Future Savvy: Quality in Foresight

I was interested to see FEMA’s (U.S. Federal Emergency Management Agency) launch of its “Getting Urgent About the Future” Strategic Foresight Initiative, not only in itself unfashionably embracing deeper, longer-term thinking about key policy & security issues, but also making an excellent fist of defining its benefits (a definition that is in all essentials equally valid for business-industry foresight):

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“The world around us is changing in ways that may have profound effects on the emergency management enterprise. Collectively, we must begin to think more broadly and over a longer timeframe if we are to understand these changes and their potential impacts. To this end, FEMA has launched a Strategic Foresight initiative (SFI), the objective of which is straightforward: to seek to understand how the world around us is changing and how those changes may affect the future of emergency management and our community…

“The SFI can serve as one important tool in the development of both strategy and plans. By understanding the potential future environment, organizations will better understand and anticipate risk while ensuring opportunities can be fully capitalized. For example, the SFI may identify new or increasing capability requirements as well as emerging capabilities that do not exist today. Such identifications could support decisions about future investments as well as planning activities and exercises. In a more indirect manner, the SFI can help establish a research agenda for the emergency management field by highlighting areas of emerging relevance and the key questions that remain unanswered.”

[On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security.]

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The short-term future in South Africa is the Fifa Soccer World Cup, and at the moment it is really hard to get anyone to see or think beyond it. Football is life. Nevertheless a few hundred intrepid thinkers gathered in Cape Town earlier this month to consider South Africa in 2030, under the auspices of the World Future Society, South Africa Chapter, and its very capable leader Mike Lee.

I was lucky enough to be asked to do the opening address at the conference, and even luckier in that this Web site: South Africa – The Good News summarized some of what I and others said:

“Adam Gordon, Foresight Project Director and author of “Future Savvy” gave us some pointers:

1. Beware of sector experts, they are deeply entrenched in the present.
2. The consumer and choice is the determinant, not technology.
3. Change is about overestimating followed by underestimating.
4. Trends are patterns in the data, behind the trend are enablers and drivers, but frictional forces exist and in front of the trend are turners and blockers.
5. Trend extrapolation is limited, don’t fall foul of the turkey syndrome.
6. There is well behaved and badly behaved change. Both can be predictable and unpredictable. The potential of sudden shifts always lurks.
7. Scenario planning wraps up the key uncertainties over which we have no control.

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“The ‘BIG’ question he asks is ‘when do we influence the future and when do we adapt?’ There are big predictable forces out there (like population growth / the diminishing availability of oil etc), and there are big unpredictable forces out there (ja, well no fine!). Importantly, we can design our ability to influence and we can design the way we adapt. It is critical that we are able to do both.

“But managing the future is more than just about scenario planning, it is also about the implementation of the plan. It is about developing a methodology that prioritises, engages with stakeholders, and enables proactive actions on the ground.

So how?

Some important considerations (from various speakers):

1. Often we know what causes the problem (poverty, crime, HIV) but we don’t know what to do about it.
2. Often the logic that gives rise to the problem is not the logic that will solve the problem.
3. Mostly the problem does not contain the makings of the solution.
4. Solutions in one area can exacerbate problems in another.
5. The current situation has momentum, change to the system should happen concurrently not suddenly.

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“What is critical is the foresight process, it must be well-informed so that the implementation strategies that follow have buy-in, are doable, are relevant and far-reaching. There is a very real danger of visions being disconnected, unachievable and, at the end of the day, a pipe-dream.”

Dr Elizabeth Dostal talked of a stakeholder democracy in which she promoted the design of a matrix that recognised different stakeholder levels on the vertical axis and different environmental dimensions on the horizontal axis. A multi-level, multi-dimensional model.

“Imagine” she said, “putting four Nobel Peace laureates together and asking them what the causes of global conflict are. One may argue poverty, another ideology, another resources, and another greed. In no time, they would all be in different silo’s defending their view, in one sense they are all right, but in another sense they have not looked at the whole picture. A multi-level, multi-dimensional model would reveal this, the gaps in their logic, and the opportunities for agreement.”

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Legislation is the route by which ‘the people’ (or powerful sectarian interests, take your pick,) influence the future. It is often underestimated as a future force, or viewed merely as legislators playing catch-up with technology or societal change. But legislation can be far-sighted, and profoundly shape outcomes.

In a fascinating recent development, John Kerry, Democrat of Massachusetts, and Richard Lugar, Republican of Indiana, introduced the Start-up Visa Act to the US Senate, as reported in Inc. magazine.

The legislation is a forward-looking bid to turbo-charge entrepreneurial venturing in the U.S. by attracting foreign entrepreneurs and connecting them to U.S. capital, therein driving new economic growth and local jobs. What’s really interesting is it goes against past common wisdom that recessions are ‘bad for immigration’ (as citizens demand job protection.)

If passed, the bill gives U.S. visas to foreigners who can raise $100,000 from an angel investor or $250,000 from a qualified VC firm. After two years, if the immigrant entrepreneur can create five or more jobs (excluding family), attract an additional $1 million in investment, or produce $1 million in revenue, he or she gets a green card (permanent residency.)

The only current option, the EB-5 business investment visa, requires immigrants to invest at least $1 million in the U.S. and employ 10 people.

Job creation

The  National Venture Capital Association says 25 percent of America’s venture-backed, publicly-traded businesses, incl. Google, Yahoo!, eBay and Intel have been founded or co-founded by immigrants. According to Richard Herman, author of Immigrant, Inc.: Why Immigrant Entrepreneurs Are Driving the New Economy, nearly all U.S. job creation in the past 20 years has come from companies less than five years old.

The history of US immigration policy has been schizophrenic to say the least, with periods of great social openness followed by about-face door slamming. The slamming has always corresponded to economic downturns or anxiety thereto. But here we have the opposite effect. And we have legislators taking a forward view! Both proof that the future is sure to surprise us.

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Paul Saffo is always good value, and doesn’t shy from polemic. In this talk at the Foresight Institute 2010 conference, Saffo, emeritus and alumnus of the the foresight industry for over 20 years has a full swipe at ‘futurists’ who participate in ‘future-entertainment’ or profess to ‘see into the future;’ but calls for the broad infusion of foresight into public debate, including the restitution of the Congressional Office of Technology Assessment (OTA) scrapped by Newt Gingrich in 1995.
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“Profiles of the Future” at the Foresight Institute 2010 conference

Says Saffo: “Futurists today are talking to the wrong people, don’t have good methods (for the most part,) and are still doing the kinds of silly things we did (or they did) when futurism got started…We should have an instant prohibition on anyone who writes an article titled: ‘Top 10 Trends to Watch’… We’ve got to get rid of this ‘future entertainment’ stuff and ‘top-10 trends’ stuff, and get serious.”

Part of the raison d’etre of Future Savvy, of course, is to demythologize exactly this kind of self-promoting infotainment foresight, and give real-world managers a way to see through it. Thinking long-term is too important to allow it to be tainted by snake-oil salesmen. Saffo admits he’s ranting on this topic (as I do too.) In a less ranting mode, he would probably admit there are also many high-quality thinkers doing exemplary foresight work. Certainly he’s all in favor of thinking long-term, and doing it better.

Saffo’s solution? “Move foresight to the masses; make policy conversations cool; engage powerful myopics (short-term thinkers on Wall Street and other financial institutions); engage politicians (incl. via the OTA). But he doesn’t say how, and of course therein lies the rub.

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To misquote Ecclesiastes (Kohelet): ‘For everything there is a season and a time for everything under the sun… a time to think about tomorrow, and a time to think about today.’

Those of you who know this blog know that I try to keep it updated every 7-10 days with real content I have personally written. But this last week I have held back my posts. In the wake of the truly humbling loss of life and human calamity we have seen, somehow no futures posting seemed quite right.

In a foresight community we are, I think, rightly vociferous in getting decision makers to see the benefits of taking a long-term view, despite the systemic short-termism of incentive cycles (annual reports, political elections, and – dare I say it – banking bonuses) that most organizations and human systems use as basis of reward. But at times like this, similar to post-Katrina, post-the 2004 tsunami, and previous epic-scale natural and human disasters, we should not bury our heads in the sand of tomorrow. For now it is the present that counts: focusing on what matters to save lives and give food, shelter, and a modicum of respect to those with shattered lives.

The ‘social’ side of disasters

When the dust does finally settle, and there is time to draw some lessons, there are two future-anticipating principles that apply strongly in the Haiti disaster. The first is that fragile systems are always more likely to have ‘a collapse in their future.’ I’ve been reading Flirting with Disaster by Marc Gerstein, and one of its points (not new, but well described) is the role that human organization plays in facilitating or magnifying a ‘natural’ disaster. Yes, an earthquake can’t be controlled, or even forecast, but what its actual total impact is (the future we should have anticipated) has significantly to do with the efficacy of human organization, including preparedness, robustness, early-warning, and mitigation systems. Where these are in place and working well we should expect a different future.

Put another way: since man has had any say over his domain there have been no purely ‘natural’ disasters, and there will not be any in the future. Every future disaster will likewise be the product of natural forces meeting social organization.

Opportunity jolts

The second principle is that change often happens by jolts, that is, via the application of a sudden and overwhelming force rather than via gradualism. Particularly, a shock from the outside can ‘free up’ a situation and be the catalysing event that sets off wider and ultimately fundamental change. This is (best case interpretation) what the toppling of Saddam was about. Freeing the system. ‘Black Swan –ing’ the system, perhaps.

It the case of Haiti we have, by all accounts, a nation mired in poverty and corruption. What it is going to get from the events of the last week and the weeks to come, is like a punch in the jaw followed by a lot of world attention, solace, and aid. Add them together and it could be a system-busting event, a real opportunity to break out of existing governance cultures and existing global relations. History suggests Haiti won’t grasp the opportunity, but the window will be open for a while, and good foresight would keep this potential upside scenario in mind and even work to facilitate it.

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I have a fond little memory from one of the early multi-candidate debates in the last US election campaign. It was on prime-time TV: there were still about a dozen or so candidates in the running, including Obama and Hillary Clinton, each was standing behind a podium, and as the topic of climate change came up they were asked en masse: “So, who didn’t fly here today in a private plane, raise your hand?” The delegates all sheepishly kept their hands down but one – I forget which – raised his. “I came in yesterday,” he explained. (laughter)

So to the Copenhagen climate change summit, and all the luminaries and dignitaries and celebrities landing at København airport, many of them in private jets.

http://www.cph.dk/CPH/DK/MAIN

This tells us something about the future, and what it says is: ‘needs must.’ What are they going to do, row a boat to Copenhagen? Scale that up and you have the real, actual future. People will fly. In fact the entire new global middle class of billions will fly. And they will heat their homes. And they will eat meat, and so on. And any even remotely democratic system that tries to take away this will be out on its ear.

But we will of course move to cleaner, renewable, sustainable systems. How fast this happens depends essentially on money, which in turn depends on political will, which in turn depends on public concern. Money is required to fund new energy technology research, and — the core issue of Copenhagen this week — it is needed to buy off industrializing countries.

There’s no doubt that climate change (manmade or not) is real, and a real danger. But when scientists and academics are worried about it that means little in terms of changes to human practices. When the public gets concerned — as they now are — we get the possibility of fundamental change. This is true of the future generally, not just climate and the environment.

Between the public sentiment and the money lies political will. Essentially the political will of post-industrial economies on the one side, who find it politically easy, relatively, to pay the price of emissions constraints vs. that of developing economies which will be choked economically and therefore politically by those constraints.

Inequality

Correlating degrees warming with ecological and therefore social upheaval is important. But to think that is what the argument is about is to miss the point. The point is global inequality and its future, and how developing economies are not going to allow emissions constraints to further entrench it.

The future goes always to the most powerful side. That’s what power is for: determining the future. The sides are both strong in this dispute, so this battle will not be won or lost in Copenhagen this week. We are still in its early stages. The effects of climate change are incremental (unlike, say, nuclear holocaust) meaning there is plenty of room for postponement even if the planet can’t and won’t ultimately take it. And those who would occupy the moral high ground have burned public and private jet fuel to be there to do it, and will no doubt indulge in a bit of Smørrebrød and Frikadeller too. Needs must.

So expect the political clock to remain stuck as it has been for a while now, at ’5 minutes to midnight,’ while the issue smolders slowly without definitive resolution — until technology advances get human energy, finally, off fossil fuels and the problem works its way out of environmental and human systems.

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Top of the news yesterday along with Iran’s election protest was Israeli prime minister Benjamin Netanyahu’s statement that he — as leader of the right-wing Likud party — could endorse a Palestinian state. It was framed in conditions on Jewish-state recognition, and requirements on security, borders, refugees and Jerusalem that are, from today’s vantage point, very difficult to imagine Palestinians or Arab states agreeing to. So no change is expected. Even the breaking-story reporters had to admit that, rhetoric aside, this is not a breakthrough.

There’s an old joke in journalism from the 1970s that goes: “You can write the same headline on any and every story about Israel’s relationship with its neighbors: ‘Prospects for Middle-East Peace Dim.’”

Sure, it’s partly Eeyeore-ish journalist wit. But what’s interesting from a foresight point of view is that, running the world forward 40 years shows it was a reasonable understanding of the future. Why? Solid foresight is always predicated on a solid understanding of the forces for and against change. “Prospects for peace dim” acknowledged that forces and enablers of change were overpowered by what was preventing anything fundamental from happening (friction and blockers in Future Savvy terms.)

The basic truth is that Israel-Middle East is a complex situation characterized by a more-or-less equal balance of power. Israel has military and nuclear superiority, and US backing. Arab countries have oil, population numbers and population growth, and a billion more-or-less sympathetic moslems around the world, and therefore time on their side. They also have, particularly in Gaza, relatively widespread poverty and low welfare and educational development, which is  a force against moderation and therefore a negotiated settlement.

A genuine balance of power means we have equilibrium, and therefore should expect no change. That’s why we’ve had plenty of skirmishes, but no change in 40 years.

Looking out for the next 40 years, is this still the case? Can we write “Prospects for Middle East Peace Dim” on all news stories for another two generations? Following the foresight logic above, this depends on whether anything breaks the fundamental equilibrium. There are four issues apparently large enough to threaten the status quo:

• Water shortages and water conflicts
• Change in US policy
• The end of oil-based transport energy
• Iran going toxic

Water is a favorite of trend-foresight sessions. It sounds like the key issue in a rising-population world. In theory yes, but it’s unclear whether it will lead to anything more than local conflicts or wars, which in Israels case, we have already. On US policy, the Obama administration is attempting to show even-handedness, but its strategic interest lies with Israel as military ally and ideologically temperate (democratic, at least) bastion in the region. So no change there either. On oil, we are definitely in an era where – for security and climate change reasons – fossil fuel is entering it’s twilight phase, which will erode revenues and therefore power of ME Arab states. But, as mentioned earlier, poverty is as great an obstacle to peace as any other. (Remember the Israeli “let’s-grow-our-way-out-of the-situation-together peace platform of the 1990s, seeing tackling the development issues as the root of creating moderate mindsets across the region.)

That leaves Iran which may change the balance if it really goes toxic (develops and uses nuclear weapons in terror strikes.) This is a low futures likelihood – it’s not just luck that nukes have stayed in their box since 1945 – no state wants to carry the stain of the nuclear pariah for all time. There’s a moral blocker on this outcome that has worked for generations. Nuclear powers rattle, but the don’t bite. But … what if the wildcard scenario of a massive nuclear strike on Israeli soft targets were to happen, what then? The current low-grade hostile standoff would become a supernova, but we’d still have power balance, and while we have that we’ll have status quo and  journalists can expect to write “Prospects for Middle East Peace Dim” on top of every story about the region for another 40 years.

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College graduation is a fabulous time and place to think big, and therefore a good place to have a futurist do the thinking. Peter Schwartz recently gave the valedictory address to the 2009 graduating class of Rensselaer Polytechnic Institute (he graduated there in 1968) and offered a grand 10-point challenge list for techies of the future:

Allowing for the usual pep-talk style of these things, it’s possible to boil the list down to five key things, which will indeed be essential to technology enabled industry and social change in the lifetime of today’s college graduates:

1. Non-pulluting, inexhaustible energy. Schwartz mentioned potential sources including fusion and gasoline-excreting molecules. “We need something new for the long run, and it will require new physics, new chemistry, new materials, new biology, or likely some combination.”

2. A “bio-industrial revolution” to make production of goods more energy efficient and environmentally sustainable.

3. Advancing understanding of the human brain, and developing new means to combat aging effects.

4. Improving agriculture to raise yields while reducing environmental costs.

5. Better urban planning, civil engineering, and smart architecture for more sustainable cities.

A fairly well known list – yet these are the key issues. But the most interesting thing of all that Schwartz said was this:”graduates should not assume they can do it alone. Collaboration is a key ingredient of progress.”

“At some point in the next few years, probably by the time you are 30 … you will have to make a life trajectory decision that no one tells you about: Are you mainly going to work on your own or work through others?” Schwartz said. “Many engineers, scientists, artists, poets, writers have great lives working mostly by themselves. But there are many things you cannot do on your own. If you want to lead research teams in larger organizations, or design and construct new buildings, or make movies or start new businesses, the skills of human collaboration are essential to success.”

In other words, collaboration – the means to and willingness to and resources to collaborate (globally) – is a key enabler of important breakthroughs. In theory everyone knows this and everyone agrees. But how much of competitive and legal process is all about protecting individual or national work, that is disrupting collaboration?

So in addition to the grand technology challenges for coming lifetimes, I offer a similar grand policy challenge (perhaps for Kennedy School grads of 2009): create the policies that genuinely promote and encourage collaboration. Do not encourage people, or companies, or countries to see benefit in working on their own. Facilitate and reward information sharing at every level… and then the Rensselaer grads and their equivalent around the country and the world will really be able to create the future that Schwartz envisions.

For event report see Rensselaer Polytechnic Institute http://news.rpi.edu/update.do?artcenterkey=2585

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It’s all in a day’s irony when Guinness releases its 250-year view of the future on the day that the UK Chief Medical Officer pleads for a minimum price for alcohol (and Gordon Brown, for now, says no, but don’t bet on that holding for long.)

Guinness' view of the pub of 2259. Image credit: Chris Bainbridge

The Guinness Pub-of-the-Future is a St. Patrick’s day (March 17) promotion. Nothing wrong with a little bit of fantasy foresight. But what they come up is so “20th-century-futurism” it’s hilarious. Among various reports on the project – for example in the Telegraph – the following features are foreseen:

- robotic doorman, greets you by name
- cash obsolete; orders via RFID; payments deducted automatically
- your product tailored to you on the spot
- touch-sensitive tables, send your order straight to the bar
- socializing via virtual / hologram technology
- a running tally of the number of units consumed.

Yawn. Even on it’s own terms (minimal constraints of realism) this is a totally derivative piece of foresight. These “innovations” are the staples of an infotech view of the future, and they have all been thought and spoken of countless times. Also many of the elements and services cited are already here, or not more than a decade away. What we have is the current pub assumptions + digital steriods, while the year 2259 will be, truly, another world.

The limits to growth
But all this leads us to more interesting industry foresight problem. Will there be pubs in even a generation, never mind 250 years? What the Telegraph dryly observes at the bottom of its report is that 39 pubs are closing every week Why? A number of driving forces are coming together:

First is strict drink-driving limits, which makes “the local” literally local or nothing. Second, pubs in the UK have traditionally been a refuge from housing that was poor and/or underheated. Unprecedented waves of affluence (credit-crunch notwithstanding) have led to widespread housing “do-ups.” It’s now a valid option for most people to spend their leisure time at home and entertain at home.

Then there’s the where’s-my-friend trend. You’re likely to go down the pub if your friends are there, but not if they are where most people’s friends are: on Facebook.

The social-legislative clock
Fourth, no matter how you dress it up, pubs are retail outlets. So, like all retail they are under the cosh in a Wal-mart / Tesco world. The price gap between store and pub has become too great for most consumers to cross with good conscience.

Which brings us to the current price-floor legislation bid. Alcohol is a huge social cost in terms of health care and violence. Drink costs the NHS £3bn a year, and the total price of alcohol to the taxpayer is estimated at five times that. Eventually these costs will become unjustifiable so, like smoking before it, the social-legislative clock is ticking for booze. As the 2-martini lunch has become the 2-seltzer lunch, the trend to social stigmatization is clear, and legislators will follow (not with Prohibition, but with a much more subtle community-endorsed squeeze).

Like the good politician he is, Gordon Brown won’t let his party get ahead of the trend. But the trend is clear and it bodes ill for pubs.

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Publication of the Institute for the Future’s “Map of Future Forces Affecting Sustainability” on the same day that it is revealed that Sir Fred Goodwin (50) of failed & baled Royal Bank of Scotland (RBS) will get a £693,000 (about $1,000,000) a year payment for the rest of his life, gets me thinking about short-termism and its entrenchment.

The IFTF’s full map is available for download here.  Quick aside: these maps, putting complex forces into visuals, have defined IFTF’s public (and client, one presumes) communications for over five years, and have raised the bar of excellence in the foresight communications. The company has produced many such outstanding maps, some publicly available.

The new map and Sir Fred-gate are unrelated of course. But here was the connection for me: The IFTF map lists six “Key Driving Forces” (2007-2017) in the area of sustainability, and the first is:
“An Imperative for Looking Long: The 21st century will test our ability to grasp the future impacts of present choices, but even as we struggle to incorporate future knowledge into our day-to-day decisions, we’re tuning up our bodies and minds and even our cultural frameworks for a much longer view.”

My question is, “really?” Is the long view really a driver – something that will drive change and shape the future? Or do we hope it is. Are we trying to talk it into being?

No question that the long-term view is crucial. Solving just about any social, technological, or environmental problem requires sustained long-term action. And everyone who works in foresight keeps evangelizing long-termism. But, in fact, what we have in industry and government is rampant short-termism and there is no indication this will change, despite the crisis and many heartfelt calls.

Linking big to long

The problem with Sir Goodwin’s package (in career and in retirement) is that the reward numbers were based on short-term company returns. “Hey, we made lots of money this year, so you get a big bonus, and you get a big bonus,” etc. But a few years down the line  – in the long term – it turns out that no bonuses were valid (if a bonus is, truly, a reward for success).

Put it another way: in finance, as in other aspects of society, technology, and the environment, we don’t know if we’ve succeeded or failed until the long-term numbers are in. Few would have a problem with handsome rewards for a valuable job well done, but those rewards must surely be delayed, and delayed, until we are in command of the long view of the performance.

Easy in theory, hard in practice. Perhaps impossible in practice when most politicians and legislators are themselves on a short 3-7 year cycle, like CEOs. I have some inkling from the IFTF map that the thinking is that life-extending technologies will improve to the point where people will really see themselves in for the long haul, and so adopt a longer perspective on benefits and rewards.

Time on the clock

Perhaps. But, life-technologies aside, plenty of decision-makers – Goodwin included – still have a lot of time left on the clock and that doesn’t appear to stop them chasing and cashing in short-term incentives at the expense of the future. Or legislators (and the public who votes them in) structuring performance rating on our immediate perception of their performance.

What we have, and what we have increasingly had (the trend) over the past few decades, is systemic short-termism. Winning in the next annual report or the next election is what what leaders’ rewards are based on. Incentives for politicians or business leaders or even scientists or engineers to make a better world for 2025 or 2050 are negligable.

Until there is reason to anticipate that this fundamental underlying short-term incentive structure and mentality changes (that is – convince me – who will change it and how?) the future savvy perspective must say that the “long-term imperative” remains a nice sound-bite, but not a material driver of anything.

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