence and diversity of world views.• Increasing complexity and

interdependence of systems.

Driven by expanding knowledge creation and use

Era Knowledge use CharacteristicsWisdom Wise Application Co-creation and it’s wise

application by most people in society.

Knowledge Co-creation Co-creation by many people in organizations

Information Re-purposing A growing community of knowledge creators and re-users.

Industrial Transmission Created by experts, used by the masses

Organizations as complex adaptive systems

Emergent, self-organizing, fractal (self-similarity at every scale), low level rules (boundary conditions) lead to complex outcomes, auto-catalytic,

“order for free”, sensitive to initial conditions e.g. “butterfly effect”

Accelerating change and complexity – the back story

During the 20th Century the US workforce expanded

US Department of Labor, 2001This story is repeated across most OECD countries.

But now routine jobs are declining andexpert jobs are increasing.

There have been some radical shifts in 20th century workforce composition

US Department of Labor, 2001, and other sourcesThis story is repeated across most OECD countries.

Some Emerging Wisdom Age JobsCertified ethical hackerEcological footprint auditorConversation architectRecycling consultantBrain fitness coachNo-waste consultantComplex projects leaderOrganic food auditorChief cultural officer

Global governance director

Rituals designer Mature age wellness

manager Human-human interaction

consultant Organic farmer Polarity management

mentor

Of the six waves of transformational change, three have been in our lifetime

The drivers: language, tools and brains co-invent and transform each other

The pattern to the change

Era Onset Period Ratio

Wisdom 2010 Emerging Emerging

Knowledge 2000 10 1 : 5.0

Information 1950 50 1 : 5.0

Industrial 1700 250 1 : 5.0

AgricultureMining & building

8000BC1,200 1 : 5.0

Agriculture 8,500 1 : 4.9

Hunter-gatherer 50000BC 42,000 1 : 4.3

This pattern to human social and technological development closely approximates the Feigenbaum delta, 4.669*, the ratio of the emergence of successive periods (period doubling cascades) of complex systems such as ecologies and markets.

Crisis prior to emergence

Saynisch, M (2010). Beyond frontiers of traditional project management, 41(2). (21-37).

1.

Fractals

Self-similar at every scale. Leadership

distributed throughan organization

system. All adhere to the same

rules/principles.

Complexity

Self-organizing system with many degrees of freedom. Shift to more complex order at bifurcation points. such as team formation, the brain, breakthrough innovation.

Chaos

Small error occurs in a highly constrained system that spins out of control, such as the BP oil spill, sprouts deaths in Europe, A380 engine.

At what stage is your business or community?

INDUSTRIAL AGE (1700-1950)Metaphor Machine

Technologies Tractors, trucks, motor, telephone, radio, railways, aircraft, electricity.

Productivity gain Automates manual work, the work of farmers, miners, artisans, animals.

Rate of change Transformational change in 12 generations. Agriculture lasted 400 generations.

Knowledge use Knowledge telling e.g. lecturer, instructor, supervisor

Roles Manager-worker, employer-employee, supplier-customer.

Production methods Centralized mass production, Standardized. No variety.

Strategic focus Decision making by senior mangers or owner. Inventors turned business owner.

Co-ordination Instructions, orders, directives, rules, laws, regulations

Organization structure Hierarchy. Central control.

Communications Formal meetings led by chairperson. Emphasis on monologue (instructions) and debate (formal).

INFORMATION AGE (1950-2000)Metaphor Computer

Technologies Software e.g. spreadsheets, word processors , television, photocopier, mobile phone, fax machine.

Productivity gains Automates routine cognitive work, e.g. secretarial, clerical, numerical.

Rate of change Transformation in two generations.

Knowledge use Knowledge reproduction, e.g. on-line learning

Roles Team leader-team member, trainer-trainee. Supplier-agent or representative.

Production methods Distributed production closer to customer. Local customization of mass production. Expanding choice.

Strategic focus Distributed , national and global. Longer term focus, e.g. five years. Do-it-yourself.

Co-ordination Expert procedures & methods. eg. systems engineering and project management . Expert know-how eg. doctors/nurses,

Organzation structure Distributed, autonomous, matrix, cross -unctional reporting.

Comunications Informal discussion , information seeking/giving. quality circles.

KNOWLEDGE AGE (2000-2010)Metaphor The network

Technologies Internet, I-phone, voice response systems , expert systems and processes, automatic trading, lasers, software as a service, multiplayer games, CRMs, data mining, mesh services, eg. zip cars.

Productivity gains Automates knowledge and relationships work, eg. The work of professionals, middle managers, travel agents, etc.

Rate of change Transformation in one generation

Knowledge use Knowledge creation

Roles Servant leader, co-creator, facilitator-contributor.

Production methods Customized. Customer involved in the design/delivery.

Strategic focus Long term focus . Vision for 20-30 years informs short term.

Co-ordination Cross-functional teams using shared databases and complex decision processes and facilitation techniques.

Organization structure Network, short-term teams come together for a purpose, dissolve and reform as new teams.

Communications Facilitated meetings , creating knowledge via dialogue (empathic). dialectical (integrative) and sense-making.

WISDOM AGE (2010-)Metaphor Complex adaptive system, eg. Ecology, market or brain

Technologies Nanotechnology, biomimicry, advanced energy, tools for expanding consciousness and relationships eg. social media, and complex adaptive learning environments

Productivity gains Automates scientific, judicial , leadership or wise expert work.

Rate of change Transformational change is less than a generation to something bigger. From unconscious to conscious

Knowledge use Wise application of knowledge

Roles Orchestrator-interactor, challenger-designer/creator, inspirer-activist, researcher-discoverer, prod-users.

Production methods Agile, adaptive, high value-add, high precision. Rapid prototyping. Customizable by customer, anticipates your needs.

Strategic focus Transcend and include. Whole system, multiple generation, paradigm and cultures. Shift from boundaries to horizons.

Co-ordination Simple local rules/principles > desired complex global activity & behavior. Facilitate what emerges. Simulation, improvisation.

Organization structure Multi-flex, shape shifting. Uses many kinds of structures for maximum efficiency AND creativity and agility

Communication Dialectical discourse (win-win-win, does it work for everyone).

At what stage is your school, college or university?

INDUSTRIAL AGEFeature Traditional classroom

Focus Knowledge telling

Classroom organization Individual desks facing the front of the room for listening and control

Pedagogical role Instructor, tester, behavior controller

Learner role Note taker, listener, exercise completer, test taker

Types of questions Closed

Language Directive, disempowering “You will…”, “You must…”

Tone Silent, working alone

Technology Blackboard and chalk, slides, computer, whiteboard, textbooks

Conversation Monologue

Expectations Learners perform prescribed tasks, take in information and play it back

INFORMATION AGEFeature On-line learning

Focus Knowledge reproduction

Classroom organization Rows of computers in a laboratory or home computer connected to a server

Pedagogical role Instructional designer, tutor

Learner role Information finder, reproducer

Types of questions Questionnaires, true-false, closed to assess progress through the course

Language Directive, instructive

Tone Independent, remote

Technology Managed learning environment, e.g. Blackboard, simulations, web pages, email, software for word processing design, spread sheets

Conversation Discussions with tutors and peers

Expectations Learn from on-line resources and repurpose information

KNOWLEDGE AGEFeature Classrooms for conversation

Focus Knowledge creation

Classroom organization Tables and chairs for conversations

Pedagogical role Facilitator, modeler, questions designer, orchestrator

Learner role Participant, facilitator

Types of questions Open/discussable

Language Inclusive, respectful, e.g. “Let us…”, “What if we…?”

Tone Conversation, active

Technology Team meeting systems, internet, simulations, blogs, wikis

Conversation Dialogue

Expectations Research (web and library), discuss issues, undertake projects

WISDOM AGEFeature Wise application of knowledge

Focus Creating boundary conditions for emergent knowledge

Classroom organization Multiple activity spaces using all learning modalities

Pedagogical role Inspirer, setter of initial conditions for viral/contagious learning, designer of infinite games

Learner role Co-creator of learning activities, facilitator, leader

Types of questions Rich question and activity sequences to develop models, theories, decisions and explore ethical dilemmas

Language Transcends and includes, plays with many world views

Tone Playful, integration of all intelligences, shift from boundaries to horizons, both/and thinking

Technology Tools for expanding relationships and consciousness, multi-player games, collective play, polarity management

Conversation Ethical dialectical (does it work for everyone?)

Expectations Intelligent information emerges from the system, we learn to operate in increasingly ambiguous and complex worlds

The pace and kind of innovation has changed

In slower times incremental innovation was good enough

In times of rapid change, breakthrough innovation is essential

Words, tools and job extinctions

• With the horse went the buggy, the buggy whip, the smithy. The saddlery and the harness maker. With the car came the oil and gasoline industry, motels, paved roads, traffic courts, suburbs,

shopping malls and fast food restaurants…”

• Stuart Kauffman, complexity theorist

Key Wisdom Economy technologies

• Co-creation and sense making tools

• Crowd and cloud computing

• Nanotechnology• No-waste systems• Multiplayer games

and simulations• Networks that learn

from each other

• Renewable energy• Biomimicry• Neural interconnections• Self-repairing systems• Genetic modification• Automation of knowledge

and wisdom work.• Local product “printing”• Needs anticipation

“Wise application of knowledge” inside

New “wise application of knowledge” products, services

and jobs

Brainstorm one or more concepts for new products or services which have “wise application of knowledge” inside. Describe how the product/service/job automatically causes people to “behave” or operate wisely.

The new way to “dynamically steer” organizations

New order emerges in complex adaptive systems

when the system becomes richly connected – think brains, communities, markets and ecologies – but not

too highly connected….

The complex adaptive organization is like an ecology of interdependent species

A multi-flex organization of interdependent types include the cost efficient machine bureaucracy, the powering ahead entrepreneurial, the

creative innovative as well as the professional, diversified and missionary.

Red spot on Jupiter

Complex adaptive systems are sustained by energy flowing through them

The economy An ecosystem

Different initial conditions (start points) can have radically different outcomes

Chaos Steady state Periodic Pi = 3.1415926535 3.3333333333 2.121212121212

1.4, 4.1, 1.5, 5.9. 9.2, 2.6, 6.5, 5.3. 3.5……

3.3, 3.3, 3.3, 3.3, 3.3, 3.3, 3.3….

2.1.1.2, 2.1.1.2, 2.1,1.2,2.1,1.2….

Simple local rule or boundary condition: Starting with different initial conditions, at the next step, delete all numbers to the left of the

decimal point and multiply by 10,

Attractors can be a powerful driver or limit the development of a system

Point Limit cycle Strange

Sometimes called a basin or a steady state attractor, that exert s a pull on the system from within the system, e.g. a regular payment, shared value or vision, shape = a basin.

Where the system goes through a cycle e.g. the drama triangle and the empowerment dynamic, shape = rim of a hat.

A period doubling cascade e.g. waves of change, where new kinds of order emerge, at higher levels according to a broad pattern. Polarities such as decentralize-decentralize, self-other .

Wisdom economy operating principles

New kinds of boundary conditionsPast FutureDevelop and pursue strategy Create waves of possibilities

Planned growth Retro-viral, synergistic growthPlay finite games (win-lose) Play infinite games (win-win-win)Solve problems Manage polaritiesDiscourage dissent Embrace diversityDifferent strokes for different folks Fractal (self-similar) relationshipsApply expert knowledge Co -create knowledgeAbandon the old for the new Transcend and includeAchieve critical mass Grow rich connections

Monologue, discussion and dialogue.

Dialectical ethical dialectical discourse

McKinsey technology trends have complex adaptive features

Co-creating knowledge across organization systems

Engaging with the customer as a co-innovator

Tapping into all forms of talent across the world

Extracting more value from interactions

Expanding automation

Unbundling production from delivery

Ensuring management processes are more scientific

Creating new businesses out of information

Machine-to-machine communication

Wisdom Economy products and services criteria

1. “Wise application of Knowledge“ inside. The capability of wise experts (mediator, ethicist, scientist, thought leader) is acquired through use.

2. Offers the desirable values of sustainability, natural, low energy, glamour, beauty or good design

3. Is retro-viral. The product or service replicates meaning. It tells a powerful story that the user feels compelled to repeat or embellish with their own story.

4. Automatically maximizes positive externalities (side effects from their use) while minimizing the negative aspects.

5. Anticipates needs and helps people evaluate their choices in the context of the bigger picture or wider community to achieve win-win-win outcomes.

“Control” methods for complex adaptive systems

1. Involve the whole organization system, including those who may be part of your future in the co-creation of “attractors” at the intersection of what we collectively value.

2. Grow the organization and the community’s global connectedness . e.g. thought and technologies leaders.

3. Develop a set of fractal boundary conditions, powerful local principles, eg retro-viral, generosity of connection, distributed capacity, breakthrough innovation, servant leadership, possibility thinking, polarity management.

4. Apply principles of knowledge creation, sense-making, feedback to constantly co-create new knowledge, convert the new knowledge to products, products or services,

5. Constantly monitor the system. Provides resources to what works. Dampen down or abandon what does not work.

6. At crisis points, involve the whole system in it’s immediate reinvention to a new and higher level of order.

What next?

Some of our Wisdom Age tools

A complex adaptive learning system

for making sense of a Wisdom Age world

Ideas from many conversations are generated and shared in real-time, keystroke-by-keystroke to create a “shared brain.”

Every idea is announced and valued. Participants look for the patterns in the ideas that bridge the differences in the room.

New knowledge emerges across the boundaries of our world views.

Emergent sharedknowledge

Ideas

People

Sequences of rich questions are used to reach consensus about strategy, tactics, new theories, etc. through idea integration.

Experiment: What happens in our brains when we ask different kinds of questions?

Closed, left brain, automatic Rich and open, right brain, auto catalytic

Emergent learning processusing rich question sequences

Conversations in pairs, sharing of ideas, and sense-making using a dialectical discourse method achieves consensus, so the best, most richly integrated ideas emerge that are a good fit with the environment/context.

Discourse types as boundary conditions

Some examples of our suites of meeting and learning applications that replicate the methods

of the world’s thought leaders

Visitanyzing.com

learninginteams.comthewisdomeconomy.blogspot.com

wingwams.blogspot.comlearninginteams.blogspot.com

ContactJohn Findlay, findlay@maverickandboutique.comAbby Straus, straus@maverickandboutique.com