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Money as the ‘information-shavings’ of the economy

March 15th, 2010 No comments

Another follow-on to the theme about the economy as enterprise-architecture and the role of money within an economy. This one picks up from another direction, namely knowledge-management – specifically, a post on KMWorld by Phil Murray, ‘Everything is connected… really… Putting meaning to work‘.

The connecting link is that, in effect, money – or any other form of currency, ‘thing’-based, time-based or whatever – is essentially a form of quantitative information in relation to a belief about economic relationship. The crucial word there is ‘about‘ – the currency denotes something about the relationship, but in itself does not contribute in any way to the relationship.

There’s no doubt that a currency could contribute quite a bit to the overall operation of an economy: such as transaction-governance (’a token of exchange’) and quantification of overall resources (though for money that’s always been in doubt, and in effect has ceased to function at all since the shift from the ‘Gold Standard’ to ‘imaginary-money’). But perhaps the greatest problem is that it exacerbates the delusion that the currency somehow ‘is‘ ‘the economy’, rather than merely information about the economy. So whilst the whole of Phil Murray’s post is relevant here, the following section seems particularly apposite from this perspective.

What really counts

It’s not that we should – or even can – shift our attention completely away from information (and unstructured information, in particular). It’s that we have failed to address meaning in the context of work. Yet, that is what we need to do in order to transform our economic activities, both as individuals and as groups working toward common goals.

In one of the great ironies of creation of value by humans, we looked at the byproduct of knowledge work – that is, information – and saw in it both the problem and the solution for the central socio-economic problems of our times. We stopped looking at what we do, how we do it and how we create value. Our reaction to knowledge work has been analogous to focusing on the shavings on the machine shop floor instead of on how we create products with those machines.

You cannot – and do not – act on words. You act on meaning. You always have to convert words into meaning before you act. It’s the meaning behind information that counts. And sometimes you don’t need words at all.

Meaning? Yes, “the thing one intends to convey especially by language,” according to the Merriam Webster dictionary. Not the language itself, not the text strings and symbols that fill our books and screens, but the significant stuff that language intends to represent so that we can communicate what we understand. The connections among things. Causes and effects. In the context of work: the relevance or importance of those connections. The subject of logic, argument and epistemology. A pervasive, essential aspect of rational human activities that is accepted as critical to creation of value and economic progress, and yet an idea routinely dismissed as unusable, elusive and unmanageable at the same time. And the missing ingredient in our understanding of work and the creation of value in the age of information.

Perhaps read it again, paraphrasing a bit, and substituting the word ‘money’ or ‘currency’ for ‘information’ throughout, as shown in [..] below:

What really counts

It’s not that [at present] we should – or even can – shift our attention completely away from [money] (and unstructured ['currency'], in particular). It’s that we have failed to address meaning in the context of work. Yet, that is what we need to do in order to transform our economic activities, both as individuals and as groups working toward common goals.

In one of the great ironies of creation of value by humans, we looked at the byproduct of [exchangeable] work – that is, [money] – and saw in it both the problem and the solution for the central socio-economic problems of our times. We stopped looking at what we do, how we do it and how we create value. Our reaction to [exchangeable] work has been analogous to focusing on the shavings on the machine shop floor instead of on how we create products with those machines.

You cannot – and do not – act on words. You act on meaning. You always have to convert words into meaning before you act. It’s the meaning behind [money] that counts. And sometimes you don’t need [currencies] at all.

Meaning? Yes, “the thing one intends to convey especially by language,” according to the Merriam Webster dictionary. Not the language itself, not the [numeric figures] and symbols that fill our [account-]books and screens, but the significant stuff that language intends to represent so that we can communicate what we understand. The connections among things. Causes and effects. In the context of work: the relevance or importance of those connections. The subject of logic, argument and epistemology. A pervasive, essential aspect of rational human activities that is accepted as critical to creation of value and economic progress, and yet an idea routinely dismissed as unusable, elusive and unmanageable at the same time. And the missing ingredient in our understanding of work and the creation of value in the age of [money].

Ouch…

And remember that all of the above applies only to exchangeable work (services delivering ‘things’, actions and/or information) within the constraints of a possession-economy: it excludes much or most of what really matters – such as feelings and faith, past and future – and, for the most part, the greater part of the population – such as parents, children, the elderly and disabled and their carers, or most ‘creatives’ such as artists, scientists, musicians, futurists and academics. Money is merely information about a subset of a subset of a subset of the overall economy: calling it ‘the economy’ is not merely a bad joke, but an increasingly dangerous one as well.

In short, in the current obsession with money and the like, we’ve allowed ourselves to focus on the dust and detritus of the economy, in the mistaken belief that that is ‘the economy. We might be able to patch something useful together from that detritus of the economy, if we recycle it appropriately, but it still misses the point: the real economy is not about the waste-product that’s left lying on the factory floor, but about what we were creating in the first place – that which is the real value, measured most by how we feel.

Money is ‘information-shavings’, the left-overs from real economic activity, real economic relations. Might help all of us if we put it in its proper perspective – and preferably sweep it up into the waste-bin where it has always belonged.

Economics as enterprise-architecture

March 13th, 2010 2 comments

Several people asked me to cross-post to other ‘economics’ sites the previous post on ‘Whuffie’ and currencies‘. I wasn’t comfortable doing so without editing-out the comments about the ‘Ready? Fire! Aim…’ syndrome, which were specific to the conversations to which that post referred: hence the re-work in this post here. I’ve also taken the opportunity to extend some parts, to link it more strongly to my ‘day-job’ of enterprise-architecture.

So: what can we learn if we tackle economics as enterprise-architecture? In other words, as if it was just another exercise in whole-of-enterprise architecture, the same as we would do for any large organisation (such as described in my book ‘Doing Enterprise-Architecture‘)? After all, ‘the economy’ is just another enterprise – it happens to be at a very large scale, but the exact same principles should apply.

(This’ll be another long one, hence I’ll place a ‘Read more…’ link here.)

Read more…

Whuffie, currency and the ‘ready-fire-aim’ syndrome

March 11th, 2010 8 comments

Spent much of the past couple of days getting overly-involved in two great threads on Venessa Miemis‘ ‘Emergent by Design‘ blog:

The first thread started with a very necessary attempt to distinguish between social-capital and reputation-based ‘currencies’ such as Cory Doctorow’s imaginary ‘Whuffie‘ (as described in his sci-fi novel “Down and Out in the Magic Kingdom” – the ‘magic kingdom’ being Disneyland, of course :-) ). The key distinction that Venessa drew – and I think she’s right – is that social-capital is collective, a ‘network effect’ of the social context, whereas reputation is an attribute within the frame of that social-network, typically attached or attributed to the individual: in other words, they’re not the same, and should definitely not be treated as being the same.

This lead to the second thread, about ‘the future of money’, because much of the discussion in the ‘Whuffie’ thread was about the supposed need for some kind of ‘alternative currency’. (Clearly some people in the thread had hoped that ‘Whuffie’ would be it, but despite the efforts of well-meant initiatives such as The Whuffie Bank, it became evident quite quickly that it wouldn’t and couldn’t work in a ‘currency-like’ way.) There was – and at present, still is – a lot of discussion about various ‘currency-like’ proposals, such as TimeBanks, ITEX cashless payment, ‘Quids’ alternate-currency, and so on.

But what I found immensely frustrating was that almost none of them were thinking in true economic terms – and I wasn’t very popular for pointing out this unfortunate fact. Instead of enquiring what an economy is, what it needs to do, what purpose it serves, and so on – what would seem to be essential first-principles concerns about the context – they’d all assumed automatically, without question, that some kind of currency was ‘the answer’, and hence rushed off to create it. In other words, exactly the same mistake as far too many IT-folks: “here’s the solution – how can we force your problem to fit it?”

Ready? Fire!!! … aim…?

oops…

Yeah… really frustrating…

No-one with any sense would doubt that there are serious problems with the present ‘money-economy’ – not so much ’serious problems’ as ‘close to catastrophic failure’, in fact. Everyone in that conversation recognised this – which is why they were pushing so hard for alternatives. But the catch was that none of the alternatives actually resolved the core reasons why a money-economy won’t work; most of the proposed ’solutions’ not only replicated those problems, but actually made some of them worse. What was so frustrating was that in each case it took no more than a couple of minutes’ analysis not only to show that it wouldn’t work, but why it wouldn’t work. Yet no-one, it seemed, wanted to hear this: instead, off they want, charging off down their respective blind-alleys in the blind certainty that they’d found ‘the solution’.

What’s wrong with money, then? Short answer is: a lot. To give just a few examples:

  • It only deals with point-to-point transactions, not network-effects – especially at a societal level.
  • It’s designed to work with ‘alienable’ physical objects, but now no longer has any actual anchor in the real world – instead, we have literally trillions of supposed ‘money’ in imaginary ‘derivatives’ sloshing around the globe.
  • It’s very easy to ‘game’ via artificially-constructed price/value mismatches.
  • The implied ‘gravitation’ structure of money-based capital means that it tends to create ‘winner-takes-all’ accumulations – exacerbating social imbalances, often in the extreme, requiring separate action to try to redress the balance.
  • Attempts to link ‘intellectual property’ into the money-system have resulted in a system which purports to match finite ‘alienable’ entities (physical ‘things’) with potentially-infinite ‘non-alienable’ entities (information) – which by definition cannot balance.
  • Many organisations – particularly banks – are legally ‘entitled’ to invent money from nowhere, in effect assigning themselves an ever-increasing share of the society’s resources.
  • A currency, by definition, relies on trust in the institutions that manage that currency, which in this case is the banks – yet much of that trust has been lost, and at present remains at an all-time low (hence the strong societal interest in options for ‘alternative currencies’).
  • There are no built-in mechanisms to manage assignment of resources to those ‘outside’ of the monetary exchange-system (particularly children, parents, elderly, disabled and their carers, but also artists, scientists, thinkers, futurists, ‘creatives’ of any kind) – these stakeholders can only be served by ‘external’ mechanisms such as taxation (which are clunky and kludge-ridden at best), or by forcing them to do work within the money-economy (which means that their actual needed work can no longer be done).
  • There is a very strong tendency towards short-termism.
  • There is a very strong tendency to try to force everything into a crude, ludicrously-simplistic ‘double-entry life-keeping’.
  • There is a very strong tendency to assume that ‘value’ exists only in monetary terms, as ‘valuations’ of ‘resources’ – hence, for example, a forest supposedly has no value until it is cut down, a mountain has no value until mined for its minerals, and so on.
  • There is a very strong tendency to assume that anything which cannot be counted and ‘valued’ in monetary terms either does not matter or does not exist.

The societal impacts of these problems are rapidly approaching catastrophic levels. Yet none of the proposed ‘alternative currencies’ tackle more than a minute fraction of that list: most offer at best a localised kludge that might address a couple of issues whilst creating several more.

Let’s be blunt about this: the present system does not work. It actually never has – and that’s not surprising, because it was only ever intended to deal with point-to-point ‘trade’-transactions between fairly large groups (tribes, communities etc), hence it’s bit unfair to expect it to be able to run the entirety of an economy. But to create something that does work, we do need to go right back up to the level of the entire economy, and work our way back down from there. Which, yes, might – might – include some kind of ‘currency’ to tackle specific types of transactions: but not as the core of the economy itself.

This is actually no different from any other whole-of-enterprise architecture. (The only distinction is that it’s an ‘enterprise’ at the scale of an entire society, but that’s all.) So we would use the same overall approach:

  • Who (and/or what) are the stakeholders in this enterprise?
  • What are the core values? What is ‘value’ in this context? What is valued, and by whom? In other words, what determines ‘appropriate’ in this enterprise?
  • What are the assets, functions, locations, events, capabilities and decisions within this enterprise? – in other words, the resources of the enterprise that need to be managed, distributed, shared and used in the most appropriate manner.
  • What are the value-propositions that this enterprise needs to offer to and with its stakeholders?
  • What mechanisms and responsibilities would be needed to create, deliver and monitor those value-propositions?
  • What governance would be needed to ensure that all activities within the enterprise are optimised to be ‘on purpose’?
  • …and so on.

To me, every attempt at a currency will inherently fail because it cannot take network-effects into account: by its nature, a currency is a mechanism for governance of point-to-point transactions, without any direct means to link to whole-of-system impacts. So I honestly believe that all of these attempts at ‘alternative currencies’ are a waste of time: we should be far better served by putting the same effort into understanding how an economy actually works.

And the key to that, to my mind, comes down to perhaps the scariest fact of all: there are no rights. ‘Rights’ are a social fiction; but the mutual, interlocking responsibilities that underpin those purported ‘rights’ are a social reality. If we want those purported ‘rights’, where we need to start is with creating a better understanding the ways in which those real responsibilities need to interlock: a focus on ‘rights’, like a focus on ‘currency’, is at best an unhelpful distraction from this requirement.

Where this gets gets scarier still is that our entire present economic model is based on a concept of ‘right of possession’ – hence a ‘right to personal property’. But there are no rights: only responsibilities are real. And in a network, there is no ‘personal’: only the network is real. Right at the fundamentals of economics, ‘personal property’ is just another fiction – and a very dangerous fiction at that. Yet personal responsibilities for societal resources – the appropriate management, maintenance and use of those resources – are real. And as with ‘rights’, those interlocking responsibilities result in something that looks almost exactly the same as ‘personal property’ – but we now know how we get there, via those responsibilities.

If we turn it this way round, we end up with something that looks very similar to what we have at present: but it resolves all of the structural flaws of a ‘money-type’ economy, and we also know exactly how we get there.

Once we know that that’s what we need to aim for, then we can start talking about ‘intermediate currencies’ and the rest, as part of a transitional ‘roadmap’ towards that more workable model. But those ‘alternative currencies’ are only an intermediate step, and we don’t start from there.

That’s what would change these sad attempts at ‘Ready? Fire! Aim…’ into a more viable ‘Ready? Aim? Fire!’ – and rekindle the fire in our social economy.

Notes on ‘Business Anarchist’

March 5th, 2010 3 comments

Several people have asked me for more information about the book I’m writing at present, ‘The Business Anarchist‘, so here’s a quick summary of the themes and structure.

Who or what is a ‘business-anarchist‘? Anyone who works with inherent uncertainty in business in an intentional, disciplined way – working with the uncertainty rather than trying to ‘control’ it. Often it’s not so much a person as part of a business-role – a necessary part of that business-role. (Most of the examples in the book will come from my own field of whole-of- enterprise architecture, but the same principles apply in just about every other type of business-role.)

Why ‘anarchist’? Anarchy is about working without rules, working ‘outside the box’. When ‘business as usual’ breaks down, a disciplined form of anarchy is probably the only way through to something new that works well in the new business context.

‘Kiddies-anarchy’ and real anarchy: Anarchy has had a very bad press in the past, mainly because of what I describe as ‘kiddies-anarchy’ – an overdose of presumed ‘rights’ without responsibilities, especially in terms of causing disruption and destruction without any awareness or respect of the consequences for anyone else. Real anarchy is very different – arguably the most difficult of all political forms, because there are no easy rules to fall back on or to blame. Some entire organisations have been run on anarchic lines – the Quakers have done so for centuries – and even some businesses – such as Ricardo Semler’s Semco Group – but here we’re mainly focussing on an often-unnoticed yet everyday set of roles and responsibilities within an ordinary, everyday type of business.

What kind of business? Any business, and any type of business – for-profit, not-for-profit, government or social – from a huge global conglomerate right down to the local bridge-club or the school parent/teacher association.

Business-analyst and business-anarchist: Business-analysts deal with certainty and predictability: they refine the figures, crunch the numbers, track the trends. When your business world is reasonably stable, you need your analysts to help you optimise efficiency and maximise returns. But when your business world is not certain, not predictable, that’s when you’ll need your anarchists. And you’ll need your anarchists then, too. Your analysts can only tell you how to do more of the same, better – which is good, of course, in its own context, but it doesn’t help when what you really need to do is something different.

What’s different about how business-anarchists work? The quickest one-line answer is that analysts rely on rules and algorithms; anarchists rely on guidelines and principles.

What principles should business-anarchists rely on? Obviously this varies from one context to another, but from my work in whole-of-enterprise architecture the three most important design-principles seem to be these:

  • There are no rules;
  • There are no rights; and
  • Money doesn’t matter.

These three principles, and a fourth follow-on principle, Always enhance adaptability, provide the overall structure for the book.

There are no rules: Rules provide a spurious sense of certainty that can let us down badly when our business-world changes around us. The real world is much messier and more complex than any system of rules that we could devise. Hence at times it’s necessary to start off from the assumption and expectation that there are no rules: instead, we have to rewrite the rule-book, by working back to the core-principles from which the rules originally arose. A simple everyday business-example of this is embedded in the ISO-9000 standard on quality-systems:  work-instructions provide ‘the rules’ that we need for real-time practice and process, but when the world changes, we need to rewrite the work-instructions by working upward to procedure, policy and, if necessary, overall vision.

There are no rights: ‘Rights’ are an important social fiction, but as with rules, they don’t actually exist in the real world, and in themselves they tell us almost nothing about how to create the conditions that such ‘rights’ would require. In practice, apparent ‘rights’ arise from mutual, interlocking responsibilities – so it’s those responsibilities, and not the purported ‘rights’, that are where we need to start. This has important implications for business-architecture and enterprise-architecture that will be explored in some depth in the book – for example, we need to ask serious questions about “What do shareholders own?” if they possess all the ‘rights’ for the business but without any real responsibilities.

Money doesn’t matter: Money is important for every business, of course, especially in a commercial context – but as with rules or ‘rights’, it’s not the place where we need to start. Money is also only one small part of the overall economy in which the business operates: reputation, trust, attention and respect all need to exist before any money will be placed on the table. And if we state – or show – that we’re only interested in ‘making money’ from our customers and community, why would anyone want to engage with us? As with other ‘rights’, money is solely a social fiction, and profit is an outcome of being ‘on purpose’ to values: to achieve the profits that we may desire, we first need to start from values, with a values-architecture that describes how we engage with everyone within the extended-enterprise of the business.

Always enhance adaptability: Change is the only certainty: we therefore need to design for that fact. Mistaken notions about rules, rights and money often serve only to slow us down, placing the business at risk as the world changes around us. This sections of the book explores how to embed the ‘business-anarchist’ principles into everyday business-practice, especially in business-architecture and enterprise-architecture.

More details to follow over the next few days, including book-cover, cover-blurb, ISBN numbers and so on. Publication-date is fixed as late-April, so I need to keep moving! :-)

Context-space mapping and enterprise-architecture

March 4th, 2010 11 comments

(This series of posts explores a concept of ‘problem-space’ versus ’solution-space’ which in part demonstrates alternative uses and interpretations of the Simple / Complicated / Complex / Chaotic categorisation originally described in the Cynefin diagram. It must be emphasised that this is not about the Cynefin Framework; for details on Cynefin, please contact Cognitive Edge.)

This post represents yet another attempt to describe certain fundamental differences in approach from twf (aka ‘That Welsh Framework‘ – so-called because we’re no longer allowed to use its official name at all) and to find an alternative term that might reduce the ongoing friction in that quarter.

To do this, we need to go right back to first-principles: the core concept of context-space, which eventually leads us to context-space mapping.

(Another long-ish post: more after the ‘Read more…’ link.)

Read more…

More on meta-methodology (’Beyond-Cynefin’ series)

March 1st, 2010 5 comments

(This series of posts explores alternate uses of the Simple/ Complicated / Complex / Chaotic categorisation originally described in the Cynefin diagram. This discussion is not about the formal Cynefin Framework; for details on the Cynefin framework proper, please contact Cognitive Edge. The term ‘beyond-Cynefin’ is solely a placeholder to indicate this separation of concerns.)

Back to theory again – apologies… – following on from comments on the previous posts, especially ‘On meta-methodology‘.

The aim of this post is to try to create a bit more clarity around the notion of ‘problem-space’ versus ’solution-space’. To do this, I’ll draw on a variety of sources, ranging from dowsing to enterprise-architecture, Sigurd Rinde’s work on ‘barely-repeatable processes’, activity/response-models such as OODA and PDCA, and much more besides.

Will again be long, hence more after the ‘Read more…’ link.

Read more…

And more ‘Cynefin-like’ cross-maps (’Beyond-Cynefin’ series)

February 28th, 2010 2 comments

(This is part of an ongoing series that explores alternate uses of a generic conceptual categorisation originally described in the well-known Cynefin diagram. This discussion is not about the formal Cynefin Framework; for details on the definition and use of the Cynefin framework proper, please contact Dave Snowden at Cognitive Edge. The term ‘beyond-Cynefin’ is here used solely as a placeholder to indicate this separation of interests.)

Here’s another collection of ‘Cynefin-like’ cross-maps that I’ve found useful for sensemaking in enterprise-architecture and related work:

  • ISO-9000 quality-model
  • Skill-levels
  • Automated versus manual processes
  • Asset-types
  • Data, information, knowledge, wisdom

More details after the ‘Read more…’ link.

Read more…

More ‘Cynefin-like’ cross-maps (’Beyond-Cynefin’ series)

February 26th, 2010 2 comments

(This is part of an ongoing series that explores alternate uses of a generic conceptual categorisation originally described in the well-known Cynefin diagram. This discussion is not about the formal Cynefin Framework; for details on the definition and use of the Cynefin framework proper, please contact Dave Snowden at Cognitive Edge. The term ‘beyond-Cynefin’ is here used solely as a placeholder to indicate this separation of interests.)

Another collection of ‘Cynefin-like’ cross-maps that I’ve found useful in various aspects of my enterprise-architecture work:

  • Repeatability and ‘truth’
  • Marketing versus sales
  • The ‘Plan / Do / Check / Act’ cycle

More details after the ‘Read more…’ link.

Read more…

Using ‘Cynefin-like’ cross-maps (’Beyond-Cynefin’ series)

February 25th, 2010 No comments

(This is part of an ongoing series that explores alternate uses of a generic conceptual categorisation originally described in the well-known Cynefin diagram. It should be emphasised that this discussion is not about the Cynefin Framework, which is a distinct body of practices based on scientific research. For details on the definition and use of the Cynefin framework proper, please contact Dave Snowden at Cognitive Edge. As this broader usage of the categorisation does not yet have a specific name, the term ‘beyond-Cynefin’ is here used solely as a temporary placeholder to indicate this separation of interests.)

‘Cynefin-like’ cross-maps

I first started using what we could describe as ‘Cynefin-like’ models several decades ago, such as in my book Inventing Reality (first published 1986, current print-edition available here). I’ve found them immensely valuable in a very wide range of applications, especially in disciplines such as enterprise-architecture that necessarily cover the entire scope of a context. The key to its usefulness is that the model’s categorisation provides a consistent base-map for all manner of cross-maps, each of which provides new insights about the context.

Typical characteristics of a ‘Cynefin-style’ base-map include:

  • universality: the model purports to cover the entire scope of a given context
  • sensemaking: the purpose of the model is to guide sensemaking and decision-support, rather than (for example) design and implementation of a specific ’solution’
  • simple partitioning: the model divides the context into a small number (typically 4-5) of regions or ‘domains’ (e.g. the Cynefin set of ‘Simple’, ‘Complicated’, ‘Complex’ and ‘Chaotic’), and often including a ‘none-of-the-above’ region (e.g. the Cynefin central region of ‘Disorder’)
  • fluid boundaries: the boundaries between regions are not rigidly fixed (as they are in e.g. a two-axis matrix), and may be allowed to move, blur and/or be somewhat porous
  • usage-dependent layout: the layout of the model may not be semantically significant (as it is in e.g. a two-axis matrix) – layouts are often two-dimensional, but may be single-dimension horizontal or vertical, or multi-dimensional such as the four-axis/three-dimension tetradian

(More after the ‘Read more…’ link.)

Read more…

On meta-methodology (’Beyond-Cynefin’ series)

February 24th, 2010 6 comments

(This is part of an ongoing series that attempts to resolve problems in (mis)interpretation of the Cynefin framework, and in particular the commonly-used Cynefin diagram. For the correct interpretation and use of the Cynefin framework and Cynefin techniques, please contact Dave Snowden at Cognitive Edge.)

The standard Cynefin diagram is as follows:

Diagram by Dave Snowden, Cognitive Edge (image: public domain)

As the Wikipedia article states, “The model provides a taxonomy that guides what sort of explanations and/or solutions may apply.” Unfortunately, this is a generic model that lends itself to multiple interpretations, only one of which is ‘correct’ Cynefin. There are also multiple uses of the concepts and conceptual space summarised in the model’s taxonomy and pathways, of which, again, only a specific subset may legitimately be described as Cynefin.

It is therefore important to state that what follows is not ‘Cynefin’, yet necessarily uses what is in essence much the same taxonomy (see ‘Framework role and purpose’ and ‘Similarities to Cynefin’ in the previous post ‘Solution-space: beyond Cynefin?‘).

The central theme in this ‘not-Cynefin’ framework is the concept of ‘problem-space’ and ’solution-space’.

Problem-space is the context of the problem. Part of this is repeatability, or perceived cause-effect relationships, which can usefully be mapped using the same ‘Cynefin’ taxonomy:

  • Simple: very high perceived repeatability, in accordance with simple linear cause-effect rules
  • Complicated: linear (repeatable) cause-effect relationships, but may involve multiple factors, delays and feedback-loops
  • Complex: cause-effect relationships are context-dependent – for example, where the effect itself becomes the cause
  • Chaotic: no perceived cause-effect relationships

(The central region of ‘Disorder‘ is always ‘chaotic’, by definition, because it is the starting-point before any cause-effect relationships can be determined; the Chaotic-domain of problem-space applies where some or all of the problem continues to show no perceivable cause-effect relationships.)

Solution-space is the context and characteristics of the solution – i.e. the methods used to resolve the perceived problem. This too can be usefully mapped using the same taxonomy:

  • Simple: the solution uses rules based on linear cause-effect logic
  • Complicated: the solution uses analytic algorithms allowing for feedback, delays, etc, but are ultimately based on linear cause-effect logic
  • Complex: the solution uses context-sensitive heuristics, guidelines and iterative re-assessment, in which the problem is continually ‘re-solved’ rather than ’solved’
  • Chaotic: the solution uses principles to guide creation of uniquely context-dependent results

(Note: these are only one-line summaries, not formal definitions!)

The process of finding an appropriate solution to a specified problem can be mapped as a pathway across solution-space. To succeed (i.e. to be effective), the ultimately-selected solution(s) must map appropriately to the context of the problem in problem-space. Note that although in some cases a problem may be situated in just one specific location in problem-space, it is more common for it to occupy a region or even to have components that spread out across multiple regions. For example, a context might be mostly resolved by a rules-based automated process (Simple) but also ’special cases’ that may need to be ‘escalated’ to an algorithmic system (Complicated), a manual review (Complex) or specialist expertise (Chaotic) for a ‘one-off’ incident. The overall solution must resolve all components in problem-space.

The core concept in the use of this framework is recursive meta-methodology. For example:

  • a method in solution-space acts on the problem in problem-space
  • a methodology selects an appropriate method
  • a meta-methodology selects an appropriate methodology
  • a meta-meta-methodology selects an appropriate meta-methodology

…and so on. A methodology is a path within solution-space; a meta-methodology is a path in another layer of solution-space; in effect, the layers may be nested indefinitely, but must ultimately all resolve to a set of methods that address the actual problem in problem-space.

The ultimate aim of all of this is to find methods that are appropriate and effective for any given problem, in any business context (such as my primary field of enterprise-architecture), or in any other field, as required.

I’ll stop here for now, but will give more explanation and illustrative examples in later posts in this series.

Previous posts in this series: