Diseases of organizations

Over the last hundred thousand years, humans have been successful in the diagnosis, management, treatment and even the cure of physical diseases emanating from external sources and entities. However, they seem to have largely failed to understand diseases of an endemic origin or those affecting the Central Nervous System (CNS). The latter, underdiagnosed and overtreated, is likely responsible for significant loss of life and mind. As an example, humans lose 1 out of 10,000 to suicide every year. The problem is increasingly better understood in the medical profession but with few identifiable solutions. Life sciences companies, in a rush toward economics, have not put enough focus on broad solutions.

More importantly, we have to also recognize that organizations - countries, companies, religions, and institutions - also suffer from both physical and mental diseases. Physical diseases of organizations, largely understood by executives, consultants, and bankers, are well treated. But diseases of the mind and psyche of organizations are not something that is diagnosed or treated. This is likely more detrimental to the success of the firm for strategies and tactics focused on shareholder value, albeit necessary, are not sufficient. The meager attempt at defining such heuristics as culture has not had any measurable effects.

Early diagnosis of mental diseases is critical for the success of organizations (1). Lack of diversity is an early symptom in this regard. This is driven by a simple internal heuristic that maximizes replication. Driven to the extreme, an organization could seek a sterilized structure, devoid of new ideas. Recent developments in the executive branch of the US are symptomatic of a loss of perspective in a closed system. This can only lead to bad decision-making or worse. An organization without a moral and ethical construct is something that may have entered an advanced mental disease state.  Unlike humans, who could be intervened with chemicals, organizations cannot be pulled back, once there.

Leaders of large and complex systems may have to spend more time on the mental health of their organizations. History tells us that mental health is likely more important than the strategies and tactics leaders mostly focus on.


(1) https://www.amazon.com/Flexibility-Flexible-Companies-Uncertain-World-ebook/dp/B008KZ6T6Q/ref=sr_1_1?keywords=gill+eapen&qid=1569810218&sr=8-1

Policy and politics

As 8 billion identical human specimens churn across the blue planet, separated by idiotic leaders, religions, science, countries, wealth and ignorance, it is clear that we are heading to predesigned exits. As the speculation of a holographic universe and multiverse mount, it is sad that humans will likely exit before finding the truth. There is no policy questions for the elected, just politics. The system their forefathers handed down in good faith, failed them. Autocrats with no respect for the failing system, democracy, shall rule again. Some of them deriving power from the color of their skin and others by the lack of it, some asserting superiority by belief and others by the lack of it, some by perceived knowledge and others by the lack of it, some in the East and others on the opposite side, some by predicting catastrophe and others by simply drawing bubbles, some by attracting attention and others by mocking it.

It is clear that the human is an inferior life form and she was never expected to survive. It is a miracle that she persisted for hundred thousand years. With crude and simple objective functions borrowed from single cell organisms, this complex life form has been attempting to differentiate without luck. As the scientists ponder the Fermi paradox, they are missing a simpler idea - no extraterrestrial intelligence will ever be interested in making  "contact," with the crudest construct that simply maximizes entropy.

Policy is far fetched - politics is more attaiable. As the cycle continues in predictable 4 and 6 year frequencies, electing those with no concern for humanity, we have to accept what we deserve.

Infinity and Zero

Humans have had difficulties with two most important concepts in knowledge forever - infinity and zero. But most of their contemporary theories end up in either of these extremes. The best they could do so far is to rename them - singularity and all. Physics, apparently the foundation of it all, dies in the "singularity," not to mention the unknown 94%. Assigning undefined terms to an observation is not knowledge, it is fundamentally the definition of ignorance.

For over two thousand years, humans could not internalize the concept of zero. As they pile up PhD theses and Nobel prizes in ivy covered jails, they could not accept that they are ignorant. Spending billions on heavy steel to smash "particles," to prove the unprovable exist is not engineering, just ignorance. Cobbling strings together as if 10 dimensions are better than less is not knowledge, just pure ignorance. As they claim back holes apparently "radiate away," based on unprovable math, it is not knowledge, just speculation. As dark matter, energy and flow tickle the fancy of theorists and experimentalists alike, they have to understand that ignorance cannot be easily sugar coated.

Just as the contemporary politicians do not understand the emerging generation, those who seek tenures and publications do not understand that simple assertions driven by inexplicable math is not knowledge, it is just silly. If one needs an ever expanding particle zoo to "explain," the universe, or skills in naming the unknown and the unknowable, it is time to look back. There is no understanding Math without a coherent view of infinity and zero.

Humans, appear to progress backward in knowledge, ably aided by their "scientists" and "politicians."

The emerging Principal-Agent-Machine problem in the enterprise

Ever since the owners of organizations put agents in charge of operations, because of growing scale and perceived need for management specialization, shareholder value maximization has not been Pareto optimal for decision-makers. Much has been written and studied in this area with little effect on organizational structure, systems, and strategies (1). From the advent of computers, agents have been effective in claiming superiority over machines because of a lack of transparency for the owners. Although it is difficult to prove that machines possess superior decision-making capabilities in real companies and markets because of the lack of data from long and repeated experiments, it is clearly the case in financial markets.

With clear and consistent data in the financial markets, it has long been clear that financial intermediaries and traders have been destroying alpha, forever. With misguided and a confusing focus on "absolute returns," these agents have been successful in siphoning out wealth from owners in fees and expenses. An illustrious investment bank seems to have recently recognized that "trading," done by humans creates no value for its clients. Machines are infinitely better as they can act based on complete information without bias. Decision-making, thus, is better delegated to machines.

In real markets, this is equally applicable. Because of high diversity in types of decisions and long durations to outcomes, agents have long claimed superior capabilities compared to machines. This is true at all levels of organizations (1) and in every function. Since distributed owners are unable to understand the inner workings of complex organizations, agents simply claimed they are better without any contention. This has significant negative effects on the economy and its potential to grow. A structural change that culminates in the reassignment of human responsibilities in the enterprise may be afoot.

The emerging principal-agent-machine problem is real for modern organizations. Institutionalization of agents since the industrial revolution has run its course. Owners may finally have an opportunity to break this stalemate.

(1)    https://www.crcpress.com/Flexibility-Flexible-Companies-for-the-Uncertain-World/Eapen/p/book/9781138112391

Decision-making is different from finding cats and dogs

As AI moves toward the peak of the hype cycle, it is important to recognize that decision-making in an enterprise is distinctly different from training machines to differentiate between cats and dogs. Most of the field is focused on deep neural networks, convoluted and otherwise, to recognize text, pictures, audio clips and patterns. This is certainly interesting but an extrapolation from these techniques to improving decision-making in the enterprise is fraught with danger. As companies find that enterprise productivity is inversely proportional to the number of data scientists they have on staff, reality is beginning to sink in.

As technology and consulting companies try to mop up the last remaining "data scientist," on Earth, it may be interesting to take a measurement of how enterprise productivity is related to them. Data science, an ill-defined field, has been the latest hype that led many companies down rabbit holes with very little to show. Although there are interesting developments in Artificial Intelligence - in robotics and autonomous equipment, much of these are better called expert systems as they do not learn from data but work on coded heuristics. The stars in the field do not prefer the old terms such as "expert systems," and "neural networks," as they believe they have reinvented mathematics. This is symptomatic of a field beginning to go off the rails as the investors have unrealistic expectations of the "second coming," of AI.

Let's not throw out the baby with the bath water. It is just that the baby has a lot of growing up to do. Decision-making takes a lot more than supervised or unsupervised machine learning. Educational institutions do a disservice to the next generation by blindly following the latest trends and spawning "analytics courses," for everybody. The question educators should ask is whether such programs are leading to people who can take advantage of the technology to enhance enterprise value. To do this, they have to first understand how value is created and that is a lot harder than cranking the supercomputer in the cloud.

Artificial Intelligence has a lot of potential, but not in the hands of those who believe it is about games, computers, deep mind and deeper mathematical techniques. The beauty of mathematics is that it is fully democratized. However, to add value to an organization, it has to be combined with many other attributes.

Closed loop

As Asian countries send back western garbage to the country of origin, it may be time to think about recycling differently. From water to plastic, humans have been conditioned to think that the cost of consumption is close to zero. But, unfortunately it is not. In the absence of zero cost energy, perhaps hundreds of years away, consumption of anything is costly for the individual and society. It is time we imposed closed loop as a constraint on all consumption.

Closed loop is a necessary condition for survival for humanity. From inception, humans knew this as there is sufficient evidence that ancient societies implemented closed loop systems, perhaps because of lack of availability of critical ingredients. As they grew richer, lazier and greedy, their actions have started to substantially push costs outside their life horizons. This free rider problem coupled with ignorance has reached a critical state. Unless we figure out how to recycle every unit of consumption, garbage is going to pile up in the neighborhoods and oceans. It is time the best minds in the country focused on this problem - AI and space travel could wait, but garbage cannot. Every county in the country may need to be forced to come up with solutions to implement closed loop within their localities. Every time a drop of water is used and a bottle is opened, the county has to prove a closed loop condition, i.e., the consumed unit is  recycled within a closed loop. Technologies exist but not the knowledge and the will to implement them.

Perhaps returning garbage may provide us the impetus to solve this problem for ever.

Shape of the brain

Research from the University of Chicago (1) that demonstrates brain scans that show distinct differences between criminals who have committed homicide and those who have not, is interesting. If generalizable, such an observation could provide early indications for behavioral health issues. Mental health, often overlooked and treated separately from physical health harbors significant risks for individuals and society. It is a powerful early diagnostic and until healthcare policies treat an individual holistically and not attempt to segment interventions in convenient and legacy packages, we will continue to slip down the quality to cost ratio.

The complex organ humans carry on their shoulders that is speculated to be a quantum computer, is likely the origin of most disease states. As life sciences companies try to tease out meager therapeutic indexes in an overwhelming ocean of placebo effect, it is clear that no therapy can be effective if it is unable to influence the brain. This energy hungry and inefficient mechanism is finely balanced on a knife edge. It is actually surprising we find billions of properly working samples around the world, given the complex design and high maintenance requirements. Prescriptive medicine has laid down strong demarcations between what can be physically intervened with and those less so. Attempts at "curing," a malfunctioning brain using the same principles of crude chemical interventions have led many astray.

If we can understand the brain electronically and magnetically, it could open up a new avenue for diagnosis and treatment. However, it will require educational institutions, providers and manufacturers to work together. But then, that remains to be a dream.

(1) https://news.uchicago.edu/story/scientists-studied-brains-more-800-prisoners-heres-what-they-found

HOLiCOW (1)

As Hubble turns in his grave, the younger cosmologists and astrophysicists have been making measurements with the latest toys they are afforded. There are doctoral theses to be published and defended, papers to be churned out, tenures and the ever eluding Nobel prizes to be secured. So, clearly better instruments, measurements and debates will help. And none of the budding brains will ever admit that the theory they are banking on is utterly wrong.

The universe was shrinking to a big crunch a few short decades ago and now, it appears to be "certainly," expanding with ensuing debates on the rate of expansion. They send telescopes and satellites that can measure all sorts of data into space, and perhaps that is the problem. When one gets too much data, it becomes difficult to see noise and given the inherent bias to find something and to confirm and conform, most of the latest crop of scientists take the easiest path possible. The fact that they are finding conflicting data is no surprise but what they have to understand is that no new theory will emanate from data. It takes imagination and pure talent, not the type that is built up in the quadrangle by systematic education. In fact, that will assure that none of these geniuses will ever find the truth.

Physics, based on century old theories and an abundance of inexplicable observations by experimentalists may need a reset. Unfortunately, the contemporary educational systems will not allow that.

(1) https://www.sciencemag.org/news/2019/07/debate-intensifies-over-speed-expanding-universe

Cricket wins again

As England lifts the 2019 world cup in cricket for the first time, the fans of the sport around the world, approaching 3 billion, immerse in joy and sadness, depending on which side one was on. But that does not matter as the game wins hands down for those at the home of cricket and those around the world glued to televisions and short wave radios witnessed an absolute gem of a game. The game has lifted the psyche of the weak and the weary, the quiet and humble, the mathematicians and ballet watchers, the ones escaping boredom and those who do not have time to be bored, the historians and those who recently arrived, the islands that suffered from terrorism and those who attempt to pull themselves up from decade long wars, the ones who are reaching for each other's throats and those who remain far from each other, those who are exiting and those who do not want to, the gun less and those less so, men and women, and everybody else.

Such is the power of twenty yards of dirt and a white ball that travels at 100 miles/hour that it brought tears, laughter and pin drop silences to an oval shaped real estate at the heart of London. There two countries clashed, neither of which has won the cup yet, for pride and enjoyment. Those from the South, trying to wash away the scars of recent horrors in their beautiful island, wanted it bad as it had escaped them just 4 years ago. The larger host, with an inexplicable absence on top of the table in a dozen attempts, had to arrive. The gravity of the occasion was palpable. As the drama unfolded in unpredictable English weather, as the umpires revealed themselves to be purely human, as luck began to make a significant influence on eventual outcome, hearts were broken and unbounded joy erupted. As the winner and the loser thanked each other, it was clear we have a sport for the future, where winning is not everything and losing is just the start.

As we await a world that is civilized and humble - a world that understands there is more to life than ego, power and showmanship, we do have a sport that shows signs of how to reach it.

The inverted U of closed biological systems

Many have been worried about the existential threats to humanity – asteroids, climate change and ignorant leaders. However, there could be a more systemic and possibly unavoidable threat as long as Earth and its inhabitants continue to be a closed system. It is difficult to hypothesize based on a single observation of the emergence of life in the universe but the theory of evolution appears unassailable. Just as the accepted big bang theory in cosmology that seems to explain a lot after the point of origination but not the event itself, evolution seems to explain most observed biological specimens and their interactions but not the origination of life itself.

The accepted principle of evolution – the survival of the fittest – seems to be fine-tuned to optimize in short horizons. This is understandable as the survival of a species depends on adaptation to the present conditions and not a set of forecasted and uncertain conditions in the future. Thus, evolution creates fitter biological entities in the short run. It has led to more complex entities over time, the reasons of which are less clear. It is possible that the process is driven by underlying laws of physics, that has an arrow of complexity in biological entities aligned with that of time. This may be a side effect of unilaterally increasing entropy in the universe.

Thus, biological entities on Earth have been increasing in complexity. However, more complex entities also seem more fragile – with single cell organisms showing highest level of robustness and the latest iteration in complexity, the human, showing the lowest. In the past, we see several cycles where catastrophic events eliminated complex entities and returned the system to a much simpler state, albeit with differing initial conditions. This implies two things – closed biological systems in steady state will create more and more complex specimens and unavoidable and random catastrophic events will wipe out the more complex members and return the system to a simpler state at regular intervals.

Closed biological systems, thus, may have an inverted U curve on complexity and that may repeat over time. Humans, arguably the most complex in the contemporary system, could be primed for extinction in any large event. What have not been observed in the past are self-destructive internally generated events that humans appear to be very capable of initiating. So, the probability of cataclysmic events now is a lot higher than the past.  The laws of physics may be driving complexity of entities in a closed system higher over time, the laws of nature may be building complex but more fragile systems over time and in the presence of a catastrophic event, internal or external, the most complex entities are removed returning the system to a simpler state with different initial conditions.

The Earth may be due for a reset. This could also provide an alternative explanation for the Fermi Paradox.

Weird stars and aliens

As astrophysicists find weird observations, the fallback position for an explanation appears to be the presence of aliens (1). It is about time, as green women have so far failed to show themselves in spite of the space agency's assertion that they would be found before 2020. So, it is important to speculate about the presence of aliens on anything one could not explain by status quo theories and expectations. What the "smart humans," appear to be missing is that civilizations that could run circles around nearby hydrogen furnace would be so technologically advanced that either they make contact or hide from the low life.

The inexplicable dimming and brightening of HD 139139 (1) do not appear to fit with what humans have found and know. Hence they argue there could be aliens there as the first instinctual reaction. Ego and ignorance have the same fingerprint for those harboring the former will never let go of what they thought they knew and those suffering from the latter will never ask questions. Such is the state of science that new entrants to the field shall be brainwashed to believe in what is "known," and trained to fit observations to the accepted theory. It will be anathematic to challenge the status quo as doctoral defenses, tenures, and even careers will be lost in the courtyard, surrounded by ivy walls.

The two axes, the desire to prove life exists elsewhere as proclaimed by those "in the know," and the requirement to fit data to theory (and not dream of a different theory), hold humanity back. As science deteriorates to a level of comedy and speculation, there are real costs to humanity. Sending a billion $ "dragonfly," to the famous moon of Saturn is not an accomplishment, just a revelation that technology has not advanced enough to delegate the source as lifeless. Shooting robots at planets and satellites is not really science, it is engineering gone bad.

It is an intellectual zoo. Most do not want to let go of a theory that is over a century old. And, they are surrounded by engineers, standing ready to prove anything that is hypothesized - aliens and all.

(1) https://www.scientificamerican.com/article/astronomers-dont-know-what-to-make-of-this-incredibly-bizarre-star/

Water, water everywhere, but…

The recent drought in India that has resulted in one of the major cities, Chennai, effectively running out of water just as Cape Town did last year, is a cause for concern. The proposed solutions appear to focus on water availability and they are likely misguided. The blue planet has plenty of water, but it is brine. So, it is not lack of water that humans should focus on but rather how to remove salt and other impurities from this abundantly available resource on Earth.

Just like many other contemporary problems, this could also be solved by cheap energy. With an efficient Hydrogen furnace in close proximity, an advanced civilization would have reached technology that can emit zero cost energy. Unfortunately, humans are still clinging on to the concept of unearthing and burning highly toxic Carbon for their tactical needs. For humanity to advance, it has to set a goal on close to zero cost energy production as that will solve many problems threatening their very existence, including rising temperatures.

However, policy-makers and politicians are not sufficiently schooled on how the complex habitat react in non-linear ways and why feel-good actions are ineffective. For example, reducing greenhouse gas emissions from the current levels will have no measurable effect on outcomes. That window has been closed a long time ago. So, all the noise around policies and accords world over is just that, noise. Of course, it makes many feel good that they are doing “something.”

The more important thing to focus on is technology – how to terraform Earth back to its original condition. There are plenty of ideas available but it will take resources and a focus on research and development. And, R&D should move into exotic and untried options, not conventional ones to simply suck the bad stuff out and sequester it underneath. On a planet suffering from plate tectonics and idiotic human actions, it is unlikely that the bad stuff will stay down for long.

Advanced R&D is sorely needed not only to mend a broken planet but also to assure its inhabitants have life-giving fresh water forever.

Quantum pipe-dream

Quantum computing (1), possibly the only leap humans could take to reach many of their overblown expectations in Artificial Intelligence and elsewhere, is a pipe-dream. Humans are likely to find extra-terrestrial life before they will be able to parade sufficient number of q-bits to make practical computing. And, the ETs have been hiding so effectively from the space agency that they are unlikely to show up for many decades.

To make quantum computing possible, educational institutions need to redesign their curricula bottoms up. Spending years of learning Newtonian and even relativistic Physics does not lead to insights in the quantum world. The fact that most gravitate toward the "knowable," perhaps because of the ease of achieving doctoral degrees and tenures, does not mean that it is the right way to go. Meanwhile, they are building bigger and longer tunnels all around the world, smashing particles against each other to find new ones, listening to gravity waves by hanging mirrors and in their spare time, shooting robots at nearby planets and satellites to find the ever-elusive ETs. All of these activities are misguided. The latest theory postulates complete ignorance of humans and it is just that most do not want to think about it.

Humility could help humans reach the next stage. Backfilling darker matter and energy to hang onto to the contemporary faulty theories is symptomatic of the deterministic era. As the particle zoo grows faster than popping corn kernels in a popcorn maker and the water bodies way below the Earth's surface sit waiting for the particles that are unlikely to show up, humans have to admit ignorance.

It is time to wipe the slate clean and start-over. Initial conditions set a century ago may provide useful guidance.


(1) https://blogs.scientificamerican.com/observations/the-problem-with-quantum-computers/

Revisiting AI for Policy

Policy making, a complex activity that needs to consider large amounts of disparate data and optimize within constraints in the long and short run, is likely better tackled by Artificial Intelligence. Humans, let alone politicians, are notorious for their unsubstantiated biases, conflicts of interest and lack of decision-making abilities in the presence of uncertain data. Machines appear to be significantly better in this realm. A world in which machines make policy choices is likely better than the status-quo, democracy and autocracy included, for decisions made on subsets of data with bias will always be less effective compared to those based on the entire information content, without bias.

More practically, nations may need to deploy AI in the policy making realm, to at least augment decision-making. At the very least, it may reveal how inefficient human policy-makers are, how out of touch they are from emerging information and how they are destroying a world, the next generation will inherit. Such is the promise of AI in decision and policy making, it is almost trivial for machines to reach optimum choices, far superior to what their masters could accomplish. More importantly, machines are able to consider interconnected decisions into the future and use optimum control to reach best current decisions. It will be a far cry from the octogenarians in capitol hill, unable to read and understand the policy choices they are voting on.

Countries that embrace AI for policy could be the future powerhouses. In this regime, scale does not matter as the smallest and biggest countries in the world could access the same technology. In the limit, such an optimization process may make contemporary segmentation schemes - religions, countries and languages - irrelevant. If so, AI could manage by exception, raising red flags at the right points in time for human actions and guiding humanity to a better place. It could suggest best paths for innovation that will reduce downside risk and maximize upside potential. It could maximize the value of humanity and its fickle environment.

We are augmenting human decision-making with AI in every realm. It is time we provided the same for clueless politicians.