Philippe Aghion, Céline Antonin, Simon Bunel - The Power of Creative Destruction - Economic Upheaval and The Wealth of Nations-Belknap Press - An Imprint of Harvard University Press (2021)
Susan Ariel Aaronson, Ph.d. - Jamie M. Zimmerman - Trade Imbalance - The Struggle To Weigh Human Rights Concerns in Trade Policymaking-Cambridge University Press (2008) PDF
Ray pny Koka hata
THE SEC
ROAD OF
THOUGH
APRIEND OF ARNE WITH A BACKGROUND AY MEDIA cecently found
hime in the role of CRO of a major goverament department
‘One of the frst things he soticed is how abused the word
“strategy is: everything has tobe a strategy in arder ea get noticed
LHe was sure someone woul have a strategy fo visiting the rest
rooms. hut the second thing he noticed was that no-one was
sccualy sinking strategically: the more the word was used, the
Tess meaningfil i became
Te should not be ike thi, Strategy shoul be che process that
enables organizations to creste new Futures ad engage their peo-
ple in exciting casks, Inseead, i mosely weighs an ozpanization
down with more data and inputs
Arguably the stategy pracessis one af the weakest processesin
mont organizations: They are fa better equinped with the tool for
tperational management ara 'defenving the status que than they
ate for inventing and shaping new fatutes, and there is & good
reason for thie modets organizations exis tthe ‘delivery end’ of
the
inking lifecycle, nota the discovery end
‘Once an organization becomes mature and viable, it stabilizes
ney” becomes its overiing goal
Bur serategy is not about livery and efficiency itis about discow
ideas ito structures, and ‘ffi
ering alternative possibilities. Inherenty this will challenge the
hypotheses on which the organization is built: Seen in this light
strategy wll ehreaten che organization’ stablityso the ongeniztion
ill immunize iselfagaine it. The budget process i a practical
cxample of how this immune system’ srorks: it hardwvires
yesterday's assumptions about inputs and outputs into plans
and commitments, andso habicuates organizatonsinto preserving
the status quo.
‘We need a new approach to strategy that can uniock feesh
energy and make ie more innovative and less data driven. This i
‘what design thinking can offer
he Tao Reads Story
The heart of the Foo Roads story is that the western world
bought the wrong thinking system from Aristotle, This ranks as
fone ofthe worst iavestment decisions our civilization has made,
and it has fed us into using the wrong toolkits For ovr entesprises|ever since, T n was Aristotle's
thinking system we invested
analytes’, and we made the choice around the era of the
Enlightenment which ushered in what we tay cll the Scientific
‘Age. That decision as proven x sweeping that it none monopolizes
what aost people characterize as'hinking’ Thinking procestes are
rulyou get no beter evi
dence ofthis than or universities, che home a thinking, where
any subject must position itself asa science toe taken seriously,
“Taditional approaches ta strategy st fsly and squarely at this
able of lagi ad Sionce
Anais by che culture ofthe sciences,
Whac few people realize ie chat Aristotle conceived ewe think
ingaystems, not one. We made the big mistake of just buying one,
and allowing it to monopolize the whole territory of thought. We
should have ough them both an used them as partners Instead
‘we have only one thinking tool in our hands and we ate wsingit for
all Uae wrong purposes, Here thon it happened
-Asistotle was the frst person to codify thinking into a system,
He li thie for reason: he lived in pechaps the most dramatic
social experiment of human history the invention of democracy by
the Greek leader Klesthenes around 450 BC. This poiticalsystem
dic whae no other bad tried eo do: it delivered decision makinginto
the hands of human beings. Priae to that, regimes were governed
bythe king or the gods. "That meant that ao matter how sophist-
cated they might have been in terms of Enginecring or
Mathematics, they were not sophisticated abouthuran reasoning,
especially where decision making was concerned. Clesely
Kleisthenes’politial reforms created a great nel to codify the
processes by which humans think and can arrive at ‘truths ever
there was a do-iv-youtsef manual, chis was i Oxdinary humans
‘were paying godin Aristo Grevee
The Logic Road
Inanswerto this demand, Asistotle invented the great‘euth making
‘machine of logic, and he brilianty described it in his books o
the Anafjtic, Tae heart of the machine was the ‘syllogism’ adit
dominates the works: fb, an bee, then a. This formula col
tke ipputs and compute them into teuth elaims that were uni-
‘erally trae and incontrovertibleAve has on ic Aoi ae
nope brillant essay Asistote laid down the path for deductive
seasoning cat hae dominated the western mind for the last 300
yeas. Wat ie have bl what I cll he logic road andi artes
pretty much allofur intellectual traffic these days. The reason for
its appeal isnot so much the method but what it offers contiol
and certaney If [ean pall apace any system into its working pate
in cause-andeffecc relations, surely willbe
ly kooue the truth abent this sysesn, Thc knowledge wil
anid then explain
ateto fv
ive me conte there willbe no sucprises, and Iwill be in the box
seat. And with control [wll alo get certainty T ean predict ove
comas and guarantee eslts
ogi road convinced us more than it convinced Adisttle
Fe was alvays uneasy about the iopsts into the system. He was
confident that his inference-making engine worked well ht what
‘fe coull nos trust che puss? He never ansvered that qoestion
tohissatistacton (considerthe asttwo pages of hisndtisnwhere
ie confronts this worry); but centuries later, two great minds
comspitet 29 apparently cleanup the its question
cetly Galileo pionceced che wie of mimbers to represent elite
Rather tan represent the data ofthe universe as fable or story he
sornedallits mystery inca
rumbers cold hard, concrete numbers
“Then Descartes, who hated uncertainsy and ambiguity elevated
Mathematics to che head of the table asthe only true Science
Deseartes famously hated the ‘sof’ humanities ancl declared
that only numbers were wnarnbiguous and cue. With this they
conspited to pazeh up the inputs question snd thus logic’ became
apparently eter tight
"he logic road ndespinned he ena Sctence, which delivered
uuctechnolngies and made tive Industrial Revoktion possible. The
Revolution deliveredsst tole wealthanveapitalism, andsittingat
the end of this benelicia esl lye modern management and its
strategic processes, deeply indebted to the opie road. But the logic
«oad has tun imo all sors of eouble, mainly because has filed to
{deliver on ts main promise of contol
ith, "We
never acl so mock information avaiable tows as we have toy, so
often say to management groups that I woe
who Fels we have never been mare in control of ear orld a on
destiny? Nobody das. So-what has gone wrong?
ho Senomd Roast
For the answer, we can begin by going back to Aristotle, He was
smarter than we were in rising i and over investing in his logic
ly limited the application of his analytics
prodhict He sgntien
‘opine toa certain domain of tnt: he called this domi where
‘hingeeannot be other than they are By thie he meant the realm af
[Natural Science. you have a uth question concerning the real
of natuce cr any rea here things de ot change, by all means wse
‘helogic ros, But he said tha: this domain was no the only domain
fo eroth making, There was a sccand demain which be character
ined in the memorable phrate, ‘where things can be other than they
are! By this he ean che whole domainof harman decision making,
For this seonad domain, Aristotle conceived an ently different
thioking pathway chat combined invention, judgment and decision
weapped up ins socal process of debate He ealled this process
Jecti’, and I callie the Second Road to trot
‘where we in Fet‘play go! andletermine alternative fata
hetorie’ or
iste deseibed it just as filly as bis analptic engine
books including the Retric and the Tipice. The eriteal difference
Ibecween the cwo soads is always best understond by the diferent
domains of question that they address rhetoric was the road by
rive Furues; analytes was the oad
bbywhich we diagnosed what aleeadyexist.
‘As Richaed Buchanan of Cacnegie-Mell
rdmarkessay,designis the
which humans designed alten
Univesity has
brilliant denonstratedinasecies of
modern shetove, The significance ofthis cannot be overstated: iF
strategy isin fee a design process it has been using an incomplete
toolkit ta date
“Humanbeings do not svalyze their way into the hitre Tn fac,
‘we cannot analyze our way ont inch into the forute, forthe simple
reason that the future does not exist yet, so itis not there to
analyze. Let me demonstrate thie to yon quite simply At the heart
ofthe logics iesthe desc proof and empixicaleasoning This
is hard ited into our culture by the comnnchallenge,"Prove it
TF cannot ‘prose’ a hypothesis then Tam undone,
Suppose I propose a dream For our oxganization in which
T imagine an alternative situation, different feom and swuch
roore desirable chan the present situation, When management
challenges me to "prove it I cannot do this, fr the simple reason
that my dream lies in the future and thus is beyond! proof. Ye if
armsochallengedand repl,“Sorry I eannot proveit..but I believe
Ix? Twould fel seek and defensive in most organiationalevttores
The reasoa f would feel so defensive ie that our whole paradigm is
dominaced by the analytic system — anil itis out ofthis dominant
‘inking system thatthe challenge to prove it lows,
I we cannot analyze our way into the Rite, how do we move
ahead? The answer is ‘by arguinemts and it #8 che art ofWe
je fist
the future doe
cannot analyze our way ONG inch into.
for the sir
ree
yet, so itis not
s not exis'
angunentation chat esa the heartof the Second Road.
Arpuments ate ti engines by whichnransereataterrative
Fines The great Roman leader, Cicero, was an aid follower of
‘Keatore and quite possibly the greatest shetorcin of alm, He
ramed chee al human evilization was bile on che pathway of
spares and memorably imagined wncilized bes arguing their
‘Mapout of caves and ntrvilages, Picture che ist natives to sat
the argucent
“We don’t have to keep sheltering high up in these caves
Forever I reckon we can ive happict ives way down by he
river close tothe water and our hunting grounds”
Soho do we do that, peaytel without freezing to death in
thewinter months?”
God question, bu Thave tis ilea Lee’ clit atu = which
wwe could make oot ofthe timber fra ok trees.
You ae always dreaming you foo. vat the idea of buts has
some attraction. .akeit farther for ne”
In that dynaanie of argument ies the whole momentum of
progress, according t Cicero: if Cicero's cave dwvelers used
are mnles logie road to improve theit lies, chey would sell be
aaaaa iy analyringthe vock straccures of caves. Buc they are Ho8,
becmase the hurnan genius for argomentation enables ts to eaft
nteenative destinies
Trery stacey is an argorent, every plan an agumene 20d
vey dong isan argoment, The concept of exgument ePENS 2
Philippe Aghion, Céline Antonin, Simon Bunel - The Power of Creative Destruction - Economic Upheaval and The Wealth of Nations-Belknap Press - An Imprint of Harvard University Press (2021)
Susan Ariel Aaronson, Ph.d. - Jamie M. Zimmerman - Trade Imbalance - The Struggle To Weigh Human Rights Concerns in Trade Policymaking-Cambridge University Press (2008) PDF