Category Archives: power

Continuing the discussion on complexity – guest contribution by John Tobin

The following post is by guest contributor John Tobin. John has served for many years as the CEO of a community hospital in the US. He earned a Doctor of Management at the Business School of the University of Hertforshire in 2003 and remains interested in the ongoing work of the Complexity Research Group at the University of Hertfordshire and the challenges of bringing that perspective into everyday management practice in a community hospital setting.

Doug, in your first post, you touched on an issue that I find both fascinating and disconcerting, –the increasingly close ties between public officials and special interests, and the mostly unacknowledged role of public policy in creating the current financial mess, a dysfunctional health care system, and other problems.  This interconnectedness is by no means limited to business CEOs and high ranking government officials.  Anyone familiar with the political process in Washington knows that the place is actually run by platoons of bright, ambitious twentysomething congressional staffers.  The staffers become the focus of lobbyists’ attention because they know specific issues better than the Members themselves.  Many of these staffers will go on to careers as lobbyists or elsewhere in government, reinforcing those linkages.  In my home state, legislators are closely tied to the public employees’ unions (the Speaker of our House of Representatives was an organizer for the Service Employees’ International Union before being elected Speaker).  Organized labor is supposed to balance the power between workers and business owners and the professional managers who represent the owners’ interests.  In a government setting, this worthy purpose is corrupted when the workers become the managers, and no one truly represents the owners’ (taxpayers’) interests.  Getting government spending under control becomes next to impossible. Continue reading

“Wishful thinking combined with hubris”

Last summer a group of economists at the London School of Economics felt impelled to write to the Queen in response to her question posed the year previously when she was on a visit to the university as to what had caused  the banking collapse.

The letter explains that there was a ‘psychology of denial’ affecting all those concerned, and in a touching note of humility drawing attention to the fact that many very intelligent people were caught up in this collective denial, the letter goes on to explain that “it is difficult to recall a greater example of wishful thinking combined with hubris”.

“Everyone seemed to be doing their own job properly on its own merit. And according to standard measures of success, they were often doing it well,” they say. “The failure was to see how collectively this added up to a series of interconnected imbalances over which no single authority had jurisdiction.” (my emphasis added) Continue reading