Why Did Obama Choose Geithner and Summers?

By Leslie Pratch

I can’t answer this question. But I hope my readers will help.

A few nights ago (July 14), I saw Sebastian Mallaby defending hedge funds on Charlie Rose. He said, essentially, that these bandits (who walk away with a c. 20% profit, treated, for tax purposes, as capital gains) contribute to capital allocation. Of course, they are playing with OPM.

Barney Frank (who appeared on Charlie Rose on July 15) has always talked too fast, even back in college according to a classmate of his. But he and Chris Dodd have, somewhat, atoned for their sins. Geithner and Summers have not. (How can you screw up being president of Harvard?)

Obama should have been a real change agent and brought in Stiglitz, Krugman, and Company. If you want to do Keynesan stimulus, be bold. Bring in the guys who would have put a bone in he Congressional throat. Many of my friends still think Obama as a gift from God. Considering the alternatives, I’m inclined to agree. But rumor has it that Hillary Clinton will be a contender in 2012, and I hope that she is.

Too many voters think that reality is what takes up so much of their time watching “reality” shows on TV. Far too many of them can’t identify the three branches of government. Or where Bolivia or Afghanistan are located. Or where the continents are located on the shifting tectonic plates of our surly and unpredictable planet.

Hillary Clinton’s early passion for children (and education and health care) tell me her instincts are in the right place. We need voters who are educated. We need workers who are healthy enough to work. Why there has been no major infrastructure spending is a mystery to me.

As a psychologist, I am trained NOT to delve in to the psyches of individuals whom I have not actually analyzed. That’s the end of this post. I’ll leave the analysis to my readers, whom I hope will comment!

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Leslie Pratch, Ph.D. is a clinical psychologist from the Northwestern Medical School with an M.B.A. in Strategy and Finance from Chicago Booth and a B.A. in Religion from Williams College. She works with boards of directors of public companies as well as private equity investors to assess and develop executives. She can be reached at (312) 464-7919 or leslie@pratchco.com or www.pratchco.com.

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Leadership Crises in Industry

By Leslie Pratch

A friend recently, discussing the types of leadership crises facing companies, upheld GM as a model of ethics but one which suffered from bureaucratic inertia. British Petroleum, on the other hand, he believed, suffered from poor public relations: “The CEO has had his foot in his mouth the entire time.” At its root, however, he did concede that the crisis stemmed from aggressive risk taking. Chalk it up to capitalism, he would say. And Goldman, Sachs, though large, has not even profited during the recession. Its leadership crisis is the public perception of questionable ethics.

I respectfully disagree with my friend’s characterization of GM as a model of ethics. I would criticize all the car companies over the world with lack of ethics including their behavior with suppliers. The one leader in the industry who behaved ethically has been Tom Stallkamp who at Chrysler did NOT extract extract price concessions. (Stallkamp had been a director at Baxter and at BorgWarner and was an Industrial Partner at Ripplewood Holdings L.L.C., a New York private equity group, since 2004, the international auto parts supply sector. Ford was in between Chrysler and GM. If you were a supplier, Ford would wear you out. But if you hung in there, you could collect.

GM used to be one of the best companies in the world. When Ignacio Lopez, the former purchasing czar at GM, came into power the 1980s, GM became adversarial. It killed the goose that laid the golden egg; it killed the supply base. What really was out of whack at GM was its internal cost structure, which critics attributed to Lopez’ aggressive cost cutting. Honda was able to be profitable but did not try to cut a new deal once it entered into a supply agreement. By contrast, under Lopez, GM did a bait and switch, enraging the supply base. GM never went with the one company that had predominance on international bids.

In 1993, Volkswagen hired Lopez shortly before the CEO of GM would announce Lopez would be promoted to head the company’s North American operations. GM accused Lopez of misappropriating trade secrets. German investigators began to probe Lopez and Volkswagen after prosecutors linked Lopez to a cache of secret GM documents investigators found in the apartment of two associates of Lopez. Volkswagen, facing plummeting stock prices, forced Lopez to resign. GM and Volkswagen reached a civil settlement, in which Volkswagen agreed to pay GM $100 million and to buy $1 billion worth of parts from GM.

GM is changing and the changes are culturally pretty deep. It is getting rid of most of the executives who came up the system, and as a result, the culture is changing. GM had destroyed the relationships it had with the supply base, which enabled it to reduce prices while maintaining high internal costs.

The automotive and heavy truck industry has a used car dealership mentality, a mentality which permeates the entire industry-up to the CEO. What has been lacking is trust, which has forced both the suppliers and the car companies to talk out of both sides of their mouths.

But now that GM has led the way by hiring leaders from outside the industry, the United States may have a shot at a viable automotive industry. One can hope.
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Leslie Pratch, Ph.D. is a clinical psychologist from the Northwestern Medical School with an M.B.A. in Strategy and Finance from Chicago Booth and a B.A. in Religion from Williams College. She works with boards of directors of public companies as well as private equity investors to assess and develop executives. She can be reached at (312) 464-7919 or leslie@pratchco.com or www.pratchco.com.

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Does Conversation Scale?

Posted by Leslie Pratch; written by David Friedman, a guest blogger who writes on Positive Structures.

David asks if conversations scale-and what the implications are for networks. He writes:

There is a very interesting post about this topic from Wired magazine here.  It suggests that there is an optimal size for an online conversation, where people feel that they are in fact contributing to a conversation. When the community around a topic (e.g., a blog and a specific post) is small, conversation is fairly slow. As the community grows (say the blog grows so now more people are reading each post), the pace of the conversation picks up.  But at a certain size, the conversation flags, as people begin to feel anonymous and unknown in the community.

I wonder if it’s that people feel anonymous and disempowered to make a difference, or is it:

  1. Too many comments going in too many directions — so people can no longer really follow what’s happening
  2. A decrease in the frequency with which a person’s comments are responded to by one of the people whose opinions they actually value (which might include the person who started the blog or network)
  3. No more interest in actually knowing any more people — because the human capacity for managing relationships is allegedly limited (see Dunbar’s number).

I don’t fully understand the causes of the phenomenon, but it does suggest that groups that actually want to achieve something need to limit their numbers. There appears a real trade-off based on interpersonal factors; scale brings diversity and breadth of experience and insight and connection to other networks, but it also brings (at some point) a decrease in engagement.

Organizations have of course wrestled with scale before, because scale brings an increase in complexity. Some organizations get bureaucratic. Others define a maximum size of their organization and then split the organization when it gets too big.  Examples of this are W.L. Gore (the Gore-Tex people) and at one time in the past, Dell Computers. Gore splits business units when they grow to 150-200 people working together. In this article, the current CEO of Gore quotes the founder’s idea that it was necessary “to divide so that you can multiply.”

Dell would split existing units of its salesforce into pieces.It would giving each of the new “child” units a portion of the target markets that the “parent” had had, and told the leaders of the “children” units to each fill out their teams and then achieve the revenue (in just a few years) of the former “parent”. As I was told, this splitting process could be repeated over and over again.

Maybe as collaborative networks grow they reach a point where they need to split in order to remain effective. Something to think about.

What’s your own personal experience with this in networks?  What have you seen? How do you feel as a network grows? Does your behavior match what you say/think you believe in or are trying to do?

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Leslie Pratch, Ph.D. is a clinical psychologist from the Northwestern Medical School with an M.B.A. in Strategy and Finance from Chicago Booth and a B.A. in Religion from Williams College. She works with boards of directors of public companies as well as private equity investors to assess and develop executives. She can be reached at (312) 464-7919 or leslie@pratchco.com or www.pratchco.com.

David Friedman is a consultant who thinks about creating positive social structures and building trust. He founded Bridgewell Partners,a learning and consulting company that helps organizations prosper by creating and strengthening valuable business relationships – with prospects, customers and employees. David also blogs about these ideas on Positive Structures.

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Innovation Needs More People Working Together Better

Posted  by Leslie Pratch; written by David Friedman

David Friedman is a consultant who thinks about collaboration, trust, and social networks as part of making the world a better place. In February 2010, he began writing about these ideas on Positive Structures. One of his first entries is about how social networks can support innovation. He writes:

There’s a lot of good discussion going on right now about how social networks and social interactions can support innovation. The challenge is both getting the right people together and having them interact in the right ways.  Crowdsourcing lets individuals generate ideas, but better innovation can come from the interaction of people with a diverse set of skills and interests. How can such a group of strangers, be assembled, and how can it function well together and be productive in a minimal amount of time?

In my view, the quality of the results in collaboration problem-solving or collaborative innovation is a function of the diversity of input and the quality of the interactions among the people.  So if someone could bring together many diverse people and use outstanding group problem-solving methods, they’d get better results than a relatively small group that works well together (e.g., a good team) or a diverse set of people who don’t work together (e.g., Innocentive). Some examples of interesting collaborations that have brought together larger groups than a team and also used methods that enabled people to actually work together (in team-like or quasi-team-like ways) are shown on this chart, with a view of their effectiveness.

Here’s an explanation of each of the methods on the chart.

Innocentive is well-known platform for solving problems. Individuals who think they have the answer can submit and be paid if their answer is selected. My understanding from the popular press (correct me if I am wrong) is that many (maybe most) Innocentive problems that are solved are solved by an individual who sees fairly quickly that he or she has some knowledge that can be applied to the problem. There’s not much teamwork.

Innocentive (Chinese style) is a reference to something I read (maybe from John Hagel) that in China groups of Innocentive participants collaborate to decide on which problems to attack. So they get the variety of problems from Innocentive and can combine their skills to solve them. In Good to Great, Collins and Porras talk about “getting the right people on the bus” and then figuring out what strategy to pursue. Taking advantage of the stream of Innocentive problems, the Chinese groups have assembled the “right people” and can look for the problems that this group of people is well-positioned to solve. My estimate is that this method will yield greater fruits than what individual Innocentive participants can do.

The Netflix Prize challenge. This well-known contest produced every larger groups of collaborators as it neared its end. As the teams grew, they were able to use both traditional improved problem-solving from larger groups as well as collaboration that in some ways was unique to the problem – they were able to mathematically combine algorithms (their solutions to the problem) to get better results.

Open Space methods – These methods bring people with a stake in the problem together and then let them work together on what they believe are the important elements. They yield results that cannot be easily predicted but are very powerful.

Polymath. This was a high-level mathematical collaboration. It yielded outstanding results through open collaboration of many people. Polymath was conducted on a blog and guided by a set of rules that encouraged people to share ideas that were not complete but that others could build on (or refute early, before too much energy was devoted to them.

The the interesting challenge is figuring out ways of bringing the right people together and structuring their interactions in the best way.

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Leslie Pratch, Ph.D. is a clinical psychologist from the Northwestern Medical School with an M.B.A. in Strategy and Finance from Chicago Booth and a B.A. in Religion from Williams College. She works with boards of directors of public companies as well as private equity investors to assess and develop executives. She can be reached at (312) 464-7919 or leslie@pratchco.com or www.pratchco.com.

David Friedman can be reached at www.bridgewellpartners.com. His blog is called Positive Structures.

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What Sausage Will the Legislature Turn Out Now?

By Leslie Pratch

How will the sausage machine turn out the sausage? I can’t wait to hear what Obama has to say from the Oval Office.

http://www.nytimes.com/2010/06/15/business/15regulate.html?emc=eta1

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Leslie Pratch, Ph.D. is a clinical psychologist who trained at Northwestern Medical School with an M.B.A. in Strategy and Finance and a B.A. in Religion from Williams College. She works with boards of directors and private equity investors to select and develop executives. She can be reached at (312) 464-7919 or email her at leslie@pratchco.com or visit www.pratchco.com.

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Is Growth Sustainable? What are the Implications for Democracy in America?

By Leslie Pratch

The belief in that hard work and success were virtues as measured by socioeconomic status is certainly not unique to America as we have entered a global economy. What is unique to America is the believe that growth is sustainable. That belief must be challenged. New means to generate growth must be created in order to devise the most prudent, compassionate, and enduring civil liberties, communal well being, and social goods from which we all benefit.

The two dominant strains of thought in the United States have historically been Calvinist and Jeffersonian.  Niebuhr writes on the problem of the “resolution of potential conflicts of interest and power in the community, the strain of thought most perfectly expressed by James Madison combined Christian realism in the interpretation of human motives and desires with Jefferson’s passion for liberty.”  The difference between Madison and Jefferson “is symbolized in the distinction between the presuppositions of the Declaration of Independence and of the Constitution of the United States” (which Jefferson and Madison inspired).

Jefferson’s vision was of a harmonious society in which government would interfere as little as possible with the economic ambitions of the individual.  He presumed these ambitions would be moderate and that satisfying them without friction with the neighbor would be guaranteed by the wide opportunities of the new continent.

Madison feared the potential tyranny of government as much as Jefferson; but he understood the need for government much more.  The Constitution protects the citizen against abuses of government, not so much by keeping government weak as by introducing the principle of balance of power into government.

Madison’s most persuasive arguments for a federal union was that a wide community would so diffuse interests and passions as to prevent the welter of political strife that plagues small communities.

Some of our social peace must be accredited to the fluid class structure of American society.  I believe that the American class structure will become more fixed and the stratification of wealth will only increase as we move toward the final limits of an expanding economy.  The fluidity of the American class structure is primarily the consequence of a constantly expanding economy. How can Americans have the opportunity to jump levels of wealth if our government does not remain a democratic republic?

Common sense tells us that democracy itself prevents either the Jeffersonian or the Calvinist strategy from being carried through to its logical conclusion. The essence of each position contains a core truth; yet each position becomes false, precisely when it is carried through too consistently.

The element of truth in each creed is required to do full justice to human being’s real situation. Every basically healthy human being has the potential in theory to transcend the social and historical process sufficiently to make it possible to contrive, deliberately, common ends of life, particularly the end of justice. Inadvertence and the coincidence of private desires one their own will not achieve common ends.

On the other hand, we are simply and inevitably too immersed in the turbulence of interest and passion in history. If we survey the total process, it is is too short-term and limited to justify the endowment of any group or institution of “planners” with complete power.  The disinterest of their idealism and the pretensions of their science is suspect.  The controversy between those who plan justice and order and those who trust in freedom to establish is irresolvable (a theme to which I return again and again). This belief underscores the difficulties of achieving an integrated self, as each individual is pulled by self interest and concern and concern for an interest in others. Every healthy society will live with that tension and will prove its health by preventing either side from gaining complete victory.

The Puritan attitude toward the expanding opportunities of American life were historically three elements of the situation, of which two were derived from the creed of our Founding Fathers, and the third from the environment, gradually changed The third element was that once the first hardships had been endured it became obvious that the riches of the New Continent promised remarkably high standards of well-being.  These were accepted as “uncovenanted mercies.” As Niebuhr states in The Irony of American History:

“We live in a more comfortable and plentiful manner than ever we did expect.”  This confession exposes the lack of material motives among the first Puritans and their gratitude for the unexpected material favor of the new ecology.  From that day forward, it has remained one of the most difficult achievements for our nation to recognize the the good fortune upon which our situation rests.

If either moral pride or the spirit of rationalism tries to draw every element in an historic situation into rational coherence, and persuades us to establish a direct congruity between our good fortune and our virtue or skill we will inevitably claim more for our contribution to our prosperity that the facts warrant.  This has remained a source of moral confusion in American life.  For, from the later Puritans to the present day we have variously attributed American prosperity to our superior diligence, our greater skill or (more recently) to our more fervent devotion to the ideals of freedom.  We thereby have complicated our spiritual problem for the days of adversity which we are bound to experience.

In Calvinist thought prosperity as a mark of divine favor is closely related to the idea that it must be sought as part of a godly discipline of life.  The thesis of Max Weber and Talcott Parsons thesis in The Protestant Ethic and the Spirit of Capitalism was that the “intra-mundane asceticism” of Calvinism was responsible for creating the standards of diligence, honesty and thrift which lie at the foundation of our capitalistic culture. The descent from Puritanism to Yankee in America was a rapid one.  Prosperity which had been sought in the service of God was now sought for its own sake.

Jeffersonians believed prosperity and well-being should be sought as the basis of virtue.  The Puritans regarded virtue as the basis of prosperity rather than prosperity as the basis of virtue.  The fusion of these two forces created a preoccupation with the material circumstances of life which expressed a more consistent bourgeois ethos than that of even the most advanced nations of Europe.

In 1835 De Tocqueville wrote “American preachers are constantly referring to the earth.  … To touch their congregations they always show them how favorable religious opinion is to freedom and public tranquility; and it is often difficult to ascertain from their discourses whether the principal object of religion is to obtain eternal felicity or prosperity in this world.”

De Tocqueville contrasted the extroverted activities of our “democracy” with the purer culture of the more traditional world. In ascribing preoccupation with the material basis of life to democracy de Tocqueville may not do justice to all aspects of the issue but he does put his finger on an unsolved problem of our democracy.

The character of our particular democracy was founded on a vast continent, expanding culturally with a seemingly-endless expanding frontier. Certainly this character created new frontiers of opportunity when former geographic frontiers ended. We used to believe, implicitly, ethical and social problem of a just distribution of the privileges of life would be solved by increasing the privileges that make an equitable distribution easier, or which render a lack of equity less noticeable. In this abundance the least privileged members of the community are still privileged, compared with less wealthy members.

Yet our culture has paid a considerable price for improving social tensions by constantly expanding production.  It has created illusions about the ease with which the optimization of interests of the individual and society can be made on a social basis.  These illusions make our religious, our secular, our social, and our political theories sentimental. They have also created a culture which makes “living standards” the final norm of the good life.

What do you think? Is growth sustainable?

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Leslie Pratch, Ph.D. is a clinical psychologist who trained at Northwestern Medical School with an M.B.A. in Strategy and Finance and a B.A. in Religion from Williams College. She works with boards of directors and private equity investors to select and develop executives. She can be reached at (312) 464-7919 or email her at leslie@pratchco.com or visit www.pratchco.com.

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ROME II: Politics and the Ideal of a Republic

By Leslie Pratch

I came across the following lovely passage when I was rereading Ronald Syme’s classic work, THE ROMAN REVOLUTION. (It is dense, assumes one knows a great deal of background, and can deal with nomen, praenomen, and cognomen. Among other things. He–quite properly–refers to Octavian as Octavianus. And he does not have great fondness for Octavian/Augustus.)

In Rome of the Republic, not constrained by any law of libel, the literature of politics was seldom dreary, hypocritical or edifying. Persons, not programmes, came before the People for their judgement and approbation. The candidate seldom made promises. Instead, he claimed office as a reward, boasting loudly of ancestors or, failing that prerogative, of his own merits. Again, the law-courts were an avenue for political advancement ( vide Cicero! JOW) through prosecution, a battleground for private enmities and political feuds, a theatre for oratory. The best of arguments was personal abuse.

Thank Heaven we have risen above such practices and debate only policy and morality in a rational and fair fashion.

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Leslie Pratch, Ph.D. is a clinical psychologist from Northwestern University with an M.B.A. in Strategy and Finance and a B.A. in Religion from Williams College. She works with boards of directors and private equity investors to select and develop executives. She can be reached at (312) 464-7919 or email her at leslie@pratchco.com or visit www.pratchco.com. This entry was taken from lesliepratch.us.

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Humility, Evil, and International Relations

By Leslie Pratch

In The Irony of American History, Reinhold Niebuhr wrote that Lincoln’s “brooding sense of charity was derived from a religious awareness of another dimension of meaning than that of the immediate political conflict.”  “Both sides read the same Bible and pray to the same God.  The prayers of both could not be answered – that of neither has been answered fully.” His thinking reflect the psychological autonomy and integrative capacity so fundamental to the active coping style. Posts speaking to these twin characteristics will appear later this year. Niebuhr continues:

Lincoln’s awareness of the element of pretense in the idealism of both sides was rooted in his confidence in an over-arching providence whose purposes partly contradicted yet not irrelevant to the moral issues of the conflict.  “The Almighty has His own purposes.” Yet he also saw that such purposes could not annul the moral purposes of men who were “Firm in the right as God gives us to see the right.”  This combination of moral resoluteness about the immediate issues with a religious awareness of another dimension of meaning and judgment must be regarded as almost a perfect model of the difficult but not impossible task of remaining loyal and responsible toward the moral treasures of a free civilization on the one hand while yet having some religious vantage point over the struggle.  Surely it was this double attitude which made the spirit of Lincoln’s, “with malice toward none; with charity for all” possible.  There can be no other basis for true charity; for charity cannot be induced by lessons from copybook texts.  It can proceed only from a “broken spirit and a contrite heart.”

Good and evil are always intertwined in history.  Tragic choices and dilemmas abound.  The Christian (and perhaps the Jewish though I would want to check out this surmise with a Jewish scholar) faith does not regard the tragic as the final element in human existence.  Niebuhr believed that the tragic motif is subordinated to the ironic one because evil and destructiveness are not inevitable consequence of the exercise of human creativity.  He believed that always there exists the ideal possibility that man will break and transcend the harmonies and necessities of nature yet not destroy the human race.  For Niebuhr, the destructiveness in human life is primarily the consequence of exceeding, not the bounds of nature, but much more ultimate limits.  The God of the Bible is “jealous.”  Divine jealousy is aroused by man’s refusal to observe the limits of his freedom.  There are such limits, because man is a creature as well as creator.  The limits cannot be sharply defined.  Therefore, distinctions between good and evil cannot be made with absolute precision.  But it is clear that the great evils of history are caused by human pretensions which are not inherent in the gift of freedom.  They are a corruption of that gift.  These pretensions are the source of the ironic contrasts of strength leading to weakness, of wisdom issuing in foolishness.

Reinhold Niebuhr admonishes us that irony must be distinguished as sharply from pathos as from tragedy.  A pathetic situation is usually not as fully in the consciousness of those who are involved in it as a tragic one.  A tragic choice is purest when it is deliberate.  But pathos is constituted of essentially meaningless cross-purposes in life, of capricious confusions of fortune and painful frustrations.  Pathos, as such, does not bestow nobility, though it is possible to transmute pathos into beauty by the patience with which pain is borne or by a vicarious effort to share the burdens of another.  “The situation in a displaced persons camp may be essentially pathetic but it may be shot through with both tragedy and grace, through the nobility of victims of a common inhumanity in bearing each others’ sorrows.  One who is involved in a pathetic situation may be conscious of the pathos without thereby dissolving it since the participant does not bear responsibility for it.  He is the victim of untoward circumstances; or he has been caught in the web of mysterious and fateful forces in which no meaning can be discerned and from which no escape is possible.”

According to Reinhold Niebuhr, an ironic situation differs from a pathetic one by the fact that a person involved in it bears some responsibility for it.  The fact that the responsibility is not due to a conscious choice but to an unconscious weakness. “Don Quixote’s ironic espousal and refutation of the ideals of knight errantry may be detected by the reader whose imagination is guided by the artist-observer, Cervantes.”  But Don Quixote is as unconscious of the absurdity of his imitation of the ideals of chivalry as the knights are unconscious of the fraudulence of their ideals.

In this post I am indebted not only to Niebuhr and Murdoch but also to the collaboration of Anatol Lieven and John Huslman (2006), authors of Ethical Realism. Any paraphrasing is my own and if it distorts the meaning the authors noted intended, the error is mine and inadvertent. Please let me know and I will amend immediately.

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Leslie Pratch, Ph.D. is a clinical psychologist who trained at Northwestern Medical School with an M.B.A. in Strategy and Finance and a B.A. in Religion from Williams College. She works with boards of directors and private equity investors to select and develop executives. She can be reached at (312) 464-7919 or email her at leslie@pratchco.com or visit www.pratchco.com.

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Privilege and the Slippery Slope of Rationalization

By Leslie Pratch

Privileged classes are maintained by the inheritance of privileges without regard to individual capacities for exploiting them for the common good. This view is most eloquently and subtly put forth by Reinhold Neibuhr in Moral Man and Immoral Society:

Classes become sharply distinguished when function is translated into privilege.  Inequalities of social privilege develop in every society and these inequalities become the basis of class divisions and class solidarity.

In modern capitalistic society the significant social power is the power which inheres in the ownership of the means of production; and it is that power which is able to arrogate special social privilege to itself.  Varying political convictions and social attitudes depend upon the degree of social power and economic privilege possessed by varying classes.  Naturally the chief difference will be between those who own property and those do not.

The social and ethical outlook of members of given classes is invariably colored, if not determined, by the unique economic circumstances which each class has as a common possession.  Economic interests are basic to class divisions.  The development of rational and moral resources may indeed qualify the social and ethical outlook, but it cannot destroy the selfishness of classes.  Moral idealism must express itself within the limits of the imagination by which men recognize the true character of their own motives and the validity of interests which compete with their own.  The imagination of very few men is acute enough to accomplish this so thoroughly that the selfish motive is adequately discounted and the interests of others are fully understood.

Dominant classes are always slowest to yield power because it is the source of privilege.  As long as they hold it, they may dispense and share privilege, enjoying the moral pleasure of giving what does not belong to them and the practical advantage of withholding enough to preserve their eminence and superiority in society.

Philanthropy combines genuine pity with the display of power and the latter explains why the powerful are more inclined to be generous than to grant social justice.

The religious conscience is sensitive not only because its imperfections are judged in the light of the absolute but because its obligations are felt to be obligations toward a person.  The holy will is a personal will.  The poetic imagination of religion uses the symbols derived from human personality to describe the absolute and it finds them morally potent.  Moral attitudes always develop most sensitively in person-to-person relationships.  That is one reason why more inclusive loyalties, naturally more abstract than immediate ones, lose some of their power over the human heart, and why a shrewd society attempts to restore that power by making a person the symbol of the community.  In religion all the higher moral obligations which are lost in abstractions on the historic level are felt as obligations toward the supreme person.  Thus both the personality and the holiness of God provide the religious man with a reinforcement of his moral will and a restraint upon his will-to-power.

The demand of religious moralists that nations subject themselves to “the law of Christ” is an unrealistic demand.  The spirit of love does not solve large and complex problems.  Even a nation composed of individuals who possessed the highest degree of religious goodwill would be less than loving in its relation to other nations.  It would fail, if for no other reason, because the individuals could not possibly think themselves into the position of the individuals of another nation in a degree sufficient to insure pure benevolence.  No nation in history has ever been known to be purely unselfish in its actions.  Selfish, brutal, and antisocial elements express themselves in all inter-group life.

Religion will always leaven the idea of justice with the ideal of love.  It will prevent the idea of justice, which is a politico-ethical ideal, from becoming a purely political one, with the ethical element washed out.  The ethical ideal, which threatens to become too purely religious, must save the ethical ideal which is in peril of becoming too political.  Without the ultra-rational hopes and passions of religion no society will ever have the courage to conquer despair and attempt the impossible; for the vision of a just society is an impossible one, which can be approximated only by those who do not regard it as impossible.  The truest visions of religion are illusions, which may be partially realized by being resolutely believed.  For what religion believes to be true is not wholly true but ought to be true; and may become true if its truth is not doubted.

The devotion of Christianity to the cross is an unconscious glorification of the individual moral ideal.  The cross is the symbol of love triumphant in its own integrity but not triumphant in the world and society.  Society, in fact, conspired to create the cross.  Both the state and the church were involved in it and probably will be so to the end.   The man on the cross turned defeat into victory and prophesied the day when love would be triumphant in the world.  But the triumph would have to come through the intervention of God.  The moral resources of men would not be sufficient to guarantee it.  A sentimental generation has destroyed this apocalyptic note in the vision of the Christ.  It thinks the kingdom of God is around the corner while he regarded it as impossible of realization except by God’s grace.

Practically every moral theory, whether utilitarian or institutional, insists on the goodness of benevolence, justice, kindness, and unselfishness.  For every moral thinker, the function of reason to support those impulses which carry life beyond itself and to extend the measure and degree of their sociability.  The measure of our rationality determines the degree of empathy, of vividness with which we appreciate the needs of other life (c.f., Murdoch), the extent to which we become conscious of the real character of our own motives and impulses, the ability to harmonize conflicting impulses in our own life and in society, and the capacity to choose adequate means for approved ends.  In each instance, Murdoch argues, a development of reason may increase the moral capacity.

The intelligent human being, who exploits available resources for knowledge of the needs and wants of his or her fellows human beings, will be more inclined to adjust his or her conduct to their needs than those who are less intelligent.  He or she will feel sympathy for misery, not only when it comes immediately into his field of vision, but when it is geographically remote. This speaks to the desirability of being fully open to one’s feelings and those of others. If you are interested, please see my post.

The ability to consider the interests of others to our own is not dependent upon the capacity for sympathy.  Harmonious social relations depend upon the sense of justice as much as or even more than upon the sentiment of benevolence.  This sense of justice is a product of the mind and not of the heart.  It is the result of reason’s insistence upon consistency.  One of Immanuel Kant’s two moral axioms:  “Act in conformity with that maxim and that maxim only which you can at the same time will to be universal” simply is the application to problems of conduct of reason’s desire for consistency.  The force of reason makes for justice not only by placing inner restraints upon the desires of the self in the interest of social harmony but by judging the claims and assertions of individuals from the perspective of the intelligence of the total community.

Normal human beings (i.e., not those suffering from psychosis or antisocial disorder) possess a sense of obligation toward the good.  Its general tendency is to support reason against impulse.  It may be strengthened and enlarged by discipline and may deteriorate by lack of use (Murdoch paraphrased again).

To cite the if not the word but the spirit of Reinhold Neibuhr:

Conscience is a moral resource in human life.  It is more potent when it supports one impulse against another than when it sets itself against the total force of the individual’s desires.  It is dubious whether the development of reason, though it increases the opportunities for the exercise of conscience, strengthens the force of conscience itself.  In that task religion is more potent than reason.  The force of egoistic impulse is much more powerful than any but the most astute psychological analysts and the most rigorous devotees of introspection realize.  If it is defeated on a lower or more obvious level, it will express itself in more subtle forms.  If it is defeated by social impulse it insinuates itself into the social impulse so that a man’s devotion to his community always means the expression of a transferred egoism as well as altruism.  Once the effort to gain significance beyond himself has succeeded, man fights for his social eminence and increased significance with the same fervor and with the same sense of justification with which he fights for his life.  This insinuation of the interests of the self into even the most ideal enterprises and most universal objectives, envisaged in moments of highest rationality, makes hypocrisy an inevitable by-product of all virtuous endeavors.  It is in a sense a tribute to the moral nature of man as well as proof of his moral limitations; for it is significant that men cannot pursue their own ends with the greatest devotion if they are unable to attribute universal values to their particular objectives.  But men are no more able to eliminate self-interest from their nobler pursuits than they are able to express it fully without hiding it behind and compounding it with honest efforts at or dishonest pretensions of universality.  Even a conscious attempt to eliminate dishonest and ambiguous motives is no perfect guarantee against hypocrisy; for there is no miracle by which men can achieve rationality high enough to give them as vivid an understanding of general interests as their own.

The family may still remains a means of self-aggrandizement.  The solicitous father wants his wife and children to have all possible advantages.  His greater solicitude for them than for others grows naturally out of the sympathy, which intimate relations prompt.  But it is also a projection of his own ego.  Families may be used to advertise a husband’s and father’s success and prosperity.  The truth is that every immediate loyalty is a potential danger to higher and more inclusive loyalties, and an opportunity for the expression of a sublimated egoism.

The larger social groups above the family, communities, classes, races, and nations all present men with the same twofold opportunity for self denial and self aggrandizement; and both possibilities are usually exploited.  Patriotism is a high form of altruism, when compared with lesser and more parochial loyalties; but from an absolute perspective it is simply another form of selfishness.  The larger the group the more certainly will it express itself selfishly in the total human community.  It will be more powerful and therefore more able to defy any social restraints which might be devised.  It will also be less subject to internal moral restraints. The larger the group the more difficult it is to achieve a common mind and purpose and the more inevitably will it be unified by momentary impulses and immediate and unreflective purposes.  The increasing size of the group increases the difficulties of achieving a group self consciousness except as it comes in conflict with other groups and is unified by perils and passions of war.  It is a rather pathetic aspect of human social life that conflict is a seemingly unavoidable prerequisite of group solidarity.

According to the prophets, moral evil lies at the juncture of nature and spirit.  The reality of moral guilt asserts itself because the forces and impulses of nature never move by absolute necessity, but under and in the freedom of the spirit (what I call the superego).

The omnipotence of God (with which Niebuhr quarrels) is the theologian’s symbol of the basic and ultimate unity and coherence of the world and runs parallel to the monistic tendencies in philosophy.  When it is unduly emphasized, moral realism and vigor are sacrificed to the ideas of unity and consistency.  Reason insists on a coherent world because it is its nature to relate all things to each other in one system of consistency and coherence.  Morality, on the other hand, maintains its vigor only if the conflict between good and evil is recognized as real and significant.  Luther, less philosophical than Calvin and more prophetic in temper, preserved the essential paradox successfully.  To him, the devil was “God’s devil.” God used him to his own ends.  “Devil thou art a murderer and a criminal but I will use thee for whatsoever I will.  Thou shalt be the dung with which I will fertilize my lovely vineyard.  I will and can use thee in my work on my vines. . . .  Therefore thou mayst hack, cut, and destroy, but no further than I permit.”  Luther significantly refused to develop the potential monism of such thought to a final and consistent conclusion.

The connotation of the myth of the fall is that sin lies at the juncture of spirit and nature in that the peculiar and unique characteristics of human spirituality in both its good and evil tendencies can be understood only by analyzing the relation of freedom and necessity, of finiteness and the yearning for the eternal.

Human finiteness stands under the perspective of the eternal and unconditioned. It explains why the contingencies of the natural order are subjected to comparison with the ideal world of freedom, and why human beings cannot accept their limitations without a sense of guilt.  The actions to which men are driven by necessities of the natural order are yet charged with guilt.  While there are moral theories which deny this element of guilt, it is nevertheless a constant experience of human life and even when it is explicitly denied it is usually covertly affirmed.  We never deal with our fellow human beings as if they were only the irresponsible victims and instruments of the forces of nature and history.

Prophetic religion attributes moral evil to an evil will rather than to the limitations of natural man.  The justification for this emphasis lies in the fact that human reason is actually able to envisage moral possibilities, more inclusive loyalties, and more adequate harmonies of impulse and life in every instance of moral choice than those which are actually chosen.  A perverse element lurks in practically every moral action. We make conscious choices regarding the lesser good. Sometimes, this perverse element dominates the action.

I will continue to develop these ideas in my next post. A caveat: In places, I may occasionally alter Niebuhr’s exact wording to make his prose more intelligible to today’s reader.

In this post I am indebted not only to Niebuhr and Murdoch but also to the authors of Ethical Realism, Anatol Lieven and John Hulsman (2006). Any paraphrasing is my own and if it distorts the meaning these authors intended, please let me know and I will amend immediately.

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Leslie Pratch, Ph.D. is a clinical psychologist who trained at Northwestern Medical School with an M.B.A. in Strategy and Finance and a B.A. in Religion from Williams College. She works with boards of directors and private equity investors to select and develop executives. She can be reached at (312) 464-7919 or email her at leslie@pratchco.com or visit www.pratchco.com.

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Involuntarily Crowdsourcing the Deepwater Horizon Oil Fix

Posted by Leslie Pratch; written by David Friedman

Deepwater Horizon  4619320633_54441d0d15

Here are David’s recent thoughts on crowdsourcing.

I’ve been thinking a lot about crowdsourcing and the types of problems where it (and some team-oriented variants of crowdsourcing) could work. In my research, I ran across the story-so far-of the crowdsourcing of solutions to the blowout of the Deepwater Horizon well in the Gulf. I say so far since as of this writing the problem is continuing only slightly unabated.

BP didn’t post the question of what to do on any of the available crowdsourcing platforms, like Innocentive. It didn’t launch a crowdsourcing site of its own for a long time, although it has one now that claims to have over 7800 suggestions. However, BP is not very transparent about what it is doing with the suggestions, as highlighted in this article. Other people have leapt into the breach, providing venues for people to offer suggestions. These included the Guardian newspaper and a site called BPOilnews.com. People also apparently began submitting comments the the U.S. Environmental Protection Agency’s Open Government site (since it was open and had “EPA” in the title); eventually the EPA opened another site specifically to deal with the BP situation. The EPA’s new site defines the problems it is interested in help with — which is one advantage of being slightly proactive (even if you are dragged to being proactive by other people).

In a very interesting post, Laurel Papworth notes that the PR advantages of crowdsourcing -of asking for help and at least pretending to listen — would have been valuable for BP. Instead, they have taken the route of trying to be the experts and instead looking quite foolish.

The desire of people to help is impressive. Their capacity to help might be very large. It appears that BP is resistant to taking help, although it’s admittedly hard to know (lack of response by them, lack of publicity by them of their response doesn’t mean they aren’t reading what they are getting, but it does make one wonder). It would be nice to see some response, and some evaluation publicly of the ideas that have been received.

What do you think BP should have done? What should it do now to get the most from the public?

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Leslie Pratch, Ph.D. is a clinical psychologist who trained at Northwestern Medical School with an M.B.A. in Strategy and Finance and a B.A. in Religion from Williams College. She works with boards of directors and private equity investors to select and develop executives. She can be reached at (312) 464-7919 or email her at leslie@pratchco.com or visit pratchco.com.

David Friedman (Yale School of Management alum and a former McKinsey & Company partner) is a consultant, educator and thinker who cares deeply about people and what happens to us. He is dedicated to creating high integrity individuals beginning with early childhood. He can be reached at  (312) 863-3489 or at bridgewellpartners.com.

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