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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Big-picture business transformation with specific game-changing strategies In Adaptive Resilience, Global Strategic Leader, Board Executive Advisor, Speaker and renowned Author Maria Santacaterina delivers a groundbreaking discussion of how to build a more inclusive, equitable and sustainable digital future by transforming your organisation from the inside-out and the outside-in. You'll discover how to create a virtuous cycle of growth to simultaneously increase the bottom-line and help your Enterprise evolve. The author's new paradigm for growth is a radical shift in the way we think and do "good" business. It helps Business Leaders re-imagine the Enterprise and steer new frontier technologies in the right direction. You'll learn how to create adaptability and build resilience in your Enterprise, encourage visionary leadership and effective oversight. You'll find: * Real-life case studies that highlight the concepts discussed within * Strategies for developing dynamic capabilities to power your organisation forward * Valuable insights based on multidisciplinary research at the intersection of innovation, technology and sustainability A can't-miss guide to help reinvent the Enterprise that belongs on the shelves of Board Directors, CEOs, Senior Executives and Business Leaders, Adaptive Resilience is the strategy blueprint to modern business that we've all been waiting for.
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Veröffentlichungsjahr: 2023
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Table of Contents
Cover
Table of Contents
Title Page
Copyright
Dedication
Preface
Notes
Introduction
Notes
Chapter 1: Vision
Notes
Chapter 2: Strategy
Notes
Chapter 3: Culture
Notes
Chapter 4: Growth
Notes
Chapter 5: Innovation
Notes
Chapter 6: Transformation
Notes
Chapter 7: Governance
Notes
Chapter 8: Sustainability
Notes
Chapter 9: Evolution
Notes
Conclusion
Notes
Epilogue
HOW TO THRIVE IN THE DIGITAL ERA
WHAT HAPPENS NEXT?
Notes
Acknowledgements
Index
End User License Agreement
Guide
Cover
Table of Contents
Title Page
Copyright
Dedication
Preface
Introduction
Begin Reading
Conclusion
Epilogue
Acknowledgements
Index
End User License Agreement
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Adaptive Resilience
How to Thrive in a Digital Era
Maria Santacaterina
This edition first published 2024
© 2024 Maria Santacaterina
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Library of Congress Cataloging-in-Publication Data
ISBN 9781119898184 (Cloth)ISBN 9781119898191 (ePub)ISBN 9781119898207 (ePDF)
Cover Design: WileyCover Image: ©MF3d/Getty Images
To my family.
This book is dedicated to the leaders who strive to create new horizons to benefit present and future generations.
Preface
‘Try to learn something about everything and everything about something.’1
These past three years have been particularly challenging for nearly everyone living on planet Earth, with the exception of the few, for whom financial concerns are not incidental to their daily lives. The global pandemic has shaken liberal democracies to their core, called into question the inequities of the capitalist system; and left war-torn, grief-stricken populations grappling to find new meaning in their lives.
Chief Executive Officers and the Boards of Directors are under increasing pressure to resolve the most intractable societal problems. They have sought to stabilise increasingly ‘fragile’ systems to ensure business continuity, whilst confronted with faltering business models, concerns over health in the workforce, safety and security issues, severe supply-chain disruption and climate change. Recent legislation is set to further regulate the functioning of Socio-Technical Systems and Artificial Intelligence, an all too pervasive part of our ‘reality.’
This may at first glance appear overwhelming. However, human beings are remarkably adaptive and resilient.
We are at a new ‘tipping point,’ in the midst of a great transition without clear sight of our desired outcomes. It seems we are in a mad race for a destination that is as yet unknown. We do not have a clear vision and consequently the strategy as to how we will reach our new destination appears nebulous. However, this is an intrinsic part of the process of change. The so-called Exponential Age of Technology or the Fourth Industrial Revolution in the 21st century, is the moment ‘to learn something about everything and everything about something,’ lest you be left behind.
What concerns me, and I imagine many Business Leaders, is how we shall interact successfully with emergent technologies, and where this will take us on our future path of evolution. How shall we re-imagine our digital future for the benefit of Humanity and the Planet? Our quest to find meaning in the present and future reality shall be the subject matter of this book. A message to the unborn child, that through our uniqueness, consciousness, intelligence, curiosity, creativity and courage, we may still recognise what it means to be a ‘human being,’ distinct from other inanimate forms of ‘Artificial Intelligence,’ with the continuing evolution of homo sapiens.
As human beings, we have the unique ability to explore the past for lessons learned, while envisioning the future in the realm of the imagination. In contrast, ‘Artificial Intelligence,’ a subset of which is the confusingly named ‘machine learning,’ cannot compute nor fully discern the multifaceted dimensions of our ‘reality.’ We should not undervalue the power of the human mind, nor assume partially understanding the structure of some of the processes occurring within the human brain, sufficiently explain the full complexity of the same. Cognitive and perceptive abilities in human beings have developed over millennia and the intricacies of the same are not yet understood. In contrast, computers are only just beginning to learn; they serve to imitate some of the structures of the human brain and fail to replicate the complexity of human thought and actions.
Huxley, in his ‘Romanes Lecture’ in 1893, refers to ethical considerations as emanating from the ‘cultured reflection’ human beings have developed over time to form a sense of justice. This is, in turn, denoted by ‘action from right motive,’ which he goes on to qualify further as ‘the positive constituent of innocence and the very heart of goodness.’2
To an extent, this still constitutes our notion of ethics today, and it is from the evolution of culture that societal norms develop. However, this essential notion of ‘goodness’ has not necessarily been translated into the Socio-Technical Systems,3 which operate in society across many sectors and run a large part of our lives today. From financial services to government institutions, business and manufacturing, as citizens, we are effectively entangled in a complex dynamic web of systems, which make up the greater whole. However, algorithms are structured using formal logic, a narrow set of mathematical rules to determine ‘binary choices:’ option A as an intended outcome, as opposed to option B, the less desirable unintended outcome. These computational processes rely on computable data being fed into the system; they are not yet general enough to take in the nuances of the human form of natural language and a highly complex changing reality. Often disproportionate and non-transparent algorithms and data sets lead to ‘black box’ or unexplainable outcomes, leaving potentially adverse effects on individual citizens unmitigated and residual risks undisclosed.
The fact that we are sometimes unable to explain how the algorithm has reached a given output adds an element of danger, depending on the context in which the particular model is being used. It begs the question as to whether we should continue to pursue current research to create ‘Artificial super intelligence’ to surpass our own capacities, if we are then putting ourselves in a situation where we cannot arrest the systems.4 In the commercial sphere, we are surrounded by ‘noise,’ and it is not an easy task to extricate biases or errors embedded in the data being collected, which is used to train these systems. Since personal data about human beings is being collected indiscriminately, the potential for autonomous systems to cause harm is extremely high. Had we thought about the ethical values a priori, about what is truly desirable, we may have averted the worst outcomes. Just because we can use technology to assist a given task, doesn't mean we should.
The difficulty being that to reconcile ‘the course of evolution into harmony with even the elementary requirements of the ethical ideal of the just and the good,’ has proven an elusive goal for millennia; as Huxley so eloquently puts it both for the ‘ancient sage whether Indian or Greek.’5 Thus, in many of our modern theories and assumptions, we have conveniently ignored the ‘messy’ nature of human morality, which is not so readily and neatly tied up into pure mathematical logic. We have chosen instead to look through an overly simplistic lens, constituting a somewhat imperfect and rather incomplete view of the reality; for instance, in economics, which underpins the thinking in modern businesses and governments that are inclined to take decisions based on the available and likely flawed data.
However, we need to take a much more nuanced view of emerging complexities in the reality, and strive to create innovative solutions to resolve structural and systemic problems that have thus far hindered progress. We need to prepare for surprising events and build a new capability, systematically, consciously and deliberately to ensure the future success of the Enterprise and the survival of our species. I call this capability Adaptive Resilience™ and we will explore what this means in nine dimensions, from Vision through to Evolution.
I hope you will enjoy the journey and that this book will spark the reader's curiosity and eventually inspire a new way of thinking. If we seek to transform our present reality, we need to change our thinking. It is within our reach to create a better world, though new solutions to our ‘wicked problems’ cannot be found through disparate actions or wilfully blinkered views of emergent complexities in the reality before us. Our world is constantly changing. It continuously evolves and transforms itself synergistically with the laws of nature and the universe, which we do not fully understand. We can envision an alternative future, provided we acknowledge the value of human relationships, our interdependencies and interconnectedness with the natural world. A world that consciously turns away from fear, anger, and negative self-interest can move towards a more positive growth trajectory. Celebrating the uniqueness of our human consciousness and ingenuity together with the infinite possibilities we are capable of discovering and exploring, for the benefit of all humanity and our planet.
‘All nature is but art, unknown to thee;
All chance, direction, which thou canst not see;
All discord, harmony not understood;
All partial evil, universal good;
And spite of pride, in erring reason’s spite
One truth is clear: whatever is, is right.’6
London, 6 February 2023
Notes
1
. Thomas Henry Huxley (4 May 1825 – 29 June 1895) – English biologist and anthropologist specialising in comparative anatomy. Best known for his courageous defence of evolutionary theory proposed by Darwin. Recognising evolution is not a straight line, he focused on evolutionary relationship between the species and in particular, revealed distinctive features of the human brain relative to our ancestors.
2
. Thomas Henry Huxley – ‘Evolution and Ethics’ The Romanes Lecture, 1893, Collected Essays IX.
3
. Socio-Technical Systems are digital systems involving human and ‘artificial agents,’ otherwise known as ‘AAA systems’ – Algorithmic, Autonomous and Artificially Intelligent Systems.
4
. Stuart Russell, Nicholas Borstrom and others have warned of the dangers; the ‘off switch’ is no longer a guarantee we can remain in control of autonomous ‘artificial agents,’ the interplay of computer software and hardware.
5
. Thomas Henry Huxley – ‘Evolution and Ethics’ The Romanes Lecture, 1893, Collected Essays IX.
6
. Alexander Pope, An essay on Man, Epistle 1.
Introduction
Adaptive Resilience™ is the ability to flourish as a human being in an artificially connected world, notwithstanding the impact of unforeseen events. We human beings are complex adaptive systems par excellence. We have an innate ability to adapt ourselves to changes in our environment. We are wired for survival and we are more successful in our quest when we seek to excel and thrive in social groups. As hunter-gatherers, our ancestors gradually learned to provide shelter, find food and eventually share stories in their communities through the use of a common language. No matter the hostility of the environment or competition with rival social groups, they found ways to adapt, and built up resilience by learning from experiences. Our basic needs have not changed. We need shelter, food and water to survive. However, our environment is radically altered and irrevocably so. In each of the following chapters we look through different lenses, seeking to understand the volatility, uncertainty, complexity and ambiguity in our modern world. In particular, taking a humanistic and holistic view of how business should respond to the so-called ‘wicked’ societal problems, which may present existential challenges. The ethical choices we make today will prove critical for the health and wellbeing of present and future generations, as well as of the planet itself.
The Fourth Industrial Revolution,1 defined as the emergence of ‘technology enabled platforms that combine both demand and supply to disrupt existing industry structures,’ ushered in a new era of accelerating change. Boundaries between the physical, digital and biological world are no longer clearly defined. Arguably, we have leap-frogged more than a decade of technological progress in the last two years alone. Researchers claim the global pandemic has compressed the amount of time needed for radical technological change. The barrier is no longer technology. It is more about the lack of preparedness in society. While expectations of the Fifth Industrial Revolution are fast advancing new forms of interaction between humans and machines, the emerging possibilities require more careful consideration. We need to ‘see’ more clearly the ethical nature of the relationships between human beings and complex ‘artificially intelligent’ systems. Openly and consciously deliberate the nature of desirable outcomes, both for humanity and the planet. Substantive advances in digital technologies and the rapid proliferation of complex Socio-Technical Systems have fostered profound changes in society. The socio-economic, political and cultural landscape has been radically altered, impacting populations globally. Some claim the exponential rate of growth in the technology has itself accelerated exponentially;2 encompassing every industrial sector and every aspect of our daily lives. This level of change is unprecedented in human history.
So, how can we thrive in the digital era?
Adaptive Resilience™ is a new business capability, which needs to be built deliberately in every organisation, both at an individual and at the collective level across the Enterprise ecosystem and thereby extended to society as a whole. Understanding the level of exposure to critical risks, inherent vulnerabilities in the business model, structural and systemic fragilities, and the potential for unexpected financial losses is business critical. However, this cannot be achieved without providing support at the granular level. Every individual will require holistic support to bounce back from adversity, in order for the whole organisation to respond to change with increasing resilience, whilst adapting to novel situations as they emerge. Failure to adequately prepare and respond appropriately to emerging changes whether internal or external in a timely fashion will place the organisation at high risk of extinction. Thus, organisations need to focus on strengthening their ability to withstand arbitrary shocks and proactively learn to overcome them with ease; after the shock passes, they must emerge stronger. It is a condition sine qua non for survival.
At the collective level, Adaptive Resilience™ must become part of a shared consciousness, embedded in the fabric of the Enterprise, pursued through its Vision, Strategy, and Culture. Oriented towards Growth, Innovation, and Transformation as part of a process, both of continuous learning and improvement. Ultimately, ‘good’ Governance, Sustainability and Evolution of the Enterprise must ensure its longevity and foster prosperity for all humanity both in the immediate present and in the future. It is a proactive endeavour, which cannot afford routine or repetition, boredom or disaffection; but should instead act as a catalyst for ‘good’ change and extend a beacon of hope. Trust, is the ‘ultimate cause’ that holds business and society together.
The urgency of building Adaptive Resilience™ within the fabric of the Enterprise has never been greater. Thinking of it this way could be helpful:
Adaptive Resilience™ is a new muscle, which needs to be nourished and intentionally exercised on a daily basis; as we all know with fitness, it takes time, effort and commitment to build.
Business cannot exist in a vacuum. It is an integral part and arguably the beating heart of society, with the power to transform its constructs and improve the quality of people's lives. Enabled by powerful new technologies, the Enterprise has a formidable opportunity to become a force for good. It is the conduit and the driving force of positive change in society. We cannot expect that governments have the necessary entrepreneurial capabilities to enact true innovation. But, that is not necessarily the role of government, since their duties and responsibilities have been defined differently. Perhaps the time has come to clarify anew the right balance between governments, industries, businesses and citizens. Chief Executive Officers of large corporations are called upon to demonstrate leadership, drive innovation, and inform government policies. However, effective policies can only be made reliably if there is a clear separation of powers and multiple diverse stakeholders are invited to the decision-making table, ranging from large businesses to small and medium sized businesses and single business owners, in recognition of the structural changes occurring in the world economy. Government should focus on creating the right environment for new investment opportunities and infrastructure to support innovation and economic growth. It should also provide safety and security for its citizens and behave in a responsible and ethical manner. Equally, it should be held to account by individual citizens, in the same way that business must seek its legitimacy within society as a whole, while earning and sustaining citizens’ trust over the long-term, one member at a time.3
In an increasingly interconnected world, the ‘surface area of attack’ has substantially increased. Multiple concomitant threats create a cascading effect and undermine business continuity. Cyber ‘warfare’ is no longer a state affair, since cyberattacks affect public and private sector businesses with a degree of regularity, increasing financial pressures, as darker storm clouds gather. Previously familiar boundaries have become blurred, replaced by unforeseeable externalities. Short-term thinking and the pursuit of short-term goals are no longer viable options. The forces of change, amplified through the ‘network effect,’ necessitate new ways of thinking and more flexible approaches to overcome the challenges of the emerging reality. A small change in one part of the system can extend across the whole ecosystem at lightning-fast speed. Existing vulnerabilities become exacerbated and destabilise the hierarchical structures while exposing fundamental systemic weaknesses. ‘Business as usual’ has evaporated. Businesses large and small must instead proactively prepare for and aim to consistently anticipate unknowable future shocks. The appropriate level of responsiveness constitutes a level of preparedness for the ‘unknown unknown.’ And therein lies the paradox. However, consistent coordinated actions throughout the Enterprise ecosystem build adaptive capacity and resilience as internal and external situations evolve. We need to move from ‘just-in-time’ responses to thorough preparation for ‘just-in-case’ scenarios at the point of failure.
Prior to the Covid-19 global pandemic, companies and governments had been adjusting to increased risks, natural disasters, cyberattacks, technological disruption, loss of confidence and public distrust, partly fomented by media outlets. However, the unexpected outbreak of SARS-CoV-2 coronavirus late in the autumn of 2019 forced radical change. The virus knew no borders: its fast transmission rates and mutations had caught the world off guard.4 Consequently, the world economy came to a grinding halt. Governments imposed partial or complete lockdowns for extended periods of time, including full border closures. The virus appeared out of control and severe restrictions on civil liberties seemed the only way to contain the spread. Governments attempted to justify their actions by suggesting they were being ‘led by the science.’ Businesses were forced to close; healthcare systems were at breaking point, and a degree of social unrest ensued.
We were all woefully ill prepared. But should we have been?
Notwithstanding the lack of preparedness, the response to the pandemic and the immediate aftermath was exemplary of human resourcefulness, intelligence and collaboration. Adaptive Resilience™ is, in essence, our unique human ability to sense, probe and respond appropriately when novel situations suddenly appear on the horizon. There are many lessons to be drawn from the coronavirus outbreak. One lesson learned the hardest way possible was that decoupling public health from the economy and environmental policy is a dangerous miscalculation. It is clear from scientific research that the natural equilibrium in the Earth's ecosystems has been severely disrupted, causing an increased risk of pathogen contamination from animals to human beings, due to significant biodiversity and habitat loss.5 We cannot continue with the current level of pollution, and particularly fossil fuel combustion, without compromising our chances of survival long term. Since human health is inextricably linked with climate change, we must be prepared to change our ways and remain open to seeking new pathways for growth.
The aim must be to proactively redress the imbalances caused by human activities, better understand Nature's innate resilience, and explore new possibilities of working with nature not against it.
There is an urgent moral question which must be answered. Scientists had been modelling threats of this nature for decades, and yet policy makers dismissed their concerns. Lives were lost and there is no monetary value that can ever compensate for an avoidable single life lost. A person's life is simply worth more than the roll of a dice. Healthcare professionals were placed at unnecessary risk, since vital basic equipment such as PPE (personal protective equipment) was scarce, as were hospital beds and respiratory equipment. All humanity faced the same threat and it became apparent there were insufficient vaccines for everyone, in the first batches produced. And yet the claim made was that nobody is safe until everyone is vaccinated. But, shouldn't we be attacking the root causes of such incidences, instead of just scratching the surface with apposite remedies? Although some countries are transitioning from pandemic to endemic, the threat persists and the legacy impacts of coronavirus on the world population are of an order of magnitude greater. Covid-19 exposed both the extensive nature and scale of the global distribution problem, inherent supply chain fragilities, institutional failures and crucially the disproportionate impact on developing nations.
Globalisation has not fostered the necessary transitions towards a more equitable, prosperous future. The inherent vulnerabilities of the financial system pose a threat to the Global System as a whole. Urgent action is required to change the trajectory.
There are no shortcuts that can be taken to foster human development. We simply cannot allow the myopic pursuit of short-term gains to persist. While investment in new technology has been consistently high, investments in human development have been ‘patchy,’ and there are noticeable gaps in human capabilities.6 Profits are vital for business, but they are the consequence of ‘good’ actions, not the end itself. Just as machines do not produce useful artefacts by themselves, without skilful human intervention, profits alone do not foster improved productivity. Moreover, profits that can be sustained, an order of magnitude greater will ensue, given the right focus.
‘Economics and Ethics naturally come into rather intimate relations with each other since both recognisably deal with the problem of value.’7
We have a problem of distribution and of real value creation that is so often narrowly defined by monetary value alone. The definition of value in the modern world has been too closely linked with the financial markets. Whereas there is an intrinsic need for business to deliver products and services that better serve human ideals, the needs of all their stakeholders, employees, customers, communities, suppliers, shareholders, society as a whole and the environment. Ethics, purpose and the reflection of human values are ‘not amenable to scientific description or logical manipulation.’ Ethics-based principles and moral values are more akin to ‘sympathetic interpretation’ than ‘intellectual cognition.’ Emotions drive human behaviour, while reason provides the context and ‘culture history’ that may better explain the human condition. Economics as a science relies on basic assumptions calculated using mathematical logic, whereas ‘human conduct’ and ‘consciousness’ cannot be reduced to the same. The ‘creation of value’ is also ‘distinctly more than the satisfaction of desire.’8
The scale and extent of our problems, not least the entanglement of our global systems and economies, simply means that we cannot act alone. Intervening in only one part of the system will prove insufficient to resolve the problems of society as a whole. We need to act jointly and in a coordinated manner in our efforts to find workable solutions with lasting impact at scale. Government-public-private sector partnerships, working together with civil society, all need to be pulling in the same direction. To ‘re-boot’ the global economy and restore peace in the world, we all need to use our best efforts collaboratively.
‘Stakeholder capitalism is not about politics … . It is capitalism driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper.’9
Good business is, in essence, about building good relationships. Trust is the foundational cornerstone, which enables business leaders to evolve their business models, and organisations to become fit for the future. There needs to be consistency and deliberate ethical directionality in its formation. This requires a radical shift in mental models, recognising the nature of the ethical challenges facing the organisation has changed. The new possibilities afforded by processing large volumes of data at scale must also be supported by an inclusive, equitable, and resilient socio-economic ecosystem, with beneficial outcomes deliberately being sought by those designing and deploying algorithms embedded within increasingly complex and adaptive Socio-Technical Systems. Understanding that we are all entangled in a complex web of connectivity that is continuously evolving; and that our efforts will be rendered futile, if we try to resist the tidal wave of rapid change.
‘In a real sense all life is inter-related. All men are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly, affects all indirectly … . This is the inter-related structure of reality.’10
Ethical leadership is business critical. Ethical decisions have a transformative power within the Enterprise. People are more willing to unite around a common cause, motivated by a shared set of values. Clearly defined values are essential for re-building trust and confidence, notwithstanding the challenges the Enterprise may face. The moral philosophy of the Enterprise creates social cohesion and provides a powerful sense of direction, identity and belonging. It instils a strong sense of purpose and fosters stability, as leaders grapple with the complexity of the modern world and its unexpected challenges. Ultimately, the right actions in response to visibly difficult situations drive superior levels of performance, engender new competitive advantages and attract new talent. Notwithstanding the challenges presented by an all-encompassing use of Socio-Technical Systems, strong ethical principles must be embodied within the fabric of the Enterprise for enduring business success. Ethics is the key to unlocking widely shared prosperity for multiple diverse stakeholders. If we aspire to do the right thing, we are creating a ‘virtuous’ growth cycle and a more harmonious set of relationships across the globe. If this is the change we are seeking, we simply need to act without fear, anxiety, or anger.
The moral question extends to the quality of work, how we carry out our duties and how we choose to live our lives. As business leaders, we can choose to bring business ethics to the fore, proactively restore trust with real vigour and commitment, and thereby begin re-imagining our digital future. Good business ethics can be practised, for example, by extending the principle of transparency and fairness across the organisation. Not just in terms of decent working conditions, equitable pay structures and appropriate financial incentives, but also gender parity, equal treatment and proportionate representation across all social groups, being mindful and respectful of different cultures and values across the business ecosystem. Ensuring diversity of thought, guaranteeing freedom of expression, whilst proactively mitigating algorithmic biases, to ensure all staff members are treated in a fair and equitable fashion. Treating people with dignity and respect necessitates meaningful growth, fulfilling and varied employment opportunities, where individuals may complete ‘whole’ tasks, as part of autonomous self-organising working groups. Bridging the ‘capability gap’ entails solving the generational divide, forging new synergies across multiple disciplines to create well-rounded successful organisations that richly benefit from benchmarking wisdom and continuity, while allowing for innovation, enhanced by the cross-stimulus of different age groups, genders and ethnicities working together. The transition to a new phase in the evolution of the Enterprise should not be viewed through a simplistic mechanistic lens, as merely transactional, no matter how pressing cost reduction measures or other pressures may be at any given moment in time. Business is first and foremost relational.
Ethical choices substantiate the legitimate purpose of business. In every crisis there is also an opportunity for deeper reflection. Through the process, we may discover valuable insights that help us make the right decisions and enact more beneficial outcomes. Leaders must make conscious efforts to develop new technologies for the benefit of humanity and the planet. Technology should be valued as a useful tool; it should not be used antagonistically or as a proxy for government and religion. Individual freedoms and human rights must be guaranteed, including human autonomy and the right to privacy. The indiscriminate use of technology to gather copious amounts of personal sensitive data, including biometric data, without prior consent and proper scrutiny of how this data is used, shared and stored will cause society to fall apart, provoking distrust and unnecessary hardships. The growing asymmetry of information is tantamount to the asymmetry power and invariably a destabilising force within society. Without civil obedience, there is no social cohesion; and no government can assure safety and security for all citizens, without peace and stability.
The loss of individual privacy is symptomatic of a new fragility that has crept into the Enterprise. Everything that is part of the network is inherently vulnerable to attack and by definition, insecure. Whether inside corporations, governments or any other institution, excessive structural rigidities reinforce systemic weaknesses that inevitably result in security failures. Data leakages are akin to gross misconduct and may prove catastrophic for market valuations. Large corporations may never recover from the ensuing reputational damage. Without protecting the individual's right to privacy and giving them control over how their data is used, it is difficult to see how collective security may be served.
‘There will never be a really free and enlightened State until the State comes to recognise the individual as a higher and independent power, from which all its power and authority are derived and treats him accordingly.’11
Individual autonomy is not necessarily incompatible with social cohesion. On the contrary, self-awareness and self-respect are necessary components for any organisation and society to function properly as a whole. Non-coerced self-expression and natural spontaneity constitutes the necessary dynamism in society, fostering human progress. Whether for the State, the Corporation or Civil Society in general, there needs to be a healthy counterbalance to salient issues; in matters of morality, each individual person must be free to exercise their own conscience and evaluate what is rightand what is wrong, both in relation to their own individual needs and those of others. In contemporary society, clear sight of guiding ethical principles is sorely lacking. Owing to omnipresent digital communication technologies, there is a degree of confusion with regards to self-identity and a significant distortion of what it means to be a human being.
In the vortex of change we are currently experiencing, the so-called VUCA12 environment, business leaders can no longer shirk their responsibilities and accountability in exercising their ‘duty of care’ towards individuals and society as a whole, through the delivery of long-term value. In essence, they must carefully consider the nature and the broader implications of the new dynamics of change. Resisting the easy options, they should instead explore new possibilities further along on the horizon, in order to gain a better understanding of the complexities and ethical challenges before them. They cannot solely rely on data, but must engage frequently with multiple diverse stakeholders, in order to make better-informed decisions and value judgments. In particular, they must look for critical connections, and identify areas where they can make a difference, tackling the ‘big problems’ such as climate change, holistic health and wellbeing, environmental degradation and other intractable societal challenges, while simultaneously managing multiple often divergent, stakeholder interests. They must also steer their own course to create better futures through useful and productive innovation that is worthwhile, whether in response to pressures and demands from governments, investors, employees, customers and the wider society. They must also confront the lack of clarity in the available sources of information and take into account there may be restrictions in the freedom of speech.
‘The Web as I envisaged it, we have not seen it yet. The future is still so much bigger than the past.’13
Notwithstanding unscrupulous actors,14 the World Wide Web may afford governments and businesses alike the best opportunity to create more equitable digital futures for all members of society. Access to the Internet as a global public good is deemed a human right in many nations. The Internet may yet foster enhanced collaboration within a global governance structure to ensure a free, safe, secure, productive and collaborative environment. The principles of non-exclusion and non-hostile, non-adversarial relationships may yet engender true innovation on a global scale, provided there is access to good education in order to validate technological inputs and verify best uses. Owing to the immediacy and the direct impacts of technological disruption, we must seek to improve our capabilities and raise standards of education in schools and in businesses in order to enhance human performance. We must also seek to establish better forms of government, improve critical infrastructure and create more flexible organisational structures, while meeting existing and unmet needs of society.
It is ironic that a great deal of ‘noise,’ disinformation and misinformation, permeates the ‘Age of Information.’ As technology evolves, less scrupulous actors shielded with impunity, owing to their monopolistic tendencies, are causing real harm in the real world. From ‘deep fakes,’ to ‘tokenisation’ and the ‘metaverse,’ new challenges are emerging as human weaknesses are ruthlessly exploited for exclusive commercial ends. Clearly, the geopolitical, socio-economic and global health challenges we now face are an order of magnitude greater than previously known. Coercive ‘control power’ is no longer confined to armed conflicts. It can be exercised on a mass scale instantaneously, globally and it is unprecedented. Is there no escape? It is highly doubtful the Internet Communication Technology ‘explosion,’ steered towards exploitative ends, will enable us to realise its potential and ‘real’ value. Perhaps the Internet and the Internet of Things as it stands today was not the aim for this technology in origin.
‘Any organization that designs a system (defined broadly) will produce a design whose structure is a copy of the organization's communication structure.’15
The task at hand is to seek clarity and create better forms of communication and quality sources of information. Tim Berners Lee had conceived of the World Wide Web, as a mechanism to facilitate sharing knowledge on a global scale; and it is potentially the most liberating general technology of our time. But, what if ‘Artificial Intelligence’ was enabled to moderate content? As things stand, it would seemingly further obfuscate the reality. Too few players hold the reins of power and the risk of hegemonic control is increasingly likely.
Most Enterprise Management Systems are designed with insufficient flexibility to enable good communication at all times. They may fail to sufficiently account for organisational factors in the original intent; design is generally focused on technical constraints, while discounting human needs. However, the full potential of the Enterprise cannot be realised without effective organisational design, which necessitates flexibility. Systems must continuously evolve to reflect the changes in communication requirements and the organisational structure itself. Understanding how data and information is shared within complex social systems, while securing the transfer of knowledge is business critical. Envisioning how to optimise human interactions within complex adaptive Socio-Technical Systems, powered by ‘Artificial Intelligence’ necessitates greater care and consideration and above all the involvement of the participants in the system. What might the desirable outcomes be? Ambitious results are best achieved by being responsive and adaptive to change in an orderly manner, whilst allowing sufficient room for manoeuvre. Understanding the complexity of human relations will afford us the opportunity to find better solutions.
This is a unique ‘what if’ moment in our human history. Extensive structural and systemic change across institutions, businesses, supply-chains and natural ecosystems, as well as the functioning of governments themselves will invariably send shock waves through the Global System. The forces of change are complex, non-linear, multi-dimensional and multi-directional. There is no clear-cut answer for what is right and what is wrong. Leaders must sense the emerging reality, seize new opportunities and re-configure their organisations as they seek to navigate towards safer shores. Whilst re-defining the meaning of value and the very existence of the Enterprise itself. In today's complex and turbulent environment, there is a longing for stability. Supply-chain interruptions are intensifying; there are more stranded assets and sabotage in the flow of information is prevalent. Quite apart from pervasive technological disruption across industrial sectors, the recent outbreak of war in the Ukraine,16 has added further layers of complexity with long-lasting effects exacerbating geopolitical uncertainty. There is no graver, nor greater threat to humanity than the catastrophic consequences of war, famine, disease and now climate change.
Our quest must be to enrich the lives of people around the world, whilst building an inclusive, equitable and sustainable digital future. The Enterprise ought to be self-sustaining and fully integrated within society, seeking to optimise human wellbeing, whilst innovating withnature to realise mutually beneficial outcomes. There is an urgent need to realise long-term value creation for all the stakeholders. True stakeholder value over the long term can only be secured if we focus on individual human needs, while optimising for the long-term public good.
Our universal human ‘virtues’ beget more value, and it's certainly not the other way around. Better to focus on that which unites us rather than that which divides us. Our whole existence depends upon a deep-rooted relationship with nature and with others. Whichever lens you choose, there is one fundamental truth: the laws of nature cannot be ignored, and if we persist, it will be to our own detriment. We can no longer view the environment and Life on Earth as separate. They are intertwined and irrevocably so, just as human survival, health and wellbeing are tied to restoring natural ecosystems, safeguarding all Life on Earth.
This is a significant paradigm shift. It will require radical change in our way of thinking, the way we evolve organisations, structurally and systemically. The magnitude and increasing complexity of this change will be explored in subsequent chapters. How we manage the transition will be critical: deep-rooted divisions in society, technological disparity, climate change, long-lasting effects of pandemics such as Covid-19 and intensifying geopolitical tensions will impact possible pathways to the future. Societal and environmental implications can no longer be ignored and must be addressed by nation-state governments, international institutions, corporations, businesses of all sizes and citizens globally, as a matter of urgency. There also needs to be an open and vigorous debate so that we can find a new consensus around the manner in which powerful new technologies are deployed.
The urgency has never been greater to harness the true potency of emerging new technologies and to create new pathways towards a sustainable digital future. However, this means working on the definition of what is desirable and what is not. We need to consciously craft our future as opposed to blindly following the path of least resistance, simply because it is technically possible to do so. We can no longer continue being reliant upon technology to solve our problems; instead we should focus on the quality of our decisions and actions, the pathways we have chosen and the directionality of change, in order to build a sustainable digital future. Emphasis being placed on what is humanly possible and desirable, to avert self-destruction and extinction.
Adaptive Resilience™ is both a physical state and a presence of mind. It is the willingness to explore and make sense of the contextual reality with sight of the horizons. It pertains to flexibility designed into the organisational structures and knowledge management systems of the Enterprise. This will help foster human progress and steer the Enterprise and society in the right direction. In practical terms, the organisation's responsiveness to change, structural flexibility and its systemic capacity to adapt, together with its preparedness for the future will ultimately strengthen its resilience; its ability to overcome adversity and withstand unforeseen externalities. This is with the understanding that the depth and complexity of the situation requires deeper reflection, broader collaboration, diversity of thought and trans-disciplinary experiences to foster more creative solutions for intractable societal problems. We already have the tools at our disposal to discover new pathways for inclusive, equitable and sustainable growth. We should deliberately strive to engender multi-stakeholder value. The next phase in our transition may be turbulent or else it can be smooth. The choice is ours to make.
Notes
1
. ‘The Fourth Industrial Revolution’ is a term first coined by Professor Klaus Schwab in his eponymous book released in 2016. It refers to significant advances in technologies such as AI, robotics, IOT, 3D printing, genetic engineering, quantum computing –
https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond
(accessed 1.3.22).
2
. ‘Few have truly internalized the implications of the fact that the rate of change itself is accelerating.’ Moore's law has been exceeded. ‘Most long range forecasts of technical feasibility in future time periods dramatically underestimate the power of future technology because they are based on what I call the “intuitive linear” view of technological progress rather than the ‘historical exponential view.’ To express this another way, it is not the case that we will experience a hundred years of progress in the 21st century; rather we will witness on the order of twenty thousand years of progress (at today's rate of progress, that is).’ Ray Kurzweil (2001). Cf.
https://www.kurzweilai.net/the-law-of-accelerating-returns
(accessed 2.3.22).
3
. According to a recent survey by Edelman, ‘distrust is the default emotion in society.’ January 2022. Cf.
www.edelman.com/trust
4
. SARS-Covid-2 coronavirus respiratory disease caused 6.5 million fatalities, infected 595 million people globally, likely more. 12 billion vaccine doses have been administered to date (August 2022). Cf.
https://coronavirus.jhu.edu/map.html
(accessed 12.8.22).
5
. At the Harvard C-CHANGE laboratory there is strong evidence to suggest the actions needed to combat climate change are the exact same actions needed to make people healthier. Cf.
https://www.hsph.harvard.edu/c-change/issues
(accessed 12.3.22).
6
. Elon Musk, CEO at Tesla, has openly admitted that ‘excessive automation’ at his company was a mistake, tweeting that ‘humans are underrated.’ (2018). Cf.
https://www.livescience.com/62331-elon-musk-humans-underrated.html
(accessed 19.3.22).
7
. Ethics and the Economic Interpretation’ – Frank H Knight. Cf.
https://www.jstor.org/stable/pdf/1886033.pdf
(accessed 21.3.22).
8
. Frank H Knight, founder of the Chicago School of Economics, wrote in his paper ‘Ethics and the Economic Interpretation’ (1922). Cf.
https://www.jstor.org/stable/pdf/1886033.pdf
(accessed 21.3.22).
9
. Larry Fink, CEO Investment firm Black Rock, ‘Letter to the Shareholders, CEOS,’ 2022. Cf.
https://www.blackrock.com/us/individual/2022-larry-fink-ceo-letter
(accessed 10.3.22).
10
. Martin Luther King Jr. ‘Letter from Birmingham Jail,’ advocating the right to freedom.
11
. Henry David Thoreau (1817–1862), philosopher, best known for his essay ‘The duty of civil disobedience, on resistance to civil government,’ first published in 1849. Written at a time when the Mexican–American War threatened to expand slavery, Thoreau's words seem remarkably relevant still today.
12
. VUCA is an acronym first coined by Warren Bennis and Burt Nanus in their book ‘Leaders, the strategies for taking charge,’ first released in 1985, describing a volatile, uncertain, complex and ambiguous multilateral world.
13
. The World Wide Web invented by Tim Berners Lee in 1989 made freely available to the public in 1993, was intended to foster the sharing of knowledge on a global scale; and since it is a global ‘public good’ it calls for international co-operation. It is possibly the most liberating general technology thus far invented. Cf.
https://home.cern/science/computing/birth-web
(accessed 1.3.22).
14
. While illicit activities for the most part occur on the so-called ‘dark web,’ hidden services or a lack of transparency in the use of algorithms on the World-wide-web is proving problematic. For instance, recommender engines ‘nudging’ individuals into making purchases they cannot afford, or harms being caused to children accessing unsuitable websites. Legislators in the European Union and the United Kingdom have addressed this issue. The USA, China and India are following suit.
15
. Melvin E. Conway, “How do committees invent’ (1968). Cf.
http://www.melconway.com/committees
(accessed 15.8.22).
16
. Russia declared ‘special military operation’ in the Ukraine on 24 February 2022, due to increased NATO presence in neighbouring countries and claims its citizens were mistreated in the Donbas region.
Chapter 1Vision/ˈvɪʒ(ə)n/
HORATIO:
O day and night, but this is wondrous strange.
HAMLET:
And therefore as a stranger give it welcome.
There are more things in heaven and earth, Horatio,
Than are dreamt of in (y)our philosophy.1
Vision is about conceptualising new ideas. It has both a philosophical and an embodied psychological dimension, since it emanates from a complex visual-sensory system. Our vision enables us to process and make sense of information we ‘perceive’ in the external physical environment. Our perception and awareness of ‘objects’ in the environment, form a dynamic internal ‘symbolic representation’ of the reality, whilst our understanding and knowledge is enhanced by accessing knowledge stored deep within our ‘memory.’ Human perception is therefore a complex set of processes, comprising multisensory integration and intellectual synthesis. It is the primary way we ‘see’ and make sense of the world, whilst learning and acquiring new knowledge through complex cognitive, emotional and sensory processes. Our understanding of the reality is enhanced through our personal interactions with the environment, social interactions and contextual experiences. Human perception is constantly evolving, shaped by learning, memory, cognition, expectations, sensations, experiences and attention, which is of course selective. We naturally choose what we wish to focus on. We are sentient beings, and our unique abilities to perceive and feel ‘objects’ in our surroundings, extends our knowledge and deepens our awareness. As human beings, we are able to discern complex emotional and aesthetic influences, as well as experiencing physical ‘phenomena,’ in our reality. However, we may not be able to fully explain everything through rational or conscious thought.2
Hamlet's conjecture is that everything we ‘see’ and all that we ‘know’ is not necessarily complete knowledge. We may not have sufficient information to understand the whole reality before us. Through the metaphor of Hamlet's feigned madness, Shakespeare entertains the duality of rationality and irrationality, which paradoxically may co-exist. Hamlet's disguise is an attempt to ‘see’ the ‘truth’ more clearly. He observes we should remain open to alternative explanations of the reality we see before us, hinting there may be limits to our rational thinking. When interpreting the reality before us, there is a natural rivalry between conscious and unconscious thought.3 There are sensations we may ‘perceive’ more vividly, within our imagination, phantasia, than may appear to be ‘true’ in the physical ‘objects’ of our reality, phantasmata.4 As we look through this multi-faceted prism, the light is refracted in a myriad of ways; depending upon which lens we choose, we may see one aspect, one colour, and then another. Hence, we may never be absolutely certain of the reality before us. Preferably, we should entertain the ‘wonder’ of events as they unfold, in order to make sense of the present and envision future possibilities.
Aristotle observed our attention is paradoxically ‘voluntary and involuntary, perceptual and intellectual.’5 We may choose to interpret the existing reality through a ‘rational search’ of our human memory, whether recently created or inherited, and at the same time respond reflexively to external stimuli through physical actions and orientation in the reality, as we explore both time and space. Additionally, we may consciously use our intellect and imagination to make sense of our surroundings. We have a subjective notion and sense that we are in control of our actions, such that we may exercise our human agency and ‘free will.’ In reality, there may be an element of causality, to the extent that subsequent events may be influenced by prior events. Thus, we may experience moments of serendipity, creating an element of ‘chaos’ in our lives; until we are able to rationalise and make sense of any unexpected events we may experience.
There is a hint in Hamlet's conjecture that the world is not an orderly place, whereby one can simply apply logic or reason to ascertain ‘universal truths.’ Perhaps, they do not exist and we should be willing to question our understanding of the same. The implication here is that there are multiple dimensions and layers of meaning to be discovered upon deeper reflection. We should also be aware that preconceived ideas or biases may distort our perception of the reality; and so we should take the time to further investigate any logical conclusion that may be derived from the ‘signals’ or cues that may be visible at first sight.6 It seems ‘seeing’ is not quite ‘believing.’ Thus, we may undertake an initially ‘chaotic’ process to further explore the significance of our human existence, as we try to make sense of and ascertain meaning from our perceived reality. The ‘symbolic representation’ of reality is therefore insufficient to describe its full depth of meaning. There is a non-linear progression in our acquisition of knowledge, which remains open to serendipity, events we were not expecting. In many ways, it is often by accident that we make our biggest discoveries, and further understand the ‘notion of truth.’ It is as much a philosophical journey, as the consequence of complex visual-sensory processes.
Aristotle referred to ‘perceptual awareness’ as a proxy definition for human consciousness. The information we receive from physical stimuli in our external environment, phantasmata is scrutinised by the intellect phantasia, and processed selectively, depending on the intensity of the ‘signals.’ For Aristotle, our ‘perceptual awareness’ consists of the relationship between the conscious mind and a ‘higher order’ unconscious mental state that may exist only in the realm of the imagination. Modern science supports this notion, adding a degree of complexity, since the conscious state comprises two parts, one of which is an awareness of the other. Thus, the ‘first order’ perception of the physical ‘object’ interacts with the ‘higher order’ value judgment of the same. Without this integration of sensory perception and intellect, we cannot be certain that the ‘object’ exists in the reality.7 Aristotle recognised human consciousness (awareness) could be an ‘immaterial perceptual activity.’8 Human intelligence cannot be explained purely in ‘symbolic’ terms or formal mathematical logic. Aristotle refers to the intangible quality of human consciousness (understanding), which he believes to be an inherently dynamic process.
Whether or not there is a hierarchy in our human consciousness, or whether there is a spiritual dimension and a higher order of intentionality, is still a matter of scholarly debate. For Aristotle, human intuition, phantasia, is of a higher order than phantasmata, the material substance or ‘object’ of our thoughts. Thus, the visual, sensory, and physical experience of the external reality we perceive is of a ‘lower-order’ representational state. A student of Plato, he already knew intuition was a necessary component in order to fully ‘see’ and extend our knowledge and deepen our understanding of the existing reality; while at the same time sensing the emerging reality. In the context of reason, Plato asserts intuition draws upon ‘pre-existing knowledge,’ ultimately enabling us to comprehend the ‘true’ nature of the reality we perceive.9 It is the quality of our tacit knowledge, things we ‘know’ implicitly, without knowing we know that can be accessed through our subconscious and unconscious state of mind, which constitutes the uniqueness of our human intelligence.
Significantly, if we combine rational conscious thought, our innate ability to reason using logic, with our ‘higher intellect’ intuition, and abandon any preconceptions, there is no limitation to our ‘higher order’ thinking, the human imagination. We can sense much more than we can explain, in relation to the physical ‘objects’ we actually perceive in the reality and perhaps choose to describe through our use of the human form of natural language.10 For Plato tacit knowledge is the ‘soul of eternity.’ Through our individual ‘perceptual awareness,’ we have a unique ability to perceive a multifaceted reality, if we are so inclined to ‘see’ the possibilities that may not yet be visible.11 Human consciousness is the critical differentiating factor defining the nature of our humanity; it constitutes the essence of our unique identity and our biological selves.
Perception is therefore a complex phenomenon, while attention is of necessity a selective process. It is energy-intensive and we simply cannot focus our attention everywhere; so we have evolved human intelligence to prioritise the tasks we wish to focus on, subject to our needs. Information is then actively filtered by our own individual mind, based on how we choose to respond within a given context. We have the ability to find appropriate responses ‘automatically,’ often without making use of conscious thought processes and deliberate reasoning. Contemporary scientists have suggested our intuition has evolved to further our capacity to spontaneously understand changes in the environment and more easily relate to others, enabling us to sense and anticipate their responses. This may be referred to as adaptive intelligence, which comprises dynamic interactions with the environment. We instantaneously adapt our thinking to the changing reality, necessary for beneficial social interactions and our own survival.
In our quest to find meaning, we continuously learn and evolve our thinking over the course of the human lifespan. It is a dynamic process and forms part of our lifelong human development. Through our complex visual-sensory system, we can acquire and process new information and simultaneously access knowledge that may be stored deep within our subconscious memory. The human brain is the most powerful autonomous control and self-regulatory system we know of, that is both adaptive and resilient. It controls, regulates and coordinates all the physical and mental ‘activities,’ making ‘adjustments’ as required. Electrochemical ‘signalling’ and kinetic ‘information’ enables us to interpret ‘objects’ in the environment. Our understanding of the reality is therefore enhanced by our ‘direct’ and ‘indirect’ experiences of the same; and the ‘information’ we perceive through our complex visual-sensory system. As a result of which, the human brain determines our thoughts, actions and behaviours. It self-organises itself
