>Ecological literacy is not such a simple topic as many of us would have
>wished for. (snip)
>Capitalism proved to be a Complex Adaptive System (CAS) for most
>changes up to now. (snip)
>However, whether modern Capitalism as a CAS can survive in the
>face of ALL POSSIBLE changes, is all together another question. It
>is dangerous to single out one property of any complex system for
>discussion, but allow me to begin our dialogue with one peculiar
>property of Capitalism, namely the "maximisation of profit". (Snip)
Please excuse my tardy response. Two weeks "on the road" allowed no
earlier time. At, we agree that maximization of profit leads to
undesirable and self destructive ends. If your assumption that
maximization of profit is the basis of capitalism were true then your
questioning of it's inability to last over time and respond to change
would be correct. Maximization of profit alone is not the goal however,
or if it was at one time or for some enterprises, that is changing.
Capitalism or the free enterprise system is based on the opportunity to
pursue ones own self interest. A fundamental of self interest is
continued survival or sustainability. Thus, optimization is the real goal
- that balance between seeking the best you can get while doing so at a
level that can be sustained. Optimization and sustainability are key
characteristics of the type of economy and organizations we are evolving.
The shift from maximization to optimization is one of the many
characteristics that lead me to recognize the "living organization" model.
Those who have reviewed the "Living Organizations" model synopsis I
offered last month may have noted that under the fifth principle
"Sustainability," it speaks to a focus on "optimization" rather than
"maximization." It's a key aspect of sustainable and living systems - and
one that is arising in the types of organizations (business and others)
that are emerging on the planet today. If maximization were once the goal
of free enterprise, (and I'm not sure it really ever was) it is certainly
changing.
Maximal approaches are not sustainable and due to fail in time. I watched
the overwhelming success of Japan's economy and especially their high tech
and auto industry 5-6 years ago and observed that they were built on a
"maximal" approach. I knew they were destined to fall back because the
approach was not sustainable. US and other nation's business leaders
meanwhile moaned that they could never catch up to the Japanese dominance
and success. These business leaders were right in a way because to "catch
up" would mean developing the same type of unsustainable maximal
approach. Instead, the expected happened - Japan's economy fell back and
it is currently exploring what is optimal and sustainable. Other
countries did not need to "catch up." They needed to develop sustainable
approaches and wait for Japan's maximal approaches to fail and fall back -
and they have.
Natural systems, their living members - and living organizations - have a
predisposition to sustain themselves. They do this by evolving toward
those approaches that require least expenditure of energy to survive
and/or reproduce (or otherwise sustain their own existence). They evolve
away from competitive situations to seek niches where they can survive and
renew with minimal expenditure of effort or energy, even if that means
changing or evolving to do it. In the business world, we speak of
becoming "more competitive" but in virtually every situation, what we
really mean is developing our products or services in ways that reduce the
wasteful effort of going head to head with someone else for the same
resources or customers. We evolve away from direct competition but often
define our shift as "becoming more competitive," which leads to
misunderstanding what is really taking place.
Maximal effort cannot be sustained in human systems and natural ones don't
try. The clear message from synthesizing the literature and "discovering"
or "developing" the living organization principles is the shift away from
maximal approaches (which are not sustainable) toward a focus on optimal
approaches (which are sustainable). That's part of what I meant in the
metaphor about the different "car" we are building for the future in
LO13860.
The movement to developing a sustainable, optimal approach rather than a
maximal one is a key emerging characteristic of the system we call
capitalism, free enterprise or pursuit of one's self interest.
Maximization of profit is not the sole objective of "capitalism" and
profit and entropy are not synonymous. I agree some organizations,
businesses and individuals still seek to maximize their profits. Can they
sustain themselves in this type of pursuit over time? No, and they are
discovering this in increasing numbers. (How badly we'll generally mess
up planet earth - the only home we have - before optimization becomes the
dominant manner of operation is the question.)
Systems that do not allow members or components to pursue their own self
interest, (practice "capitalism") are the ones that fail along with those
that attempt to control by central planning, constrain opportunity or
refuse to evolve in the face of change. Nature and capitalism are both
free enterprise systems. Natural and free enterprise systems ensure that
virtually every current or newly evolved niche will be explored and
occupied. Free exploration ensures diversity and diversity ensures
survival of the system - but not all members. When change occurs some
part of the system responds to sieze the new opportunity - and some parts
of the system often perish. It is the diversity of enterprise and freedom
of exploration that ensures the survival of "capitalism." It is
consistent with natural systems models and the living organization ones we
are currently evolving.
At, you are correct. The car you see with a flat battery and nearly empty
tank is a part of the system we are leaving behind. The new model of
living organizations based on optimization rather than maximization is the
one evolving to occupy the changing environment.
Best wishes,
Cliff Hamilton
Progressive Visions
<cliffrh@aol.com>
--Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>