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July 31, 2007

The DnA of Knowledgebased Producers (Pt. 1)

Pretty much everyone recognizes "R&D" -- research 'n' development -- as a discrete activity with a special place in supporting the future prospects of the business.

Even so, the explosion of literature on how hard companies find it to make profitable sense of their desire for "innovation" certainly suggests that the expected output of R 'n' D is too often either missing or mystifying.

The current official wisdom is that these companies need to step up to an innovation *process*. This is pretty difficult to argue against, since management will likely not finally be tolerant of any sustained activity that can't be designed as such. So the emphasis shifts quickly to wondering what the process should be like, especially in terms of how to link it to other "normal" incumbent management processes.

If there is a flaw in this attitude, it is a fundamental flaw. By definition, innovation must be derived from having a supportive perspective on a change to a designated status quo. But since "perspective" and "status quo" both call for awareness based on presumptive ideas (which we'll call knowledge), the problem to solve about innovation is not to generate "auto-magic" extension of *activity* called R or D. Instead, the problem is first to understand why innovation would be the true nature of any outcomes, and then to look into how to breed it or at least capture it as it occurs.

It is in that light that the framework below provides the corrective lens spotting the place where innovation would emerge on the scene. It represents an important shift away from the presumption of R 'n' D and moves instead on the basis of Design and Application, or D 'n' A.

This organizational DnA breaks out the issue with a cross reference of the two key elements of design (concept and form) versus the two key elements of application (specification and implementation).

The shorthand supported by this framework is for representing the range of circumstances that might be "innovative" in character. Typically, these circumstances will include (a) new items on old contexts, (b) old items in new contexts, or (c) new items in new contexts.

Said even more briefly, when something old or new is used in a new way, there is apparent innovation. But this situation of associating some item or function with a usage will have included interesting particulars. For example, how did the idea for the association arise? What criteria established the practical acceptance of the association? How was it recognized that a new association -- proposed or found -- was possible and/or meaningful?

What the DnA framework exposes is the way that the intersections of design and application generate innovation and position it for leverage. Here are just some of the observations that match the framework:
- Inspiration: borrowing details from an existing specification provides us with inspiration.
- Invention: reconnecting the details in a designated arrangement generates our invention.
- Innovation: even without a prior invention, the decision to implement the inspiration can drive forward progress in an explicit attitude of accommodating new methodology and goals. (e.g., inernal organization or reorganization)
- Orchestration: to actually execute the accommodation, the arranging of feasible adaptations and options generates the output that can "go to market"... Without this orchestration, there is little reason to expect that either an invention or an innovation would have a channel of delivery to appropriate recipients. (e.g., external organization or reorganization)


One test of the framework is scalability -- meaning that it works, and works the same way, regardless of whether the trip from concept to delivery is only the few microseconds needed to blurt out in a useful language a sudden original thought, or instead is the many months in a cycle of product or corporate reorientation in its industry's marketplaces. Either way, the producer's initial efforts, in DnA, may not necessarily result in innovation; but given the material effects of Design (already perhaps "keepers"), we can always try to move from the framework's left to its right in Application and reach different and/or more "marketable value". These movements, including Form (e.g. models), Specification, and Implementation are easily recognized as domains of knowledge that are typically extant in the organization regardless of how well they are currently managed. Meanwhile, a producer may move within the framework in many different actual paths; one of the most typical paths to innovation means taking a concept through invention and various orchestrations to arrive at an innovation; but this is not the only path necessary or possible.


This knowledge-based perspective in no way displaces RnD from a position of critical importance. Instead, it helps to clarify that RnD is "instrumental", yet is not the point at which target value is primarily generated. The products of RnD (engineering) are not ready to be valued; instead they need to go on through to DnA where the value gets defined through the knowledgeability of the producer.

The important pattern of progression that hosts the emergence of innovation along with other productivity will begin with a *motivation* to manipulate the status quo. Something about the way things already are leaves something to be desired -- in other words, a perceived "need"... Illustrated left to right, the full progression goes on to look like this:

[End of part one. All images copyright 2007 Archestra / Malcolm Ryder]

Posted by Malcolm Ryder at 11:17 PM

July 20, 2007

Strategy versus Execution

Senior managers are mainly charged with making politically correct decisions based on imperfect information. Subsequently, organizational success ultimately comes from navigation through calculated risks more than any other skill...

Discuss amongst yourselves.

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(Note: images found via Google search and at Shutterstock... and are not my original artwork.)

Posted by Malcolm Ryder at 8:48 AM | Comments (0) | TrackBack

July 14, 2007

The Radical Evidence of Artistic Research

Everyone who has ever argued about something is familiar with the challenge, "Prove what you know!"

This provokes a popular and creepy confusion. Taken to its extreme, the challenge even shifts its own point -- from establishing "truth" as a quality of knowledge, to estabishing proof as a quality of technique. That is, what is really demanded is not so much the absolute veracity of the ideas but the circumstantial reliability of "expertise". In that way, for example, the mode of scholarly evidence is allowed to overrun the confidence in artistic opinion. Yet when time has passed and reality aligns with artistic opinion, that opinion is seen (in hindsight) as being "foresight" and -- belatedly if not quite posthumously -- granted its due value, except of course by those who going forward want to co-opt the credit.

What is artistic opinion? Most people recognize it as "intuition", and this discussion recognizes intuiton as knowledge. In what follows below, the point is not to discuss opinions about art but instead to discuss the nature of the labor of formulating and presenting an idea. Two of its three key considerations will be that: (a.) this labor is artistic; and, (b.) the opinion produced by it is a form of knowledge.

The third consideration? When it comes to accepting things offered as "knowledge", we worry only because we need relief from the anxiety of uncertainty. But if we discover that we don't need the anxiety, then uncertainty is not a bad thing per se, and instead it becomes intellectual freedom that allows new knowledge to occur.

Still, looking briefly at the phenomenon of art works is helpful in setting the stage for recognizing this . A work of art "proves" something, but actually all that it proves is its own mechanism of conveying what it is about. That is, it's "proof" is essentially structural, more or less in the same way that a math equation is... but the structure takes its significance (literally, its ability to convey an idea) only from the context of what it is concerned about. The key question about a given work of art is, "why is (or was) its structure important?" And the correct answer will be primarily about that why, not a substitute answer describing the how. The "why" answer will wind up describing what concern was the one to which the structure was responding as it developed -- thus providing the context for understanding the importance of its "how".

In large part, this is what many people can find to be so exactly aggravating about an artwork -- either that it is not apparently concerned with what the observer is concerned about, and/or that the choices made by the artist to develop the responding structure are unexplained. Since there is vastly more art, and vastly more variety of art, than a typical single person has experienced and reached familiarity with, it is not at all improbable for a given artwork to be "about something in a certain way" where the observer is sympathetic neither to what it is about nor to the way it is "about it"...

In moments like that, the observer may have the high anxiety of uncertainty -- of possibly being fooled by something that doesn't actually try to successfully mean anything; by something that might be just "going through the motions" without detectably bothering to try to convince us even that the motions are taken seriously.

But with that same moment there may instead be the challenge of confronting knowledge that one simply didn't have before. And to avoid observer cynicism about the unfamiliar, the moment calls for realizing that not all things can be known the same way.

As goes with art go other presentations of ideas as well.

It might be considered fair for an observer to always ask the presenter to push an unfamiliar idea at least half of the distance towards being familiar knowledge. If the observer wants to accept the idea, and the presenter wants the idea to be accepted, then why not go at least 50/50 on the effort? The answer would be that the producer has typically done far more work already just to produce the artifact for the first time, than has the observer to become exposed to it for the first time. It would appear that the workload starts out with a huge imbalance, as the producer's "half" may not ever be balanced by an equal effort of observation on the observer's part.

The way that this balance is achieved, however, is not by the observer waiting for the presentation to occur and then giving it "equal time" -- but instead by the observer having already behaviorally invested in intellectual openness to new forms of knowledge before the presentation occurs.

For too many serious-minded people, the ability to accept some given presentation as "knowledge" is all bound up in an insistence on some particular technique of "proof" in presenting evidence. In the heat of the moment, their comfort leans, let's say, towards academic footnotings and away from unfettered idiosyncracy. Said differently, it is a competition between citations of historical factversus proposals of theory. In order for theory to be accepted as (conventional) knowledge, the burden of "proof" must be lifted in the form of historical citations. Science, not art.

Well, interestingly, the history of science has the characteristic of revealing that theories are often more reliable representations of truth than is the "evidence" dug up to support them -- simply because in the heat of the moment, the conventional program for generating the evidence just can't get it right, and much later, after that program has been abandoned, the theory is admitted by some other means (e.g. a better program). That is, scientific revolution has always been much more a story about our ability to know something, than about whether what we thought we knew was "actually the truth"... Certainly we do believe that we now know vastly more than we did even thiry years ago -- but the bigger story remains that we now have many more ways of knowing something than we did before. Re-inventing investigation is actually the key to knowledge breakthroughs. And investigation is essentially about actions, not about results.

Let's run with this a bit: the basic activity of knowledge acquisition is the thought process, which is what allows a way of knowing something. What is tricky about a thought process is that if the process is being invented, too, then it is more highly uncertain what it will allow us to know, and meanwhile it can be quite difficult to know whether the current process is conclusive. This is strongly reflected in the saying "a work of art is never finished, rather, it is just stopped"...

But to put things more to our point, when the process reveals something to us, we often hit the pause button and show off what was revealed so far. These exhibits (or "findings") are the knowledge in the moment. From there, they may or may not be formatted for re-presentations. Another option is of course to formalize the process so that the revelation can be re-produced.

Preserving findings for future reference stages the occasions where they may later come off as being "predictions" (literally, "said before"). Case in point: this article you are currently reading is content in the Archestra repository, where the bulk of the material to be found is, persistently, findings from an artistic research mode rather than from an organization of empirical evidence. Even the oldest of the Archestra content, going back to about 1996 origins, most frequently states or argues circumstances in some combination of "what if" and "as if" postures, seeming speculative and not academically rigorous. Yet the oldest of these ideas and assertions are sometimes only now showing up as "valid" in the conventional broad publishing of consulting firms, corporate marketing (especially by IT firms), and the like -- venues where there are customers who immediately demand "prove it!" because, for these customers, investing in uncertainty is an unacceptable risk. Typically, consultants and marketers, once they decide to collect conventional evidence for a theory, kill a significant amount of time and/or money doing that before they bet their business on it. The major point here is that those efforts are not about turning something into knowledge that wasn't knowledge already; instead they are about turning exposure to existing knowledge into adoption of it.

It's a nasty marketing habit to call those conversions "thought leadership", but no one wants to leech the fun out of marketing. At least today -- thanks to the web or other modern tools of exposure, surveillance and access -- we can more likely watch where ideas are actually coming from and get beyond the less benevolent artifices of "intellectual property".

To return to the beginning of this discussion: is there any reason to avoid identifying intuition and opinion as "knowledge" ?? The usual rap against them -- lack of credibility or objectivity -- is so rooted in anxiety over uncertainty that the rap should be discounted except in certain practical circumstances like heart surgery or legal contracting. The supposed alternative -- empirical evidence and testing -- is a power play, but it is so vulnerable to the capriciousness of competition and politics that it, too, should be discounted as an automatically correct default.

But does this mean that neither approach should be embraced? No, only that they are peer opportunities that both need to be understood before either is tolerated or used.

As a matter of "knowledge management", a responsible party must be able to determine what is really being asked for, whether what is received is appropriate to the request, and whether the request is appropriate to the circumstances in the first place. Education (exploring thinking) and execution (acquiring results) are simply not the same thing. Even more basic: does the requester need truth or instead a belief? Facts or confidence? Insight or accountability? As a knowledge provider or cog in the knowledge provision machinery, is your responsibility to provide insightfully truthful facts, believably confident accounts, or some other blend? Can you tell the difference, and is what you provide even the right thing for the recipient to be using?

Posted by Malcolm Ryder at 8:32 AM | Comments (0) | TrackBack

July 3, 2007

In I.T., Time is Money

CIOs are usually asked to stop the spending! ...but actually they go on directing the spending of the most important currency of all.

In an interesting parallel, the McKinsey folks have been able to track the connection of IT assets to business performance not by simple cause-and-effect, but by naming the secret sauce in the middle, just as the people who discuss Operational Performance Management (OPM) have.

In OPM, the problem is often stated that something must show up to align execution to strategy. Although execution presumably exists to directly serve strategy, it often proves not to do it, and it needs an agent of some kind... a middle man. Disintermediation is not a good thing.

Well, some readers run, a bit carelessly, with the notion that McKinsey preaches better business performance through IT superiority. Picking the "execution-er's" nit, us contrarians say that while high-performing businesses may show IT superiority, IT superiority doesn't necessarily equate to getting high business performance. For starters, despite the promise of automation, we don't simply equate "I.T." with execution; nor business performance with strategy, since many companies gain even more by luck than by smarts. And instead, we think the good stuff happens in the middle (somewhere between IT and business performance).

To be fair, so does McKinsey. But to improve on their take: we like the elegant end-to-end trajectory of evolving the application of IT -- evolving it from practices (i.e., cost) to strategy (i.e. value). This line of thought is crucial to escaping the boring myopia of anxiety or thrill about "commodity" IT... And to avoid having the middle of the trajectory wallow in wishful thinking, it is necessary a la McKinsey to insert "alignment", but which here means "investment". The right investment is the secret sauce.

To put this investment in perspective, ask a business, "if you could have only one of the following -- more tools, more ideas, or more time -- which would you choose?"

On the main trajectory, investing in the best answer -- time -- will mean tracking and balancing what IT does to people versus what people do to IT. Why? For example, in execution, whether about innovation or about maintenance, time affects how people use IT; and in procedural design, people decide "how IT uses time"...

Looking for superior IT utilization? When time is granted to persons interested in trying IT, IT enablement is learned much more quickly -- which is then what allows IT to change business capacity. Without capacity, you can forget about agility, recovery, and growth.

Naturally, then, the business is strategically concerned with "buying time". So, take any organization and, in the trajectory, here is the alignment both literally and virtually: the organization's politics of "spending time" will determine how its people get the time, and thus whether its IT can actually advance the organization's strategy or not.

And guess where time is *controlled* ? Not in supply, nor in strategy, but in management. So, ultimately, in a virtuous circle, the CIO manages to ensure that time is spent on IT to actually "create more time" for the business, instead of losing it... But what is the #1 barrier to achieving this virtuous circle? Politics.


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