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Gold Crushes Ants, Ill-Fitting Robes and Disruption's Power Redistribution
Aidan McCullen: [00:00:00] Gold Crushes Ants, Ill-Fitting Robes and The Power Redistribution of Disruption.
Just a brief reminder of what this episode is in case you have not heard it before.. Each week I write a newsletter called The Thursday Thought. For years, listeners to the Innovation Show have asked me to narrate it. I never had enough time. So today, I am using AI. I have cloned my voice. It is not perfect, but it saves me hours of effort.
For those who want the short version. Here is a paragraph: Disruption redistributes organisational power, information and status. As Machiavelli noted, those in power dislike such change. However, there is a twist to this week’s Thursday Thought. Sometimes, the new-found power does not sit well with those who inherit it, to their detriment and to that of the organisation. Gold Crushes Ants!
Let's begin with a quote by Plato from "The Republic."
Plato wrote:
"But when the cobbler or any other man [00:01:00] whom nature designed to be a trader, having his heart lifted up by wealth or strength or the number of his followers, or any like advantage, attempts to force his way into the class of warriors, or a warrior into that of legislators and guardians, for which he is unfitted, and either to take the implements or the duties of the other; or when one man is trader, legislator, and warrior all in one, then I think you will agree with me in saying that this interchange and this meddling of one with another is the ruin of the State."
This passage from Plato's The Republic expresses the idea that societal roles should be distinct and specialised to ensure the stability and well-being of the state. Plato argues that each individual has a natural aptitude and should perform the role suited to their abilities. The cobbler (a metaphor for any tradesperson), the warrior, and the legislator/guardian represent different classes in society.
Plato believes that problems arise when individuals try to take on roles for which they are [00:02:00] not naturally suited or when they attempt to accumulate power by combining multiple roles. For example, if a cobbler tries to become a warrior or a warrior tries to become a legislator, it disrupts the social order and leads to chaos and ruin. This concept is part of Plato's broader vision of a just society, where everyone contributes according to their strengths and society functions smoothly as a result.
The Power Shift.
Let's take for example, the significant shift in power that occurred in many organisations due to the advent of digital technology. The rise of roles such as heads of digital, data, AI and E.S.G. transformed traditional industries, from media companies to physical retailers. These new roles require a different set of skills, mindsets and perspectives, often leading to friction within long-held hierarchies.
In many traditional organisations, digital leaders face resistance similar to what Plato described. Established professionals, [00:03:00] akin to the warriors and legislators in The Republic, often see these newcomers as threats to their traditional roles and authority. This resistance can be rooted in a fear of obsolescence or a reluctance to adapt to new methods and technologies.
For instance, the introduction of digital journalism revealed how technology can challenge the conventional roles within a newsroom. It changes the "speed to market", it raises concerns about traditional journalists and the changing nature of editorial control.
This works both ways, where new power dynamics can lead to tensions when digital leaders overstep their bounds or when their innovations disrupt the status quo too abruptly. All of a sudden, their importance leads to ego problems.
Gold Crushes Ants: The Gradual Path to Power and Responsibility.
“If you give a ton of gold to an ant, it will only crush the ant.” — Sadguru
There’s a profound parable shared by Sadguru about a lion with the heart of a mouse, [00:04:00] it went something like this…
There was once a compassionate sage. One day while searching his home, the sage uncovered a mother and five baby mice. Terrified, the mother ran away, leaving the baby mice. The kind sage fed the babies with some grain. One day a cat came and devoured four of the mice, but one escaped. The old man continued to feed and care for the last baby mouse. The cat came back to finish the job and eat the last mouse, but the sage chased her away. Every time the sage closed his eyes to meditate, the wily cat came back. Eventually, the sage reasoned that this was not sustainable and he could not always protect the cat, so he had an idea.
He used his magical powers to turn the baby mouse into a fierce cat. The idea worked and the cat never came back. However, a wild dog soon discovered there was a tasty cat living with the sage and hung around waiting for an opportunity for a tasty meal. Once again, the [00:05:00] sage thought to himself, this is so inconvenient. Once again the sage used his powers and changed the cat, who was once a mouse, into a dog. Again, it worked, but only for a while.
One day, the dog ran home with his tail between his legs. The sage looked out to see that a large panther had been hunting the dog. After chasing the panther away, the sage sat down and thought. This was becoming too troublesome. He had an idea and used his powers one last time. He turned the dog into a lion — after all — a lion is the king of the jungle.
Now, when the lion — who was a mouse, then a cat, and then a dog — roamed through the jungle, all the other animals ran away in fear. However, the lion went through a constant internal struggle. Knowing he was a lion with the heart of a mouse, he thought to himself.
“What if the other animals find out that deep down I am just a mouse? What will they do to me?” The lion realised. The only other person in the world [00:06:00] who knows he is a mouse is the sage, so he had an idea. The lion returned home to the sage, intending to kill him. The savvy sage realised what the lion was about to do and apologised to the mouse inside the lion, saying it was wrong of him to change him. And so, the sage turned him back into a mouse.
So what is the moral of the story?
It is natural for a cat to chase a mouse, for a dog to chase a cat, for a panther to chase a dog. If you give them a position far beyond their capabilities for that position, it will bring misery to them and to the person who gave them the position.
Whenever we place someone in a position beyond their abilities, it can rack them with insecurity, fear and doubt. In an organisation, power can poison talented people. They may suspect that others will doubt their abilities, they will fear that others will find them out.
It happens with Innovation roles all the time. The organisation feels it should reward tenure and “gifts” an Innovation [00:07:00] Director or other "newly minted" role to executives who do not have transformation or innovation in their DNA.
It happens in family-owned organisations because of nepotism. The family member then reigns terror throughout the organisation, sometimes undoing decades of significant cultural work laid down by previous generations.
When we gift opportunities to others when they have not earned those opportunities, it rarely works out well. It is not about depriving the giver or the receiver; it is about the struggle and the rite of passage.
This concept is particularly relevant today, where new roles—like Head of Digital, Head of Innovation, or Head of Data—are created to meet the demands of rapidly changing organisations. While those filling these positions often possess technical expertise, they may lack the leadership skills and political acumen required to navigate complex corporate environments. This leads to a profound mismatch between the role and the person, where the weight of responsibility [00:08:00] becomes crushing.
The lion’s predicament is a metaphor for many modern professionals who find themselves thrust into positions of leadership. They have the title and the technical skills, but they haven’t developed the “muscle” to manage the power and responsibility that comes with the role. Just like the lion’s external strength hides its inner fragility, these professionals can struggle to wield their new authority.
The Physiology of Building Strength.
Building leadership capacity is much like developing physical strength. When muscles grow too quickly—often through artificial means like anabolic steroids—tendons and ligaments don’t have time to catch up with muscle growth. This creates an imbalance, increasing the risk of injury. The tendons can rupture because they’re not strong enough to support the rapidly growing muscles.
In the same way, individuals promoted too quickly may lack the "connective tissue" of leadership skills, such as emotional intelligence, political savvy, and strategic thinking. [00:09:00] These are the tendons that allow people to support the heavier loads of responsibility that come with leadership. Without developing these critical soft skills, individuals risk being crushed by the demands of their new roles, just as tendons snap under the weight of artificially strengthened muscles.
Organisations are complex ecosystems with intricate power dynamics, unspoken norms, and political undercurrents. New leaders, especially those in innovative or transformative roles, often find themselves in an organisational maze of competing interests and hidden agendas. Without prior coaching or development in leadership and political navigation, they may struggle to implement their visions.
The Danger of Ill-Fitting “Robes”
This theme echoes Shakespeare’s Macbeth, where the protagonist says: “Why do you dress me in borrowed robes?” (*Macbeth*, Act 1, Scene 3). The quote reflects how newly bestowed titles, roles, or responsibilities can feel like ill-fitting garments, [00:10:00] overwhelming the person wearing them. These “borrowed robes” serve as a symbol of unearned power—something that feels uncomfortable and burdensome until the person grows into it. Just like gold crushing ants, power and authority, if given too soon or too suddenly, can overwhelm individuals who have not yet built the necessary inner strength to bear them.
When individuals fail to develop the necessary leadership skills before stepping into senior roles, they risk being overwhelmed by the very responsibilities they seek. Like Macbeth in his ill-fitting robes, they find the weight of their new titles to be uncomfortable and burdensome. Without gradual preparation, the responsibilities of leadership can become too heavy, leading to burnout, failure, or organisational stagnation.
This is especially true for roles involving innovation or transformation, where the political landscape is often more complex. These leaders need more than just technical expertise; they must develop the [00:11:00] ability to navigate power dynamics, influence others, and build coalitions.
Conclusion: Empowering Leaders to Carry Gold.
“Rank does not confer privilege or give power. It imposes responsibility. “ — Peter Drucker
The wisdom of "gold crushes ants" serves as a powerful reminder that value and responsibility come with weight. To carry gold—or any significant power—requires strength built over time. Organisations must not only recognize the necessity of new roles like Head of Innovation or Head of Digital but also provide the pathways for individuals to develop the requisite leadership capabilities.
For individuals stepping into these roles, acknowledging the need for personal growth and seeking out development opportunities and coaching is crucial. Building the internal "muscle" to handle power involves embracing challenges, learning from failures, and cultivating resilience.
In a world where the pace of change is relentless, [00:12:00] organisations cannot afford to have their transformative efforts hampered by unprepared leadership. Former guest on The Innovation Show, Derek van Beaver calls this building the bench, Paul Nunes refers to it as the capability S-curve. By investing in the gradual and holistic development of their leaders, they ensure that when the time comes to carry the weight of gold, their people are not crushed but rather stand strong and capable.
Empowerment is a journey, not a sudden leap.
The END.
Forthcoming episodes of the Innovation show include:
Seth Godin.
Henry Mintzberg.
Jayshree Seth.
Steve Kerr.
Julia DiGangi.
Paul Nunes and Ian Morrison.
Stan Deetz Part 3.
Byron Reese.
And many more.
Until next week. [00:13:00]
AI Transforming Consulting: Strategies, Ethics, and the Future
The world of consulting is experiencing a seismic shift, largely driven by AI. In this episode, we are joined by Ryan Shanks (Head of Innovation for Accenture EMEA), Alex Osterwalder (CEO of Strategyzer), and Rita McGrath (Columbia Professor, Author and Founder of Valize). They discuss the traditional consulting model, the impact AI has on roles within consulting, and the broader implications on the industry and society. They also delve into the importance of human skills, the evolving business models, the significance of trust in digital transformation, and the shifting landscape of organizational structures and career paths. A must-watch for anyone involved in or interested in the consulting sector.
00:00 Introduction to the Changing World of Consulting
00:40 Traditional Consulting Models and Their Evolution
02:01 Impact of AI on Consulting Roles
02:28 Building and Hiring in the New Consulting Landscape
03:23 AI's Role in Transforming Business Models
05:18 Real-World Examples of AI Integration
14:09 The Need for Continuous Reinvention
18:28 Outcome-Based Consulting and Ethical Dilemmas
24:46 Future of Consulting: Marketplaces and Ecosystems
26:35 The Rise of Small AI-Driven Firms
27:23 Impact on Education and Hiring
28:35 Human Skills in the Age of AI
30:22 Trust and Ethics in AI
31:36 Adapting to Rapid Change
32:53 The Role of Human Sciences
36:09 The Future of Work and AI
43:16 Leadership and Governance Challenges
46:10 Final Thoughts and Reflections
Find Rita: https://www.valize.com
Find Alex: https://www.strategyzer.com
Find Ryan: https://ie.linkedin.com/in/ryanmartinshanks
Find The Reinvention Summit: https://www.thereinventionsummit.com
Innovation, AI, Consulting, Business Strategy, Digital Transformation, Reinvention, Change Management, Future of Work, Organisational Culture, Emerging Trends, Rita McGrath, Alex Osterwalder, Ryan Shanks, Strategic Inflection Points, Ecosystem Thinking, Entrepreneurship, Human-Centric Design, Technology Disruption, Leadership, Continuous Reinvention
Garvan Callan - Unlocking Digital Transformation
Join us for an enlightening episode as Aidan McCullen welcomes Garvan Callan, author of 'Digital Business Strategy,' to the Innovation Show. They delve deep into the essence of digital transformation, from defining digitization and digitalization, to exploring the importance of building digital businesses with customer-centric strategies. Gain valuable knowledge on how to reimagine organizational frameworks, harness new technologies, and cultivate a culture of perpetual innovation. Learn practical frameworks, case studies, and leadership approaches essential for thriving in the digital age. Don't miss this comprehensive discussion on staying ahead in an ever-evolving technological landscape.
00:00 Promo for The Reinvention Summit
00:29 Welcoming Garvan Callan
01:11 Origins of Digital Transformation
02:35 Understanding Digitization vs. Digitalization
04:46 The Digital Business Landscape
08:54 Customer-Centric Digital Strategies
14:04 The E Plus One Experience
17:12 Digital 360 Framework
22:54 Challenges of Digital Transformation
28:47 Building Strategy: Efficiency and Simplification
29:40 The Spin Out Syndrome and Simplification Journey
32:27 The Phoenix Metaphor and Organizational Resistance
33:11 The Spider Web Analogy and Data Challenges
34:28 Adapting Strategy for Rapid Change
35:14 Scaling Up: Challenges and Recalibration
37:25 The Agile Organization and Breaking Silos
41:07 Open Business Models and Technological Integration
45:16 Risk Management in Agile and Fluid Organizations
49:05 The Waltzer Effect: Combining Technologies for Change
53:21 The Culture Iceberg: Values and Beliefs
56:49 Conclusion and Final Thoughts
Find Garvan here: https://onezero1.ie
The Reinvention Summit; https://www.thereinventionsummit.com
digital transformation, business strategy, digital innovation, future-proofing, digital age, Reinvention Summit, innovation, workshops, digital business, media company, digitalization, digitization, digital frameworks, digital execution, customer centricity, digital definition, digital processes, competitive advantage, leadership, organizational culture
The Harmony of Ra and Horus: Bridging Exploit and Explore
F Scott Fitzgerald once wrote, “The test of a first-rate intelligence is the ability to hold two opposing ideas in mind at the same time and still retain the ability to function.”
In times of turbulence, leaders must balance the two opposing ideas of exploit and explore.
Ra and Horus, two pivotal figures in Egyptian mythology, symbolise the dual forces of power and intuition, rationality and creativity. Together as Ra-Horakhty, they embody a unification of opposites. In organisational terms, this metaphor captures the balance between exploitation — the optimisation of current capabilities — and exploration — the pursuit of new possibilities. Inspired by my recent conversation with Mike Tushman and Charles O’Reilly and James March’s seminal work on organisational learning, this post explores how integrating these dual forces fosters ambidexterity, enabling organisations to thrive in both the present and the future.
Ra: The Organisational Force of Exploitation
In mythology, Ra is the sun god, embodying power, creation, and rationality. He represents the structured, predictable cycle of the sun, providing stability and light. In organisations, Ra reflects the principles of exploitation, ensuring that current strengths are refined and utilised to their fullest potential.
Organisational Ra includes:
Execution and Strategy: Teams that deliver results through clear processes and focused strategies.
Operational Efficiency: Optimisation of resources, ensuring stability and short-term profitability.
Leadership and Structure: Leaders who prioritise alignment with organisational goals and mitigate risk.
Ra aligns with the conscious mind, driving focus, clarity, and execution. However, organisations overly reliant on Ra risk stagnation, becoming trapped in suboptimal routines that limit innovation.
Horus: The Organisational Force of Exploration
The Eye of Horus symbolises protection, health, and restoration in ancient Egypt. According to myth, Horus lost his left eye in a battle with Seth, and it was magically restored by Hathor. This restoration came to symbolise healing and the process of becoming whole. Horus, the falcon-headed god, represents creativity and vision, capturing the spirit of exploration and long-term growth.
Organisational Horus includes:
Innovation and Creativity: Teams that explore bold ideas, embrace uncertainty, and foster breakthroughs.
Empathy and Culture: Efforts that nurture human-centred design and foster a supportive organisational culture.
Long-Term Vision: Leadership that anticipates future challenges and invests in experimentation.
Horus represents the subconscious mind, fostering emotional intelligence and adaptability. However, without Ra’s structure, organisations driven solely by Horus risk lacking focus and direction.
Ra-Horakhty: Uniting Exploitation and Exploration
In Egyptian mythology, Ra-Horakhty — “Ra, who is Horus of the Two Horizons” — represents the unification of these complementary forces. The rising sun (Horus) and the setting sun (Ra) reflect a cyclical harmony, where opposites merge to create a greater whole.
In organisations, Ra-Horakhty serves as a metaphor for ambidexterity — the ability to balance exploitation (Ra) with exploration (Horus). This balance is essential for thriving in both stable and volatile environments.
Organisational Ra-Horakhty includes:
Unified Leadership: Leaders who can integrate operational efficiency with visionary strategy.
Ambidextrous Teams: Structures that enable both incremental improvements and bold innovations.
Cultural Harmony: A mindset that values both stability and adaptability, blending logic with creativity.
The Balance Between Exploitation and Exploration
Scholars like James March, Tushman, O’Reilly and Binns highlights the organisational challenge of balancing exploitation and exploration:
Exploitation: Refining current capabilities to maximise short-term gains.
Exploration: Pursuing new opportunities, which are uncertain but critical for long-term success.
These opposing forces compete for resources, and organisations often lean too heavily on exploitation due to its immediate, predictable returns. However, this focus risks neglecting exploration, leading to long-term stagnation.
Achieving the right balance involves recognising the distinct yet interdependent nature of these forces. Just as Ra and Horus come together as Ra-Horakhty, organisations must integrate exploitation and exploration to create a cohesive, adaptive strategy.
Harmony is not the absence of opposites but the unification of their purpose.
Until next week!
🎥 Mastering Ambidexterity: How to Balance Core and Explore with Michael Tushman & Charles O'Reilly
What You’ll Learn in This Episode:
The challenges of balancing innovation and efficiency.
How Microsoft transformed its culture under Satya Nadella using the LEASH Model.
The role of Corporate Explorers in driving change. Practical tools and strategies for structural ambidexterity.
In this episode of the Corporate Explorer series, Charles O'Reilly III and Mike Tushman delve into the concept of corporate ambidexterity, focusing on how to balance core (exploit) and explore businesses. They emphasize the creation of separate units with distinct architectures, metrics, and cultures. The discussion explores the critical role of organizational culture and the 'LEASH' model for driving cultural transformation. Using Microsoft under Satya Nadella as a case study, they demonstrate how consistent behavior reinforcement can drive successful cultural change. This episode is essential for leaders aiming to navigate the complexities of innovation within established firms.
00:00 Introduction to Ambidexterity
00:25 Challenges in Implementing Ambidexterity
00:59 Corporate Explorer Series Overview
01:36 Guest Introduction: Charles O'Reilly and Mike Tushman
02:05 Core and Explore: Research and Insights
03:57 The Role of Culture in Ambidexterity
06:14 Microsoft's Cultural Transformation
07:32 The LEASH Model Explained
09:23 Satya Nadella's Leadership at Microsoft
16:51 Linking Personal and Organizational Renewal
18:35 Closing Remarks and Resources
💡 Learn More: Check out related episodes with Tushman & O’Reilly 👉 https://www.youtube.com/playlist?list=PLMxiNrgE29RLJmEfThOicSPPH972VP0U7
Engage with Us: https://theinnovationshow.io
Linkedin: https://www.linkedin.com/company/the-innovation-show/
#Ambidexterity #Innovation #Leadership #OrganizationalChange #CorporateExplorer
Technological Taylorism: How Modern AI is Reshaping the Future of Work
In this episode, we delve into the concept of Technological Taylorism and how the advent of AI and automation is restructuring the workforce. We revisit Frederick Taylor’s principles of scientific management and examine their relevance in today's job market. The discussion covers the rise in workplace surveillance, the transformation of jobs into piecemeal tasks, and the increasing vulnerability of freelance and middle management roles. The episode also explores the larger implications of AI on job creation, economic growth, and the potential for a technological singularity. Featuring insights from experts like Paul Daugherty and Yossi Sheffi, this thought-provoking discussion questions the future of labor in an efficient, data-driven world.
00:00 Introduction: Technological Taylorism and the Future of Work 00:32 The Legacy of Frederick Taylor's Scientific Management 01:31 Modern Workforce Surveillance and AI 03:04 The Rise of Freelancers and Automation 05:39 Creative Destruction in the Digital Age 08:13 The Future of Work: Concerns and Predictions 10:24 Conclusion: Human + Machine Paradigm
Technological Taylorism: The Automation of Efficiency and the Future of Work
The philosopher and media theorist Marshall McLuhan contends that "we shape our tools, and thereafter our tools shape us", The idea suggests that we create and adapt to technologies. These technologies, in turn, shape our behaviours, perceptions, and ultimately, our societies. This goes for any technology from the stopwatch to the advanced artificial intelligence.
I hope I am wrong...
In the late 19th and early 20th centuries, Frederick Taylor introduced a management approach that would fundamentally change the industrial world. With tools as basic as a pen, ledger, and stopwatch, Taylor meticulously observed and recorded the activities of factory workers, aiming to enhance efficiency through what he termed "scientific management." This system dissected every action into its basic elements. Taylor's analysis led to the precise timing and reorganization of each task to maximize speed and efficiency. Initially, these changes led to significant productivity gains, but they also stripped workers of their autonomy and sense of craftsmanship. Understandably, Taylorism reduced skilled artisans to interchangeable cogs in a mechanized process.
Fast forward to today, and Taylor's shadow looms large over modern workforce management. Today's management practices have evolved to slice jobs into ever-smaller tasks. In 2019, The Wall Street Journal highlighted a significant shift towards workplace surveillance, labelling employees as "workforce data generators." This marked a new phase in management's scientific approach, now armed with AI-driven tools far beyond Taylor's stopwatch.
The COVID-19 pandemic and the shift to remote work turbocharged the use of these surveillance tools. A 2021 study by Gartner revealed that the adoption of technologies like facial recognition among employers had doubled to 60% during the pandemic, with predictions of continued growth. This surge in monitoring tools reflects a crisis-induced rush towards greater control, reminiscent of Taylor's response to perceived inefficiencies.
The narrative has been that a surefire way to protect yourself in an age of AI is to have a complex, human job. However, when you really examine any complex job it is just a Gordian knot of simple tasks, tasks that can be cheese sliced apart. Consider, AI-powered project management software that eliminates middle management by automating tasks. Once it has unbundled jobs into tasks, it then assembles freelance teams. While these freelancers initially benefit, the software soon learns from their work, and gradually replaces them too.
Freelancers are increasingly becoming a significant part of the workforce. A 2022 study by Upwork found that 38% of Americans engaged in freelance work. However, much of this work often involves performing highly specific, repetitive tasks—essentially slicing off a narrow piece of a broader job. These tasks are precisely the kind most vulnerable to automation, leaving freelancers not only contributing to efficiency but also unknowingly putting their own livelihoods at risk as machines learn to replace their roles entirely.
This trend isn’t isolated. AI is transforming fields from journalism to radiology, steadily reducing human roles. Taylor’s stopwatch has become the algorithm, and while efficiency soars, the impact on workers echoes the mechanised dehumanisation of Taylorism. This wave will impact computer and software programmers, data analysts, a host of media and marketing jobs, paralegals, financial advisors, consultants, and functional specialists in large organizations.
"One of the inevitable results of downsizing is plummeting employee morale. Employees have a hard time squaring all the talk about the importance of human capital with seemingly indiscriminate cutting. They are too often confronted with a lose-lose proposition: "If you don't become more efficient, you'll lose your job. By the way, if you do become more efficient, you'll lose your job." What employees hear is that they're the firm's most valuable assets; what they know is that they're the most expendable assets." - Gary Hamel
Middle managers and first-line employees might relate to the workers who built the pharaohs’ tombs. When pharaohs designed their tombs, they ensured that they would be so complex that no one could steal their treasures. Like Turkey's who discover the grim truth of Thanksgiving, tomb workers knew they’d be killed once the tomb was finished to protect its secrets. Imagine the pharaoh visiting the site and asking, “How’s it going? Almost done?” The workers, knowing their fate, would reply cautiously, “Not yet, still a few more years.” It’s no surprise these tombs were rarely finished in the pharaoh’s lifetime—and it’s equally unsurprising that employees during corporate restructuring hold back their full effort, unsure of their future.
Many workers today are machine teaching.
Creative Destruction in the Digital Age: A Jobs Paradox
"Masquerading under names like refocusing, delayering, decluttering, and right-sizing (one is tempted to ask why the "right" size is always smaller), restructuring always has the same result: fewer employees." - Gary Hamel
The shift from traditional industries to the digital age has redefined innovation and how success is measured. A key example is the metric of average revenue per employee (A. R. P. E.). For platform companies, A. R. P. E. has become a critical benchmark for stock analysts, showcasing efficiency and scalability. However, this focus highlights a troubling trend: fewer jobs are being created as industries evolve.
Historically, Joseph Schumpeter's concept of creative destruction explained how innovation disrupted old industries while simultaneously creating new ones. Railroads replaced canals, and automobiles displaced horse-drawn carriages—but these innovations also generated millions of new jobs. Innovation wasn’t just about efficiency; it was about ensuring economic growth that matched population expansion. Old companies served as compost for the new.
Today, that equation is shifting. Consider Blockbuster at its peak in 2004: the company employed 84,000 people and generated $6 billion in revenue. By the end of 2023, Netflix—a platform company that disrupted Blockbuster—earned $33.7 billion in revenue with only 13,000 employees.
While these examples showcase impressive efficiency, they also underscore a challenge: innovation in the information age isn’t creating enough jobs to offset those lost to disruption. Automation and AI is accelerating this trend, further decoupling economic growth from job creation.
Schumpeter’s creative destruction, once synonymous with progress and opportunity, now faces a new reality. Innovation increasingly creates platforms that enrich fewer workers, leaving economies to grapple with the widening gap between technological advancement and workforce demand. What was once a pathway to prosperity now threatens to undermine the balance between productivity and employment.
An Age-Old Concern
"This shift seems inevitable, but leaves so many Elephants in the Room that very few seem to be addressing. What happens the increasing populations? Is econonic and technological singularity a real threat? Is universal basic income the answer? Who monitors the Ai power shift and responsibility? Are governments equipped to answer these questions? Are we just waiting to see what will happen?" - From an article I wrote in 2016, called Frenem-Ais or Digging Our Own Graves?
Concerns about machines replacing human labour are nothing new. One of the earliest recorded instances occurred in 1589, when William Lee invented a mechanical knitting machine. Hoping to secure a patent, he sent a pair of machine-made black stockings to Queen Elizabeth the First. The queen rejected his request, citing fears that the invention would threaten jobs in the hand-knitting industry. This royal judgment highlights a centuries-old tension between technological advancement and its societal impact—a debate that continues to this day.
Our previous guest on The Innovation Show, the worlds leading expert on Supply Chain, Yossi Sheffiassured me that while these technologies will inevitably replace some of today’s jobs, they will also generate new tasks, roles, and opportunities. Moreover, despite the rise of automation, organisations will still rely on human expertise to design, oversee, and execute the vast array of activities that sustain the global economy’s supply chains. Yossi said we judge the future by using the past and that is why we cannot foresee future jobs.
I am deeply concerned about what will happen when AI not only surpasses the abilities of the best researchers and developers but exponentially outperforms them. Once we cross that threshold, we will reach a singularity—a pivotal moment when the rules of work, technological progress, and economic prosperity are fundamentally and permanently transformed.
On our latest episode of The Innovation Show, we are joined by the former Chief Innovation and Technology Officer for Accenture and the co-author (with H. James Wilson) of "Radically Human" and "Human + Machine", Paul Daugherty. Paul and James went to great lengths in their books to show how Human + machine will create a new paradigm for work and for what work means.
I opened this week's Thursday Thought by saying, I hope I am wrong . I still do.
Paul Daugherty - Radically Human
In this episode, we dive deep with Paul Daugherty, Senior Technology Advisor to Accenture and author of 'Radically Human' and 'Human + Machine'. We explore the evolution of artificial intelligence, its impact on businesses, and how companies can navigate the AI-driven landscape using the IDEAS framework. Paul shares insights into human-centered AI, the importance of trust, and how organizations can reimagine work in the age of AI.
00:00 Introduction to Human-Centered AI
00:49 Guest Introduction: Paul Daugherty
01:45 Context of the Books: Human + Machine and Radically Human
03:06 Research Insights: AI's Impact on Business Performance
04:38 Pandemic as an Accelerant for Technology Adoption
06:23 Tech Vision 2024: Key Trends and Predictions
09:47 Challenges and Opportunities for CTOs
18:26 The Digital Core: Modernizing for the AI Era
24:47 Every Company is a Technology Company
28:30 Phases of Intelligent Technology
35:23 The Digital Divide: A Growing Concern
36:14 Supporting Displaced Workers
38:30 The Trust Gap in the Workforce
41:37 The IDEAS Framework: An Overview
46:49 Deep Learning and Its Limitations
53:14 The Role of Data in AI
59:56 Machine Teaching and Human-Machine Hybrids
01:02:03 Innovating in the Cloud
01:05:18 Strategic Approaches: Forever Beta and Colabbing
01:07:44 The Importance of Trust
01:08:47 Conclusion and Contact Information
In a world of instant gratification and AI shortcuts, are we losing sight of the value of struggle? 🤔 Join us as we explore the importance of embracing challenges and the deeper connection forged through effort and perseverance. From personal anecdotes in sports to the insights of Naomi S. Baron, Albert Camus, Andrew Huberman, and Yuval Noah Harari, we uncover the transformative power of struggle in learning, creativity, and personal growth.
Discover why "passing through the desert of boredom" is crucial for laying down neural pathways and achieving meaningful results. We'll also delve into the impact of AI on education and organizations, and how bypassing the struggle can lead to a sense of detachment and diminished ownership. Don't miss this thought-provoking exploration of why struggle is not just essential for success, but also for finding deeper meaning in our achievements. 💡
🔗 Check out the full article here: https://thethursdaythought.substack.com/publish/posts/detail/151286406?referrer=%2Fp%2Fthe-ai-dilemma-struggle-or-shortcuts
Find the Reinvention Summit here
https://www.thereinventionsummit.com
AI's Influence on Creativity, Writing, and Learning: A Deep Dive with Naomi S. Baron
Join us in this insightful episode as we explore the profound impact of artificial intelligence on writing, creativity, and education with renowned linguist and author Naomi S. Baron. Delve into key discussions from her book, 'Who Wrote This: How AI and the Lure of Efficiency Threaten Human Writing,' highlighting both the potential benefits and ethical dilemmas of AI-generated content. Discover the complexity of copyright issues in the AI era, the importance of maintaining manual skills and personal touch in professional fields, and the significance of mental challenges in fostering authentic creativity. Learn about AI breakthroughs, such as AlphaFold in medicine, and real-world experiments like Google's Notebook LLM. This episode is a must-watch for anyone interested in the evolving role of AI in our lives, the protection of human authorship, and the vital interplay between technology and the human mind.
00:00 Introduction to AI Writing Tools
00:52 Meet the Expert: Naomi S. Baron
01:28 AI's Impact on Authorship and Creativity
03:08 The Deep Dive Experiment
06:05 Legal and Ethical Concerns
14:24 The Value of Human Creativity
28:46 The Struggle and Reward of Creativity
31:48 The Creative Struggle: Is It Necessary?
32:45 Artistic Mastery: From Bach to Picasso
35:44 Innovation and Discipline: Insights from Peter Compo
36:38 The Impact of AI on Education and Skills
42:13 The Importance of Personal Voice in Writing
44:35 The Physicality of Reading and Writing
54:35 The Future of Jobs in the Age of AI
01:01:51 Concluding Thoughts and Reflections
In this week’s Thursday Thought, we explore the crucial role of 'Helpful Cassandras'—individuals with heightened perceptions of change within business environments. Drawing on analogies from nature, quotes from visionaries like Warren Buffet and Andy Grove, and the concept of 'Umwelt' by Jakob von Uexküll, we discuss how different sensory frameworks shape our understanding of market shifts and disruptions. The episode highlights the importance of recognizing and supporting these perceptive individuals to stay ahead of crises and seize new opportunities. Don't miss out on the launch of The Reinvention Summit, featuring a workshop led by Rita McGrath on early warnings and trend detection.
00:00 Introduction: Focus on the Playing Field
00:30 The Role of Helpful Cassandras
00:46 Developing Organizational Antennas
01:53 Understanding Umwelt in Business
03:14 Rodents: Masters of Olfactory Perception
04:26 Economic Signals: Smelling the Sausage
06:45 The Cassandra Story: Andy Grove and the Helpful Cassandras
09:16 Embracing Early Warnings
10:51 Conclusion: Join The Reinvention Summit
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Article:
Navigating Change: The Hidden Scents, Sausages and Trip Wires
“Games are won by players who focus on the playing field - not by those whose eyes are glued to the scoreboard.” - Warren Buffet.
Just as different species perceive their environments in unique ways, individuals within a business environment experience and interpret the world around them through their subjective lenses. Some of these individuals—like modern-day Cassandras—are particularly attuned to early signs of change or disruption, but their warnings are often ignored. Using the analogy of rodents' heightened sense of smell, we explore how these Helpful Cassandras can guide companies away from crisis or towards new opportunities.yet are frequently overlooked. Embracing their foresight is crucial to navigating an uncertain future.
"The capacity of an organization to read its environment somewhere out there, which requires hiring some people whose sole job is to pay attention to the things that we're not paying attention to. If you think about any system, any [00:01:00] creature has only certain antennas. Which means that those antennas allow them to be in touch with this part of the world and not that part of the world. And they get in trouble when the world suddenly has something as a threat to them that they have no antennas for. So it's very important in an organization to develop the capacity here to have these kind of emergent antennas. And or to have at least parts of things that are paying attention to what people are not paying attention to, because, in most every case, when a crisis is coming, there are people who know nobody wants to listen to them because things are going well. And you certainly don't help your career by talking about them. So I think organizations, if they want to really be on the edge of things, have to build in as capacity here to surveil parts of environment. That it has not been paying very much attention to." - Stan Deetz, Innovation Show 559
Jakob von Uexküll was a pioneering biologist interested in how living beings perceive their environments. [00:02:00] He argued that organisms experience life through species-specific, subjective reference frames he called Umwelt (The German word for environment). Each species experiences the world through its own unique sensory lens. A tick, for instance, uses the smell of butyric acid to locate a mammalian host, while a star-nosed mole relies on touch to navigate underground. Despite sharing the same physical space, animals perceive their surroundings in vastly different ways. This idea of Umwelt applies not only to biology but also to how individuals in a business environment interpret signals of change.
In the business world, we each operate with different sensory frameworks. Some colleagues are tuned into technological advances, others are adept at sensing shifts in consumer behaviour, and some focus on regulatory or financial changes. Like animals in nature, they have adapted to perceive the same "business environment" in their own distinct ways. These [00:03:00] individuals, with their heightened perception, act like von Uexküll’s animals—sensing things others might not. This diversity of perception is invaluable, yet, much like in nature, it is often underestimated.
Rodents: Masters of Olfactory Perception
The world of a rodent is defined by smell in a way humans can never fully understand. With around 1,200 functional olfactory receptors compared to the 400 that humans possess, rodents can detect a vast range of smells and subtle environmental shifts long before we ever would. Their survival relies on this heightened sense of smell, enabling them to find food, avoid predators, and navigate their world with precision. They have adapted for their unique experience of the world and this adaptation, in turn, influences how they experience the world.
In business, there are people who, like rodents, possess a refined ability to detect changes in the "scent" of their environment. They can sense market [00:04:00] shifts, disruptions, or emerging opportunities earlier than others. But like rodents—often overlooked or even reviled in society—these individuals’ warnings can go unheeded. Their insights, though crucial for the survival of the business, are too often dismissed by those who don't perceive the same signals. (Like rats leaving a sinking ship, perhaps it is why your best people are first to leave a declining organisation.)
Smelling the Sausage: Diverse Signals
"The future is already here – it's just not evenly distributed." - William Gibson
As economies grow, people tend to consume higher quality meat. This a trend linked to rising incomes and a desire for higher-quality diets. Western countries have traditionally led this trend, and now emerging markets are following suit. For instance, China’s per capita meat consumption rose nearly 13 percent between 2008 and 2017, with the country now accounting for over a [00:05:00] quarter of the world’s total meat consumption. As nations grow wealthier, meat consumption often symbolizes status and prosperity. However, recent shifts in American consumer behavior are signaling a different economic reality.
Texas business leaders in the food and manufacturing industries are noting signs of strain, including rising agricultural costs and weakening demand for higher-end products. As inflation rises, many consumers are opting for more affordable proteins like sausage, a pattern that often intensifies during economic downturns. This small shift in food choices, while seemingly minor, is part of a larger picture of household financial strain.
Other signals from consumer credit data suggest that Americans may be nearing their financial limits. Federal Reserve data reveals that revolving credit—primarily credit card debt—contracted in June for the second time in three months. Consumer debt growth slowed. With credit card [00:06:00] interest rates averaging a record 20.73 percent and some reaching as high as 28 percent, financial pressures are mounting. Notably, 9.1 percent of credit card balances have transitioned to delinquency in the past year.
Taken together, these subtle yet cumulative signals—rising demand for budget proteins, slowing consumer debt growth, and increased delinquency rates—paint a picture of economic strain. By shifting focus from immediate gains to early warnings, companies can better adapt to the “playing field” of consumer behaviour rather than relying solely on the “scoreboard” of broad economic headlines. As always there are always Cassandras crying wolf, but very few listen.
The Cassandra Story: Andy Grove and the Helpful Cassandras
"It is extremely important to be able to listen to the people who bring you bad news and who are typically divided... These people tend to be lower level people. They have to bring you bad [00:07:00]news and be Cassandras against the senior management, against the fear of management of repercussions. Unless you deal with this fear, unless you live this fear you will never hear from those helpful Cassandras and you are going to be late in responding to the Strategic Inflection Points." - Andy Grove, Former CEO Intel.
This phenomenon of foresight being ignored is embodied by the story of the ancient Greek prophet Cassandra, who was cursed to predict the future accurately, but never be believed. In the modern world, Andy Grove, the visionary CEO of Intel, was famously paranoid about market changes, often sensing disruption long before his competitors. Grove's book "Only the Paranoid Survive" reflects on detecting early signs of threats or opportunities.
Despite their ability to foresee change, most helpful Cassandras are often ridiculed, ignored, gaslit or even pushed out. Their warnings can seem exaggerated or irrelevant to those focused on short-term gains [00:08:00] or immediate goals. As Stan Deetz tells us on the Innovation Show, 559, "Most organizations I work with are deeply in trouble before they really talk about change. Because they keep thinking before that they can fix it. And part of that is deeply embedded in organizational life. Managers don't get a lot of support for telling people what's wrong. They get a lot of support for telling people what's right , and their ability to fix what's wrong. And, and so, you know, the organisation itself typically becomes, especially at the upper levels, quite out of touch with the growth of difficulty until it's at some kind of crisis point. And of course, once you're at a crisis point, we always forget that people change least well when they're scared. people do the greatest changes that are good when they're happy. And so what happens is that we're out of touch, we're out of touch, we're out of touch."
The story of Cassandras in business is a common one: these individuals, while sensing the dangers ahead, are marginalised [00:09:00] rather than embraced. They are perceived as naysayers rather than gainsayers, even when their insights could help companies avoid catastrophic failures. This tendency to ignore early warnings results in companies being blindsided by crises that could have been averted had they listened.
Instead of dismissing these voices, businesses should seek to identify and support their Helpful Cassandras. They need to create spaces for these individuals to be heard, and build processes—like setting clear "trip wires" or "kill criteria"—that allow for timely interventions when changes are detected.
In Seeing Around Corners, my friend and guest at The Reinvention Summit in April 2025, Rita McGrath suggests what she calls an early warnings exercise. It helps leaders take action on hidden scents and weak signals. The way it works is to specify a “time zero” event which is a potential future inflection point with either good news for you and your organisation or not such good news. [00:10:00] Then, working backward, you ask yourself “What would have to be true if this were becoming more likely?” Then, you work with your team to think about what action you would take if a combination of weak signals were to begin to come together in a compelling way – Rita calls this the process of establishing tripwires.
In a world where organizations often value success indicators over the subtle warnings of change, Helpful Cassandras challenge us to pay attention to the “playing field” of emerging threats and opportunities. By recognizing and supporting these voices, companies can avoid potential pitfalls and harness early warnings to stay ahead. Just as von Uexküll’s animals navigate their environments with unique sensory lenses, businesses must foster environments that value diverse perspectives, enabling them to act on weak signals before they reach crisis proportions.
Join us for the launch of The Reinvention Summit to detect subtle signals of change and to act on those signals. Get your tickets to not only [00:11:00] hear from experts like Rita McGrath, but to take part in a unique "Seeing around Corners" workshop and experience a Trend Party. This is not just a series of talking heads on a stage, it is about inspiration and action. Tickets are selling fast: www dot the reinvention summit dot com
Have a great week,
Aidan
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