viernes, febrero 06, 2015

Should we waste the opportunity of an institutional innovation on the Electric Pact to start to leap Capitalism from Good to Great?

Fifth Update.  El economista Pedro Silverio nos ha entregado su muy revelador artículo Los problemas del euro que directamente nos llevan al autor principal de la crisis del Euro: su arquitecto Robert Mundell. Los siguientes tweets revelan la conversación sostenida hasta este momento al respecto:
Pedro Silverio A. ‏@pedrosilver31 - Comparto mi art de hoy: Los problemas del euro - Diario Libre Movil http://www.diariolibre.com/movil/noticias_det.php?id=1021371 … #DLMóvil via @Diario_libre

 Jose A Vanderhorst S ‏@gmh_upsa - 1/3. Gracias @pedrosilver31 @Diario_Libre por citar a Mundell. Es fácil ver ahora en http://bit.ly/724GMH  que interpretó mal a Schumpeter.

 Jose A Vanderhorst S ‏@gmh_upsa - 2/3. As the architect of "supply-side economics" @pedrosilver31 @Diario_Libre he introduced a very serious "demand-side systemic problems"..

 Jose A Vanderhorst S ‏@gmh_upsa - 3/3. .. that are leading us @pedrosilver31 @Diario_Libre to the 2nd Middle Ages. To solve them we need a Demand-Side systemic leverage leap.

 Jose A Vanderhorst S ‏@gmh_upsa - 5 tweets conversation on how Dom. Rep. http://bit.ly/706GMH  can help save the Euro by being the 1st example of Great Capitalism #EuropeIN

 AntonioVChanal ‏@AntonioVChanal - @gmh_upsa he añadido tu tweet a mi web http://antoniovchanal.com/twitter-en-imagenes … http://rbl.ms/1tp2WD0

 Jose A Vanderhorst S ‏@gmh_upsa - Gracias @AntonioVChanal Espero que el mismo llegué a las más altas instancias del @Europarl_EN lo más breve posible a favor de #greekcrisis

 Fouth update is once again in Spanish. Es muy interesante y oportuna la campaña Clase Media Dominicana. En Esta Vuelta Tienen Que Escucharnos. Pero al igual que intentos anteriores de los indignados, por ejemplo, en la primavera Árabe, 15M en España, Occupy Wall Street, Zigmunt Bauman, el filósofo y sociólogo polaco famoso por su concepto de la modernidad líquida, dijo sobre los indignados que: “El movimiento crece y crece pero ‘lo hace a través de la emoción, le falta pensamiento. Con emociones solo, sin pensamiento, no se llega a ninguna parte.’ El alboroto de la emoción colectiva reproduce el espectáculo de un carnaval que acaba en sí mismo, sin consecuencia. ‘Durante el carnaval todo está permitido pero terminado el carnaval vuelve la normativa de antes.’”

Para solidificar el movimiento es necesario que el Estado deje de simplemente transferir esa gran parte del poder adquisitivo de los Indignados de Clase Media y desarrolle una estrategia de trajectoria hacia mercados sobresaliente que produzcan suficiente apalancamiento sistémico positivo como para que todos podamos ganar. Al recibir un servicio sobresaliente, los subsidios a los pobres sería mucho menores.

 Third update is also in Spanish. Para evitar que desperdiciemos la gran oportunidad que tenemos para brincar del capitalismo que fue bueno, pero que en el rápido e intenso cambio del entorno que enfrentamos se ha vuelto un capitalismo mediocre, tengo el gran placer de recomendar encarecidamente que escuchen la excelente y oportuna Intervención del Lic. Vásquez Perrotta.- “Ciegos, Sordos y Mudos, en el popular Matutino de Teo Veras. de esta misma mañana del 12 de febrero de 2015

 Second update is also in Spanish. En las notas "Tomas Moro y los rentistas del sistema" parte 1, parte 2 y parte 3, correspondientes al 26 de septiembre, 29 de septiembre y 3 de octubre del 2010, respectivamente, Juanjo Gabiña produce una excelente aproximación a la realidad que nos toca vivir al principio de la cuarta revolución de la información, basado en lo que Tomás Moro vivió justo al principio de la tercera revolución de la información. Cabe destacar la crítica al rol que desempeño la Academia en aquel entonces y que parece estar desempeñando de nuevo. Esta es una serie de mucha importancia como complemento de esta nota

First update is in spanish: ¿Respetar la insitucionalidad del status quo o impulsar la innovación institucional para reducir la desigualdad?

  1.  2 hours ago
    El País no se defiende con amenazas menos con violencia. Es con respeto a la instituciónalidad
    1 retweet1 favorite
  2.  45 minutes ago
    exacto con argumentos y con demandas a la autoridad para que haga cumplir leyes
    1 retweet
¿No será falta de innovación institucional?
Should we waste the opportunity of an institutional innovation on the Electric Pact to start to leap Capitalism from Good to Great?

By José Antonio Vanderhorst Silverio, Ph.D.
Consulting engineer on systems architecting
A Dominican servant-leader and global citizen
February 6, 2015
“The servant-leader is servant first… It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions…The leader-first and the servant-first are two extreme types. Between them there are shadings and blends that are part of the infinite variety of human nature.
“The difference manifests itself in the care taken by the servant-first to make sure that other people’s highest priority needs are being served. The best test, and difficult to administer, is: Do those served grow as persons? Do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants? And, what is the effect on the least privileged in society? Will they benefit or at least not be further deprived?” -- Robert K. Greenleaf in The Servant as Leader, an essay that he first published in 1970.

"[Y]ou can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something -- your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life." -- Steve Jobs, Stanford University commencement address, June 2005.

Summary

 The Electric Pact of the Dominican Republic that started on January 2015 can become a great opportunity for humanity if it is reframed as a strategy of trajectory from its current strategy of terrain to go into the Great Capitalism Systemic Civilization scenario instead of the current Good Capitalism 2nd Middle Ages scenario, Corresponding to a systemic crisis of more that 40 years, being very representative for other sectors of society, this high systemic leverage opportunity should not be wasted.

Resumen 

El Pacto Eléctrico de la República Dominicana que se inició en enero 2015 puede convertirse en una gran oportunidad para la humanidad si se reformula como estrategia de trayectoria desde su actual estrategia de terreno para entrar en el escenario del Capitalismo Sobresaliente de la Civilización Sistémica en lugar del actual escenario del Capitalismo Bueno de la Segunda Edad Media, Correspondiente a una crisis sistémica de más de 40 años, siendo muy representativa para otros sectores de la sociedad, esta oportunidad de alto apalancamiento sistémico no debe perderse.

 Introduction

Steve Jobs' quote only makes sense when the future is not a continuation of the past. I suggest that during the industrial civilization there were 4 technological revolutions  that lasted around 40 to 60 years, where the future was not a continuation of the past [1]. But, Steve Jobs' quote makes a lot more sense, when the late management guru Peter Drucker tell us that what's happening is more that a technological revolution; it is the 4th information revolution that has a precedent which started nearly 500 years ago in what he understood as the 3rd information revolution [2].

While humbly knowing the great difference between the institutional innovations that Steve Jobs introduced in several industries, this is about what I have been proposing recently as a servant-leader, to address what I discovered was the biggest systemic problems of the Dominican Republic. That problem is in the electricity sector. So, in this blog post I trust that it can now be approached by connecting the dots looking backwards from what I will describe below as Great Capitalism. Great is based on an enlarged interpretation of Jim Collins’ book Good to Great [3],

How the thin line from arrogance to servant-leadership was crossed

Following Jobs' leading quote, I strongly trust this is sufficient to learn, for example, what I believe is a MUST READ post with 2 comments,  about the small difference between arrogance and leadership [4]. The comments were made in response to an invitation that Roberto Verganti, the author of the book Design-Driven Innovation, sent me to comment his Harvard Business Review Online blog post"Quantity versus quality in collaborations".

It is easy to see that quantity collaborations are good when the future is a continuation of the past, while quality collaborations are needed otherwise. As will be seen below, in this case the quality collaboration will pursue institutional innovations. The first comment introduces two leaders and myself. The second has my personal story about the need for quality collaborations in a setting designed for quantity collaborations, similar to what should be done in the Electricity Pact.

The first and more general story is about the greatest American philosopher Charles Sanders Peirce. I wrote that he "discovered the logic of the surprise, which he called abduction. Abduction is to be added to deduction and induction. Abduction is what enables us learning from the future, which allows leaders to make claims that are superior to past experience without necessarily being offensive." Thus not being arrogant, but leaders.

Then I introduced that "The second is about Mr. Steve Jobs, the leader who has raised the bar of true Design Thinking superiority. If I take only the good part of the definition of abduct, “to carry off or lead away … in secret,” Mr. Jobs is the master..."

In the third I said that I was enabling “radical new meaning” for a whole industry, but I can now say I have enabled "radical new meaning" for the whole global society by learning about the emergent future. That introduced the second comment, where I told a personal story related to the understanding behind Quantity vs. Quality in Collaborations. Now I can see myself as being the non arrogant servant-leader winner of the IEEE Spectrum Smart Grid 2025 game, on an electricity institutional innovation that might not let me down as we are now able to connect the dots looking backwards.

The Electric Pact Systemic Leverage on Great Capitalism

That’s why I urge considering the Dominican Republic Electricity Pact as the most important opportunity available right now to try to introduce an institutional innovation that might start to leap capitalism from Good to Great. In order to approach it synthetically, it can be said that today there are in general only two scenarios on the future of capitalism available to societies, the first based on the common sense of Jobsism and the second on the common sense of Fordism, that is now corrupted by Feudalism [5]. The first corresponds to strategy of trajectory and the second of terrain [6].

Great Capitalism can be the result of the 4th information revolution that introduced increasing returns that are able to shift the power from seller’s markets to customers’ markets. That is described by Steve Denning as follows [7]:
In traditional management, the firm was the stable center of the universe and the customer revolved around the firm. The customer was taken for granted.

In the new scheme of things, the customer is the center of the universe and the firm revolves around the customer. 
The continued imposition of unfair seller’s markets by regulatory government interventions is what has led to many systemic problems that can now be addressed with the common sense of Jobsism to enable fair customer’s markets [6, 8]. While those who apparently lead first were able to win in seller's markets under the common sense of Fordism, where workers only follow orders from management, whether they were right or wrong, I understand that servant-leaders need to pass the above mentioned "best test" in order to win in customer's markets under the common sense of Jobsism.

Great Capitalism Systemic Civilization Scenario

The first scenario is that of a Great Capitalism of the systemic civilization, which Piketty didn’t envision, like Ricardo didn’t either as they both have extrapolated the future as being a continuation of the past [9]. In this Great Capitalism the market failures [6, 8] of Good Capitalism are dismounted by using the bright side of technology having balanced benefits and risks among  the parties, under the ethical idea that fair is fair and foul is foul [10].

This can be done, for the first time, by considering Great electricity service [1, 11 ] where a minimalist architecture institutional innovation, that might be developed under the cooperation with the Latin American and Caribbean Region [12 in order to learn much faster, enables a business model competition in the private sector to develop such a high positive systemic leverage to make sure that every customer has the win-win opportunity to receive something they are not expecting but will love [13]. Based on more than 20 years of dedication, I strongly believe that such systemic leverage opportunity is currently available in the Dominican Republic, where one of the world’s most prolonged systemic crises may continue if the opportunity is once again wasted.

In fact, there seems to be no better opportunity than that available in the present Electricity Pact that started in January 2015 to introduce great electricity market, where market failures get dismounted in a transition process. It would be a pity to waste such opportunity of capitalism based on the bright side of technology [14]. It is expected that this will be emulated by other sectors where systemic problems keep capitalism for leaping from Good to Great. Those great markets will then mutually reinforce each other to bring us Great Capitalism.

Good Capitalism 2nd Middle Age Scenario

On the contrary, those societies on Good Capitalism will continue to follow the current 2nd Middle Age scenario that is in accordance with Thomas Piketty discovery of an increasing inequality gap, where the rich get richer and the poor poorer [15]. This is where the best test is not passed at all by those managers in charge.This scenario is also in accordance with John Hagel III’s Dark Side of Technology [14].

Good Capitalism is keeping societies in the Doom Loop that Collins and his research team wrote about.  Such Doom Loop remains as some companies are even allowed to subtract value from customers and society instead of adding it as a result of benefiting, for example, by becoming expert vampires [16] that I understaand benefit from loopholes related to market failures [17]. According to Nobel Prize winner Joseph Stiglitz, this capitalism is one which privatizes the benefits to companies and socializes the risks among the general population. It can be also said that it is based on Shakespeare’s old idea that “foul is fair and fair is foul” and that Keynes also consider was need by Good Capitalism [17].

[1] A complete and fully functional electricity restructuring proposal, GMH Blog, November 4, 2013
[2] Peter Drucker “Management Challenges for the 21st Century,” page 102.
[3] Jim Collins, Good to Great, HaperCollins, 2001
[5] Applying #Jobsism to transform current global #Fordism marketing myopia. GMH Blog, October 24, 2014. That Fordism was corrupted by Feudalism show up in the updates.
[6] Can 10 questions above politics help forecast a new world order in 2015?  Version 0.0. GMH Blog, January 6, 2015. According to its fifth update, it can be considered as Version 1.0.
[7] Steve Denning, More On Why Managers Hate Agile, Forbes, January 28, 2015.
[10] This is the opposite of “foul is fair and fair is foul” that's found in [17].
[11] Great electricity service, EWPC Blog, July 22, 2013.
[15] A Systemic Civilization Global Declaration of Interdependence, GMH Blog, December 14, 2014. An update of February 2, 2015, reinforces the need for the declaration.
[16] Steve Denning,  How Business Leaders Turned Into Vampires, Forbes, September 14, 2014.

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