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Creating Generational Legacies

Wednesday, August 26, 2015

Innovaton and Economics

Kiely Katz talks about the need to shift to a people based economy in order to maintain and sustain jobs in an innovation driven economy. A radical mindset change is needed 

A successful shift to a more sustainable employment model needs to involve significant changes in traditional mindsets, attitudes and behaviours. Embedding behaviour change is notoriously difficult. The more deeply embedded the behaviour, the more difficult to shift.

We have worked within the similar operating norm for a very long time. Work is not “life” but the thing people do to “make a living”. For 9 hours every day. Those lucky enough to be employed spend more time with their work colleagues that with their loved ones. Employers expect employees to wear a cloak of the “professional persona” during working hours. Most expect employees to stick rigidly within the confines of their role. Stepping outside these rigid “job” walls, even to share knowledge to help colleagues, is often regarded as disruptive behaviour: and thus a massive chunk of skills, knowledge and experience are kept locked firmly away to avoid upsetting the status quo. Frustrating and bad for productivity - but “that just the way things are.

A shift to a ‘people centred economy” has to start by understanding what makes people tick.

Lets look at this norm through the lens of the the way the brain is wired.

People are most receptive to change (and most productive) when they are in “reward” mode. In this mode, we do our best, most creative thinking, we are open to collaboration and feel secure enough to try new things. 

There are six key triggers to this reward state:

Respect: People feel that their opinions are valid. They feel part of decision making processes and that their voices are heard.

Certainty: When there are no unexpected surprises. As an example, Zappos make all of their live data open to everyone across the whole organisation all the time. Nothing is hidden. Everyone knows what is happening. There are no board room secrets.

Autonomy: They don’t want to be watched and micromanaged. People are most productive and most collaborative when they are trusted to do the right thing - especially as part of a community working toward a shared vision.

Connectedness: We are social creatures. We are at our best when we part of connected communities - where we feel safe to share, to give, to be involved. We are most empowered when we are connected by a shared vision or collective mission.

Fairness: People like to know how and why decisions are made. 

Empathy: Even a message saying that leadership understands that change is not easy for anyone makes an enormous difference to how change is adopted.

Check back to standard current organisational operating systems. 

Employees are expected to keep their opinions to themselves and to tow the line. Leaders see knowledge as power and keep it locked away from prying eyes. Most leaders find the idea of employee autonomy uncomfortable and most workers are accustomed to doing as they are told without question. Sharing and cross silo collaboration is not incentivised, if tolerated. Decisions are made behind closed doors and delivered with not even a nod to the people most affected by them.

The gap between organisational norms and more engaged, and therefore more sustainable, operating systems is enormous. Travelling between one and the other will involve significant change.

Therein lies the rub. 

When presented with any kind of significant change, or anything that feels different to the norm, the brain triggers a threat “fight or flight” response.  We become distracted as we try to figure out how that threat will affect us.

Faced with change, people start to see threats even where there are no threats. People are less able to focus or think clearly. Memory and decision making is impaired, the field of focus narrows. They become more emotional and stressed, which further impacts ability to perform.

Unfortunately, the threat response is contagious. When one person starts to behave in a defensive way, the people around them react to the change in their behaviour.

While we considering how to innovate employment through the use of technology, we should not underestimate the challenge of introducing and embedding organisational and systemic change. Throughout the brainstorming process we should imagine what kind of frameworks could support organisations and cities (leaders and employees) through the pain on change into a new more sustainable norm.

Access to affordable and pervasive data, neuroscience, social physics and behavioural psychology provide us with an unprecedented understanding of how humans make decisions, what drives action and how behaviour change can be “nudged.” This research should be kept front of mind as we are plotting

Thursday, August 20, 2015

Can innovation disrupt unemployment?

Today, most innovation is about helping people to spend money in meaningful ways. But in an ideal, sustainable economy, people need meaningful ways to earn money, as well—especially as the job landscape continues to change rapidly and dramatically, and certain forms of employment are either reduced or retired completely.

Luckily, innovation is the single greatest driver of job creation, and is propelling entrepreneurial companies to expand, even in a static economic climate. The Internet’s ability to match needles between haystacks enables a new labor market. Jobs may be tailored to fit each individual’s strengths and passions to the right opportunity.


Today, every second person is in the work force. Every fifth cares about their job. Human capacity is our largest underutilized resource.

Agenda
6:00pm:  Registration and Refreshments
6:30pm:  Opening Remarks with Adiba Barney SVForum CEO and David Nordfors, I4J CEO
6:45pm:  Keynote Speaker: John Hagel, Center for the Edge @ Deloitte
7:00pm:  Panel Discussion, moderated by Robin Farmanfarmain, President, I4JEco Summit
7:50pm: Q&A
8:00pm:  Networking
8:30pm:  Program Concludes

Last night we had the interactive discussion outlined below.  It was rather amazing.  Robin, Dave, and John gave opening comments to set the stage.  John made excellent comments about how our mindset and institutions must innovate as well as our technology.  Robin, as always, was the most charming, supportive host.  David's comments were along the lines of underutilized human potential and how new companies are needed to utilize it.  

Vivek ripped off a long list of transformational innovations that will be increasingly disruptive and that will come at a rate society will be unable to adapt to.  

The poster child for this is driverless cars, which can eliminate between 6-10 million middle class jobs.  Uber, for example, is first creating independent agents out of the taxi business but obviously their goal is to run a fleet of driverless cars.  They will be smaller, cheeper, cleaner, and run non-stop (in-between quick charges).  The jobs go away but the value to society goes up enormously.  Curiously the car industry revenue per capita goes down for the same reason — smaller cars shared across society.  

That has been one of the themes of this group:  societal value goes up enormously and corporate value goes down.  GDP doesn’t capture this value.  

Vivek keep up this theme to remind us of the magnitude of what we are facing.  That is critically important.  Some in the audience found this highly disturbing, as they should.  

Chris was more positive about our ability to adapt and argued that these changes will take longer than suggested.  

I stuck to my normal themes:  we can do much better at innovation, US global competitiveness must improve, and educational performance is our biggest weakness.  All three of these areas are under our control and we now have examples about how major advances can be made in all three areas.  Viveck pointed out that I was just making things worse by speeding up the innovation cycle even more!  It was fun.  

David then ran a session with the audience to see how many were engaged in new companies to help people develop new skills, form new initiatives, match people up with new opportunities, etc.  It was a revelation to me that there were so many teams involved in these kinds of activities.  

radical innovation cannot be measured by economics

great thought by David Nordfors 

I believe radical innovative entrepreneurship must be difficult in economics, almost per definition.

Economics does quantitive measurement of parts of a grander narrative, for example ‘number of active job seekers’ and ’the US labor market'. It has a model of the grander narrative where it puts in the measured numbers. Then it says how the grander narrative is doing.

But radical innovation entrepreneurship isn’t about changing the numbers. It’s about changing the narrative. Radical innovation is a new way of relating, rather than just relating more to something (or less). And the narrative is a scheme of how things relate. 

In order to be able to do that, economics must work with scenarios. Projections of how the existing narrative of how things relate will perform is not relevant if some entrepreneur came along and replaced it with another narrative. When Apple presented the iPhone and the app store, that changed the narrative. If you measure old indicators applying it to the old narrative you won’t get it right. You’d for example get the impression that people stopped listening to music, because the sales of music players has dropped drastically. You’d get the impression that people find it much more important to talk on the phone, because the sales of mobile phones went up. But what actually happened is that the old narrative of the “phone” was disrupted, and there came a new one. 

Aggregates don’t explain (radical) innovation. 

The introduction of new narrative is highly non-linear. Perhaps if one can construct lots of scenarios and do a Monte Carlo or something, I don’t know. 


Should remind a bit of tracing infectious diseases but much much wilder. 

Venture Capital in Australia: Do share prices move because of quarterly profits ...

Venture Capital in Australia: Do share prices move because of quarterly profits ...: SEEKs share dips - apparently on Executive decision to invest strongly in R&D and Long Term Strategies of accessing offshore markets ...

Sunday, August 16, 2015

Esko Kilpi on the power of networks and the changing nature of firms

Esko Kilpi beautifully described the power of networks in an essay on Medium, “The Future of Firms,” reflecting on economist Ronald Coase’s theory of 20th century business organization.

 He wrote:

“The existence of high transaction costs outside firms led to the emergence of the firm as we know it, and management as we know it….The reverse side of Coase’s argument is as important: If the (transaction) costs of exchanging value in the society at large go down drastically as is happening today, the form and logic of economic and organizational entities necessarily need to change! The core firm should now be small and agile, with a large network.
The mainstream firm, as we have known it, becomes the more expensive alternative. This is something that Ronald Coase did not see coming. Accordingly, a very different kind of management is needed when coordination can be performed without intermediaries with the help of new technologies. Apps can do now what managers used to do. 
Today, we stand on the threshold of an economy where the familiar economic entities are becoming increasingly irrelevant. The Internet, and new Internet-based firms, rather than the traditional organizations, are becoming the most efficient means to create and exchange value.”

Sunday, August 9, 2015

Singapore's Success

From Mei Lin Fung 


The opportunity for everyone to have a world class education, for students of low income families  to receive generous scholarships to study at the top universities in the world, is just one of many investments in social infrastructure that has given Singapore a competitive edge in growing and keeping unemployment low even as the the world economy goes up and down.

Today 1 in 6 Singaporeans is a millionaire - this is achieved through home ownership - and as the city state has become the residence of choice for the rich and famous in Asia - the value of humble residences which 40 years ago cost from under $10,000 to about $20,000 to purchase has multiplied 50-100 fold. - The Economist 2 minute video of this is here

The health system in Singapore has one of the best outcomes while spending 4% of GDP - compared to about 10% of GDP in most developed countries and 18% of GDP in the US.

Yet Singapore struggles with disparities - while no one is left behind to starve or die of sickness on the streets - there are those who are not enjoying as many fruits of the success as others - and the government of Singapore appears to be working out how to do more balancing. 

Singapore is just an early pioneer in the digital transformation - and one institution they set up is the one Sandeep mentions, the Institute of Employment and Employability   - e2i - https://e2i.com.sg/ 

Rather than just looking to replicate Singapore, which I do not think is a good way to go - I would like to see the pioneers from around the world to share learnings and exchange ideas - no single country, no single person can work out all the answers. 

I4J can be an incredible force for good to be a Trading Post for identifying those examples of Positive Deviance  which against the odds have found pathways to progress.

Innovation, Employability and Singapore

Today Singapore celebrates its 50 years anniversary. Amazing what this small nation has achieved in very short time. Congratulations to Mei Lin Fung (i4j light house) and all other Singaporeans.

Kishore Mahbubani, Dean of the Lee Kuan Yew School of Public Policy has written an article for Huffinton Post that sums up the reasons for the success: http://www.huffingtonpost.com/kishore-mahbubani/singapore-world-successful-society_b_7934988.html?utm_hp_ref=tw 

Many countries have been of inspiration to Singapore – now it might be useful for others to look at why/how Singapore's per capita income has increased from $500 to $55,000 today, the largest increase any newly independent nation has enjoyed.

In addition to strong leadership, Singapore's success is due to "MPH": Meritocracy, Pragmatism and Honesty, according to the nations leaders. 

Unemployment is almost non-existing and today the Prime Minister in his speech proudly stated: “We have left no one behind”. 90 percent of residents living in homes they own and Singapore has one of the best educated populations.

One success element I would like to add to the well written article is: Employability. Singapore has an “Institute for Employability”. Do you know of any other nations with this kind of foresight? 

Employability can be defined as “doing value creating work, getting paid for it – and learning at the same time, enhancing the ability to get work in the future”. Maybe check out this article that I have contributed to on Wikipedia: https://en.wikipedia.org/wiki/Employability 

The video about Employability by Johnny Boston is also relevant: https://www.youtube.com/watch?v=8kXdgrjHpyM 

Can i4j become the catalyst for some of the great ideas around employability?  Can we get corporations engaged in promoting employability solutions that works for the individual (and hence corporations and nations)?

Ideas, comments and questions are most welcome

Best regards

Sandeep

Sandeep SANDER, CEO
SanderMan Pte. Ltd. Singapore
Outperform Your Potential™.