The Rapid Response Institute

Tag: conditions

  • Can Machines Think?

    Can Machines Think?

    In 1950, the mathematician Alan Turing put forth this question.  Rather than attempt to answer it using conventional logic, he proposed a new disruptive model–the Imitation Game.

    The Problem

    One can look at Alan Turing (1912-1954) as the “father of theoretical computer science and artificial intelligence.”  His contributions to modern computer science cannot be understated.  He posited whether computers could one day have the cognitive capabilities of humans.  Some argue that day has arrived.  Yet, how do we know?

    The Turing Game

    The Imitation Game is played by three people (humans).

    (A) a Man,

    (B) a Woman, and

    (C) an Interrogator (of either gender)

    • The Interrogator, segregated into a separate room, is to determine which of the two players is the man and which is the woman.
    • The interrogator askes the two players (known only as “X and Y” or “Y and X”) a series of questions, the answers to which are written or passed through an intermediary so as not to expose the player’s gender.
    • The role of Player (B) is to assist (C) determine the gender of (A), while (A) is to deceive (C).

    However,

    • “What will happen when a machine takes the part of A in this game?  Will the interrogator decide wrongly as often when the game is played like this as he does when the game is played between a man and a woman?  These questions replace our original, Can Machines Think?“

    In his paper, Turing goes to elaborate in detail but for our purposes, the bottom line.

    Will the error rate from a human only decision process be the same as when a machine (digital decision maker) become one of the players?

    Early AI and the Turing Test

    In 1955, McCarthy and Shannon, along with Marvin Minsky and Nathaniel Rochester, defined the AI problem as, “that of making a machine behave in ways that would be called intelligent if a human were so behaving.  In 2013, when asked about Turing’s test in a taped interview, Minsky said, ‘The Turing test is a joke, sort of, about saying a machine would be intelligent if it does things that an observer would say must be being done by a human.’”   This materially connects the early definition of the AI problem to Turing’s test.

    Our intent here is not to split academic hairs but to put forth this concept that predates most readers and is typically not a subject of serious discussion.  The point being that the problem was documented 75 years ago or earlier and this pioneering thinking is the basis of our contemporary definition and implementation of Artificial Intelligence.

    Before Turing

    In one sense, we all stand on the shoulders of giants who preceded us.  “When you think about the origins of computer science, the name Ada Lovelace might not come to mind immediately—but it should.  Born in 1815, Ada Lovelace was an English mathematician and writer whose visionary work laid the foundation for modern computing.  Collaborating with Charles Babbage (considered to be the father of computing), the inventor of the Analytical Engine, Lovelace wrote what is widely recognized as the first algorithm designed for a machine.”

    “Ada was the first to explicitly articulate this notion and in this she appears to have seen further than Babbage.  She has been referred to as ‘prophet of the computer age‘.  Certainly, she was the first to express the potential for computers outside mathematics.”  In the computer Familia, we might also want to think of her as the grandmother of computing.

    Other women who played a major role in the evolution of Artificial Intelligence (after Turing) include Navy Rear Admiral Grace Hopper, the inventor of the first compiler for a programming language as well as other innovations.  Many others made significant contributions.  No doubt women will continue to play a vital role with this game changing technology.

    The Solution(s)

    Twelve years have passed since Minsky’s statement that the Turing test is a joke.  Today’s artificial intelligence capability has changed that landscape.

    The argument becomes, not can ‘we’ meet the Turing test, but how far and fast will it be eclipsed.  This suggests exciting times with associated challenges and risks.

    Contemporary Thinking about the Test

    “As AI systems are increasingly deployed in high-stakes scenarios, we may need to move beyond aggregate metrics and static benchmarks of input–output pairs, such as the Beyond the Imitation Game Benchmark (BIG-bench). We should be prepared to evaluate an AI’s cognitive abilities in a way that resembles the realistic settings in which it will be used.  This can be done with modern Turing-Like Tests.”  As shown in the following figure.

    “Looking ahead, Turing-like AI testing that would introduce machine adversaries and statistical protocols to address emerging challenges such as data contamination and poisoning.  These more rigorous evaluation methods will ensure AI systems are tested in ways that reflect real-world complexities, aligning with Turing’s vision of sustainable and ethically guided machine intelligence.”

    Computer Game Bot Turing Test

    “The computer game bot Turing test is a variant of the Turing test, where a human judge viewing and interacting with a virtual world must distinguish between other humans and video game bots, both interacting with the same virtual world. This variant was first proposed in 2008 by Associate Professor Philip Hingston of Edith Cowan University, and implemented through a tournament called the 2K BotPrize.”

    This pundit believes that the Turning test dam has been broken, and greater things lie ahead.

    Today’s Father of AI – Geoffrey Hinton, The Nobel Prize in Physics 2024

    “When we talk about artificial intelligence, we often mean machine learning using artificial neural networks. This technology was originally inspired by the structure of the brain.  In an artificial neural network, the brain’s neurons are represented by nodes that have different values.  In 1983–1985, Geoffrey Hinton used tools from statistical physics to create the Boltzmann machine, which can learn to recognize characteristic elements in a set of data.  The invention became significant, for example, for classifying and creating images.”

    Together with John J. Hopfield, they used physics to find patterns in information.  Dr. Hinton has expressed some concerns regarding his (AI) child as he states in the following interview from October 9, 2023.

    Theoretical Basis of Tests

    In this pundit’s opinion, the Turing test used Game Theory as a fundamental underpinning.  A later theory, Relationships, Behaviors and Conditions enables newer derivatives of the original Turing Test as well as supports different approaches to the problem.  These theories are briefly described.

    Finally, it is not necessary to read this section, as these details are provided for completeness and to support the position taken.  We understand that this level of detail is not for every reader.

    Over the past few years, there has been an impassioned argument regarding ‘The Science.”  We addressed this issue in 2020, and the following paragraph is taken from that Blog, They Blinded Me with Science.

    “According to Scientific American, Scientific claims are falsifiable—that is, they are claims where you could set out what observable outcomes would be impossible if the claim were true—while pseudo-scientific claims fit with any imaginable set of observable outcomes.  What this means is that you could do a test that shows a scientific claim to be false, but no conceivable test could show a pseudo-scientific claim to be false.

    Sciences are testable, pseudo-sciences are not.”

    There is academic peer reviewed agreement that both Game Theory and RBC hypotheses are testable.

    Game Theory

    Concurrent with Turing’s Imitation Game development, game theory was being formalized as an approach towards economic behavior modeling among economic ‘rational’ actors.

    “Game theory emerged as a distinct subdiscipline of applied mathematics, economics, and social science with the publication in 1944 of Theory of Games and Economic Behavior, a work of more than six hundred pages written in Princeton by two Continental European emigrés, John von Neumann, a Hungarian mathematician and physicist who was a pioneer in fields from quantum mechanics to computers, and Oskar Morgenstern, a former director of the Austrian Institute for Economic Research.  They built upon analyses of two-person, zero-sum games published in the 1920s.”  This treatise was developed from the works of other pioneers of the 1920s and 1930s.

    An interesting side note, “The software industry is a little over half a century old (in 2005), but its roots date back to the textile loom programming of the seventeenth century that powered the Charles Babbage Difference Engine. In 1946, ENIAC (Electronic Numerical Integrator and Computer), the first large-scale general-purpose electronic computer built at the University of Pennsylvania, ushered in the modern computing era.

    That same year (1946), John von Neumann coauthored a paper, Preliminary Discussion of the Logical Design of an Electronic Computing Instrument.  The von Neumann general purpose architecture defines the process of executing a continuous cycle of extracting an instruction from memory, processing it, and storing the results has been used by programmers ever since.“(1) 

    Perhaps, this is part of the collision of the two major breakthroughs: Game Theory and the modern Computer Architecture.

    In 1996, this author’s doctoral dissertation, Cross Cultural Negotiations between Japanese and American Businessmen: A Systems Analysis, (Exploratory Study) was “An exploratory test of this framework in the context of two-person zero-sum simulated negotiation between Japanese businessmen and American salesmen, both living and working in the United States.  The integration of structural (game theory) and process theories (RBC) into a dynamic systems model seeks to better understand the nature of complex international negotiations.  Advanced statistical techniques, such as structural equation modeling are useful tools providing insight into these negotiation dynamics.”

    This work is the basis for the Cloud based Serious Games used to train Cross Cultural Teams.

    Relationships, Behaviors and Conditions (RBC) Framework

    This model has been part of numerous this pundit’s writings since 1996.  A brief overview from a 2011 article follows.

    “The Relationships, Behaviors, and Conditions (RBC) model was originally developed to address issues around cross cultural (international) negotiation processes.   Relationships are the focal point of this perspective, reflecting commonality of interest, balance of power and trust as well as intensity of expressed conflict.

    Behavior in this model is defined as a broad term including multidimensions – intentional as well as unintentional.  Finally, Conditions are defined as active and including circumstances, capabilities and skills of the parties, culture, and the environment.  Of course, time is a variable in this model as well.

    One key feature of the R B C Framework is its emphasis on interactive relationships while providing an environment for multiple levels of behavioral analysis. This makes it a useful tool to better understand the new regulatory processes currently unfolding.  As we will see later, the number of constituents now engaged belays the use of simplistic linear decision models.”(2)

    Operational Excellence

    The following excerpt from our 2017 Blog, Excellent Behaviors: Assessing Relationships in the Operational Excellence Ecosystem addresses the role of the RBC Framework in organizational excellence.

    “One of the hot business buzzwords of 2017 is “Operational Excellence.” It has been the subject for many pundits, including this one.

    In October and November we published a two-part series, Assuring Operational Excellence from Contractors and Their Subcontractors through BTOES Insights.  Each part included a link to additional information.

    The October edition featured an excerpt of our Implementing a Culture of Safety book. In the November edition we released our new Best Practice solution, Attaining & Sustaining Operational Excellence: A Best Practice Implementation Model. We are proud to make it available herein and in general.

    One of the basic tenets of the RBC Framework is the general construct that Relationships cannot be determined a priori.  The well-used example is a man and a woman sitting on a bench at a bus stop.  Are they married, siblings, coworkers, friends or simply two people waiting to catch the same/different bus?

    Their relationship cannot be known directly. However, their Behaviors will provide insight into how they relate to each other.  Romantic behavior may indicate marriage, dating, an affair etc.  They may still be coworkers but most likely are not strangers.

    The third dimension, Conditions (environment) can be considered the stage upon which behaviors play.  So, what does this have to do with Operational Excellence?

    Another component of our digital environment is Human Systems Integration (HSI). In our forthcoming book, we have defined HSI as, “Human Systems Integration (HSI) considers the following seven domains: Manpower, Personnel, Training, Human Factors Engineering, Personnel Survivability, Habitability, and Environment, Safety and Occupational Health (ESOH).  In simple terms, HSI focuses on human beings and their interaction with hardware, software, and the environment.”

    We have crossed the Turing Rubicon.  How will your organization capitalize on these Opportunities?

    Hardcopy References

    1. Shemwell, Scott M. (2005). Disruptive Technologies—Out of the Box. Essays on Business and Information Technology Alignment Issues of the Early 21st Century. New York: Xlibris. p. 127.

    2. _______ (2011, January). The Blast Heard Around the World. Petroleum Africa Magazine. pp. 32-35.

    Pre order our new book

    Navigating the Data Minefields:

    Management’s Guide to Better Decision-Making

    We are living in an era of data and software exponential growth.  A substantive flood hitting us every day.  Geek heaven!  But what if information technology is not your cup of tea and you may even have your kids help with your smart devices?  This may not be a problem at home; however, what if you job depends on Big Data and Artificial Intelligence (AI)?

    Available April 2025

    Ordering Information

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is the coauthor of the 2023 book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be released by CRC Press in April 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross-Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg and his book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

  • The Transformation of Our Spreadsheet Society

    The Transformation of Our Spreadsheet Society

    “The only rules are the ones dictated by the laws of physics.  Everything else is a recommendation.”  — Walter Isaacson/Elon Musk

    We live in a spreadsheet society.  Columns of Categories of People and Rows of Wants, Needs, and Desires.  This model is too simplistic.  What is needed, and Big Data can provide, is a more sophisticated approach.

    This spreadsheet approach was shown in the recent US elections to be detrimental to the party mainly depending on this view of society.  How many times did we hear pollsters opine that X percent of a certain population was voting for one candidate vs. the other?  The categories of people were divided along traditional lines.  This whole model was shattered on November 2, 2024, and likely some providers of data in this format may no longer be in business for the next cycle.

    However, this belief system is not limited to the political class.  We all can fall into this stereotype.

    For decades we have been taught that data categories can be captured under a Normal Distribution (Bell) Curve of a category and row of interest, i.e., the distribution of the height of a class of male senior high school students or SAT scores.  Another more relevant example, retailers’ pertinacious obsession with the 18–34-year-old group.

    These are fairly simple models, and in this Blogger’s opinion, this representation rarely works anymore, if it ever did.  For example, the resulting retail sector inventory overages as a result of dependencies on this gross data model are not an effective return on shareholder value.  Other recent missteps based on faulty interpretation of the customer/prospect base include the Bud Lite advertising fiasco and the Target marketing failure.

    It is ok to make marketing mistakes, that is going to happen.  The problem with these two (and other) campaigns is the analysis of risk, return, etc. was likely shallow or mathematically primitive.

    There are ways to appeal to new consumers without alienating a large existing base.  It’s all in the big numbers.

    There are several validated models of human behavior and we will discuss two of them herein, Maslow’s Hierarchy and the Relationships, Behaviors, Conditions model.  Some readers may prefer others, and they will most likely work within this construct as well.

    Maslow’s Hierarchy of Needs

    This perspective on human needs and subsequent behaviors dates back to the 1940s.  As shown, it consists of five steps from survival to the ultimate Self Actualization.  Note that we adapt this model in two ways.  First, we view this as a growth process as opposed to five discrete steps.  Additionally, the bottom two lower ranges focus mostly on the physical issues we all face.  Fundamental survival and security both physically, mentally, emotionally and spiritually.  Once we have attained, sustained, and believe, we are ready to transition towards an end game, “the realization or fulfillment of one’s talents and potentialities, especially considered as a drive or need present in everyone.”

    Next, we will discuss how we can use this and the RBC solutions to realize specific and measurable value that changes this dynamic.

    The color gradient is meant to reflect that this journey is a process and often each field begins slowly before accelerating into the next range.

    Another perspective of each the Five Platforms consists of a number of smaller steps, which when assessed using Integral Calculus, generates a continuum.

    Relationships, Behaviors, and Conditions (RBC)

    The following is taken from our Cross-Cultural Online Game site:

    The RELATIONSHIPS, BEHAVIORS, and CONDITIONS (RBC) model was originally developed to address issues around cross cultural (international) negotiation processes.   As shown in the figure, Relationships are the focal point of this perspective, reflecting commonality of interest, balance of power and trust as well as intensity of expressed conflict.  Behaviors in this model is defined as a broad term including multi-dimensions and intentional as well as unintentional.  Finally, Conditions are defined as active and including circumstances, capabilities and skills of the parties, culture, and the environment.  Of course, Time is a variable in this model as well.

    Moreover, we have defined Behavioral Economics as “the decision-making model that incorporates societal, cultural, emotions and other human biases into the process as opposed to the classic rational economic actor.

    One key feature of the R B C Framework is its emphasis on interactive relationships while providing an environment for multiple levels of behavioral analysis.   This makes it a useful tool to better understand the new Big Data/AI processes currently unfolding.

    The following graphic is a derivative of our Cross-Cultural Interactions model.  It is a peer reviewed model and is a very good way to calibrate interactions.  Additional information is available on the above link.

    This author has long believed that we do not live in a linear or mathematically deterministic world.  A strong belief in stochastic, matrices drive much of my thinking.  This is reflected in the figure on the left.  The RBC model is the foundation for the five parties and their collective Behaviors.  The resulting Relationships range from one-on-one to small groups or in some cases a wide and varied constituency.

    Note that there is an Ecosystem, (something, such as a network of businesses, considered to resemble an ecological ecosystem especially because of its complex interdependent parts) associated with each entity other that the individuals’ who are the other four.

    This is a wide array of influences on any given individual.  Not easily measured, linearly!

    Scientific Method

    Most readers are familiar with how science has been brought into bolster the position of pundits/advocates of policy, especially related to Covid-19.  The word is tossed around casually, as if most who use it know what they are talking about.  Spoiler Alert–Most Do Not! This includes some with advanced technical or medical bona fides.

    Most think that by using the word ‘science’ this assessment process is out of their wheelhouse.  Previously, we argued that there is a layperson’s approach that works fine for most of our daily needs.  Details can be found on our Blog, They Blinded Me with Science.

    For space reasons, this (guidelines) model will not be repeated here but check it out, it is a short read.

    The late Nobel Laureate, Richard Feynman has a brief and layperson-oriented presentation on the Scientific Method.  He is an excellent teacher, and this clip is informative as well as entertaining.

     “If it disagrees with experiment, its wrong”—Richard Feynman

    Human Input Still Needed

    To be clear, pollsters and marketers will still need to ask questions that will also help structure the model, but the processes posited herein can change the weighting processes driving toward equilibrium and Pareto Optimality (Pareto efficiency implies that resources are allocated in the most economically efficient manner but does not imply equality or fairness) in the final analysis.  In other words, higher quality results.

    These numbers can also be seen as ‘first value’ in a simulation.  Another way to look at this is to the logic the Turing (Bombe) Machine of World War II.  Not setting a number as itself.

    Then AI can take the model to the next level and provide pollsters/marketers with real, modern solutions.  Finally, other uses will most likely be derivatives of this solution.

    The Data Management Problem

    We have identified a general problem as well as three valid and reliable theories.  This is only a nice discussion without relevance with Valid, Reliable, and Timely (VRT) data.  Data Management has been a problem as long as there has been data, stone, paper or electronic.  It has always been an issue.  “Herman Hollerith is given credit for adapting the punch cards used for weaving looms to act as the memory for a mechanical tabulating machine, in 1890.”  Much later (circa 1950s) digital database management schemas emerged.  Today, we are flooded by data of all types including telemetry and deliberately false data/information.

    How can this be effectively managed and how can an executive without a technology background survive much less thrive in such an environment?

    For decades, this author has been involved in almost all computer system development from the yellow punch tape of the 1960s until today.  There have been several constants over that period.

    One of the biggest chronic challenges has been database management; from the acquisition of data through its life cycle until achieve.  An outcome of poor data management has been decisions that have even led to the demise of firms, along with tens of thousands (if not more) of suboptimal decisions at the expense of shareholder value (bottom line/stock price).  What makes the current crop of Big Data/Artificial Intelligence advocates any smarter than those who came before?  Nothing!  Unless some things are changed.

    Our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).  The following and other managerial action items are developed in detail.

    • How to determine the quality of the data and its relevance to the decision-making processes.
    • Current Challenges and Trends in Big Data and associated applications.
    • Proposed organization structure such as High Reliability Organization and an understanding of Human Factors to fully realize the full and measurable economic value from these technologies.
    • A full set of Risk Mitigation and a Governance model including Disaster Recovery and Cyber Security.
    • How these technologies are used in Operations, a proposed Management System as well as numerous Case Studies across a number of industries and types of problems.

    The challenge of managing this suite of emerging AI/Big Data is daunting and one that cannot be dodged or delegated.  How organizations respond can be the difference between success or the destruction of shareholder value.

    It’s The Data Stupid

    Our pollsters are collecting and analyzing data that are self-reported.

    • A questionnaire is developed which may or may not reflect bias.
    • These questions are posed to potential respondents (phone and otherwise) who may detect a voice tone, and/or the subject may intentionally lie or mislead.
    • Finally, who answers the phone these days?  This skews the data sample and perhaps badly.

    Data collected in this manner is not subject to rigor and most likely wrong or skewed.  Finally, data collected in this manner is not suitable for the new Big Data Analytic models.

    One Proposed Better Way

    There are probably several much better ways to address political and marketing problems.  While no data source is perfect, we posit the following way to use the US Census data.  We can treat it as a function of columns and rows yet apply sophistical data analysis algorithms.

    Categories

    As mentioned, we tend to clump or stereotype individuals into preconceived ‘buckets.’  Over time, these buckets have taken on an aura of, it’s the only way.  Basically, the construct that ‘we have always done it this way.’
     
    This is no longer a viable business or social model.  Our world is much too dynamic for the older static approach to targeting the likelihood of a specific demographic to perform in a preconceived prescriptive manner.
     
    One place to start looking is at the United States Census data.  This data set consists of 57 profiles, The United States and each State and Territory.  Each Profile is divided into several Sub-Categories, Populations and People, Income and Poverty, Education, Employment, Housing, Health, Business and Economy, Race and Ethnicity, and Nearby States.  Each Sub-Category is further detailed.
     
    We might even call the data in these Categories/Sub-Categories, Conditions from the RBC model.  Each Platform in Maslow’s Hierarchy can be considered a Category with infinite Sub-Categories.  Likewise, Conditions.

    Rows

    We have identified the following three variable model as representative of human Behaviors–Wants, Needs, and Desires.  We have previously reviewed some of this in our Blog, Want – Like – Need  in 2019.  These can also be mapped to Behaviors in both the RBC and Maslow models.
     
    Details and a short list of some variables follow.  These definitions can overlap, and readers will note that there is some duplication across all three classes below.  Researchers use different definitions for each class.  This does not detract from the fundamentals of Rows selected for analysis.  
    The point is to develop a list of behaviors that is indicative of the problem to be solved.

    Wants

    For purposes of this model, we define Want as something that an individual might seek as part of normal life, i.e., and ice cream cone.

    Needs

    Those fundamentals of life, especially as defined in Maslow’s Hierarchy, platforms one and two.

    Desires

    Different from Wants, Desires are perhaps beyond his/her reach.  Coveting a promotion and willing to back stab co-workers to get it rather than compete on merit.

    Sources of Wants, Needs, and Desires

    We have suggested that a starting point for Categories is the very large US Census database.  No such singular source exists for these behaviors and there is an overlap in definitions.  This list gives readers a starting point.  In no particular order, this non-comprehensive includes:

    The list goes on, but readers get the point.  A large row of behaviors will help develop a robust model.

    And The Answer Is

    While we know that the solution to the political pollster and/or marketing manager is not a definitive answer, we can do better than we are.  We know how to management data in this environment and we have models for assessing and making decisions based on results.  As we move from simple, small data set, linear models to robust Big Data Analysis, we need to consider a few additional action items.

    Scientific Method

    Do not forget to use this methodology to define and refine your problem statement.

    Model Limits

    • While we are using a significant number of independent and dependent variables, we are not trying to solve world hunger.  Therefore, we need to put limits on (Bound) the model.  This is an age-old problem we first addressed in 2015, Bounding the Boundless.
    • From a scientific perspective, “Across all science, modelling is our most powerful tool, as models let us focus on the few details that matter most, leaving many others aside.  Models also help reveal the typically far-from-intuitive consequences when multiple causal factors act in combination.”
    • Additionally, “Getting AI/ML/DL systems to work has been one of the biggest leaps in technology in recent years, but understanding how to control and optimize them as they adapt isn’t nearly as far along.  These systems are generally opaque if a problem develops in the field.  There is little or no visibility into how algorithms are utilized, or how weights that determine their behavior will change with a particular use case or interactions with other technology.”
    • Moreover, “the European Union this week (2021) issued guidelines for AI — specifically including ML and automated decision-making systems — limiting the ability of these systems to act autonomously, requiring ‘secure and reliable systems software,’ and requiring mechanisms for ensuring responsibility and accountability for AI systems and their outcomes.”

    Diminishing Returns

    Since we are not boiling the ocean, at some point continuing with the model will result reduced performance.  According to Economists, “The law of diminishing returns says that, if you keep increasing one factor in the production of goods (such as your workforce) while keeping all other factors the same, you’ll reach a point beyond which additional increases will result in a progressive decline in output.  In other words, there’s a point when adding more inputs will begin to hamper the production process.”

    “Data is just a way of codifying information. Any data gathered should be relevant to a problem, otherwise useless data clouds the results of a query.  If there are too many degrees of freedom, you are begging for a spurious correlation.”

    Readers may be familiar with, “The Pareto Principle, also known as the 80-20 rule, is a concept that many have adopted for their life and time management.  It is the idea that 20% of the effort, or input, leads to 80% of the results or output.  The point of this principle is to recognize that most things in life are not distributed evenly.”  This may be a satisfactory approach to this application.
     

    Need for a Data Scientist

    This approach may require the use of a professional data scientist to realize a valid and reliable outcome.  “A data scientist is an analytics professional who is responsible for collecting, analyzing and interpreting data to help drive decision-making in an organization.  The data scientist role combines elements of several traditional and technical jobs, including mathematician, scientist, statistician and computer programmer.  It involves the use of advanced analytics techniques, such as machine learning and predictive modeling, along with the application of scientific principles.  As part of data science initiatives, data scientists often must work with large amounts of data to develop and test hypotheses, make inferences and analyze things such as customer and market trends, financial risks, cybersecurity threats, stock trades, equipment maintenance needs and medical conditions.”

    More

    This is not a definitive list and is provided to give readers an understanding of what it will take to move forward with the Big Data Analysis model.  Appropriate research and problem definition may reveal additional or fewer requirements.

    Demise of Linear

    The Linear broadcast approach to selling or changing minds is not the relevant delivery vehicle for new micro-data analysis.  Directed notifications is better although practice this with care.  This last election cycle, I received a text, words to the effect, “can we count of your vote for X?”  I was very much against X and no reason was offered to help me change my mind.  Get with the program and don’t be so lazy developing your spiel or message.

    Elon Musk’s ‘Algorithm’

    This is an interesting approach to problem solving that can have relevance to the issue discussed herein.  Can we reduce complexity without losing data fidelity, “The accuracy, completeness, consistency, and timeliness of data.  In other words, it’s the degree to which data can be trusted to be accurate and reliable.”

    His Five Step Process:

    1. Question Every Requirement

    2. Delete Any Part or Process You Can

    3. Simplify and Optimize

    4. Accelerate Cycle Time

    5. Automate

    Readers may ask, how does this fit in this discussion?  We bring this to your attention because it may help identify and bound the problem to be solved.

    Also, perhaps of some value is his, “idiot index, which calculated how much more costly a finished product was than the cost of its basic materials.  If a product had a high idiot index, its cost could be reduced significantly by devising more efficient manufacturing techniques.”  A survey, analysis, etc. are all products and may benefit from this index model.

    Final Thoughts

    Most financial professionals will tell you that spreadsheets must foot (the sum of all rows must equal the sum of all columns).  Can societies or multiple societies foot their columns and rows?  Most likely not and if that is the case, data from this model is not valid or reliable.

    Most likely, this type of data will take the form of a Scatter Diagram (without correlation?) with some clumps or areas of intensity of a specific category or group of categories.

    This may not be an approach that many will take; however, it is clear that the original premise of this piece, that we live in a spreadsheet society is no longer appropriate.  “If you always do what you always did, you will always get what you always got.” ― Albert Einstein.  It will be interesting to see how future polling is conducted.

    Non-Linear Speed Ahead

    Sometimes pieces like this summarize a conclusion.  In the high-pressure environment, we are not concluding anything.  We are carving a way forward–A Growth Model of the Data Economy.

    As of this writing the incoming US administration appears to be moving at hyper speed across a broad front.  Moreover, AI in particular exploding.  Those interested in keeping up may want to to Subscribe | Generative’s AI Newsletter (not an endorsement but seems be a good daily source of information).  Mostly, just keeping up will not be enough, if top quartile success is the goal.

    It will be interesting to see the role the family of Artificial Intelligence (AI) software solutions play in this field going forward.

    Micro-targeting is certainly a place for Big Data to shine.  That said the problem to be solved and the confidence in the validity and reliability of the data must ascertained. 

    Society faces some real challenges with how we manage, analyze and decide using data.  This is but one example where old methods no longer produce valid and reliable results.  How will you and your organization go forward?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    See our Economic Value Proposition Matrix® (EVPM) for additional information and a free version to build your own EVPM.

    The author’s credentials in this field are available on his LinkedIn page.  Moreover, Dr. Shemwell is a coauthor of the recently published book, “Smart Manufacturing: Integrating Transformational Technologies for Competitiveness and Sustainability.”  His focus is on Operational Technologies.

    We are also pleased to announce our forthcoming book to be published by CRC Press in 2025, Navigating the Data Minefields: Management’s Guide to Better Decision-Making.  This is a book for the non-IT executive who is faced with making major technology decisions as firms acquire advanced technologies such as Artificial Intelligence (AI).

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more details regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    Regarding the economics of Climate Change, check out our blog, Crippling Green.

    For those start-up firms addressing energy (including renewables) challenges, the author can put you in touch with Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give me a shout.

    Copyright © 2024 The Rapid Response Institute LLC.  All rights reserved.

  • What We’ve Got Here is Failure to Communicate!!

    What We’ve Got Here is Failure to Communicate!!

    “The single biggest problem in communication is the illusion that it has taken place.”

    George Bernard Shaw

    The 1967 movie Cool Hand Luke, popularized the term, “What we’ve got here is failure to communicate.”  The American Film Institute lists this statement as number 11 out of the top 100 movie quotes.  The basis of this exchange is the prisoner in a Florida prison camp, refusing a guard’s continual demands.

    Clash of Titans

    In our 1994 presentation, Organizational Conflict and Dispute Resolution we positioned Diversity as a Function of Culture.  Another way to look at this is a function of ‘tension at the margin.’  We defined this term as, “Stress between competing bodies—the engine of power.”  The idiom was derived from the Pressure Differential in powerful weather events such as hurricanes.  The blog went on state, “Humans constantly deal with this phenomenon and sometimes the stress caused by this dichotomy can seem to be overwhelming.  Sometimes, it seems this powerful internal engine races without a governor.”  Sometimes, cultural clashes seem to have these same titanic properties.

    Cultural Governance

    This pundit has a somewhat different opinion on ESG than typically featured in the media.  This framework is only a set of standards that responsible firms have been using for years.  We addressed this issue in June 2005 in the piece, The Corporate Bar is Raised! which is a chapter in our 2011 book, Essays on Business and Information II: Maximizing Organizational Performance.

    The final paragraph in the piece states, “The linkage between robust embracement of strong governance and shareholder rights coupled with transparency and dispatch when things go badly will provide strong positive sustainability.  The corporate bar is raised, but isn’t this where it should have been all along?”  How is this any different than current ESG models?

    Governance sets a framework as well as an ethical methodology for advancing competing positions.  In one sense collaboration is the ultimate goal as the intent of the whole is to maximize success.  Governance models that are not aligned with that goal are sub-optimal.

    R B C

    There is a great deal of discussion about Energy Transformation today.  It is not only a political football but many consulting and technology company are pushing their products and solutions.  No doubt some of dubious value.  All parties have an agenda!

    The word transformation suggests that the current Condition or environment demands changes in Behavior.  The result of these changes drives new Relationships (RBC) among economic actors.

    It is one thing to move from wood and dung as fuel to the coal that powered steamships and now other fossil fuels that power almost everything as well as the feedstocks for almost everything the modern world uses and social transformations.  There are major differences between the two Differential Pressures.

    Energy Transformation is heavily dependent on hard infrastructure.  The ability to economically replace gas stations with plug in sites, the time it takes to ‘refuel’ a mobile machine, and so forth and so one.  This is a decades long process and not something that can be done on a simplistic political timeline.

    Social Transformation is not easy either.  However, the process mostly requires changing collective mindfulness.  This process can unfold rather quickly.

    For example, events of Pearl Harbor, 9/11 as well as the adoption of ‘Smart phones,’ political party positions, weather events, etc. can transform thoughts in weeks, months and even days.  In this sense it is easier to accomplish.

    Fin

    Change happens when all parties feel like there is something in it for them.  Where exogenous or endogenous, new Conditions can drive better Behaviors and thus new Relationships.  However, individuals need to know the value they will derive.  A failure to communicate need not be fait accompli.

    Do You Know if You Are Communicating with Your Friends, Colleagues and Others?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    The author’s credentials in this field are available on his LinkedIn page.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more information regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    For those start-up firms addressing energy (including renewables) challenges, the author is a member of Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give us a shout.

  • Sun Sets in the West: Science or Commentary?

    Sun Sets in the West: Science or Commentary?

    One newscaster recently used the metaphor of the sun setting in the west as settled science so contrary views were not newsworthy.  His argument–Fairness is Over Rated!  What?  One wonders whether this is true for those who believe the world is round or for those in the Flat Earth Society?

    Yet most political commentary and views are not so apparent.  Politicians and pundits constantly refer to ‘so-called’ settled science only to have new information surface.  Moreover, we know how to test theories using the Scientific Method.  Sadly, outside of formal academic style research this tool does not appear to be in vogue these days.

    Sun Set

    We learn the truism that the sun rises in the east in the morning and sets in the west (slightly seasonally adjusted).  In fact, this calendar and timing have been known for several millennia.  This process is measurable and repeatable.  This phenomenon is supported by empirical data taken from experimentation and observation.  The data is valid (accurate) and reliable (repeatable).  Therefore, it follows that the knowledge of the sun setting in the west is based on science.

    In My Opinion . . .

    The 24/7 news cycle bombards us all with “Breaking News,” often several days after its occurrence.  In their rush to get the ‘scoop‘ facts are not available at the time, overlooked or deliberately mangled or omitted.  We are told that such and such is settled fact.  And then it isn’t!

    When one puts forth a position that while may be based on the certainty of one’s perspective on a matter, it often does not meet the test of the Scientific Method.  By definition, this type of statement is a viewpoint or a sentiment.  However, it can take on the mantle of science but is really Pseudo-Science as the hypothesis cannot be proved false.

    One’s perspective or cognitive bias on a given subject can lead to the development of an organizational, policy, political or social agenda designed to sway thinking and thus support the development and implementation of initiatives designed to operationalize said ideas.  Proponents often couch their position as “The Science.”

    Contemporary Decisions

    Our world is awash with significant economic and social challenges.  Whether ESG, Covid-19, Climate Change or Inflation everyone has an opinion with data and/or studies to support their positions.

    Consumers/Policy Makers/Decision Makers of these information will have to assess their value.   How valid and reliable are the positions taken and what is the uncertainty and risk associated with their implementation?

    The basis of all decisions include a level of incomplete or incorrect data.  This phenomenon is where the military phase, “No plan survives first contact with the enemy” comes from.

    So, it is with the confrontations of these four global issues.  A robust discussion of the various points-of-view and their basis is necessary.  Why is this not happening?

    When statements that the ‘consensus’ of vast majority of experts/scientists is blah blah blah are made, this should be a major red flag.  The statement that the ‘sun sets in the west’ has a significant body of knowledge behind it.  There is a level of uncertainty with most other prognostications.

    Louis Pasteur is credited with the statement, “Chance favors the prepared mind.”  This is just as true today as when he was developing vaccines for the anthrax and rabies scourges of his day.

    The best decisions are made even when controversial such as with Pasteur’s vaccines.  Eisenhower’s decision about D-day had similar attributes of uncertainty and risk.

    The United States, indeed the world has embarked on a multi-trillion dollar effort to solve the so-called existential threat of global warming.  Politically charged, one wonders if any of the proponents and doomsayers are basing their positions on actual science.

    How DARE THEY push false agendas that cost so much and will destroy economies.  How DARE THEY!!

    Are your organization’s decisions based on science or just someone’s opinion?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    The author’s credentials in this field are available on his LinkedIn page.

    “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” (Martin Luther King speech at Cornell College, 1962).  For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

    For more information regarding climate change models, check out Bjorn Lomborg ands his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    For those start-up firms addressing energy challenges, the author is a member of Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give us a shout.

  • Why Corporate Initiatives Fail

    Why Corporate Initiatives Fail

    According to the Cambridge Dictionary, one definition of initiative is. “A new plan or action to improve something or solve a problem.”  In corporate parlance this often translates into yet another short-term and often politically correct effort to demonstrate forward motion/social citizenship.  Often forgotten faster than the evening news cycle as new searches for performance take their place.

    Organizations of all types, public, private, profit and nonprofit etc. tend to announce new initiatives with great fanfare and pronouncements about ‘transforming our culture.’  So why do they continuously fall short of expectations?

    According to a Forbes Survey released just before the pandemic, “When participants in our survey were asked to create a list of reasons for (change programs) failure, ‘insufficient budget’ was cited by 23% and ‘insufficient time’ by only 17%.  Instead, participants ranked poor communication (62%), insufficient leadership and support (54%), organizational politics (50%), lack of understanding of the purpose of the change (50%), lack of user buy-in (42%) and lack of collaboration (40%) as the most critical issues.”

    In aggregate, the article suggests a total failure rate of70%.  This percentage level was first put forth in the early 1990s and is accepted by many as still correct today.  While empirical evidence is sketchy, none-the-less, the perception of failure remains high.

    This tracks with other project failure statistics this author has seen over the years.  Yet, all of these failure attributes are human and therefore, manageable and correctable.

    Today’s Buzz

    The economy is always front and center.  More so today given Inflation and Supply Chain problems.

    In this blogger’s opinion and in order of priority other key issues include Diversity, Inclusion and Equity (DEI), Climate Change and Environmental, Social and Governance (ESG).  While different organizations may face other challenges, these Four tend to dominate the news.

    Often issues overlap or compound, thus exponentially amplifying the impact on society.  For example, the electric vehicle (EV) is touted as a lynchpin to ‘fixing’ the Climate Change issue.  However, supply chain issues currently limit battery production and one can surmise this is a long-term problem and not simply current shortages or delays.  If this is correct, meeting desired climate metrics is problematic.

    Diversity, Equity and Inclusion

    Perhaps the most emotional of the Big Four, DEI seeks to level the so-called playing field for all regardless of ethnicity, gender or behavioral preferences.  Almost all organizations have a DEI Initiative underway.  Yet, they seem to be stalling much to the frustration of advocates.

    According to one source, “The DEI industry is dominated by what scholars call ‘personnel managers,’ employees in human resources.”  This is also the observation of this pundit as well.

    LinkedIn profiles include, Chief Diversity Officers, any number of DEI consultants and others carrying similar titles as well as commercial organizations offering DEI products and solutions.  Much like the plethora of Safety Culture ‘experts’ and tools that emerged after Deepwater Horizon offshore drilling rig disaster in 2010.

    From a recent Korn Ferry article, “Experts say companies must treat DE&I as they would any other business issue and use data analytics to understand why things aren’t working.”  This author interprets this to mean that DEI must be incorporated into ‘the way we do business‘ or part of the organization’s culture.

    No longer a simple initiative, the next Chief Diversity Officer may be a Caucasian male or even redundant.  Then, DEI will no longer be seen as a separate and different department.

    Energy Transformation

    The president of the United States recently said, ““ it comes to the gas prices, we’re going through an incredible transition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on fossil fuels when this is over.”  As many countries implement Climate Change policies, this transition is economically rough to say the least.

    And with no guarantees that these efforts will actually reduce the earth’s temperature decades out, is this a Big Bet with major consequences to all of us.  In our last blog, Innovation: The Key to the Global Future we addressed the economics in detail.  Interested readers should refer to that piece.

    An extensive assessment was developed by Bjorn Lomborg in his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.  His credentials include the fact that he believes in global warming and is not a ‘denier’ as the phase goes.

    Caution to the lemmings jumping off the Energy Transition cliff, this is the ultimate initiative as it is political by nature.  Fickle by nature, political winds can change quickly and with that the value proposition.

    To some extent we are seeing this already as governments seek to address spirally energy costs, i.e., Germany restarts coal-fired power plants.  We might see more of this after the US midterm elections in November.

    ESG

    This initiative is treated as if it is new.  Well run companies have always enjoyed higher equity value.

    In 2011, we published our White Paper, Asset/Equipment Integrity Governance: Operations–Enterprise Alignment.  In that paper, we quoted, “During that period (2002), McKinsey & Company in conjunction with the Global Corporate Governance Forum conducted a study and found that over 75% of over 200 fund managers would value a stock at a higher price point if the company could demonstrate it had strong governance in place.  Moreover, the study also revealed that for western markets, firms with strong shareholder rights averaged 12-14% higher stock prices.”

    We previously addressed ESG in detail and how it fits in our Relationships, Behaviors, Conditions (RBC) Framework  (risk mitigation).  The operative word is Relationships.  This will include every stakeholder, so the impact can be substantial.

    For some organizations, ESG is new and the source of value in the annual Letter to Shareholders.  For others, business as usual incorporates those premises.  Begs the question, which organization would you like to invest in?

    Concluding Thoughts

    In this corporate animal’s experience, initiatives are seen as short-term events.  Leadership’s ‘rubber stamp’ does not carry gravitas.  Employees often ‘wait them out’ and go just about their business.  Others create media splash which dies quickly as well.  Only when change is codified in the organization’s culture do new approaches add sustained value.

    Initiatives fail because neither the board room nor the factory floor see them as adding value.  Fads driven by political winds, activists or social desires come and go.

    Strong governance is a proven value add.  A diverse workforce can add value but climate change as currently practiced will most like fail and fail Big and Expensive.  Society has addressed similar economic issues and will again.

    Are Your Organizational Initiatives Sustainable or Simply Fads?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials herein.  They are provided for education and entertainment only.

    The author’s credentials in this field are available on his LinkedIn page.

    Disclaimer, the author has no personal or business relationship with Bjorn Lomborg or his publications other than reading and commenting on his latest book, False Alarm: How Climate Change Panic Costs Us Trillions, Hurts the Poor, and Fails to Fix the Planet.

    For those start-up firms addressing energy challenges, the author is a member of Global Energy Mentors which provide no-cost mentoring services from energy experts.  If interested, check it out and give us a shout.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  You can contact this author as well.

     

  • ESG Explained

    ESG Explained

    According to Investopedia, “Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments.”  Definitions of the three components are pretty straightforward:

    • Environmental–Generally refers to the stewardship of the planet and how organizations facilitate that responsibility.
    • Social–Facilitating organizational responsibility to the global society, at all levels from the globe to the local communities firms operate in.
    • (Corporate) Governance–Typically, the umbrella organizations put in place to assure issues such as transparency, fraud, safety culture and ethics are in compliance with social norms and local regulations.

    Since the Deepwater Horizon incident of April 2020, operators (oil and gas companies) have extended and enhanced the above criteria to their supply chain ecosystem and in some cases even customers with a Safety and Environmental Management System (SEMS).  This is true of most other Critical Infrastructure sectors as well.

    Likewise, the Sarbanes-Oxley Act of 2002 enhanced transparency and increased fraud protection after the Enron (and other) scandals.  Other incidents have triggered governance changes as well and some are referred to in linked materials.

    Why Is ESG Important?

    By one account, approximately $12 trillion in investments made in 2018 were driven by those who consider themselves socially responsible.  According to Forbes, in 2019 this accounted for almost 25% of total investments and are seen through the lens of sustainability.  Moreover, between 2016 to 2018, the growth rate in such firms grew at 38 percent.

    These numbers confirm our research going back to the turn of the century and perhaps earlier.  In 1993 we controversially posited that the Principles of Scientific Management were applicable to software development by Knowledge Workers.  Developed by Frederick Taylor, his monograph was published circa 1911.

    In other words, owners (investors) have always demanded top notch, legal and ethical performance.  Activist investors, i.e. Carl Icahn are not new.  As always, they have a very important role to play in the current markets.

    Asset/Equipment Integrity Governance

    There is a buzz of newness to ESG; however, from a contrarian perspective, this is not necessarily the case.  After the Deepwater Horizon failure with significant loss of live and many billions in economic losses to many parties including BP, it became clear that traditional Governance models did not have a focus on operations and the management of capital assets, i.e., manufacturing plants, marine vessels and other revenue producing sources.

    In our book we addressed a New Risk Environment from large corporate operations in which ‘failure is really not an option.”  We stated as a risk element, “Escalation of Consequences: The level of consequences of a disaster in the energy industry can now be larger than from the accidental release of a multi-megaton nuclear weapon.”

    Still governance models continued to struggle.  We believe that in the critical infrastructure sectors there is a lack of strong bonding, in other words top management is still hands off and operating from historical ‘control’ models that are no longer relevant or applicable.

    We do not believe this will change until a Strong Bond (tightly coupled) model is adopted.  We define the term as, “A strong model is used by High Reliability Organizations (HRO) and as part of that model, trained; knowledgeable personnel are empowered to make the right decisions in the field.  The strong model provides an organization with the capability to become and remain and HRO.”

    In 2011, we released our monograph, Asset/Equipment Integrity Governance: Operations–Enterprise Alignment; A Case for Board Oversight (AEIG).  In addition to developing a financial model documenting the Return on Investment (ROI) from strong governance, a Compliance Model, as well as a robust AEIG Matrix which incorporates an Asset Maturity Model are part of the solution.

    The AEIG extends the enterprise governance model to include the full ecosystem including subcontractors to its primary supply chain partners.  While not directly addressed at the time, Diversity, Equity and Inclusion (DEI) is implicit in the model.

    This roadmap is comprehensive and is a good starting point for developing and implementing a vigorous ESG initiative.  Other monographs in our Changing the Dialogue series (exploring our New Business Dynamics) include Structural Dynamics and Rapid Response Management are available online.

    Relationships, Behaviors, Conditions

    Scroll down on The Rapid Response Institute, Operational Excellence Platform page and you will find our R B C Framework Cultural Transformation model.  Shown below for ease of readership.

    The R B C model was originally developed to research international (cross cultural) negotiations.  We have extended it to support the transformation process to a robust and model organization culture such discussed herein.  Readers should note that this model is focused on Operational Excellence and is comprised on Processes & Methods supported by Enabling Tools.

    Built on Structural Dynamics which was developed as part of Dr. Shemwell’s doctoral dissertation in 1996.  It is defined as, “The morphology or patterns of motion towards process equilibrium of interpersonal systems.”

    This proven Framework is grounded in Management Science yet is a useful tool (Roadmap) that real originations can successfully and cost effectively implement.  We believe it is the best approach for attaining ESG.

    Summary

    One can view the current ESG status as part of a continuum to hold organizations accountable as appropriate and frankly, increase their Operational Excellence.  We have long known that firm’s that are well managed command superior stock market multiples and greater equity value.

    Many ‘self-serving’ consultants and pundit would have us believe ESG is breakthrough Thought Leadership in need of their help.  Nothing could be further from the truth.

    In the early 1990s, we document the history and evolution of Management Science/Thinking.   It is not written in stone, like most human endeavors it evolves and has for thousands of years.  ESG is a step in this continuum.

    How is Your Organization Addressing the Requirements of Active Investors?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game.  Two current online games; Safety Culture and Diverse Teams specifically address issues raised by ESG Criteria.  If you have any questions, please contact this author as well.

    Graphic Source: The Rapid Response Institute derived from a Storyblocks image under license.

  • THE SCIENCE: The Reason We Need STEM

    THE SCIENCE: The Reason We Need STEM

    Almost every day, we hear that “The Science” says . . .  We are told Covid-19 and Climate Change are based on The Science and as such we must accept that expert analyses as ‘settled.’  Then something changes and once more the science police demand we accept their new interpretation.

    The near-term result: confusion and lack of trust, even acrimony.  The Science, as presented by the media, politicians and others is a static solution.  As we follow The Science, we are told we must adjust but not necessarily why.

    There is no reason to trust to fate or our political betters (call themselves elites).  The Science is not that mysterious.  The term is meant to deride most of us, including degreed scientists like this author.  Might want to ask those pontificating to define the ‘Scientific Method.’

    Set at the beginning of the 20th Century Space Race, the movie, Hidden Figures brought broad attention to the mathematical genius of a group of then unknown women.  They were instrumental helping the fledgling NASA achieve the early goals of manned space flight, including the lunar landings.  They understood The Science better than others.

    On the Shoulders of Giants

    With the social deck stacked against them, these women rose above the norms of the time and accomplished feats unknown and certainly unexpected by contemporaries.  Perhaps more importantly, they demonstrated that math and science is not reserved for elites.  They educated all of us.

    We live in a technological age and told shortly everything will be ‘Smart.’  The workforce will change, and our view of the world will be dramatically different.  Moreover, many of us will no longer be relevant or even employable.  Balderdash!

    Science, Technology, Engineering, and Math (STEM)

    STEM is the anacronym for the set of technical knowledge embodied in these ‘hard’ disciplines.  Collectively, they form the backbone of our 21st Century economy and social advancement.  While liberal arts disciplines are important, STEM knowledge is critical if we are to hold the ‘experts’ accountable.

    Increasingly, ‘soft’ or social skills are also seen as important.  The old concept of the ‘Nerd’ is giving way to the technologist with human empathy.

    The emerging generation(s) will need STEM expertise as well as soft skills.  In some ways this is no different than previous times when the Titans of Industry changed their world.  Building on new technologies, they built business.  A successful business requires a knowledgeable workforce that can monetize technology.

    The titans this time are everyday men and women, even juveniles.  Knowledge of STEM subjects is dictating individual success or failure.  Get on the STEM train.

    Role of R B C

    We have routinely commented on the Relationships, Behaviors, Conditions model first put forth in the 1990s.  From a previous blog, “One of the basic tenets of the RBC Framework is the general construct that Relationships cannot be determined a priori.  The well-used example is a man and a woman sitting on a bench at a bus stop.  Are they married, siblings, coworkers, friends or simply two people waiting to catch the same/different bus?

    Their relationship cannot be known directly.  However, their Behaviors will provide insight into how they relate to each other.  Romantic behavior may indicate marriage, dating, an affair etc. They may still be coworkers but most likely are not strangers.

    The third dimension, Conditions (environment) can be considered the stage upon which behaviors play.”

    One can make the case that STEM is a condition or situation.  In other words, our technology environment.  The behavior of individuals with these skill sets will determine the relationship these individuals have with their peers, customers/business ecosystem and economy/society in general.

    Finally

    We spend a lot of time, quoting “The Science.”  Most vocalizing the term are not scientists or even qualified to understand its basic tenets.  But taken as gospel because of some perceived authority, i.e., politicians, newscasters, celebrities and bureaucrats among others.

    This scientist suggests that STEM is necessary to assure the emerging generations understand “The Science” and how it can actually be used to benefit mankind.  And, oh yea and make a buck!

    Where does STEM fit in Your Organization’s Strategy?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    You can contact this author as well.

  • Crisis Management: The Need for Internal Consistency

    Crisis Management: The Need for Internal Consistency

    Attributed to former US Senator and Governor Rhode Island, Lincoln Chafee, “Trust is built with consistency.”  Moreover, from statistics we know that Internal Consistency, “measures whether several items that propose to measure the same general construct produce similar scores.”  The follow on definition statistical reliability, “is the consistency of a set of measurements or measuring instrument, often used to describe a test.”

    In our July 20, 2021 post, Are Your DEI Wheels Spinning? we posited that positive behavioral change as a result of a new situation/condition must result in relationships built on trust.  Without said trust, positive behavioral change is unlikely.

    Situational Change and Differences of Opinion

    Responsible individuals, organizations, and even industrial sectors can disagree.  In fact, ‘academic argument’ is a key component of the Scientific Method and science is never settled.  Moreover, most situations are fluid and those in crisis tend to be agitated.

    That said, crisis management techniques demand well defined processes with identified owners.  Moreover, data must be shared and meet the dual tests of ‘valid and reliable.’  There is no room for sloppiness or data bias as was found in more than one occasion during the Covid-19 pandemic.

    Some argue that Covid-19 data issues are unique and due the global nature of the problem.  However, we are told that Big Data is the future or actually is now.  Solving Climate Change, enabling driverless electric vehicles and so on and so forth.  Based on current performance, it would appear we have a ways to go.  Despite statements to the contrary it is possible implement decision support systems quickly and with success.  This is actually not a new process.

    Street Cred

    Often viewed from the perspective of the colloquial.  One attains credibility based on perceived performance and not necessarily as a function of actual accomplishment.  Usually, highly visible this Influencer can hold sway in larger ways than are actually justified.  However, in their orbit these individuals hold the trust of their followers.  Those holding contrary views will lack trust from this group but may hold significant trust from others skeptical of said leader.

    Both sides can loose trust and cred if ‘holes’ appear in the story line, narrative or agenda.  If the internal consistency of each position is weak, internal group pressures may ultimately destroy any impression of belief and trust.

    This is somewhat where the world is with the established Public Health authorities.  Many hold the perception of perhaps actual misinterpretation, analysis and presentation of the Covid-19 data sets.  The counter position lacks credibility as well.

    R B C

    We have been a proponent of the Relationships, Behaviors, Conditions model for almost thirty years.  Simply put, when situations or conditions change, human behavior changes and vis-à-vis.  This directly impacts on the relationships between individuals or groups, even societies.

    Large, controversial conditional movements, often with poor and even incompetent supporting data can lead to the erosion and even the complete breakdown of trust among affected parties.  Emotional, hyperbole, draconian and biased positions can accelerate the breakdown of trust.

    Once this bond is broken, rebuilding trust is a very lengthy process.  Rebuilding trust is an act of leadership!

    What is your organization doing to keep trust intact?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    You can contact this author as well.

  • Are Your DEI Wheels Spinning?

    Are Your DEI Wheels Spinning?

    Originally published as a LinkedIn article on July 6, 2021, this updated version is reprinted here with the permission of the author.  Links to relevant sources are added.

    Lately, many LinkedIn posts bemoan the state of Diversity, Equity, Inclusion (DEI) initiatives. The seeming slow take up of great ideas.

    Some argue that DEI initiatives are no more than window dressing or organizational efforts to stave-off litigation. To others, they have the appearance of one more management initiative that if waited out will simply go away like so many others before.

    Fundamentally, DEI initiatives require change. A change of (B)ehaviors in the face of seemingly new situations or influencing (C)onditions (Circumstances, Capabilities, Cultures, Environments). When these two variables evolve, so do exiting (R)elationships. The RBC model is well established in social science and was first used to model Cross-Cultural (international business) Negotiations.

    It is multi-dimensional including a temporal schema capable of addressing numerous aspects of human behavior. Furthermore, it encompasses cultural as well as other situational aspects such as individual backgrounds.

    We tested this model using Japanese and American executives. This culturally diverse group needed to develop a level of trust if negotiation outcomes were to be successful.

    Likewise, successful DEI initiatives require that culturally diverse groups develop a high level of trust among those working together and/or members of teams.

    “Tell Me and I Forget. Teach Me and I Remember. Involve Me and I Learn”

    Attributed to Benjamin Franklin, this quote tells us all we need to know. The so-called Death by PowerPoint lecture long in vogue are often forgettable. Instruction, along with the homework prerequisite and tests are traditional methods. Finally, engaging individuals, teams, departments and even entire organizations can create long standing sustainable knowledge that is the basis for behavioral transformation.

    Paper based serious games or “games whose purpose is other than entertainment” originated in the late 1960-70s. In a nutshell, this is an interactive training solution. Subsequently, online serious games can incorporate actual scenarios designed to immerse players solving real world challenges.

    Rather than a video game whereby players engage with electronic decision trees, human-to-human serious games train players/teams to deal with diverse yet real colleagues. Collaborative scenarios direct participants to collectively solve problems while learning how their culturally dissimilar counterparts address the same challenge.

    Scenarios can drive engagement by all players including those who may not be typically involved in decision making processes. This is also a safe, no-harm no-foul environment with little to no individual decision-making risk.

    Transformation

    Any successful ‘change’ initiative must answer the What’s in It for Me? question. Humans may resist change if they do not see personal value from such actions. Moreover, while senior executive leadership is required, heavy handed top down My Way or The Highway may result in direct resistance, and/or a more crowed freeway to the exit ramp.

    For example, the current version of the smart phone was first available circa 2007. According to Statista, approximately 1.38 billion smartphones were sold in 2020. Likewise, over 46 percent of the global population own these devices.

    What does this have to do with DEI? In 2006 cellphones were great and becoming ubiquitous. No one knew they needed a smartphone. Our collective Behavioral transformation was caused because the What’s in it for Me question was answered.

    One component of the Conditions criteria, Capability changed as this technology enabled individuals to drive new behaviors based on Apps that emerged. The resulting transformation in our Relationships is well documented, i.e., the use of text as opposed to voice.

    Sustained transformation requires continued energy. The term ‘initiative’ implies a short-term event and one that will pass.

    Trust must be established and maintained. Over time, sustained energy will result in critical mass, or the (statistically significant) number of individuals engaged and trusting each other. This self-sustaining energy is transformation.

    Reframing DEI Initiatives into the RBC Framework can enable dramatic and rapid transformation. Take advantage of these types of cross-cultural models.

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    You can contact this author as well.

  • Its the Heart

    Its the Heart

    “A good, quick, small team can beat a big, slow team any time.”

    — Paul William “Bear” Bryant, legendary college football coach

    In the early 1990s my former wife and I, both avid sailors decorated our boat for the local Christmas Boat Lane Parade.  While we had some help, most of the work was performed by the two of us.  That 27 foot sailboat, one of the smallest in the fleet that year won the overall Best In Fleet Grand Prize.  During the presentation, we were asked how many worked decorating the boat which had over 10,000 Christmas tree lights mounted on several three dimensional frames.  At the awards ceremony, when we told them that it was a very small team–this explanation was met with disbelief.

    During World War II, the mathematician, Alan Turing led a small tightly knit team breaking the German Enigma code, saving upwards to several million people.  A dramatization of his team’s challenges were captured in the 2014 movie, The Imitation Game.

    These two very different examples have one thing in common–Coach Bryant’s admonition.  Entrepreneurs such as Steve Jobs, Sir Richard Branson, Elon Musk and others have long argued that one should hire the best people and turn them loose.  Looks like sound advise.  This may be the reason start up firms consistently beat established larger organizations with greater resources.

    Inclusion

    Teams often appear to be cliques.  Much like the kids game where teams are divided up based on favoritism as ‘buddies’ are selected.  Any non-buddy can be effectively excluded since he or she may not be part of the in-crowd.

    In the movie, Turning was initially shunned by both team members as well as his superior.  He did not fit in.  In a large team he may have drifted into the background where his perspectives might not even be heard.  However, as a key ‘different’ member of a small team, his views could not be easily dismissed although they were disagreed with and even hated.  Yet they became part of the discussion and eventually the entire team supported him and ‘now their’ solution saved millions.

    During this period, the Tuskegee Airmen faced even greater challenges.  While some individuals and units may have been forced to accept them, their highly visible contributions could not be denied by those directly benefiting from their inclusion into the air bombardment task force.  Likely, this would not be as conspicuous if they were part of a larger organization.

    Bottom Line

    Not only are small high performance teams usually more successful, they offer all team members a better opportunity to be included in the activity.  This is even more true virtually when it is often difficult to prevent one party from attempting to dominate meetings.  Talking over people and/or raising one’s voice is a tried and true way to bully in a meeting and it is almost impossible to control virtually with a large group.

    Similar to atomic energy, it is not the amalgamation of large quantities of dynamite that makes the biggest bang.  It is the release of the smallest that is the Big Bang!  Harness the power of your team atom.

    What is Your Organization’s Small Team Strategy?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    You can contact this author as well.

  • Open Sesame

    Open Sesame

    A Year of Leadership–Or Not!

    On March 2, 2021 the Governor of Texas announced its 100% reopening–effectively proclaiming an end of the Covid-19 crisis.  Needless to say in our hyper-partisan world, many widely decried the decision and even accused him or bringing physical death to the state population.

    Mississippi announced a similar rollback of virus driven constraints.  Likewise, Connecticut is rapidly easing similar restrictions.  These state join others with loose Covid-19 protocols.  This pundit expects this trend to gain speed quickly and worldwide.

    Meanwhile, the President of the United States accuses these decisions as being made by Neanderthals, while the Director of NIAID position has move from NO mask to wearing MUTIPLE masks.  The political divide regarding the path forward remains wide.

    Consent of the Governed

    “You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time,” is attributed to Abraham Lincoln.  This oft quote is usually seen through a political lens.  More importantly, it is a position from a Leader!

    Driven by suspect data we were told that this virus had an Armageddon like quality.  At one point over 2 million Americans were projected to die and the hospital systems would be overwhelmed, perhaps irrevocably.  Hospital ships were mobilized and economies brought to their knees all to save lives.  Perhaps, even our own.

    To be clear, many did succumb and many lives were destroyed or at least changed forever.  We mourn those and recognize the serious of this pathogen.

     

    A few of my family and friends have been infected but fortunately with only minor symptoms and limited hospitalization.  In this we are very fortunate.

    Crises can happen at any time, hurricane, winter storms, hostilities are part of the human conditions.  How we respond it the difference between chaos and inconvenience.  Leadership determines the outcome!

    If you have lost someone to Covid-19, cancer, accident, fire (I lost two family members) or other tragedies, statistical arguments are meaningless as the probability is 100%.  However, for the overall population likelihood of recovering from the coronavirus has always been quite high.

    Many questions have been raised regarding the myriad of conflicting “authoritative” information and misinformation the public has endured for 12 months.  With no conclusive or definitive game plan put forth by authorities, we were left to fend for ourselves.

    A resident of the Houston metropolitan area, this writer has noted that traffic is almost back to normal.  This suggests that the governed no longer have faith in political or medical leadership demanding yet another year under their ‘knowledgeable’ thumb.

    Once that credibility is lost, game over for leaders pontificating that to be safe we must hunker down forever.  Not sure even the Londoners did that during the Blitz.

    The Future is Bright

    Rulers attempt to dictate through a never ending series of edicts.  Knowledgeable governed conduct reasonable due diligence and make there own risk adjusted behavioral decisions.

    Likely, recent events are driven by the political class learning that enough is enough.  After all, we are adults and capable of living our own lives.

    Agree that the pathogen is still with us and we must address it.  Vaccines have a long history of success and processes are in place for safe openings.

    Society is opening with or without the politicians.  Remember the Speakeasies during Prohibition of the 1920s?

    Expect more to run to a microphone and claim leadership.  Ultimately, this process is irrelevant.  Getting out ahead of a parade and claiming to be the Grand Marshal does not make it so.

    Regardless, 2020 is over and there is NO interest in repeating it in 2021.  Message from the governed–we will take our chances going forward!  Our  R B C Framework model at work.

    Covid-19 is not over but seems to be getting to remission thanks to the army of men an women who have risen to the challenge in less than a year and saved countless lives.

    How are you leading your organization to recapture Normal?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    You can contact this author as well.

  • How Bored Are You? – Adding Value During the Pandemic

    How Bored Are You? – Adding Value During the Pandemic

    A friend of mine sent me this uncited picture, so my apologies to the originator as I cannot give you the rightful credit deserved.  If you see this, let me know and I will update this blog.

    We are all enduring 2020 in our own way.  Sometimes positive but often negative.  Battling my own 2020 demons, I was never tempted to invent new mathematics.

    Other than the obvious humor of this likeness, what value add have we provided society since March?  For some dealing with job changes/loss and the kiddos at home may make developing calculus a seemingly easy task.  Some families have faced hospitalization and even the loss of loved ones.

    We all have been touched by this disease and personally, family and close friends have contracted it.  So far, all are recovering or have.

    With vaccines on the near horizon and with a pathogen (typical) lifecycle record of less than a couple of years, we may all move on and back to normal—in this pundit’s opinion not the new normal many prognosticate pontificate.  Likely, the old mask-less normal.

    We all have choices to make and in many cases have already made them.  While therapeutics and vaccines look very promising, the virus is still with us.  Personally, we have four choices.  Where we find ourselves at the end is a function of current behaviors.

    Note that developing new math is probably not one of them; however, new Apps are a distinct possibility.  New art, writing, music, businesses and a plethora of other options can be your contribution.  Carpe diem or make the most of your Isaac Newton moment.

    This virus is often compared to the 1918 so-call Spanish Flu; however, six pathogens have haunted the human race since then with another 14 in recorded history—not to mention polio that started circa 1916 and ran well into the 1950s..  Seems that one way or another we are all sentenced to live with this kind of scourge.

    How we make the best of it is up to each one of us.  Spend your time well—add value as opposed to waistline.

    What will you tell your kids you did during the 2020 pandemic?

    For More Information

    Please note, RRI does not endorse or advocate the links to any third-party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    We presented, Should Cross Cultural Serious Games Be Included in Your Diversity Program: Best Practices and Lessons Learned at the Online Conference, New Diversity Summit 2020 the week of September 14, 2020.  Check Out this timely event and contact the organizer for access to the presentations!!

    You can contact this author as well.

  • Lessons in Servant Leadership: What Did You Say?

    Lessons in Servant Leadership: What Did You Say?

    Watch almost any media talk show and the interviewer will often interrupt the guest trying to answer the question just posed.  This is such a common phenomenon that it is accepted behavior perhaps driven by ratings that come from on-air confrontation.  It is part of the culture!

    Why ask the question if you’re only going to impose your view in the middle of an answer?  Perhaps guests are just convenient foils.

    When briefing senior management, colloquial wisdom is to get to the point quickly and succinctly.  Words to live by and often put forth by this pundit.  Yet it is amazing how many of us violate the axiom by continuing to talk.

    Truly listening with all senses is a rare skill.  How often have we been in a situation such as a sales call when the customer is interrupted by members of the sales team?

    It is more difficult to close a deal when the preconceived notions of the seller override the buyer’s response.  Often in such a situation the client’s body language will give a clue as to her irritation when ‘talked over.’

    The Power of Listening

    So, you have made your pitch and are now sitting quietly waiting for the client to respond.  However, the so called ‘pregnant pause’ ensues.

    The overwhelming desire is to ‘jump in’ and say something to break the silence.  But how does that close a deal when an offer has just been made?

    Such behavior usually results in either prolonged negotiation or no deal.  The human inclination to talk can be irresistible.  A better behavior is to shut up and listen!

    Some research shows that good listening is beneficial to both employees and their organizations.  However, barriers to better listening include:

    • Loss of Power—The appearance of weakness or not in control of the situation
    • Takes Time and Effort—Daily time pressures may negatively impact on the work product
    • Fear of Change—The speaker must refrain from making ‘foregone conclusions’ until a response is articulated

    In addition to certain listening skills, a good listener must have the ‘intention’ to become one and resist the urge to interrupt.  This can become the framework for real dialogue and exchange of ideas and information.

    Getting to Yes

    In a TEDx Talk, the coauthor of the negotiation book, Getting to Yes discusses the value of listening in any human interaction.  The investment of less than 16 minutes of your time will be enlightening.  One suspects the almost 900,00 viewers would agree.

    Our inherent nature to ‘rattle on’ distracts us from our goals.  We recently discussed the value of understanding the difference between Wants, Likes and Needs.

    Truly listening and understanding your counterpart’s feelings (or deeply personal Needs) will unlock the key to getting a deal done—Yes!  This is a major component of  servant leadership.

    R B C

    Human (B)ehaviors in certain situations or (C)onditions establish (R)elationships between two or more parties.  We have been extending this construct for almost 25 years and it has broad applicability.  What kind of Relationship is established if one or more individuals do not listen to others?

    How Well Do You Listen to Your Colleagues and Family Members and Do They Listen to You?

    For More Information

    Please note, RRI does not endorse or advocate the links to other third party materials.  They are provided for education and entertainment only.

    For more information on Cross Cultural Engagement, check out our Cross Cultural Serious Game

    You can contact the author as well.

    End Notes

      https://en.wiktionary.org/wiki/pregnant_pause

      https://hbr.org/2018/05/the-power-of-listening-in-helping-people-change

      https://therrinstitute.com/want-like-need/

  • Want – Like – Need

    Want – Like – Need

    Years ago, as part of a never-ending series of company reorganizations, a team of our change management consultants headed to the ‘field’ to interview users.  Upon their return, they presented an extensive list of technology investments deemed necessary to remain competitive.

    Their list focused on technology and not business concerns.  Wondering, I asked who they interviewed.  Proudly, they proclaimed the “field engineers.”  When queried–did they talk with district managers, regional engineers and others with P&L or other managerial responsibilities, the answer was “no.”

    This very expensive process by a major professional services organization simply generated a wish list of junior employees.  It was what they thought they WANTED.

    In our current jargon, “cool stuff.”  Needless to say, none of these projects were funded.  Wasted time and money by those not familiar with our business!

    Today, we are driven to LIKE everything!  CRM systems demand input before we have even procured the product or service.  Log on to any given website and the request to complete a survey will hit you before you read the first line.  Five stars or thumbs-up emojis appears to be the goal.

    Do wants and likes add value?  Perhaps a like is a statement of preference, but perhaps the consumer wants the digital driven question to just go away without the hassle of someone begging for a higher ranking like.  Fibbing to surveys has become a national pastime.

    Business should be most concerned about what a prospect or returning customer NEED.  What pain point or problem does your product/service solve?  If you can’t answer that question, no amount of wants and likes will add to your bottom line.

    I may want a hamburger and go to a fast food restaurant with lots of likes.  However, if I am in a hurry and their preference is clearly to move cars via the drive-through faster than those of us waiting inside, my need to eat quickly will not be met.  I may leave without my meal or most likely not respond to a survey seeking likes.  Then never return!

    That lost customer will never surface in any analysis—not even one star.  Enough of those responses and the business will be in jeopardy and management my not even know why.  Collecting likes should never be a Key Performance Indicator (KPI).

    Finding the Pain

    In a recent Global Energy Mentors leadership meeting, an investment group recounted their business model as one that focused on identifying organizational ‘pain’ points.  Once a specific pain was articulated, the search for new technologies that would address/resolve that pain was undertaken.

    This model flies in the face of Steve Job’s, “A lot of times, people don’t know what they want until you show it to them.”  That may be and sometimes unknown needs are uncovered.

    However, in critical infrastructure sectors where failure is not be an option because it can be very expensive solving a known need is usually most important.  Without exception, this entrepreneur’s success has been focusing on addressing industrial client known pain points.  As an example, our EVPM modeling process demands input from customer groups.

    In this blog series, we have referred to successful change management that comes from addressing the—what’s in it for me question.  From a customer perspective; freeing ‘me’ from known pain is often more valuable than alleviating pain I did not know I had.

    Does Your Value Proposition Solve a Need, Address a Want, or Simply Generate a Like?

    For More Information

    Please note, RRI does not endorse or advocate the links to other materials.  They are provided for education and entertainment only.

    You can contact the author more information as well.

    End Notes

      http://globalenergymentors.org/

      https://www.helpscout.com/blog/why-steve-jobs-never-listened-to-his-customers/

      https://therrinstitute.com/brand-your-digital-oilfield-culture-internalize-its-transformation/

  • Systemic Reasoning Errors: Stink’en Think’en

    Systemic Reasoning Errors: Stink’en Think’en

    The April 13-14, 2019 edition of the Wall Street Journal featured an opinion piece by Holman W. Jenkins, Jr., Russiagate and the Media’s News Denial.  The author makes the point, “Judgement is teachable.  Long ago, in relation to the Enron debacle, I pointed to the work of Harvard’s Max Bazerman and Northwestern’s David Messick, who theorized how systematic reasoning errors can lead to unethical business judgments.”  He goes on to discuss how the journalism sector may be suffering from this problem, vis-à-vis the Trump Administration.

    Cognitive bias errors impact the way people process and interpret information.  Our attempt to simplify can lead to nonobjective, illogical and poor decision making.  So, do these poor judgement issues concern me?

    The emerging digitalization model to attain and sustain Operational Excellence by definition is systemically complex.  A highly integrated ecosystem coupled with tens of thousands of data sensors and quasi-independent processing systems support field operations.  Moreover, risk mitigation models in such an environment are themselves complex.

    Human decision-making processes in this new environment will necessarily change from the traditional management of automated systems and data analysis.  Extensive training must be part of the transformational process.

    Additionally, Governance models may need revision as well.  What is the role of the Board and ‘C’ Suite (CIO vs. COO?) with the digitalization of the organization?

    Clarification.  The term ‘stinking thinking’ refers to tactics either unintentionally or insidiously used to create expectation biases.  The title uses a colloquial term Stink’en Think’en as a function of lousy thought processes; nothing more.

    The challenges we face are much more than technology driven.  As always, human Behaviors are at the core and Conditions in the near future may be dramatically different from the present.

    New Relationships will emerge as well.  We have previously discussed the R B C model.  It is good guidance for this transformation.

    How Does Your Organization Mitigate Systemic Reasoning Errors by Its Decision Makers?

    For More Information

    How Cognitive Biases Influence How You Think and Act is a very good article on this subject.  Interested readers may want to check it out.

    You can contact the author more information as well.

    End Notes

      https://www.psychologytoday.com/us/blog/the-media-psychology-effect/201311/stinking-thinking-and-expectation-bias

      https://www.amazon.com/gp/product/B00U0JKMT0/ref=dbs_a_def_rwt_bibl_vppi_i1

  • I Hate These Things: Why Does This Always Happen to Me?

    I Hate These Things: Why Does This Always Happen to Me?

    We have long argued that people will change if they understand the new idea/technology value proposition—what’s in it for me?  For some, this question is more difficult to answer than others.

    Moreover, we are all stuck!  This age of digitalization may pass a few ‘off the grid’ hermits by, but for the rest of us there is no turning back.  So, what if I hate these computers and they never work as they should?  What’s a person to do?

    All of us have expressed some frustration with technology.  It doesn’t work well.  It does not appear that Human Factors were considered in the development process.  Various ‘Screens of Death,’ and so forth and so on.  Of course, glitches occur at the least opportune time.

    Turns out this frustration with technology is understood.  Dystechnia is defined as, “A barrier to organizational performance—a condition of flawed or failed efficacy in the use, deployment, or logistics of technology.”  Akin to other disorders of capacity, i.e., dyslexia it is basically the impairment of the ability to control a skill.

    In other words, the inability to manage a Condition.  This becomes a reason to resist technological advancements as ‘nothing is in it for me.’  In fact, it makes my life worse!

    The Technology Acceptance Model (TAM), circa 1989 addressed two perceptions driving adoption Behavior, ‘Perceived Usefulness’ and ‘Perceived Ease of Use.’  The what’s in it for me question.

    To change the Relationship that individuals have with technology, management must understand that those who resist may exhibit two traits:

    • Impaired capacity to apply the ‘new’ to daily tasks
    • Perception that it does not help them

    Those regular readers of this blog are aware of the R B C model (Relationship, Behavior, Condition).  From our Cross-Cultural Serious Game, the model was originally developed to address issues around cross cultural (international) negotiation processes.  Relationships are the focal point of this perspective, reflecting commonality of interest, balance of power and trust as well as intensity of expressed conflict.

    Behavior in this model is defined as a broad term including multi-dimensions and intentional as well as unintentional.  Finally, Conditions are defined as active and including circumstances, capabilities and skills of the parties, culture, and the environment.  Of course, time is a variable in this model as well.

    One key feature of the R B C Framework is its emphasis on interactive relationships while providing an environment for multiple levels of behavioral analysis.

    This makes it a useful tool to better understand technology take up resistance.  As with any forensic assessor, once we understand the Structural Dynamics we can implement approaches that will resolve efforts to thwart the ‘new.’

    How Does Your Organization Overcome Resistance to Change?

      https://www.urbandictionary.com/define.php?term=dystechnia

      https://en.wikipedia.org/wiki/Technology_acceptance_model

      www.rri-ccgame.com

      https://therrinstitute.com/wp-content/uploads/2017/10/structural_dynamics_-__version.pdf

  • Excellent Behaviors: Assessing Relationships in the Operational Excellence Ecosystem

    Excellent Behaviors: Assessing Relationships in the Operational Excellence Ecosystem

    One of the hot business buzzwords of 2017 is “Operational Excellence.” It has been the subject for many pundits, including this one.
    In October and November we published a two part series, Assuring Operational Excellence from Contractors and Their Subcontractors through BTOES Insights. Each part included a link to additional information.

    The October edition featured an excerpt of our Implementing a Culture of Safety book. In the November edition we released our new best practice solution, Attaining & Sustaining Operational Excellence: A Best Practice Implementation Model. We are proud to make it available herein and in general.

    One of the basic tenets of the RBC Framework is the general construct that Relationships cannot be determined a priori. The well-used example is a man and a woman sitting on a bench at a bus stop. Are they married, siblings, coworkers, friends or simply two people waiting to catch the same/different bus?

    Their relationship cannot be known directly. However, their Behaviors will provide insight into how they relate to each other. Romantic behavior may indicate marriage, dating, an affair etc. They may still be coworkers but most likely are not strangers.

    The third dimension, Conditions (environment) can be considered the stage upon which behaviors play. So, what does this have to do with Operational Excellence?

    Another component of our digital environment is Human Systems Integration (HSI). In our forthcoming book, we have defined HSI as, “Human Systems Integration (HSI) considers the following seven domains: Manpower, Personnel, Training, Human Factors Engineering, Personnel Survivability, Habitability, and Environment, Safety and Occupational Health (ESOH). In simple terms, HSI focuses on human beings and their interaction with hardware, software, and the environment.”

    This suggest that our ecosystem is getting more complex and not less. While not usually thought of in these terms, machines have a behavior as well. IBM’s chess playing Watson is a simple example of this phenomena.

    With all of these behavioral dynamics, how can an organization attain and sustain Operational Excellence? If one takes the position that with complex highly interconnected systems things will fail (Perrow’s Normal Accident Theory) then OE is a mythical destination.

    However, with a High Reliability Management (HRM) business model OE cannot only be attained, there is no reason why it cannot be sustained indefinitely. As the name indicates, HRM has a strong focus on reliability or that ability to recover quickly when an event occurs.

    One example is the 2015 Ebola virus incident in Dallas, Texas. One may recall that the virus was brought to the US by a traveler from Africa. Concerns quickly mounted that an epidemic might quickly ensue.

    While a few health care workers were infected, the public health care systems, medical community and others rapidly responded and contained the problem. The system was resilient! Were there problems and lessons learned, absolutely but the system worked. For most of us, life soon returned to normal.

    Conditions may change, but behaviors need to continue to rise to levels of excellence. This is the key to developing strong relationships throughout the ecosystem.