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WaaI – New Solution for work in post-post industrial world

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A lot of talk about the future of work is going on around the world.  Almost everybody seems to be worried about what will happen when robotization and digitalization take over more and more of jobs that used to belong to us humans.

Indeed there is a great need for new solutions because there are jobs that will never require a pair of human hands and the development does not show signs of getting slower. Just the opposite is happening, as robots get cleverer and handier they keep on moving to new areas of business, not avoiding even the work of the scientists, nerds or customer servants.

Following the discussion of the future of work in Finland, it seems that a lot of effort is put into making old models solve the new challenges. That will not happen, we think, and therefore we suggest a new design for thriving in the working life where in addition to humans there are several different artificial agents keeping the wheels of economic life and societies rolling.

Work Is Dying – Long Live Work!

Professor Richard Florida has shown  in his study ”Occupational and Industrial Distribution in Peterborough” that the number of jobs that include service and creativity will increase whereas jobs in the farming and manufacturing sectors will decrease to an extent that it is not reasonable to compile statistics in those fields anymore – even though growth is strong in those sectors. Somebody or something is working hard in farms and factories!

The former CEO of the International Federation of Robotics Dr. Shinsuke Sakakibara foresaw in 2013 that in the coming five years robots will create millions of high quality jobs – there where robots are used, we would like to add. The benefits of the development are seen for example in the US where Paul Krugman thanked robots for reshoring jobs to America (http://krugman.blogs.nytimes.com/2012/12/08/rise-of-the-robots/) . Reshoring seem to be trending in other countries too, thanks to robots and automation.

The window of opportunity is open. Robots and automation create new jobs, innovations, new companies and most important: new possibilities to solve the enormous global challenges we face in our times. However, the window might be closing. What happens when robots storm into service sector, offices and hospitals – places where we are used to see many post-industrial workers? The closing time for the window can be closer than we think – or want to believe. We need to get prepared.

Some politicians still hold on to a dream of a factory to where people swarm to work in five continuous shifts. We have bad news for those politicians: your dream will not come true. The first fully automated factories are running as well as fully robotized hotels. We can see the signs of the new world, now we need to act.

The Future of Work: From Worker to Investor

So, what is the future of work? Micro jobs, part-time jobs, entrepreneurship, these are some of the solutions presented, many of them are seen a part of sharing economy. However, will sharing economy be a sustainable solution? Even Uber that is often portrayed as a leading example of sharing economy have started to put a plan to use robots instead of people in action http://www.theguardian.com/technology/2015/may/22/uber-self-driving-car-pittsburgh

Will entrepreneurship be a solution to guarantee jobs for all? Perhaps not. Not all want to become entrepreneurs and probably there will be companies that need human workers also in the future.

What about basic income? A guaranteed minimum income could be a part of the solution but it does not solve the challenges of globalizing, complex and fragmented job markets. We need new solutions to offer people possibility/possibilities to create a concept for work, a way to combine several jobs in a portfolio that provides economical means for living and wealth creation, inspiration and incentive to use their own capacities optimally and enough safety to enable freedom from fear of survival.

Ladies and Gentlemen: Please allow us to present Work as an Investment!

Work as an Investment means that a person offers her/his work to a company or organization in a same way as an investor invests in shares. During the investment, a dividend is payed, and if the investment is profitable, it can continue. If the investment does not create sufficient value it can be denounced and the company pays the ”price of the day” for the investor. WaaI includes incentives for both the ”employee” investor and the ”employer” or the organization where the investment is placed.

WaaI is a way of doing business with one’s competencies and capabilities. It is not a time-bank where people exchange tasks. It is not a way of crowdsourcing either, even though there are some similarities.

Work as an Investment is a new way of thinking work and job markets, it is based on business- and investment concepts. Elina Lepomäki, a Member of the Finnish Parliament, writes: ” … a direct or indirect border-crossing trade of anybody’s competence is going on. There will be work only for those who have something to give in their domain and can provide it with a market price.”

WaaI is a tool for human beings to deal with their work input like an investor. The work input can be invested in several organizations and by so means build an investment portfolio where the capital produces best interest and grows optimally.

From CV to the competence portfolio

For workers it should be useful to assess their own skills and capabilities in relation to their factual (1) core work knowledge, (2) customer-specific knowledge and (3) strategic competence and knowledge. Each individual has his or her own competence portfolio. They negotiate and make work contracts in the labor market based on their own personal competence portfolio.

On the other hand, each has its own employee talent portfolio, which they can develop through training, education and self-improvement. When an employee goes to work for any organization, new work represents an opportunity to develop his/her competence portfolio more versatile and add something valuable to their own competence portfolio. Also, the employer has the chance to develop the whole company’s total human/intelligence capital portfolio. In the best case both parties will benefit based on Win-Win principle, i.e. the employee can increase the value of his/her competence portfolio and the employer receives an additional contribution to the knowledge-based capital portfolio. In addition, this kind of competence portfolio may be the great possibility for a wide range of investment opportunities and business agreements.

Like in the business world, start-ups and companies develop new business models, workers should also develop new kind of competence portfolio models, which help them to diversify risks and work investments in their personal life. Modern portfolio theory (MPT) is a theory on how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. This kind of MPT thinking can be applied also to work markets, where workers invest in their competence portfolios. Why we allow risk management based concept/model? On the MPT for companies, but we do not allow the MPT for workers? Indeed, the WaaI model allows portfolio thinking for all workers.

Like in stock markets investors invest in many companies, WaaI suggest that workers could invest their work input in several companies. A WaaI -investor can have a number of human capital portfolio contracts. This requires, of course, that the investors’s and the company’s roles are very clear, which is  not always true in the conventional labor market.

There are also many trainers and educational organizations, that can be involved in the contract and competence portfolio model. For example, today through crowdsourcing business models citizens will reach very “divergent model” agreements in the labor market. Actually, some of these new contract models are not particularly fair. If you want to see work as an investment, it requires a kind of an investment agreement with an investment commitment to a genuine on both sides of portfolio contractors. Admittedly, new research is needed to clarify the operating work contract models in which both workers and employers are free to agree on the terms of the work carried out. In the very traditional model of “paid work”, involved parties do not have a clear idea of the portfolio investment model, which makes it a high-risk contract model in the rapidly changing labor markets. The traditional model of “paid work” or employment also displaces many people from the labor market, if they are not ready to set up their own companies. This is a real problem in the freelancer work market.

A useful model to understand the key components of competence portfolio was developed by Professor John Holland when the RIASEC personality model was formulated. According to this model, people´s orientation can be classified as Realistic (Realistic), Investigating (Investigative), Artistic (Artistic), Social (Social), Enterprising (Enterprising) and Conventional (Conventional). This model has proven to be useful and reliable scientific basis as a model example of competence portfolio with strong career planning point of view. When the work is seen as an investment, the WaaI model can help people in their career planning and support people’s inherent personality traits and talents.

Figure 1 shows an integrated WaaI model with key elements: (1) Human capital classification of core work knowledge customer knowledge and strategic skills knowledge, (2) human personality and competence model based on Holland’s RIASEC model, and (3) competence & qualifications needs analysis of organizations and companies, which should have a very clear connection with companies needing core work knowledge, customer knowledge and strategic skill knowledge.

WaaIFigureNew

This kind of integrated WaaI model could be useful, for example, when labor unions, public agencies and private agencies want to develop effective local bargaining system (in Finland?). This conceptual model would also help to orient training and educational organizations providing the right kind of core work knowledge, customer knowledge and strategic knowledge. In Finland, the key challenge is to form a correct big picture of the knowledge capital of future(s?) of labor markets. In addition, correct precision training of national talent pool is by no means an easy thing to accomplish. Integrated WaaI model and the associated WaaI -portfolio competence model could be an effective and realistic approach to these future challenges.

Digital applications WaaI’s tools

In Finland, which is modern knowledge and innovation society, we can easily develop new intelligent digital applications, that  would help to improve matching of firms and employees to the knowledge capital in a rapidly changing global labor market. Work as an Investment model could be a more realistic way of working in the changed social circumstances. The local intelligent bargaining model of labor markets, which functions digitally, could be sufficiently ambitious and bright model for the future developments of the labor market.

WaaI is a new social innovation. All sides of labor market stakeholders can benefit from WaaI in a big way. Like all inventions, the WaaI model also calls people for the further developments and piloting. After WaaI 1.0 comes WaaI 2.0. Nowadays, when more labor market flexibility is much desired, we need more dynamic experiment cultures and courage to make a new WaaI idea function in changing realities of work markets.

Helsinki 8.3.2016

Cristina Andersson and Jari Kaivo-oja

More information:

Bridgstock, R. (2009) The graduate attributes we’ve overlooked: enhancing graduate

employability through career management skills. Higher Education Research & Development

28(1), 31–44.

Eby, L., Butts, M., & Lockwood, A. (2003) Predictors of success in the era of the boundaryless

career. Journal of Organizational Behavior, 24(6), 689–708.

 

Foray, D., & Lundvall, B. (1996). The knowledge-based economy: From the economics of

knowledge to the learning economy. In Employment and growth in the knowledge-based

economy. Paris: Organisation for Economic Co-operation and Development.

 

Harvey, L. (2001) Defining and measuring employability. Quality in Higher Education, 7(2),

97–109.

Holland, J. L. (1997). Making vocational choices: A theory of vocational personalities and work environments (3rd ed.). Odessa, FL: Psychological Assessment Resources.

Jones, C., & deFillippi, R.J. (1996). Back to the future in film: Combining industry and selfknowledge

to meet the career challenges of the twenty-first century. Academy of Management Executive, 10(4), 89–103.

Mind Tools (2016) Holland’s Codes. Shaping a Career That Suits Your Personality https://www.mindtools.com/pages/article/newCDV_98.htm

Smart, J. C. (2010) Differential patterns of change and stability in student learning outcomes in Holland’s academic environments: The role of environmental consistency. Research in Higher Education, 51, 468-482.

Smart, J. C., Feldman, K. A., & Ethington, C. A. (2006) Holland’s Theory and Patterns of College Success, Commissioned Report for the National Symposium on Postsecondary student success: Spearheading a dialog on student success, National Postsecondary Educational Cooperative.

Smart, J. C., Feldman, K. A., & Ethington, C. A. (2000) Academic disciplines: Holland’s theory and the study of college students and faculty. Nashville, TN: Vanderbilt University Press.

Smart, J. C., & McLaughlin, G. W. (1974) Variations in goal priorities of academic departments: A test of Holland’s theory. Research in Higher Education, 2, 377-390.

Tracey, T. J. (2008) Adherence to RIASEC structure as a key decision construct. Journal of Counseling Psychology, 55, 146–157.

Florida, Richard, (2013) Occupational and Industrial Distribution in Peterborough:  A Benchmark and Comparison Study. Martin Prosperity Institute.

 

Monipaikkatyö vai muuttoauto, Outi Lammin blogi 22.1.2016 http://www.outilammi.fi/blogi/2016/01/monipaikkatyo-vai-muuttoauto/

Suomella yllättävän hyvät aseet robottien vallankumoukseen, Yle 24.1.2016  http://yle.fi/uutiset/suomella_yllattavan_hyvat_aseet_robottien_vallankumoukseen__koulutus_puree_tahankin/8620829

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Robots and Bohemians: Unholy Alliance for Better Futures?

OLYMPUS DIGITAL CAMERA Jari Kaivo-oja (Research Director, Finland Futures Research Centre, Turku School of Economics, University of Turku)

“Science, says Kevin Kelly, is the process of changing how we know things.  It is the foundation our culture and society.  While civilizations come and go, science grows steadily onward.  It does this by watching itself.” – https://edge.org/conversation/speculations-on-the-future-of-science Rise of the Robots is a landmark book which continues the provocative analyses of Lights in the Tunnel of Martin Ford (2009).

Silicon Valley entrepreneur Martin Ford gives us new and updated arguments to the discussion of technological revolution we are facing today everywhere, in the US, in the Euro zone and in the BRICS countries. Not only developed post-industrial countries rely on advanced robotics – but also developing countries are adopting new AI and robotics solutions. Only few eminent thinkers think about the futures of corportions and nations after rise of robots. Fortunatelly – we have eminent scholar and engineer Martin Ford to think forward. Technological foresight analyses tell that next 15-20 years are meaning enormous and disruptive changes in our economies and business networks. The threat of jobless future and massive technological unemployment are real and evidence-based. Only the very fool conventional neoclassical economist doubts it.

System modeler Martin Ford provides a lot of empirical evidence from US, which indicate not marginal changes but massive technological disruptions in the US economy. Martin Ford continues the tradition of John Maynard Keynes in his discussion about technological unemployment. He also continues the tradition of Joseph Schumpeter in his discussion of disruptive technological changes (McKinsey Global Institute 2013) . Martin Ford has now updated these classical analyses to meet the grand challenges of today and tomorrow. We must give full respect to him.

AI and robotics are making “good jobs” obsolete and vanishing. Smart software, robots and AI-based solutions replace many white-collar jobs. Paralegals, journalists, office workers, teachers, health care professionals and even computer programmers are poised to be replaced by disruptive technological innovations. Autonomous robotics and swarm robotics change many service architectures and service designs. Key change – identified by Martin Ford is that a tight relationship between wages and productivity does not hold any more in the US economy. This is a dangerous phenomenon for the future welfare of people. Robotics is not a novel issue in the economic history. In industries and agriculture there have been a lot of robots and automation solutions. All we know the Luddites discussion and Race Against Machine analyses of Brynjolfsson and McAfee (2011) (http://www.amazon.com/Race-Against-The-Machine-Accelerating-ebook/dp/B005WTR4Z ).

Now newest thing is the emergence of service robotics. We can see many service robotics innovations in health care, hotel and recreation industries, retailing, and libraries – and in many other service sectors. Personally, I think that Mr Martin Ford is absolutely right when he notes that we are moving towards a new economic paradigm of smart machines. He is not in bad company, because there are such research fellows like Ray Kurzweill and Michio Kaku, who think in similar way. Personally, I respect these eminent research fellows. It is also good to remember that Gardner Inc notes that “CIOs must start considering how to develop ethical programming for smart machines”. Realizing the potential of smart machines and AI — and ensuring successful outcomes for the businesses and societies that rely on them — will hinge on how trusted smart machines are and how well they maintain that trust. The trust matters. Central to establishing this trust will be ethical values that people recognize and are comfortable with. Transparency of rise of the robots will be needed.

There will be need to develop policies and social innovations which recognize disruptive innovations and their impacts on industries and services. As Martin Ford says we need transformation of higher education, new thinking in the health care sector, new industrial Industry 4.0 strategies (as Germans say it), national robotics strategies (like From Internet to Robotics, 2013) and new kind of consumer politics. We need also new social innovations for the super-intelligence solutions and for the singularity. Radical innovations cannot be managed by incremental innovations. More fundamental new ideas and inventions will be needed. These ideas must go beyond crazy year of  1848 (see De Maesschalck 2005 and  http://wrap.warwick.ac.uk/888/). We are busy now to respond to these “old challenges of capitalism”. New capitalism needs BohoBusiness (2015) thinking if we want to be honest to ourselves.

It is interesting to compare our recent book BohoBusiness – Winning in the Age of Bohonomics with Martin Ford´s outstanding book Rise of the Robots. Our book shares many similar themes with Martin Ford´s book.  In our book key theme is a question: What human beings should do in the conditions of disruptive changes?  Our approach to question is linked to the analyses of learning, bohemian attitude, flexible radical organization culture, role of human creativity and social innovations. These issues are vital in the conditions of radical and disruptive changes. We are also discussion much about global trends and associated changes. In this context the ownership and distribution of wealth are not marginal issues. For example, creating a learning and creative hybrid economy in the conditions of robotics will be a very challenging social and cultural issue. Our book provides some new fresh insights to this broad old challenging issue.

Probably a biggest issue in robotics debate will be the question: “How are we organizing society when too many people are coming into the labor market and too many machines are throwing people out?”.  Our sincere answer is focused on self-organization of individuals, organizations and institutions of capitalism, because we rely on the learning capacity of capitalism. First pre-condition for this kind of self-organization is, of course, future awareness. Both Martin Ford´s book (2015) and our book (2015) have already now improved future awareness of many people and decision-makers. We need more political and economic decision-makers who understand complex social problems like robotics and AI driven society. However, a new economic paradigm is not automatically developed. We know quite well this societal challenge. One can just study the current storyline of post-modern Greece and its economy to understand this.

I just was an expert in the EU OSHA Bilbao conference in Bilbao, Spain in May 2015, where the official delegate member of Greece explained to me in EU OSHA workshop session what robotics means for Greece. I was informed that it means cosmetics robotics in isolated islands for them and they were very happy with this strategic economic growth approach.  In the session, the German delegate explained to me much more comprehensive program of the robotics strategy in German economy. To conclude …. pre-conditions on robotics matter – whether it is in the U.S. or China – just to mention it for curiosity. Of course, I know that US strategy “From Internet to Robotics” (2013) is a smart strategy and Ford focuses on it. Smart action from him, indeed. To sum up … the real character of corporations and organizations still matters. Organizations´ culture can make or break their existence and business. We still need visionaries and change makers. In many cases they are radical and bohemian game changers. In BohoBusiness we propose an unholy partnership: bohemian individuals and organizations combined with smart machines.

This combination is motivated with Win + (Win*Win) logic: A manager is saying: “I” = Win. A leader is saying: “Me = Win * Win”. A social innovator is saying: “We all” = Win + (Win*Win). Our message is: Grand robotics and AI strategy should follow “We all” –logic.

BohoBusiness book tells how this strategy will be implemented in real life contexts. Mercenary futures (not fragmented and alienated) futures wait for us, if we understand this BohoBusiness -equation.

Buy BohoBusiness

References

A Roadmap for U.S. Robotics From Internet to Robotics, 2013 Edition. Web: https://robotics-vo.us/sites/default/files/2013%20Robotics%20Roadmap-rs.pdf

Andersson, Cristina & Kaivo-oja, Jari (2015) BohoBusiness. Winning in the Age Bohonomics. Talentum. Helsinki.

Brynjolfsson, Erik & McAfee, Andrew (2011) Race Against the Machine: How the Digital Revolution Is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy. Digital Frentier Press. Lexinton, Massachusetts.

Cunliffe, John and Guido Erreygers (2001) “The Enigmatic Legacy of Fourier: Joseph Charlier and Basic Income”, History of Political Economy 33(3), pp. 459–484. De Maesschalck, Edward (2005) Marx in Brussel. Davidsfonds. Louvain.

Ford, Martin (2009). Lights in the Tunnel. Automation Accelerating Technology and the Economy of the Future. Acculant Publishing. USA.

Ford, Martin (2015) Rise of the Robots. Technology and the Threat of a Jobless Future. Basic Books. New York.

McKinsey Global Institute (2013) Disruptive technologies: Advances that will transform life, business, and the global economy. May 2013. Report by James Manyika, Michael Chui, Jacques Bughin, Richard Dobbs, Peter Bisson, and Alex Marrs. http://www.mckinsey.com/insights/business_technology/disruptive_technologies

Changes, changes, changes …

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Eric Abrahamson (2000) noted in his famous Harvard Business Review –article that “To change successfully, organization should stop changing all the time.” Today we know that almost all organizations need dynamic stability and ability to change, but if there are too many changes there will be problems to manage all these changes. Often changes cannot be implemented without pain. However, an ideal change process should happen without pain.

One way to implement changes is to create modular elements of change. If change is too big, it creates a lot of stress and pain. Small change efforts that involve the reconfiguration of existing practices and business models are often the best practices of change. If we create big and massive change processes, risks are going to be bigger that planned massive change process is going to be a failure. If we can do this, change process will be organic change, not mechanic change.

To be ready for changes, we should develop change-able and learning organisations. One of the worst barriers against organic change is keen and even active refusal of learning. If we do not want to learn, all changes will be unsuccessful. Some beings are able to learn, some others are not able learn. If we want to develop change-able organisations, we must pay special attention to learning capacity of individual and social teams of organizations.

Professor Robert W. Rowden (2001) has recognized in his scientific article that there are three types of change: planned change, implementation-focused change and readiness-focused change. All these “change types” need a special attention. Sustainable, high performance depends on organisation´s ability to respond quickly and efficiently to changing circumstances in their decision environments, which are today networks, markets and crowds. Especially, our abilities and skills to make sense of changes, matter. Nowadays making sense is not easy. We must analyse a lot of data, information and knowledge. If we do not understand the nature of changes in critical networks, new markets and emerging crowds, we are out of success. Some other organisations, which do it better, will be more successful.

Today´s organizations operate in a challenging environment. In a more complex world, change has become the constant. Just add globalisation to technological shifts and multiply it by today´s volatile economic trends and the pace of change is breath-taking. Making sense of changes is today one of the biggest challenges in organisations and companies.

We should also understand that people are very interested why they need to change. Often people are very tired of changes, before planned changes. Generally speaking, the motivation of people depends on our sense making skill and abilities. If we cannot explain, in a good way, why changes are needed, we cannot motivate people to learn new things, change their habits and find better ways to work. Motivation is a key issue in change management process. If motivation level is low, change process is not going to be successful.

In change-able organizations a way of being is different. In this kind of organisation people are able to change fast, but also they are able to manage knowledge. For such learning organisations, typical characters are: constant readiness, continuous planning, improvised implementation and action learning. These characters require training and tutoring inside organisations. They do not emerge automatically in organizations.

People resist changes for many reasons. Sometimes they want to deny the needed changes. Sometimes people are anger and they blame managers and leaders. “Over my dead body” is one typical reaction to needed changes. “This is nothing new” is another reaction to changes. Sometimes people are simply confused. Then “I do not understand what is going on” is a typical reaction.

In classical Lewin´s study “Field Theory and Social Science”, he described the tendency by people to consolidate negative behaviours as “freezing”. This phenomena is still relevant for change management. Smart leaders can find ways to “unfreeze” by right messages, implementation activities and role models.

The organisational climate of change must be created every day in companies and organisations. Leaders of today need to manage implementation in ways that protect and grow business rather than destroy the very organisational skills and motivations which offer the potential for innovation and new business models. From this perspective we are living interesting times. Many organisations are not able to survive. Some others will find their ways from chaotic conditions.

Whether you are leader, manager or worker, we can ask: is your personal attitude right and mature enought to create optimal organisational climate of change?

Further reading

Abrahanson, E. (2000) Change without pain. Harvard Business Review, July-August 2000, 75-79.

Lewin, K. (1951) Field Theory in Social Science. London: Tavistock.

Rowden, R. (2001) The learning organization and strategic change. Society for the Advancement of Management Journal, 66(3), 11-16.

How to handle decision making in the management teams? In many companies’ management and leadership processes seem to work well, but suddenly something surprising happens. In spite of many cross-checks and meetings, things turn into a non-expected direction. All think that everything was in place … but then something emerges and business plans are outdated in a day. Why this happens?

It is typical than there are always some biases in management teams of companies. It is typical that for individuals it is not easy to make question marks on official agreements and strategies. Even though all nod in agreement and look happy it is not easy to say something critical. “It was settled” or “we all agreed” are typical notes on the memos of companies in this kind of decision situations.

Raising dissenting voice is not easy – especially when the chief boss decides something. It is much easier to be among “yes-sayers” than among “critical questioning men”. Self-fulfilling prophecy is the tendency to engage in behaviors that elicit results that will (consciously or subconsciously) confirm our beliefs. “Yes men” cause self-fulfilling prophecies. There can be also a halo effect, the tendency for a person’s positive or negative traits to “spill over” from one area of their personality to another in others’ perceptions of them.

In many case studies of management processes, some typical mistakes have been identified. First, there is tendency to devote attention only to those events seen as most likely. Secondly, once the team of decision makers had made up its mind as to what was going to happen, even conclusive information that the decision was poor did not change the prediction and associated decision. Thus there is typically a problem of groupthink in management teams. One reason for this problem is homogenous social and cultural backgrounds.

Often management teams have similar backgrounds: university degree holders, men with similar hobbies, career paths, middle-class people, and homogenous values. False consensus effect means the tendency for people to overestimate the degree to which others agree with them. Sometimes there can be anchoring decision-making biases, where there is the tendency to rely too heavily, or “anchor,” on one trait or piece of information when making decisions.

Another problematic issue in management teams is overcoming overconfidence. The future looks assured for them. Their judgments are made with deep confidence. However, people may feel confident that they do know the right answer but actually don´t. They don´t know they don´t know. Other options of knowing are: (1) They do know they know; (2) they don´t know they do know and (3) they do know they don´t know. Obviously the best option would be to know that they know. In reality this option is not often available for a management team.

Third typical bias of a management team is a confirmation bias. What it means? It means that we don´t place ourselves in situations where we can test the quality of our judgment. We want to seek that information that will confirm the quality of our predictions and decisions. It is quite human character of people, wanting to be in right – winning team. In this way we are selective in our observations.

Fourth bias in management teams, is so called hindsight bias, which is connected to our readiness not learn from experiences. In general, we don´t learn from experience because experience has little to teach us. That is why our recollections of our judgmental predictions confirm these to have been accurate. Some call this bias “I-know-it-all-along-effect”. Thus, our judgments are rooted to history and it cause biases to emerge.

Fifth bias can emerge because we rely on expert predictions too much. We can call this bias as an expert bias. Also experts can cause group thinking bias and other people may suffer from this kind of bias. There are many other kinds of biases, too like randomness bias, sunk-cost bias, self-serving bias and escalation and commitment bias. Projection bias is close expert opinion bias. It is the tendency to unconsciously assume that others share the same or similar thoughts, beliefs, values, or positions.

Sixth bias, randomness bias means that there is a tendency people have to seek patterns where none exist and to invent the existence of unjustified causal relationships. It is the tendency of people to make sense out of events which are so random in nature that not enough should be read into them. Close to randomness bias is Gambler´s fallacy, the tendency to assume that individual random events are influenced by previous random events.

Seventh type of bias, sunk-cost bias is often connected to too optimistic thinking. Sunk-costs are costs that cannot be recovered once they have been incurred. Sunk-costs bias greatly affects the decisions, because humans are inherently loss aversive and thus normally act irrationally when making economic decisions.

Eight type of bias, self-serving bias occurs when people attribute their successes to internal or personal factors but attribute their failures to situational factors beyond their control. The term, “self-serving bias”, is used to describe a pattern of biased causal inference, in which praise or blame depend on whether success or failure was achieved in reality.

Ninth type bias, escalation and commitment bias means tendency to invest additional resources in an apparently losing proposition, influenced by effort, money, and time already invested. The term is also used to describe poor decision-making in business, government, information systems in general. Escalations and commitment biases are typical in software project management, in politics, and in addictive gambling. To sum up: there are 9 key sources of bias in management teams:

• Overcoming overconfidence;
• Group thinking bias;
• Confirmation bias;
• Hindsight bias;
• Expert opinion bias;
• Randomness bias;
• Sunk-cost bias;
• Self-serving bias and
• Escalation and commitment bias.

It is good to be aware of these potential decision making biases in decision making situations. We could avoid these typical biases, if we were aware of these potential biases. The lessons from history can tell us that many management teams do not identify these biases and serious management failures happen. A sad truth is that we don’t always learn from experiences. There are very many historical lessons available for decision makers but we should learn something from these old lessons. From this perspective “learning organization” is a modern myth.

There is need to question some issues (and biases) in many management teams. That why bohemian persons and “out of box” thinkers may be very valuable members in management teams. It is easy to say that we should be free of biases, but in reality we are often slaves of biases and fallacies. Only personal and critical reflections can help us to be free from these biases. Open and critical discussions in management teams should be encouraged and supported too. Daily illusions about effective control should be avoided in all the decision-making situations and processes.

Further reading

Wright, George (2001) Strategic Decision Making. A Best Practice Blueprint. John Chichester: Wiley & Sons.
Goup 3: Bhavesh, Brunica, Deepak, Kane, Kiran, Lisette & Monica (2012) Biases in Decision-making. Web: http://www.scribd.com/doc/21613064/Biases-in-decision-making
Scribd, “gaea_myzticmoon” (2012) Biases. Web: http://www.scribd.com/doc/73002909/Biases

Hypercompetition and Hybrid Economy: How to Save Capitalism?

Financial Times Lexicon defines hypercompetition in a following way: ”A situation in which there is a lot of very strong competition between companies, markets are changing very quickly, and it is easy to enter a new market, so that it is not possible for one company to keep a competitive advantage for a long time”. (See http://lexicon.ft.com/Term?term=hypercompetition). Many economists have noted that hypercompetition leads markets to unstable conditions. Theories of general equilibrium in markets and automatic stabilization of markets do not hold, if markets are in unstable conditions. Richard A. D’aveni introduced this concept to scientific discussion of company and corporate theories. His book “Hypercompetition” is a classic book in the international management literature. One key statement of his book was that competitive advantage can no longer be sustained.

Hypercompetition results from the dynamics of strategic maneuvering amongst many competitors. It is the condition of rapid escalation of competition based on price-quality positioning.

Corporations and companies want to use other tools to compete under conditions of hypercompetition. They do not want to start price wars. In such conditions corporations want to be Cost & Quality (C-Q)-leaders or followers. They may want to create Timing and Know-How (T-K)-Value chains and build new efficiencies. In some case they may rely on Strongholds (S)-Core or on Distinctive Competencies. Deep pockets strategy is based on the availability of financial capital. (see http://blogs.msdn.com/b/archetype/archive/2006/07/24/677222.aspx).

To escape disastrous price wars, modern companies try to occupy different locations on the price like brand strategies, offering mass customization, quality axis, using micro-marketing, and shifting strategies based on the changing anatomy of industry trends.

To sum up, new arenas of hypercompetition are:

  • Cost & Quality (C-Q),
  • Timing and Know-How (T-K),
  • Strongholds (S), and
  • Deep pockets (D).

Hypercompetition is emphasized on several occasions – in particular, in the creative economy in the context of organizational development. Success is based on the fast changes in hypercompetitive business environment. Agents and leaders must change rapidly and understand and internalize weak signals in their decision environment. For a company to stay alive and competitive it must very innovative. It mean that a company delivers novel and advanced products and services for which there is little or no equal in the marketplace. Commodity differentiation and branding are key aspects of hypercompetition.  Hypercompetition is focused on is new ideas, inventions and innovations.

Now many experts have started discuss about hybrid economy. What is hybrid economy? How it is connected to hypercompetition? A hybrid economy is any type of local, state, or national economic system that involves a more or less equal focus on two or more different types of economy.

This hybrid economy model is a relatively common structure that has been utilized in many different settings over the history of humankind. For example, in traditional agricultural society there were exchange and storage economies. Some examples of a hybrid economy may include a creative economy, a military-industrial based economy, a university-industry based economy, or hybrid economy based primarily on a mix of business and government. Thus, there are various forms of hybrid economy. New forms of hybrid economy include typically e-business and internet economics.

These forms of hybrid economies are not fitting well to pure exchange mechanisms of market economy. The reason for the existence of hybrid economies is that they promote stable systemic mechanisms than market economy or unstable hypercompetition.  The element of public good is typical for hybrid economies. We can even claim that in the future we need more elements of hybrid economies to make capitalism work better. If we want that capitalism delivers benefits and positive values to everyone, there is need to develop more innovative patterns for the hybrid economy. New forms of hybrid economy can also include dynamic elements of social innovation.

The transition to a hybrid model of competition does not mean that the market would disappear, and markets would not be relevant for transaction mechanisms. This is something that should be emphasized. Also hybrid economy is based on competition. Hybrid competition is a very important new element in the global hypercompetition. Hybrid competition is also connected to good governance systems and to trust of democratic agencies and institutions.

We can take a number of reasons why the hybrid competition has risen and continues to rise as an important part of people´s and organizations´ wealth creation processes:

• Globalisation and its associated cultural interactions;

• The penetration of the Internet and related digital networking;

• Digital technology innovations (Web 2.0, Web 3.0 and Web 4.0 etc.);

• Pressures and unstable processes of  the hypercompetition;

• Ubiquitous r/evolution, the Internet of Things and other digital forms of evolution like Cloud Computing and Big Data), and

• Co-creation (co-creation processes) with the growing economic importance.

The global economy means a new division of labor in the world. Workplaces are lost in some countries and regions and in some other places people are creating new jobs.

Frequently asked question is what kind of new work places can be created after old work places are lost? One obvious answer is: “Something else”. People have always developed something else after the loss of permanent jobs. The big problem is that it may take too much time to find new jobs, if we do not make systemic changes to the postmodern societies.

If we rely only on the hypercompetition and market mechanism, our societies will be very unstable and cause a lot of social losses. If we really can develop new social innovations and new forms of hybrid economy, we can expect that social and economic transition processes will be faster, less unstable and cause less welfare losses.

Today we must allow multiple stakeholders to negotiate over how to attain a desirable future. Developing new innovative forms of hybrid economy will require new forms of dialogue and debates. The only option is not unstable hypercompetition, which mostly delivers benefits of exchange and markets unethically and unequally.

It is worth of underlining that people create their economies and systems of governance. It is worth of noting that in capitalism people are allowed to think freely. These two things are relevant if we want to save capitalism and re-invent it as a dynamic form of global governance.

Further reading:

Anderson, Theresa Dirndorfer (2011) Beyond eureka moments: supporting the invisible work of creativity and innovation. Information Research. Vol. 16, No. 1., Web; http://informationr.net/ir/16-1/paper471.html

D’aveni, Richard A. (1994)  Hypercompetition. Managing the Dynamics of Strategic Maneuvering.  Web: http://books.simonandschuster.com/Hypercompetition/Richard-A-D’aveni/9780029069387

Florida, E. (2001). The Rise of the Creative Class. New York, NY: Basic Books.

Howkins, J. (2001) The Creative Economy. London: Penguin Books.

Howkins, J. (2009) Creative Ecologies. Where Thinking is a Proper Job. St Lucia, Queemsland: Queensland University.

Lessig, Lawrence (2008) Making Art and Commerce Thrive in the Hybrid Economy. London: The Penguin Press.

Palmer, Tom G. (Ed.) (2012) The Morality of Capitalism: What Your Professors Won’t Tell You. Ottawa, Illinois: Students For Liberty & Atlas Network Jameson Books, Inc.

Wolff, Richard D. & Barsamian, David (2012) Occupy the Economy. Challenging Capitalism. Chicago: Haymarket Books.

Ameba Organizations, Serendipity and the Multiverse

Serendipity is not a new concept, because Horace Walpole committed the word serendipity to paper for the first time about 250 years ago.  Horace Walpone said he formed the concept from the Persian fairy tale The Three Princes of Serendip. In the book, three successful princes “were always making discoveries, by accidents and sagacity, of things they were not in quest of”. Today serendipity is widely accepted concept with 5 670 000 hits in a 0,20 second in the Google (evaluated 11.6.2012).

Serendipity means a “happy accident” or “pleasant surprise”. Serendipity is an accident of finding something good or useful without looking for it. It is not easy to see when serendipity is really happening, because it is not easy to define when human behavior unintentional and things happen like an accident. Thus serendipity is the faculty of making happy and unexpected discoveries by accident. The concept of serendipity is connected to innovation theory. In innovation research, authors have found that sometimes also innovations are discoveries by accident. If people are very active, sometimes happy accidents really happen.

Only one sure thing in serendipity is that activity of people matter. And proactivity matters even more. If people are active there will more possibilities, more accidental discoveries and more pleasant surprises. Various thinkers discuss the role that good luck can play in science. Good examples are Colombus’ discovery of America, Nobel’s discovery of dynamite and Fleming’s discovery of penicillin. The serendipitous quality of innovation is highly recognized by many professionals of innovation research. It is also linked to the success of corporations and companies to their ability to create knowledge not by processing information but rather by tapping the tacit and often highly subjective intuitions and insights.

The higher the probability of an event is, the more certain we are that the special event will occur. Thus, probability in an applied sense is a measure of the confidence a person has that a random event will occur. Serendipity as a concept is closely connected to the concept of probability. A probable action or opinion was one such as sensible people would undertake or hold, in the special circumstances. Typically happy accidents have a low probability level. If an event has a high probability level, it is not a happy accident, it is an expected event. If there are some intentions behind an event, it is not a serendipity issue.

So intentionality is typically a elementary part of strategic and visionary thinking.  Serendipity is relevant in such a business environment where agents do not have special intentions – they just act without intentions.  They just act somehow and try to survive. From this perspective the concept of serendipity is an evolutionary concept.

An interesting question is whether a corporate or small company can do serendipity management and also have some strategies and vision, which are intentional ones. My personal answer is: Why not? If some things cannot be planned properly, why try to do these things with stress and lose much scarce resources? It is not worth of try too much. It is good to work like an ameba. Better way to success is to be relaxed and give serendipity a free room in organizations, whether they are small companies or large corporations. This kind of free and flexible organization can be called an ameba organization.

In the future many organizations will find this kind of flexible ameba organization a good solution when they operate in the multiverse. The term “multiverse” was coined in 1895 by the American philosopher and psychologist William James. The multiverse or meta-universe is the hypothetical set of multiple possible universes that together comprise everything that exists and can exist: the entirety of space, time, matter, and energy as well as the physical laws and constants that describe them.

New technology will make multiverse a very relevant concept. In the future technological development with ubiquitous technology, nanotechnology, robotics and material technology change our relation to time, space and matter. This process will lead us to different realms of multiverse. There will be 8 realms of multiverse: Reality as such, augmented reality, physical virtuality, mirrored virtuality, warped reality, alternative reality, augmented virtuality and virtuality.

Multiverse will create for us infinite possibility for serendipity and ameba organizations. Business gurus B. Joseph Pine and James H. Gilmore have noted in their updated  book “the Experience Economy”, that work will be theatre and every business is a stage. This is a working principle of serendipity management.

Index

Serendipity: How the Vogue word became Vague

Web: http://livingheritage.org/serendipity.htm

Multiverse

Web: http://en.wikipedia.org/wiki/onMultiverse

Infinite possibility

Pine II, B.J. & Korn, K.C. (2011) Infinitive Possibility. Creating Customer Value on the Digital Frontier. San Francisco: CA: Berrett-Koehler Publishers.

Experience economy

Pine II, B.J. & Gilmore, J.H. (2011) The Experience Economy: Work Is Theatre & Every Business a Stage. Updated Edition. Boston (MA): Harvard University Press.

Boosting Corporate Creativity

There is a critical need of every business today: leveraging creativity. There are not “hocus-pocus” solutions how to develop, nurture and manage models for sustained innovation. One thing is certain issue in a process of boosting corporate creativity: It is not one-man show. Collaboration must be embedded into corporate culture as a way to foster ideas, inventions and innovations of products, services and processes.

One self-evident starting point for boosting corporate creativity is the following: Creative people make innovative organizations. If there are no creative persons and change agents inside an organization, this kind of organization never will be innovative.

Too often organizations and corporations want have average persons with average abilities and teams. Going beyond the average with high level of diversity is seen to be too dangerous and risky in many corporations.

Uniform business culture is seen safer than more individual and proactive business culture. Many managers and leaders want to be inside their “safety zones”. However, we really need unique products and services to be competitive in the markets of hyper-competition. There is not too much fresh thinking in organizations and corporations. Sometimes our wrong self-images, rigid self-esteems and self-punishment mechanisms prevent us to innovate. In corporations we must destroy the barriers to get new ideas.

Too uniform approaches do not help us to make a difference. Infinite possibility awaits those willing, able, and prepared to make the journey to creativity and innovations. We must be brave to explore and exploit new possibilities. First we do it in our imaginations, then with our technology, and finally through our direct action and experience. Creating new ideas and innovations is inherently fun, but also necessary. People need muscles, but they need also big creative muscles and strong brain power.

How to boost creativity in the corporate world? It is possible to present 10 principles to boost creativity:

  1. Develop many new channels and sources for new ideas and inventions.
  2. Make barriers to getting new ideas as low as possible.
  3. Collect many ideas with predictable, directional and surprising ways and evaluate them with collaborative models and co-creative ways.
  4. Implement ideas and inventions. Test and pilot ideas and inventions.
  5. Develop a broad understanding of innovation management and creative thinking.
  6. Identify blocks to creative thinking and the skills individuals can use – and managers can foster to increase creative responses.
  7. Use knowledge and intuition based methods to get fresher ideas and solutions more often.
  8. Allow a personal creative drive and innovation flow which will help people to achieve their personal and professional goals.
  9. Create creativity programs for individuals to improve their creative abilities inside the corporation.
  10. Motivate and give value to creativity and new ideas. Create an effective incentive system, which motivatescreative thinking, inventors and innovations.

Organizations need also bohemian game changers. They never settle for average performance. They know that you can perform a task better this time than you performed it in previous times. With any task you set your mind to, always give it your best. They have stopped living their life in a routine calendar system.

Mediocrity mentality will never help your organization to big success. It will do damage in the material as well as in your spiritual life. Only doing enough to get by is considered mediocrity, not excellency. Mediocrity is dangerous for creativity and destroying innovation activities. Mediocrity is ordinariness as a consequence of being average and not outstanding. Mediocrity refers to a person of second-rate ability. The individuals that practice mediocrity take on its characteristics, which is inferiority and inadequacy.

Bureaucracy and too formal administration mechanisms can also destroy innovation activity inside organization.

To boost creativity is a big possibility for all the corporations. There is need to take creativity seriously and develop systemic strategic thinking and actions in favor of creativity and innovative organization.

Index

1 Creativity

Gardner, H. (1993) Creating Minds. New York: Basic Books.

Mauzy, J. & Harriman, H. (2002) Creativity Inc. Cambridge, MA: Harvard Business School.

2 Corporate creativity

Lockwood, T. & Walton, T. (2008) Corporate Creativity. Developing an Innovative Organization. New York: Allworth Press.

The Boho Bottom Line

Inarguably are we entering a new era where all kind of measuring based on the means of the industrial age are passé, and not only that. They can be pernicious as well. An old saying claims that you get what you measure and that is quite true – we have been measuring beans and coins and that is what we’ve got, lot’s of money somewhere marked with a minus and somewhere else with a plus. Funny thing is that actually the beans and coins game has ended up as a minus sum game as the global debt shambles is out of control.

Companies CSR efforts have not resulted in radical betterings partly perhaps because they are used merely as tools for PR.

In 1994 John Elkington suggested Triple Bottom Line approach where the companies bottom line should be expressed three dimensionally: people, planet & profit. The idea faded away with cost cutting being the main priority for businesses.

An interesting discussion about Shared Value is going on and leading us once again to discuss capitalism and it’s benefits and flaws. Prof Michael Porter presents a positive view while John Elkington is a bit dubious.

Why is the discussion of the bottom line and capitalism so important for the modern Bohemians and BohoBusinesses? We do not believe that money is going away as a tool for exchange. As Prof. Tom G. Palmer says: money is an tool for dignified exchange of products and services. As a creative worker I more than agree with Tom’s statement, bartering can be satisfactory for some time but in the long run it brings about dissonance between people. Well, and does not contribute to the society in form of taxes neither.

When thinking about the new solutions for businesses to contribute to the common global good we  cannot and should not forget the people’s and companies pursuit to win and by so means create profits that can be invested in new endeavors for development and better lives.

Therefore we see that the Bohemian way to look at sustainable business, BohoBusiness, is the win*win(+win). In this equation the partie’s create multiple wins and also cause beneficial impacts to third parties. In other words we are not denying the creation of wealth, profitable business and the thriving of individuals, teams and organizations but we suggest they along with their strategies and actions strive to find ways to contribute to the society and the planet as well, not only as individual companies but as a part of partnerships as well.

In the win*win(+win) way we believe that the Bohobusinesses can take CSR, Shared Value and TBL into their strategies, tactics, operations and daily actions. The win*win(+win) provides also the artistic and innovative Bohemians an ethical scheme to look at their work also from the point of view of profits and on the other hand for the economics and material oriented a way to take the +win as a part of their paradigm.

Actually the +win is the key to great victories and profits in the more and more robotizing world. The deals between partners are often times such that they do not require broad and creative intelligence. Seeing the future, the planet and the needs of humanity on the other hand require such abilities to conceive that the robots are hardly getting there yet in some decades.

Besides, we are here to have fun, enjoy our lives, our families, to work with passion, to connect and cooperate with others. We all have unique talents and skills. It is our birthright to live up to our best selves. This is to win and with win*win(+win) we can multiply the joy and make life and business a co-thriving journey.

All set up for a win*win(+win) session at The Helsinki Music House.

DIY – A Bohemian Lifestyle

Great artwork and handicraft – or artisanry – are in the very heart of the Bohemian Culture.  We have seen pictures of beautiful and extremely skillful embroideries, laces and knitwear. Artisanry is a growing trend. Sudip Dutta, the founder of Aporv – Empowering Artisans and Promoting Culturally Rich Art Forms via eCommerce says there are 23+ million artisans in India. Based on the amount of  artisans in India, the number of them worldwide must be enormous.

German journalist and the digital boheme Holm Friebe wrote 2008  “The end of mass production is in sight. Its demise is a creeping guerilla movement inspired by self-initiative and self-organization. This new type of production recognizes the value of human work and the dignity of the producer. It will change the landscape of more than just our economies.”

We cannot reverse the course of globalization or stop the development of artificial intelligence. But what we can do is to develop our abilities to do what the robots can not do and use the tech to our benefit – of which the least is not the opportunity to connect with interesting and likeminded people worldwide.

DIY do-it-yourself is a trend, perhaps a megatrend that extends not only to handicraft and home equipments. DIY can and it will and it has also bring about great business opportunities. Often in greenfields where there are outstanding chances for remarkable benefits and revenues. In 70’s a few people gathered together in a club called “The Homebrew Computer Club”. Two of the members were Steve Jobs and Steve Wozniak. Well, I do not need to say more.

DIY extends more and more to all areas of our life. The technology provides us with new tools to help ourselves with health and well being. Participatory Medicine will help more and more people to cure from disease and injury.

As a Vice President of an Inventor’s Association I oftentimes hear the inventor’s complain about how difficult it is to get instutional funding for the inventions. The problem is that if the invention is really great and groundbreaking, the institutions have very little abilities to understand the invention. Actually if they did, the invention wouldn’t be especially radical. A Homebrew Club would be  a solution for inventor’s too. A place where the brains meet to find solutions that money cannot buy. In that sense our association,  “Inventor’s Factory” aims to be such a place.

So, we are writing a book to help the people win in the world where robots get more and more intelligent with capacities to learn and express emotions. A machine can write books too, we naturally hope that humanwritten literature will hold it’s position because of it’s creative, visionary, deep, meaningful, artistic and insightful content. In other words writing is a part of the DIY trend!

My writing process includes times when I need to concentrate on learning new material. The most effective way for me to learn is to listen and at the same time do something with my hands. So I crochet. During the time of writing the BohoBusiness my aim is to crochet a half curtain to my mother in law. Here’s is a pic of the first half. I am sure the robots can do the same and even better but what they cannot do are the mistakes and pitiful attempts to repair them afterwards. The imperfections make the curtain personal and I hope that in her summer house the mother in law thinks sometimes of me, her ex daugther in law. Besides, hand-made is luxury.

The first half of the half curtain that Cristina crotchets for focus and therapy during the writing process of the BohoBusiness.

Source: Abundance: The Future Is Better Than You Think Highly recommended reading!

by Peter H. Diamandis , Steven Kotler

On The Way To Performance Centered Organizations?

Today many entrepreneurs, managers and business leaders think what are the secrets to business success? And where shall we find these secrets? The typical answers are: new technologies, new young smart people, new management techniques, and the active use of social media.

Another way to answer to this question is to ask: What destroys business efficiency, productivity, competitiveness, product quality and profitability?

An obvious answer is average performance which is based on average management techniques and average workers. Going beyond average is not easy because we love to be average persons with a normal and standard behavior. “I am only working here – do not expect too much” is so typical attitude in many workplaces.

We like to meet the expectations of an average behavior. Actually being something beyond the average is often punished by managers. There are also many trendy fashions in the management literature of organizations. That is why some answers about business success are short-lived.

Building up the performance-centered organization has been an obvious answer to business success. The key to avoiding the performance gap and the “average dilemma” is to become a performance-centered organization.

To build a performance-centered company or a team is not easy. Even more difficult it is to create a performance-centetered network. Unfortunatelly we cannot “photoshop” our organizations, teams or networks to be “performance-centred”. We must seek other more realistic management solutions.

Of course, we remember some business gurus told us some years ago that we must learn the habits of ancient Samurai sword fighting and Attila the Hun leadership secrets in an effort to be more competitive. They said we must look at our mirror and make changes.

Some gurus told us to rely on knowledge and knowledge management. They said that knowledge will be the new capital of the twenty-first century. Information technology, then, must be the big answer, right? Yes of course, because the world now is too complex, too competitive for companies and agencies to be successful without powerful and integrated knowledge management systems. However, knowledge is not enough to guarantee business success. We need real social and intellectual capital There are many companies, who certainly have a lot of expertise, information and knowledge, but something is still missing. What is this small something?

One missing element can be the way we work in organizations, how we perform our jobs in workplaces. Are we working like average persons or are we trying to reach something special? Are we dreaming about something out of box?

The natural tendency in many organizations is to seek high-level, single-focus solutions, business process re-engineering, strategic planning, new technology and system architectures and designs.

These tendencies are important – no doubt – but often we must also think our values, attitudes and real actions. We may need more bohemian attitudes and actions in workplaces. We need more bohemian spirit. We may need also more every day’s creativity and more ambient ideas and inventions. Then we may be on a way to a performance-centered workplace.

The real performance of working people will make up the organizations. Moments of value creation are important for the business success.

When someone really presents new ideas, novelties, decides, invents, acts or thinks in a radical way, they are probably moving towards a performance-centered organization.

The Bohemian X Factor is probably a very good answer to a better business success. We must believe in bohemian diversity as a key resource of business success. Too formal and homogenous corporate culture may not be very smart approach to a performance-centered workplace. As the Richard Florida proposed tolerance is a key explanatory variable in the success of cities. Flocks of bohemian types, or bohos, are important to the future of any city. This tolerance argument is also relevant in the context of organizations and companies. Other T:s of Richard Florida were technology and talents.

INDEX
1. Samurai sword fighting
Web: http://www.ehow.com/list_6669264_samurai-sword-fighting-styles.html

2. Attila the Hun
Web: http://en.wikipedia.org/wiki/Atila_the_hun
3. Richard Florida
Web: http://www.creativeclass.com/richard_florida
4. Bohos
Wellman, L. (2002) Freaks, geeks, bohos — hey, it’s the Bay Area. Turday, June 6, 2002. Web: http://www.sfgate.com/cgi- bin/article/comments/view?f=/c/a/2002/06/06/MN161689.DTL

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