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"The Great Transformation": How to manage the transition from the old world to the new world._

March 15, 2018

[Economy and society are going through one of the biggest transformations ever in history. It’s a huge paradigm shift that brings extremely risky turbulence. In order to overcome the transition from the "Old World" to the "New World", a revolutionary new management is needed to move resources to the critical decision zone.

 

Experts assess the current economic situation in the traditional categories of the old world–their recommendations and decisions are accordingly helpless. What we perceive today as a financial and economic crisis is not a major depression, but a major social transformation process – a profound control and system crisis. It is part of a far-reaching, social-economic transformation that occurs only about every 200 years. That's why Prof. Dr. Fredmund Malik calls it "The Great Transformation".

 

The most important observations for the 21st century have been summarized by the Austrian economist (with a focus on management theory) in 14 theses. They are markings to understand global events, to classify media coverage, to assess people's behavior and to effectively steer, develop and design complex systems:

 

1. The complex systems of the 21st century are built up through the successes of the way of thinking and methods of the 20th century but they can no longer be managed with them, because the systems have become too complex globally.

 

2. The 21st century has already brought about more radical change in deep structures than it is perceived on the surface. Not only has a paradigm shift taken place, but a change of categories in which we perceive paradigms as such.

 

3. The categorical dimensions of the new worldview are called: complexity, system, functioning, control, self-organization, information, non-linearity, knowledge and cognition.  

 

4. Global societies are transforming into a complex society– in mutational steps from the society of individuals to the society of organizations to the society of systems –which are complex. Due to their complexity, they have their own dynamics, which require fundamentally different management than before.

 

5. Knowledge has become more important than time and energy, information is more important than money, the targeted self-organization ability of companies is more important than power.

6. The relevant knowledge for the functioning of this society comes from the complexity sciences. These are cybernetics, systems theory and bionics. In applying this knowledge lies the relevant knowledge.

 

7. The crucial challenge for the 21st century functioning is complexity. The most important skill is mastering and using complexity. The most important function for this is cybernetic management. The most important means for this is cybernetic enterprise policy. The most important prerequisites for this are conditions for self-organization, which use the momentum of complex systems and enable people to lead themselves.

 

8. The most important effect of such corporate policy is master control for self-organizing, self-regulating, self-directing complex systems.

 

9. Complexity center and anchor point is master Control depending on customer organization, client, patient, student, voter - in short, anyone who needs their services and pays in any way. Only the organization that offers effective solutions to its service providers for mastering complexity will succeed.  

 

10. The epoch of arbitrariness of and in management is over, for cybernetics establishes the scientifically compelling laws and standards for well-functioning management in the complexity age. The epoch of hitherto arbitrary opportunism in the management consulting services of all categories has also come to an end.

 

11. There will be only two groups of people left: First, those who only recognize the old in the new and no longer understand enough, because they have missed the knowledge of the world, reality, system and information of the last decades. Secondly, those who recognize the new as such and use it because they have learned to follow and understand this development attentively even in times long before their consequences became generally felt.

 

12. Today's social institutions are revolutionizing or disappearing because they are "unmanageable" and therefore no longer serve their purposes. Financial difficulties are just the symptom of their non-functioning. The cause is their lack of proper, complexity-oriented management. 

 

13. Government policies will continue to be important in global societies, but in their present form they will become more and more sources of disruption, disability and limitation. Today's political parties no longer fulfill any purpose, because the functioning of social systems has no party colors and does not follow any ideology. It is not right or left, but right or wrong.

 

14. The key to human beings in the complexity society is to master the professional management and (self-) management. It will have the same meaning for social survival as well as life and evolution of any society, as reading and writing for the step from the serf-illiterate to the responsible citizen. Sound cybernetic management will be the functioning and cultural capacity of the complexity society.

 

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