Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Sunday, February 8, 2015

[REVIEW] The End of Power

DISCLAIMER: I will be judging Moises Naim's The End of Power separate from my problems with the book presented here and here. While my contentions there remain, I will try to judge The End of Power separate from those issues.

The End of Power by Moises Naim is the first pick in Facebook founder Mark Zuckerberg's Year of Books. The book purports to explain and explore the changes in power during recent decades- "From boardrooms to battlefields and churches to states, why being in charge isn't what it used to be", as the cover states.

The model he proposes for examining power and the decay of power is perhaps the best part of the book. First, he defines power. 'Power is the ability to direct or prevent the current or future actions of other groups and individuals.' As he states in the text, this is similar to political scientist Robert Dahl's definition of power given in The Concept of Power. "A has power over B to the extent that he can get B to do something that B would not otherwise do." He identifies what he calls the four channels of power- the means through which power is expressed and employed. They are The Muscle, The Code, The Pitch and The Reward. This is a clean and simple division that really does encapsulate most options and doesn't require much explanation. Even if we were to try and introduce another 'channel' into this model (say, The Drive for the use of intrinsic motivation) it could easily be explained away as a synthesis of two 'basic' channels of power- in that case, The Pitch and The Code.

He goes on to analyze the accumulation and distribution of power from an economics perspective, using the idea of 'barriers to entry' and 'market power'. I am always fond of the use of Economics as Universal Toolkit and Moises Naim does this well. He then explains why 'big' became almost synonymous with 'powerful'. Ranging from Max Weber's belief in the power of bureaucracy to Ronald Coase's Nature of The Firm and his elucidation of economies of scale and transaction costs, his analysis is sharp and edifying.

He then proposes why the nature of power is changing- why large actors seem more constrained and less effective than their smaller competitors. His economic analysis is important here; he identifies the changing nature of transaction costs, the existence of 'diseconomies of scale' (my terminology) and, ultimately, the lowering of barriers to entry in nearly all fields. He tends to downplay the Internet as the primary game changer in the structure of power. He considers it only one factor among many, which is refreshing. He identifies three 'revolutions' affecting the employment of power- More, Mobility and Mentality. The More Revolution: 'Overwhelming the means of control.' The Mobility Revolution: 'The end of captive audiences'. The Mentality Revolution: Taking nothing for granted Anymore.' This is an intuitive and flexible model- and better yet, it is simple and can be universally applied without much problem. Each of these is tied to his earlier use of 'barriers of entry' and to his 'channels of power' to show how each one complicates the exercise and accumulation of power.

It is after the demonstration of his model that the book really declines in quality. Editing is extraordinarily poor for a book of this type. For one example, he continually hints at an analysis of education using his model in the earlier chapters. He ends a later chapter with, and I'm paraphrasing: This chapter could have been about education. His charts and visual aids are even worse- I had to wonder if his publisher gave him a quota. One of his charts is a U-curve he uses to explain that too much power and too little power have their own problems. The X axis is labelled (confusingly) Decay of power and the Y axis is labeled with the practically non-descript phrase political and social stability, economic vitality. It is a completely worthless chart, dropped into the middle of the text without reason and without any basis in fact.

The quality of his commentary on the 'decay of power' and the examples he chooses to prove his thesis are equally poor. In the military focused chapter, I found his emphasis on 'drones' to be particularly jarring and a waste of space. One line stuck out in particular: "More disturbing, ordinary hobbyists and private users abound: in the United States in 2012 a group called DIY Drones had twenty thousand members." He isn't the only one to get scared about drones since we stopped calling them RC planes, but there were infinitely better examples that could have been used. He never talks about the massive deployment of Palestinian rockets and Israel's construction of the Iron Dome, for example. He doesn't talk about denial-of-service attacks done in conjunction with rocket strikes or about the terrifying rise of 'armchair jihadists' as even a concept, much less a reality. (I said I wouldn't use his poor citation of sources in this review but it bears mentioning: when talking about the possible use of drones by terrorist groups and about a confirmed use by Hezbollah of drone use in 2004, he instead cites this article- which is about the use of drones by Israeli security forces and the culture of fear it has created among Palestinians.)

He promises at the beginning of The End of Power that "this is not a call to feel sorry for those in power." He presumably forgot that promise somewhere in the editing process, because his entire section on what is to be done about the decay of power as well as his commentary on the negative effects of the decay of power is impossible to read as anything but "a call to feel sorry for those in power." He argues that democratic societies need to give their governments more power over their lives- and while he's not alone in this contention, it is nothing more than the final lament of a 20th century technocrat at the dawn of the 21st. There are some good points to his final analysis, but they don't outweigh the bad.

The End of Power presents a useful model for understanding power's changing nature in the modern day. Moises Naim then proceeds to do nothing useful or thought-provoking with that model for 200 pages. I would recommend this book only for those interested in the model and nothing else. The flaws outside of his model-building portions make this book not worth the effort.

Final musing- Why Mark Zuckerberg Picked This Book: References to Facebook and the tech industry abound throughout The End of Power and well they should. (Moises Naim often says they succeed for the same reasons al-Qaeda did, which is useful for grabbing attention if nothing else.) The tech industry's 'disruption' of various industries are the David vs. Goliath struggles that many now imagine when talking about the changing nature of power. The nimble startup fending off the industry giant is ingrained into the public consciousness and is brought up everywhere, critically or no, from Uber's fights with taxi companies to Kodak's replacement by Instagram. We live in a world where private companies such as SpaceX and Virgin Galactic define space travel more than NASA. Mark Zuckerberg picked this book because the rise of Silicon Valley is just one expression of the end of power.

UP NEXT: The Better Angels of Our Nature: Why Violence Has Declined, Steven Pinker, A Year of Books' 2nd pick

Tuesday, January 6, 2015

[REVIEW] Drive: The Surprising Truth About What Motivates Us

Business books are almost never riveting reads. They are usually a slog through uninteresting case studies, mind-bogglingly bad visual aids and a few points of brilliance you probably could have looked up yourself on Wikiquote. Sprinkle in some buzzwords. Let simmer.

Drive: The Surprising Truth About What Motivates Us is an exception. I powered through it in 2 days and it never felt like a chore. This is despite having a title that sounds like a Buzzfeed title generator run amok. Don't get me wrong- it is still a business book and it is still intended to make you better at middle management or founding a startup or whatever. But it is more than that, besides.

Drive is, unsurprisingly, a book about human motivation. It is Dan Pink's contention that we (and by extension, the organizations we belong to and interact with) are stuck in an outdated mode of thinking about motivation- a mode of thinking that relies on carrots-and-sticks, rewards and punishments. A system Dan Pink calls Motivation 2.0, a system based on all the sort of things that would make B.F. Skinner squeal with delight. And Dan Pink doesn't agree with this system. Unlike many business books, he doesn't disagree and call it a day.

He begins the book with a study from the 1940s on problem solving in lower primates. Researcher Harry Harlow gathered together lab monkeys and presented them with a somewhat complicated lock and pin puzzle. The intention was to see if a system of rewards could entice them into learning how to operate and solve the puzzle. But it turned out the system of rewards was unnecessary- the monkeys threw themselves into the task of figuring out the puzzle before they were given any rewards. This made no sense in the behavioral theories of the day. Motivation in those days was viewed as a product of baser survival instinct (the first 'drive') and a hedonistic pursuit of pleasure and aversion to punishment and pain (the second 'drive'). The behavior of the lab monkeys required a third 'drive'- purely intrinsic and divorced from external rewards and punishments. It is from this third 'drive' that the book takes its name.

Next he moves on to the research efforts of Edward Deci. While a graduate assistant at Carnegie Mellon University, Deci assembled a group of research subjects to measure intrinsic and external motivators. One group remained unpaid for the duration of the study (three days of assembling the Soma puzzle, pictured below). This was the control and the members of this group remained relatively well-motivated and engaged throughout the course of the study. The other group, however, was paid for their performance on one of the days- after which payment was ceased. In a result that shouldn't surprise many people, the paid group performed better for the day which they were paid. But after the day they were paid, their motivation and effort fell below that of the unpaid group. From these results and other studies, Deci elucidated a theory of 'crowding out'- the idea that extrinsic rewards can actually remove or cancel out intrinsic motivation.

The soma puzzle, disassembled                                   The soma puzzle completed- one of 240 solutions 
(From Wikimedia Commons)

This theory of 'crowding out' is further explored in the negative effects of fines instituted by Israeli day cares (more famously seen in Freakonomics and Predictably Irrational.) Israeli day cares in the study tallied the number of tardy parents over a period of time. They were then divided into two groups- a control and an experimental group. The control group continued as before, merely tallying the number of parents late to pick up their children. The experimental group, meanwhile, instituted a fine to dissuade the tardy parents from showing up late to pick up their children. The end result is that tardiness actually increased at those daycares that instituted the fine- the creation of a punishment system had actually encouraged the behavior it was meant to discourage. The idea is that the institution of the punishment removed people's intrinsic motivation to not be tardy- a social obligation to the daycare workers- and replaced it with a price the tardy parents could rationalize. And when the fee system was removed? Parents continued to be late at the higher frequency seen during the study. Their intrinsic desire to not be late had been removed by the institution of a monetary punishment.

He doesn't stop there- he moves into 'positive psychology', self-determination theory, Mihaly Csikszentmihalyi's theories of flow and even the dreaded business case studies- exploring such institutions as Wikipedia (a platform where the only motivators are intrinsic), Atlassian (a software company following in Google's footsteps with 20% time), Meddius (a healthcare technology company where you only show up to work if you have to- what is called a "results-oriented work environment") and finally, Semco (the world's most successful example of workplace democracy and the subject of my next read). He uses examples from academia and business to further show that intrinsic motivators almost always win out over external motivators. Even if it didn't contribute anything of note, Drive would be a worthy read if only for all of the launching points it provides the reader.

It ends as all business books do- with a discussion guide. Drive calls it a Type I ("intrinsic motivation") Toolkit. It isn't just a series of bland reading comprehension questions or PowerPoint slides for the next corporate retreat. Drive's Type I Toolkit presents exercises that any person could use to determine their motivation and their trajectory in everyday life. Even the explicitly business-focused exercises are, as the chapter insists, applicable to anyone from an intern to a CEO. Consider the "pronoun test" created by Richard Reich- do you and your colleagues refer to the organization you are in as "they" or "we"? It can tell you a lot about the sort of organization you are in and where you are in it. The Toolkit even includes a Further Reading section not composed of the author's other books!

Overall, I would highly recommend Drive. It is not a very hard read and was worthwhile throughout. It definitely inspired a good amount of thinking, even though I had already seen some of the studies and examples contained in its pages. And as stated above, if nothing else, it is one of those books that opens up new avenues for exploration. Below, you can watch a video by RSA that provides a pretty good summary of many of the book's findings and conclusions- if you like the video, there is a good chance you will like the book.



Amazon link: Drive: The Surprising Truth About What Motivates Us

UP NEXT: Maverick: The Success Story Behind the World's Most Unusual Workplace, Ricardo Semler