The master and his Emissary in the world of business

“The Divided Brain and the Making of the Western World” a book by psychiatrist and author Iain McGilchrist, which explores the functions of the left and right hemispheres of the brain and their implications for society.

In brief, McGilchrist argues that the left hemisphere of the brain tends to focus on detail-oriented, analytical thinking, language processing, and manipulation of the environment. It excels in breaking things down into parts and understanding them in isolation. On the other hand, the right hemisphere is more holistic, processing information in a broader context, recognizing patterns, and dealing with the bigger picture. It’s associated with creativity, intuition, empathy, and understanding of emotions.

McGilchrist suggests that both hemispheres’ healthy and balanced functioning is crucial for human well-being and flourishing. However, he contends that contemporary Western society has increasingly favored left-hemisphere dominance, leading to a number of negative consequences.

One of the main arguments is that the left hemisphere’s dominance has led to a narrow focus on quantifiable, measurable aspects of reality. This myopic view often comes at the expense of the richer, more nuanced understanding provided by the right hemisphere. The result is a society overly fixated on materialism, efficiency, and technological progress. This imbalance undervalues qualities such as empathy, intuition, and aesthetic appreciation, raising concerns about the direction of our society.

Moreover, McGilchrist argues that this imbalance has contributed to various societal issues, including environmental degradation, social fragmentation, and mental health problems. He suggests that by prioritizing left hemisphere functions, we risk losing touch with the deeper aspects of human experience and our connection to the world around us.

Overall, McGilchrist’s work offers a beacon of hope, advocating for a more balanced approach that integrates the strengths of both hemispheres. By recognizing the importance of holistic thinking, creativity, and emotional intelligence alongside analytical reasoning, we can reevaluate our societal values. This, in turn, fosters a greater appreciation for the contributions of the right hemisphere. The potential for societal change is palpable, offering a path to promote human flourishing better and address many of the challenges facing contemporary society.

His work highlights a historical regression in right-brain thinking, tracing back to at least 1910, when Ford unwittingly reduced humans to cogs in the machinery of his assembly line. The Tayloristic approach, initially aimed at optimizing the science of movement, has evolved over the past 114 years, but not necessarily in the expected direction. Despite technological advancements, including the rise of robotics, humans have continued to be treated as replaceable components within industrial systems. This includes the knowledge economy, which uses people’s knowledge with the same line of thinking. What complicates this trend is that Ford’s original intentions, rooted in a genuine interest in building what we now call a middle class, now contrast sharply with the current lack of collective interest, or “enlightened self-interest,” in preserving and uplifting this socioeconomic group to a middle-class life.

This broader societal issue has been unfolding gradually, and ironically, the potential for AI to play a constructive role in addressing it. Mustafa Suleyman, a leading expert in General Artificial Intelligence (GAI) and AI more broadly, predicts that international regulations must swiftly be established to mitigate global risks. However, amidst these concerns, there lies transformative potential in AI applications. I’m optimistic that we can rise to the challenges ahead. I share this perspective because, ultimately, I believe in our capacity to reclaim our humanity and steer our collective trajectory toward a more compassionate and equitable future. One where we use the better angels of our nature when we harness the capacity of AI to free up humans to flourish doing what they do best.

If I’m right, this era will lower the cost of nearly everything, offering a real shot at working less and being able to afford what will be a wholly new ideal that will replace the notion of a middle class. One we cannot fully understand until we break or become bold enough to redesign how things work.

EQuations – requirement of human flourishing

My simple equation is tech + people = human flourishing (by proxy, thriving businesses). To cease this moment, we have to change! What, you may ask, do we have to change? Depends on your starting point! Everything to nothing.

Let’s delve into the transformative power of Language Model technologies and its profound implications for decision science. As we navigate this exciting terrain, it’s crucial to understand the democratizing force these advancements represent.

The evolution of Language Models (LLMs) has simplified complex decision-making processes, rendering them more accessible than ever before. This accessibility is not just a matter of convenience; it’s about leveling the playing field and empowering individuals across all sectors of society.

However, to fully capitalize on this democratization, we must unlearn entrenched beliefs about the roles of technology and human agency. It’s not a matter of one replacing the other but rather recognizing the synergy between them. Technology augments human capabilities, enhancing our ability to make informed decisions and drive meaningful change.

Moreover, the pace of progress in decision science is contingent upon our own evolution. We must embrace continuous learning and adaptation to keep pace with the rapid advancements in technology.

Business, as a central pillar of our collective experience, holds immense potential to unify and uplift communities. By leveraging the tools at our disposal, we can foster inclusivity and drive progress on a global scale.

Together, let’s seize this moment to redefine the boundaries of possibility and create a future where access to decision science is not a privilege but a fundamental right.

Costco’s winning formula

In the fiercely competitive retail landscape, where profit margins and market share are perpetually under scrutiny, Costco has established itself as a formidable winner. While numerous big-box competitors grapple to maintain their positions, Costco has not only maintained but steadily expanded, successfully seizing market share from its rivals. The key to their success lies in a combination of strategic decision-making, a commitment to fair returns, and a dedication to supply chain efficiency, tech adoption/creation, and a curated selection of offerings.

Competitive Compensation and Human-Centric Decision Making

A crucial aspect that distinguishes Costco from its competitors is its distinctive approach to human resources. In stark contrast to many other retailers, Costco pays its employees more than industry standards. This strategic decision has cultivated a loyal and motivated workforce, contributing significantly to the company’s overall success. By valuing its employees and fostering a positive work environment, Costco has achieved higher levels of productivity and customer satisfaction.

The company’s leadership recognizes the importance of not subjecting its employees to undue pressure. While some competitors adopt aggressive sales tactics, creating a stressful environment, Costco has chosen a different path. By prioritizing the well-being of its employees, Costco has fostered a culture of collaboration and dedication that proves beneficial both internally and externally.

The Win-Win Model

Costco’s commitment to fair returns extends beyond its employees to encompass its relationship with customers. The company operates on a win-win model where fair returns are matched across the products it sells to the customers it serves. Costco is willing to accept a lower profit margin in exchange for a mutually beneficial relationship with its customers.

In contrast to competitors who may prioritize short-term gains, Costco’s long-term vision involves creating value for both the company and its customers. This approach builds trust and loyalty among consumers, leading to repeat business and positive word-of-mouth marketing. The win-win model has become a cornerstone of Costco’s success and sets a precedent for how businesses can thrive by prioritizing fairness and cooperation.

Enlightened Self-Interest

Costco’s success is not solely rooted in altruism; it is also driven by enlightened self-interest. By investing in their employees and adopting a fair pricing model, Costco has positioned itself as a responsible and ethical business. This reputation not only attracts customers but also contributes to the company’s positive image in the marketplace. They are committed to sustainable and ethical business practices, standing out as a rare example with proven results.

The Bottom Line

Costco’s holistic approach to business, encompassing competitive compensation and fair returns for suppliers and themselves, has definitively proven effective in the retail sector. While other big-box retailers grapple with market challenges, Costco continues to thrive and take market share. The company’s emphasis on a win-win-win philosophy serves as a compelling example for the industry, demonstrating that a comprehensive approach can lead to sustained success. As the retail landscape evolves, Costco’s proven formula stands as a testament to the enduring value of prioritizing people, fairness, and long-term thinking.

They have also set the bar where their direct competitors have adjusted their practices. However, this shift should not be merely a temporary ploy to win over customers. Being human-centered, tech-driven, and earth-wise isn’t a passing trend. Ideally, profit margins and market share should no longer be the sole truths in boardroom discussions beyond mere marketing spin.

From Assembly Lines to the Fourth Industrial Revolution

Navigating Evolution

In the early 1900s, Henry Ford revolutionized manufacturing by introducing the assembly line at his automobile plant. This groundbreaking innovation marked a turning point in industrial history, accelerating production rates and transforming how products were made. However, as technology advanced over the decades, the human experience in the workplace struggled to keep pace with the same level of transformative progress.

Ford’s assembly line, inspired by principles of scientific management, aimed to streamline production, increase efficiency, and reduce costs. Frederick Taylor’s theories, often associated with Taylorism, influenced this era, emphasizing task specialization and standardization to achieve optimal output. The assembly line became a symbol of progress, driving unprecedented advancements in technology and manufacturing.

As the decades passed and technology marched forward into the latter half of the 20th century, the human experience at work lagged. Peter Drucker, a management guru of his time, contributed influential ideas on organizational efficiency but often within the framework of a structured hierarchy. The focus remained on control and predictability, with little attention given to the holistic well-being and creativity of the workforce.

The late 20th century and the beginning of the 21st century brought a winds-of-change moment. Visionaries like Margaret Wheatley, Dee Hock, and Ricardo Semler emerged as change agents, challenging the established norms and advocating for a more human-centric approach to organizational dynamics.

Margaret Wheatley’s voice echoed a call for holistic and interconnected organizational structures. Her work emphasized the importance of learning together, fostering a culture of continuous adaptation, and recognizing the collective intelligence within an organization.

Dee Hock, the founder of Visa, championed self-organization as a powerful force for creativity and efficiency. His ideas prompted a reconsideration of rigid hierarchical structures, advocating for a more adaptable and dynamic approach to organizational design.

Ricardo Semler, through his innovative approach to workplace democracy, questioned traditional power dynamics. He proposed that real power lies not in hoarding authority but in distributing it, empowering individuals at all levels to contribute meaningfully.

These change agents became catalysts for a paradigm shift in the 21st century. The Fourth Industrial Revolution, characterized by the integration of digital technologies, artificial intelligence, and the Internet of Things, brought new opportunities for efficiency and innovation. However, the challenge remained – how to harmonize these technological advancements with a renewed focus on the human experience in the workplace.

As we stand at the intersection of past and present, navigating the evolution from the assembly line to the Fourth Industrial Revolution, there is a collective call to learn how this required tension can be complimentary. The lessons of Taylorism and Peter Drucker remind us of the pitfalls of overlooking the human element and the formative blueprints that are alive throughout industry today. Thanks in part to Wheatley, Hock, and Semler for providing a roadmap for a future where technology has enhanced rather than replaced the human experience at work.

A New Era of Remote Work

The extraordinary trajectory of the tech giants has a core message:  Data matter.  That’s a business understatement commensurate with pointing out how valuable oxygen is to breath.  It’s not new; just scaled.  Read this snippet from The Adventures of Sherlock Holmes and you might think it’s a TED Talk:  It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.

Staying with the theme of oversimplification … the challenge of business is to know what is effective and to do more of it.  Break the emotional bonds to cherished past practices when they can’t stand scrutiny.  You don’t often tell the market but the market will always tell you.  You need data. 

Oddly, one resource decision often made as has always-been-done is human.  It’s an expense of such magnitude that it deserves to be data-centric. To be sustainable, the employment bargain needs to work for both the enterprise and the talent.  The possibilities are myriad but fall somewhere on a continuum between assuming productivity and measuring outcomes.  We can:

  • Assume Productivity from measurements not supported by data like hours spent in an office or before a screen.  Someone’s presence, digital or otherwise, does not correlate productivity.  Even so, we use it as its surrogate.
  • Measure Outcomes from knowing the talent needs of our enterprise and the investment that can supported … all based on analysis.  Outcomes don’t rely on surrogate measurements.  The very bargain is what gets measured.  Give it an incentive.

Of course, it’s not that simple.  An enterprise needs executive corps as leadership, professional expertise, and to be the face of the organization.  Trained operators are needed for crucial ongoing tasks that can be measured in time, place, and production.  But a growing segment of work only needs a task brief and a deadline.  Nothing else.

Management of the remote workforce needs tooling. HR tools now concerned with time and productivity won’t work.  Let’s measure and incent task and outcome.

Blurred ⎟ Lines

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Industry is Education and Visa-Versa

Industry and education are cousins.  Kissing cousins.  Even if each believed in an independent way … their paths have always been converging.  It may not be clear to them, but their pace will become lock-step and unsure about who is leading whom. 

The Law of Accelerating Change (Kurzweil, March 7, 2001, an easy essay to find) says the 21st Century won’t bring 100 years of change.  It will be more like 20,000 years.  Judging from a one-fifth experience, Kurzweil might have underestimated the pace.  One truism (among many) is that accelerating change blurs the future.  The application of new tools and the resulting implications give rise to astonishing unintended outcomes.  Rapid change blurs all our futuristic assumptions.

Back to our cousins:  If there ever was a sequential relationship with clear space between years spent in education and those in industry … it has become blurry.  Even if a traditional degree earned over four years can give graduates enough to pursue opportunity, the industry will change before they walk across the stage and shake the president’s hand.  Arguable, 800 years of change since they started (if a Kurzweil year = 200). 

What will change (must change) is individual preparation to thrive in a blurry market.  Skill sets go stale quickly (remember, change has an accelerating pace).  Accurately discerning new challenges is nearly impossible.  The only answer is immediate access to learning that has been informed by industry.  Lifelong learners maintain forward momentum by constantly refreshing skills.  Regular and frequent.  

Don’t misunderstand.  A general and classic education has immeasurable value.  Our very culture depends on it.  We need artists and chroniclers and patrons to emerge, and they will.  Industry holding hands with education won’t change that. 

Recognize the emerging questions.  Apply new tools liberally.  Concoct a blend that uses what works and sidelines the rest.  Online or live?  Certification or degree?  Skill development or knowledge acquisition? Nano or macro?  Managerial or production?  It’s all of them.  Let’s figure it out.

Elegant Solutions Explored

It’s not just good taste; it’s a standard to pursue.  Using elegant to describe the merely beautiful is, in itself, inelegant.  More than good looks, elegance offers a solution.  It is refined, dignified, graceful, excellent, concise, and simple (look it up).  The word has been co-opted by design professionals … I say we take it back for business.  Seek elegant solutions; here are some pathway markers: 

  • Adornment:  Ok, sure.  There are valid reasons why we might adorn something to make it appealing. But the point of elegance is intrinsic excellence through relentless refinement.  It is not about a new look or story.  
  • Distractions:  Take a page from the minimalists.  Acquire only what you value and be certain you get that value.  Do only what is effective and be certain the effect is authentic.  Otherwise you are just accumulating distractions.  Stay focused.  Keep a loose grip.
  • Math:  It’s the language of business and it’s elegant.  Mathematics is the poetry of logical ideas (Einstein, he would know).  Math calls the iterative process successive approximations (for example, the Picard Method but not that Picard).  It leads from estimate to accuracy by converging on the solution.  If elegant solutions are refined, concise, and excellent … math will reveal them.  
  • Intentions:  You won’t wander into an elegant solution; you must be intentional.  Questions will confirm your intention – answers will test your honesty.  At least try these:  Why are we doing this?  Do we need this?  Can we sustain this?  Press successive approximation into action.

You may be well down the elegant pathway.  But don’t let dignity and tradition be just accumulated distractions.  Find your intention … focus in, do the math.  Act on successive approximations until you have the elegant solution … even if it just isn’t done that way.  A little risky, I know.

WANT TO IMPACT RESULTS?

Apple

We are riddled with competing beliefs. Nothing is more debilitating in life and in business than beliefs that separate us. Beliefs that become “the truth” because “I know”, or my data clearly states, “I’m right”.

Wonder. What if we were applauded for changing our position when more data, or a new, more rational set of thoughts have influenced us? Would we start to honor growth and change over certainty and holding onto the unchanged?

Can we hold loosely to our certainty while we wonder what we may not know?

I say YES.

To what end do we change our beliefs?

The highest good – the greatest impact – the closest we can get in any moment to truth.

Anything Other Than Another School of Thought

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Are you taking on more responsibility in a new role and struggling to get consistent results?

Is the quarterly stress to meet financial expectations keeping you from more important decisions?

Have you started up a new company and experiencing unexpected growing pains? Or, is your company stuck in a rut and you can’t figure out why?

No one chooses to get stuck, spend time on the urgent at the cost of the important, or live in fear of looking weak. Yet here we are. Why?

Because we are addicted to power, control, and winning. None of this sounds unreasonable on the surface does it?

What if you replaced taking power with giving it away? Instead of managing risk, why not design opportunity by moving into what you want rather than away from what you don’t want. Winning is a losing effort.

Lesson

When people give you their power, give it back.

Get exacting about the idea of “no more than necessary and no less than required”.

Wonder in place of winning. How can we do this better? Why did we miss that opportunity? Will that make a difference?

Practice

There is seldom a silver bullet. In the practice of leading, be aware of your surroundings. Accept the feedback loop as it is. Socialize what your learning in numbers, experiences, and the full range of senses. Listen. Test assumptions and know that every solution eventually becomes a problem.

If you struggle getting out of your head or beyond the numbers, get someone neutral to examine what you need to learn. Everyone has been too close to see what’s going on. No one needs another school of thought.

We could all use alittle time to think.

 

 

No One Noticed

Can you live a full life in the business world without a conscience? Yes, he says with regret.

What if you woke up tomorrow and decided to only do things that would impact the world in a positive way? Is it even possible? Yes, he says with certainty.

But only if you accept the role of being insane. Our society, perhaps some version of the entire business world, considers anyone willing to believe in people over profit as insane.

So, I say to you, be insane.

Of course there’s nothing insane about embracing the fullness of each person and creating products that are meant to improve lives. There’s nothing insane about going out of your way to unleash your teams potential to create amazing customer experiences.

But, it may cost you 5% more than you currently spend to solve problems. If you’re willing to allow for this investment, your top line will grow in ways you’ve never grown before. 

Take a risk and be noticed.