A couple of weeks ago, my son Bud mentioned to me an article in the Summer 2008 issue of Strategy+Business. A few days later, I found the article entitled “The Next Industrial Imperative,” and low and behold, Peter Senge and three of his colleagues are the authors.
Peter Senge, who is now a senior lecturer at MIT, authored The Fifth Discipline: The Art and Practice of the Learning Organization, published in the early ’90s. I read it soon after it was published, and have carried with me as a part of my personal creed what I condensed from it: I am a learning organism and want to be associated with learning organizations; a learning organization is one that realizes it is in control of its own destiny; I am a learning organism because I realize that I am in control of my own destiny as long as I have my health and no one is holding a gun to my head.
Presently, none of us individually is in control of our destiny. Check out the upcoming Frontline episode “Heat” on global warming. Global warming is the loaded gun pointed at each and everyone one of us.
If you read “The Next Industrial Imperative,” you will discover that Senge and colleagues use imagery effectively to make their points memorable. In The Fifth Discipline, Senge did the same by relating the boiled frog parable in the context of a business on its way out because it is not aware of or denies the existence of forces and changes that are taking it down.
It seems as though frogs, and human beings for that matter, sense heat only when heat is moving through their heat sensory systems. Ever notice when you relax in a hot bath, the water seems to lose its heat quickly? It’s not losing its heat so fast, but rather the flow of heat from the water through our heat sensors has slowed down because all layers of our skin (and probably the fat just beneath it) are approaching the temperature of the bath water.
So the boiled frog parable is that you put a frog in a pot of water that’s at room temperature and then put him on the stove. The water warms slowly, with the result that heat is flowing through the frog’s heat sensors slowly. At any point in time, the doomed frog doesn’t perceive a dangerous change in the water temperature. The result is a boiled frog that never becomes aware of his imminent demise.
I gave my copy of the The Fifth Discipline to Bud not long after I read it, so when I sat down to write this post, I called him to see if he still had it. Of course he no longer had the copy but had recently bought an audio version on CD to listen to in his car. I mentioned the boiled frog thing and we started talking about the financial pundits on CNN etc and how they are clueless as to what’s going with the breakdown of the financial system. Bud said, “Yea, and if you tried to relate the boiled frog story to one of them, they’d think the point of the parable is that the pot is half full.”
That’s a nonsensical quip but that’s what you get from the financial and political pseudo pundits in the mass media. Nonsense. Pseudo information. Kinda like eating a Twinkie. Tastes good but no nutritional value. Check out what’s in a Twinkie and you’ll discover it has more ingredients than a car engine has moving parts. It’s manufactured not for its substantive value but rather only to taste good and get you hooked. Just like nicotine-enriched cigarettes and high octane Starbuck’s coffee.
And if we rely on pseudo pundits in making personal decisions, we may find ourselves in boiled frog heaven. Or hell. The talking heads aren’t there to communicate useful information, but rather to entertain people. Any useful information in the content is accidental. Strategy+Business and its content are not Twinkie-like.
“The Next Industrial Imperative” article uses images of bubbles to help make its points. We are living in the industrial revolution bubble. Bubbles tend to pop. There was the dot.com bubble and it popped. There is the housing boom bubble of the last several years and it has popped. The securitized debt, over-the-counter derivatives bubble is connected to the housing boom bubble; sort of a double-bubble. These bubbles pop when the real value of the assets within are overvalued and the overvaluation becomes generally accepted. The result is that the assets inside the bubble become assets outside the bubble and their value drops to true value in the sustainable world outside the bubble. Enron and Bear Stearns are examples of micro-bubbles.
What keeps a bubble inflated is the belief of those operating inside the bubble that the notational values of the assets are their real values. Once this perception becomes generally accepted as being a fantasy, the bubble pops.
The industrial revolution brought about a great many benefits for some of us, including improved health and comfort. But it has created environmental problems culminating in global warming as the most pressing challenge of our time. We have been like the boiling frog, sitting inside a pot of water on a stove located in the bubble of the industrial revolution. The present value of the industrial revolution as it currently exists is less than zero. It is not sustainable as it’s presently configured.
And while the financially savvy among us chose to avoid both the dot.com and securitized debt, over-the-counter derivatives bubbles, none of us can unilaterally escape the industrial revolution bubble. It is imperative that the industrial leaders of the world work together to develop solar based energy sources to replace fossil fuels. Not to do so will result in continued global warming evaporating the thin film of the industrial revolution bubble, casting us into a dystopian one that may last centuries.
“The Next Industrial Imperative” points out that the level of Co2 is “35 percent higher than at any other time in the past half million years.” In addition to the bubble imagery, another visual reference in “The Next Industrial Imperative” is a bathtub filling up with water. At some point, the inflow of water exceeds the outflow and the tub becomes full. At some point in our future, the inflow of Co2 into the atmosphere will “cross a threshold” where continued global warming will be beyond our ability to reverse.
To avoid disaster, “The Next Industrial Imperative” states that the world must reduce the release of Co2 from the burning of fossil fuels by 80 percent in the next 20 years. The Frontline trailer includes a sound bite of a person stating that the goal cannot be met. Let’s hope that person is wrong.
Visit the Strategy+Business website and read the entire “The Next Industrial Imperative” article. It contains much more information than this post.
My hope is that we avoid the worst case scenario from the effects of global warming. Or even the next worse, which is a dystopian world for us all.
It’s imperative that a new industrial bubble emerge that is sustainable. Hope means nothing without action, so become politically involved. Read about Sweden’s amazing progress in “The Next Industrial Imperative.”
Driving a Prius, or a plug-in electric when they become available, will help. But keep in mind that transportation in all forms accounts for less than half of our present rate of consumption of fossil fuels.
Express your concerns to public officials at all levels, and take advantage of available means to learn more. Let your views be known to your friends (and your employers if you can do so without getting fired). And don’t miss the Frontline episode “Heat” coming out this fall. The background music for the trailer is “Burning down the House” written by David Byrne and the other Talking Heads.