fo052006 the Megatrends Matter issue
Transcription
fo052006 the Megatrends Matter issue
fo052006 the Megatrends Matter issue FO/futureorientation #5 2006 Copenhagen Institute for Futures Studies Instituttet for Fremtidsforskning “Having to be right keeps you from questioning, correcting and changing yourself.” JOHN NAISBITT, who coined the term ‘megatrends’ in the bestseller Megatrends (1982). Meet him on page 15 Dear reader, THE PROBABLE FUTURES AND THE PREFERABLE. “What is the wind worth if we have no direction?” So wrote one of the old Roman poets. Thousands of years ago, Romans and Greeks, and philosophers and poets were already thinking about the future and change. They spoke and wrote of hope and fear. “Thinking, hoping and fearing the future are part of the life of a human being,” writes Eleonora Masini – the world’s first female professor of futures research. In the article “The Role of Futures Studies in a Global Society”, she continues: “The wind, the rapidity of change is with us but do we know in what direction to steer our spaceship earth?” You can met the Italian Eleanora Masini on page 48, and in the rest of this FO/futureorientation, you can meet some of the most important and respected futurists in the world. Some are long dead, while others are still working full time to create awareness of what the future means for you and me, our companies, society and private life today. As Alvin Toffler, my personal role model (and that of many others), is quoted as saying ”If you don’t develop a strategy of your own, you become a part of someone else’s strategy.” You can also meet the man who coined the phrase “Spaceship Earth.” His name was Buckminster Fuller and he helped blaze the trail for “out of the box” thinking, and so is exceptionally important to us all. When you read the theme articles, think about the difference between the probable future, which is expressed by megatrends, and the preferable future. Because even though megatrends tell us a lot about what we already know about the future, the future is never a given. You can choose to react to megatrends such as prosperity, globalization and individualization as you want. We need the future to be human – to exist today and tomorrow. Read, in this FO/ futureorientation, about the most important megatrends and the probably futures, and consider what your preferable future is – for yourself, your company, or organization. FO/futureorientation is back before the holidays with new perspectives on the future. The theme for the year’s last issue is New Business Models. I can already reveal that we have in mind to tell you about the best-kept business secrets. Gitte Larsen, Editor CONTENTS THEME: MEGATRENDS MATTER WHY MEGATRENDS MATTER BY GITTE LARSEN ..............................................................................8 Megatrends are the great forces in societal development that will very likely affect the future in all areas the next 10-15 years. Many companies and organizations use megatrends in their strategic work. In the next few pages, you can gain an overview over the 10 most important megatrends as we head toward 2020. A LOOK INTO THE FUTURE OF DANISH MEAT PROCESSING BY GITTE LARSEN ............................................................................................ 33 How do you communicate, to all the employees of the meat processing industry, two of several possible scenarios for future production conditions? And why are employers and the labor organization doing it together? Read the interview with Danish Crown and see an excerpt of the brochure that will be published in November. 15,000 copies will be printed. OUTSIDE THEME: TRENDS, MEGATRENDS – AND SUPERTREND? JOHAN PETER PALUDANS COMMENTS ..............................................14 Trends, megatrends and – could it be – a supertrend? Read about the mother of all trends. INTERVIEW WITH JOHN NAISBITT BY GITTE LARSEN ............................................................................15 THE NEXT MEGATREND: SOCIAL GROWTH BY SØREN STEEN OLSEN OG STEEN SVENDSEN .................................24 The new Megatrend, social growth, will affect the agenda at social and market levels in the next 10-15 years. For the time being, just a few pioneering companies have drawn the outlines of the next phase of social responsibility and are moving from Corporate Social Responsibility (CSR) to Corporate Social Innovation (CSI). MORE EARLY WARNING BY TROELS THEILL ERIKSEN..............................................................28 Early Warning Systems are already today an important competitive parameter for companies and organizations and the need for them will increase in the coming years. Read about why and get examples of how Early Warning Systems are used today and how they will be used in the future. PRIVACY: RED COAT, BLACK COAT BY PIERS FAWKES ...........................................................................30 ”Wrapped in his black coat, to anyone who spots him, Steve looks paranoid – trying to hide. In fact, Steve doesn’t just look paranoid. He is paranoid. Paranoid every time he swipes his card to get into work, every time he has to carry a mobile phone, every time he chats on the web, every time he removes the last can of soda from his fridge. He’s being watched. He knows it.” Read the rest of this postcard from the future, and American trendspotter Piers Fawkes thoughts about how surveillance society can be turned to the advantage of consumers. FO/futureorientation is published by Copenhagen Institute for Futures Studies (CIFS), Norre Farimagsgade 65, DK-1364 Copenhagen K. Tel. +45 3311 7176, cifs@cifs.dk, www.cifs.dk EDITOR: Gitte Larsen (responsible under Danish press law), gil@cifs.dk SECRETARIAT: Ellen Mauri, ema@cifs.dk ENGLISH ADAPTATION: Allan Jenkins, Desirable Roasted Coffee, allanjenkins.typepad.com ART DIRECTION: Stine Skøtt Olesen, NXT, www.nxtbrand.dk ILLUSTRATION: Stine Skøtt Olesen, NXT, www.nxtbrand.dk ILLUSTRATION DANISH CROWN: Brian Emil Johannsen, Red Alert Production METROPOLIS: Fritz Lang, Erich Pommer, Otto Hunte, Erich Kettelhut, Karl Vollbrecht THANKS TO: Danish Crown, www.danishcrwon.dk, Slagteriernes Arbejdsgiverforening (SA), Nydelsesmiddelarbejder Forbundet (NNF) og Dansk Industri (DI). SUBSCRIPTION 2006: 250 EURO plus shipping (20 EURO in Europe and 30 EURO in the rest of the world). The price includes one printed copy and online access. Published six times a year. THE SCANDINAVIAN WAY BY TROELS THEILL ERIKSEN, MARTIN KRUSE OG GITTE LARSEN ............. 52 The Scandinavian countries’ labor and education policies, management style, and ability to innovate have in recent years been popular around the world. Foreign politicians and many others have been sent here to learn how we do it. Read about what Scandinavian management is capable of, and about the challenges the management style faces if the Scandinavian countries are to remain in the lead. CHALLENGE FROM THE EAST BY GERT HOLMGAARD NIELSEN ........................................................56 China is the market of the future. In theory, it has been for the past couple of centuries. Now it’s a reality. Western companies need to take a close look at Chinese business and management cultures if they are to have any hope of long-term success in such a culturally foreign market. One of the most important challenges is to learn how to use both halves of the brain. ´07 MAN BY SEAN PILLOT DE CHENECEY .......................................................59 A growing body of opinion from men is that the age-old binary, narrow definition of maleness is out, and that a DIY approach to masculinity based upon respect, decency and intelligence is in. But not all male literature is apparently agreeing. So what are the real male trends in 2007? CAN WOMEN PLAY THE GAME AT EXECUTIVE LEVEL? BY CHRISTINE LIND DITLEVSEN ..........................................................61 The ability to play will be a professional qualification In the future. Playing will become a greater part of our working life in these times where creativity is in high demand. But what does it mean to play? Meet the researcher and the future researcher in a conversation about men’s and women’s different ways to play and read about the consequences for the future labor market. CIRCULATION: 5500 ISSN: 1901.452X Member of Dansk Fagpresse (Danish Trade Press Association). The opinions expressed in articles are those of the authors, and are not necessarily those of CIFS. Textual contents may be republished as long as the original author and publication are cited. PRINTED BY: Strandbygaard Copenhagen Institute for Futures Studies (CIFS) is an independent research organization founded in 1970 by professor Thorkil Kristensen, a former OECD SecretaryGeneral. CIFS analyzes the trends that shape the future. CIFS examines the present and the future, and publishes what it finds. CIFS is a non-profit association with 160 members. RACHEL LOUISE CARSON (1907-1964) Rachel Louise Carson was not a futurist, but author and zoologist with focus on people’s collective future with nature on Earth. She was a pioneer in environmental research, and is considered today to be the woman that prompted global environmental consciousness (which can be called a megatrend). One of her first books, Silent Spring (1962), became a bestseller. In it, Carson challenged practices in natural science and in the American government, not least the use of pesticides. She was attacked by the pharmaceutical industry for her view, and some saw her as a hysterical female. She continued, until she died of breast cancer in 1964, with pushing for change in the way people see and live with nature. Her books are today loved by all who read them – not least for her poetic talent. QUOTE: “The more clearly we can focus our attention on the wonders and realities of the universe around us, the less taste we shall have for destruction.” By Gitte Larsen Why megatrends matter Megatrends are the great forces in societal development that will very likely affect the future in all areas the next 10-15 years. Many companies and organizations use megatrends in their strategic work. In the next few pages, you can gain an overview over the 10 most important megatrends as we head toward 2020. Megatrends are great forces in societal development that will affect all areas – state, market and civil society – for many years to come. In megatrends such as, for example, prosperity and aging, lies a great deal of the knowledge we have about the future. We know that wealth will probably continue to increase by about 2% a year in the western world. We also know that there will be more elderly people and fewer youths in the near future. In other words, megatrends are our knowledge about the probable future. Megatrends are the forces that define our present and future worlds, and the interaction between them is as important as each individual megatrend. That is why futures researchers, companies and others use megatrends when they develop and work with scenarios. Megatrends can be a starting point for analyzing our world. Even though megatrends say something about what we know about the future, it is not certain how society, companies or any of us will react to these forces. In other words, it is not enough to draw on the probable future when working with futures research. The future is never a given, and any one of us can affect or create the future. Megatrends have different meanings for different companies, organizations and individuals, because we react, consciously or not, differently to trends such as globalization (vs. anti-globalization movements), individualization (vs. new communities) and the increasing pace of change (vs. the slow movement). 8 The three Ps Futures researchers always work with three types of futures: the predictable, the possible, and the preferred. The two last – the possible and the preferred – are also worth considering when we use megatrends in our strategic work with the future. Megatrends say something about the probable future, but there are other possible futures. Every megatrend can be set aside or can suddenly and fundamentally change direction. Wildcards – events that are unlikely, but that would have enormous consequences – can slow a megatrend’s development or create counter-forces. For example, the events of September 11, 2001 temporarily stopped growth and slowed some aspects of globalization. Certainties, uncertainties and paradoxes Megatrends are the probable future – or express what we know with great confidence about the future. Megatrends are certainties. Nevertheless, they always contain elements of uncertainty – through the effects on and reactions of companies, organizations and individuals, or through wildcards. Moreover, they can contain elements of paradoxes/counterforces, such as the anti-globalization movement, anti-consumer movement or the slow movement. Megatrends can be used as a methodology when you or your company works strategically with the future. You can, for example, use them as a base in development and innovation processes, and use them in combination with other trends in a more specific area. You can also use them if you create scenarios or need an Early Warning System. In the box, we give you three examples of ways companies have used – or failed to use – megatrends. Another example is found in the interview with Danish Crown, which recently, in cooperation with the Copenhagen Institute for Futures Studies, has focused on the future of meat production in Denmark. We show how they have chosen to communicate the message to workers in the meatpacking industry about two different futures/scenarios based on a number of megatrends on page 33. GITTE LARSEN is the editor of FO/futureorientation. Gil@cifs.dk fo#05 2006 www.cifs.dk ”Megatrends are the forces that define our present and future worlds, and the interaction between them is as important as each individual megatrend.” HOW YOUR COMPANY/ORGANIZATION CAN USE MEGATRENDS Many companies and organizations use megatrends in their strategic work with the future within all the central business areas, such as corporate strategy, market innovation, and business development, product development, marketing and HR. EXAMPLE #1: JYSKE BANK’S NEW BUSINESS CONCEPT Jyske Bank recently fundamentally changed its business concept, so the customer can put together his own banking solution. The bank has focused on the product experience, both “virtually” and in the branch. The bank calls the initiative “Jyske Difference” and their slogan is “Jyske is the bank that makes a difference.” In the short process (four months) during which the new business concept has been developed and partially implemented, the bank has been especially inspired by the Copenhagen Institute for Futures Studies’ thoughts on Creative Man and the individualization megatrend. As they write to FO/futureorientation: “Many consumers see banks and bank products as uniform – and a little boring. At the same time, we see that customers are changing behavior. They want more influence; they are more self-reliant while demanding personal service. The creative consumer, who wishes to create his or her own solution, is the coming thing. Consumers want to tailor their own charter vacations, car, and bank product. With the new initiative, the bank can better meet the modern consumer types of the present. With Jyske Difference, Jyske Bank signals that we are more than a bank. Jyske Bank is a bank, a store, and a modern library. Jyske Bank is the place where customers become smarter, inspired, and experience a straightforward atmosphere.” EXAMPLE #2: BRATZ BEATS BARBIE Individualization has – in addition to the need to be able to choose everything individually – meant that childhood now has more phases. Today, we have very fo#05 2006 www.cifs.dk young children, the middle group, the relatively new group “tweens” and teenagers. The Barbie doll was market leader, but, because they were slow to note the trend that children more quickly become “small adult consumers,” the Bratz do quickly took a disproportionately large share of the market leader position. Megatrends can, in other words, be used as an Early Warning System (read more about EWS and megatrends in the theme article on page 28). It can go terribly wrong when companies fail to pay attention to the development of megatrends. For example, traditional camera and film companies, such as Kodak, are suffering from the rapid rise of digitalization. They saw it coming, but underestimated the speed, with the result that they have had to make massive layoffs in the last couple of years. EXAMPLE #3: WHAT COMES AFTER COACHING? How will the market for coaching develop, and what will be the next? DIEU, one of Denmark’s biggest and most successful providers of courses in coaching, set out to answer that question. More individualization, plus several of the other megatrends, indicates a growing market. Globalization constantly brings new and unexpected challenges. The aging of the population means that we run into completely new life situations several times in our life. Coaching is relatively expensive, but wealth lets more people afford to seek professional support both within and without the professional sphere. Commercialization means that we are ready to pay for sparring on questions we would have handled privately with friends and family in the past. The conclusion, after a dialogue between DIEU and a futures researcher from the Copenhagen Institute for Futures Studies, was that demand for individual professional support is growing, that coaching as a buzz-word will probably be replaced by a new expression, and that DIEU as market leader decided to create the future that comes after coaching. 9 10 megatrends toward 2020 #1 Ageing The world’s population is ageing. It is happening because we live longer, and because there will be relatively more elderly than youths the next decades. This is especially because the world’s women have had fewer children the last 55 years. The trend toward falling fertility on a global basis is so clear that it will almost certainly continue the next decades, and that means the world’s population will not increase. The ageing megatrend applies to all regions of the world, and has great significance for society, economics, corporations, and individuals. Social dynamism may be reduced because older people are often less open to change than the young. Most OECD countries have the issue of an ageing population at the top of their political agendas, and health care, pension systems and care for the elderly have been prioritized in many countries in recent years. More elderly outside the labor market means reduced tax revenues and higher (public) expenses. The elderly of the future are expected to get a great deal of attention because many of them are financially well off. Today’s elderly are in better health and more affluent than the elderly of the past. As a result, age has taken on a different meaning, and many elderly have a completely different self-image than earlier generations. The elderly in the western world want an active retirement with travel, experiences or other forms of self-realization. The greatest consequences of ageing will be felt on the labor market after 2010, when the number of people of working age will fall. The labor market will be a seller’s market, and youth will be in great demand. This may prompt bottleneck problems, upward pressure on salaries, greater international competition and, in the end, poorer competitiveness for OECD countries. The reaction can be more off-shoring and outsourcing and a different perception of immigration. In the immaterial and creative economy of the future, more of the especially well-educated elderly may remain active in business life longer, but that requires companies and organizations to start considering now new forms of employment to create the optimal conditions for this group. 10 #2 The 10 megatrends that are republished here in a shortened, edited form, were developed by Kaare Stamer Andresen, Martin Kruse, Henrik Persson, Klaus Æ. Mogensen and Troels Theill Eriksen, all from Copenhagen Institute for Futures Studies. The Institute also works with other megatrends, such as climate change, the knowledge society, and immaterialization. In this summary article, information technology, communication technology, biotechnology, nanotechnology, and energy have been grouped under ”technological development.” Globalization Globalization is the fast growing global interconnectedness reflected in the expanded flows of people, capital, goods, services, information, technologies, and culture. Globalization is not a new phenomenon, but it will mean something different in the future. Companies and money markets are the most global things today, and we see a growing international division of labor. We increasingly experience common production and consumption values. Globalization makes us more alike across the world, but it also makes us more aware of local differences. When we look at what is most globalized today – markets and companies – the trend is towards regionalization. However, in the near future we will far more clearly than today see and experience what makes us alike – more globally oriented – and what makes us more different or locally anchored. The global development leads to increased liberalization and expanded trade in most countries and regions. However, it does not seem likely, that the world will be dominated by common political and ethical values in the near future. A probable future can therefore be “A World of Nations and Regions,” with global free trade but only deeper integration at regional levels. Citizens and consumers also seem to be crossculturally different in their behavior and their preferences for products. A growing number of multinational companies have therefore begun to adapt their products and marketing to the individual markets. #3 Technological development Our use of technology is what differentiates us from other animals. We are the only creatures who construct and develop tools that make life more pleasant for us. Since the start of the industrial age, technological development has accelerated, so changes come faster and in more areas. The most important technological development areas in the next decades are information technology, biotechnology, nanotechnology and energy. fo#05 2006 www.cifs.dk 10 MEGATRENDS TOWARD 2020 Information technology has created enormous changes in recent decades: personal computers, the Internet, mobile telephones, industrial robots, iPods, and much more. In 2020, computers will be about 200 times faster than today’s computers, and will have memories 1000 times as large. Computers and robots will take on increasingly complex assignments, and the Internet will be a breeding ground for completely new, virtual industries. In recent years, we have seen great progress in biotechnology with the mapping of the human genome, cloning of mammals, and genetic modification of plants and animals. Research in biotechnology opens the door to new, future treatments in the form of gene therapy and transplantation of cloned organs. Genetically modified plants and animals (GMO) may potentially relieve world hunger. However, at the same time, biotechnology opens a Pandora’s box of ethical questions: Is it acceptable to manipulate life? Is GMO just another way for the West to exploit the Third World? Will biotechnology prompt unforeseen biological catastrophes? Nanotechnology is a general term for technology with structures on a nanometer scale (one billionth of a meter). Researchers develop nanomaterials with many fantastic characteristics such as extreme strength, special electric properties and extremely low friction. Nanoelectronics may, in a few years, replace microelectronics. At little further into the future are nanomachines: microscopic robots that, for example, swim around in our veins removing cancer and plaque. One of the great challenges of the 21st century will still be finding energy for both the new and the old industrial countries. Oil will run out eventually, so we must find alternatives. There is much research in sustainable energy from wind, the sun, and the earth’s warmth and in alternative fuels such as hydrogen and biofuel. The following decades will also offer progress in atomic energy, both the traditional fission energy and the controversial fusion power that creates energy the same way the sun does. #4 Prosperity Prosperity is a megatrend because the majority of the population of OECD countries and large groups in formerly developing countries are now growing more prosperous. Between 2% and 4% growth is assumed in the western world in coming years, and in some regions – especially North America, Latin America, and Asia – the growth rate will likely reach 10%15%. It is doubtful that Africa and the Middle East will enjoy such growth and increase in prosperity because fertility rates are expected to remain high in these regions, among other factors. Moreover, prognoses indicate the Russian middle class will grow from 50% to 85% in the next 10 years, the Chinese from 5% to 40% and the Brazilian from 25% to 50%. Gross National Product (GNP) is usually used to measure and compare the wealth of nations. The US and EU are, measured by GNP, far richer than other parts of the world, but that fo#05 2006 www.cifs.dk can change in step with the high economic growth rates and increasing employment in many developing countries. The economic growth will cause a change in the demand for new types of products, with a new business structure as a result. In short, most countries are going through a structural social and economic change in the transition from agricultural and/or industrial society to a knowledge society. When we grow richer, new needs arise and we consume more in the form of intangible products such as entertainment, experiences, services, savings and investment. More prosperity changes our consumption of traditional tangible products such as food, because affluent consumers focus on health, quality, trust, origin, animal welfare, etc. More prosperity and more consumption will change the relationships between costs, prices and profit. The relationship that formerly existed between consumer prices and production costs, based on resource contributions such as labor and capital, is no longer present. Much of the value of the tangible products of the future is not in production costs but in the knowledge behind the product: product development, marketing, distribution, etc. That also means that there will be much greater pressure on companies and individuals to be change oriented, creative and innovative. #5 Individualization Individualization is the shift from more collectivist societal norms to more individualism. In the Middle Ages, a person was defined by his relationship to God. He was placed in a framework where God penetrated every aspect of society, thus making man’s fate preordained. The Renaissance and the advent of modern industrialization freed man in this respect. Suddenly the son of a farmer did not necessarily have to become a farmer. Man’s fate was now more a question of interest and skill rather then obligation and tradition. Historically, individualization is closely related to cultural norms and change of social structure. The 20th century may be said to be the century of individualism in Western culture. A central aim for modern man is to distinguish himself from his fellows, and thereby obtaining a higher position in a social hierarchy based on shared norms and values. Today the question must be raised in Western society whether these norms and values exist or if they just relate to the scarce commodity rule of socially distinctive action, thus generating an oppositional tendency to focus on individualized value-based distinction. In any case, the individualistic approach has made branding one of the key figures in modern sales and marketing. Individualization will be significant for the lives of the individual – and in private relations between people. But individualization will in the coming years also greatly influence companies. First, individualization can be read in the gradual dissolution of traditional segments. Even today, the segment models are in the process of having to give up because customers no longer can be divided into internally consistent 11 10 MEGATRENDS TOWARD 2020 groups. As customers, people are increasingly going to expect individual and unique products. Secondly, companies are going to feel the increasing employee turnover more. The labor force of the future can handle more changes than that of the present. Thirdly, individualization will be felt as an employee demand for individual attention. Read more about individualization in the next issue of FO/futureorientation. #6 Commercialization Commercialization is the meeting of increasingly more human needs on the private market through trade that can be both supply and demand driven. Commercialization is closely linked to other megatrends such as globalization, prosperity, individualization and digitalization. Digitalization has made it much easier to reach consumers globally, and the Internet promotes commercialization by making it both cheaper and faster for companies to market to the global market. Globalization has great influence on commercialization because of increased international trade, greater investment and more travel. Prosperity and individualization also accelerate commercialization because consumers have more money and at the same time demand individually tailored products and services. Commercialization will probably increase in the future, and the consequences will range from even more prosperity to specialization in business and the labor market. Specialization means that companies deliver more differentiated products and services while employees work more with product development, innovation, marketing and sales. This will in turn speed up the transition to the creative knowledge economy. Commercialization gives the individual more choices, increases competitive pressure on many companies and organizations, and thereby creates a growing market for new products. More competition forces businesses to further specialization and effectiveness. Some companies will concentrate on large-scale operations, centralization and standardization. Others will do the opposite, concentrating on decentralization, flexibility, niche production, immaterialization, marketing and customer service. #7 Health and environment In 1962, when the American marine biologist Rachel Carson (meet her on page 7) published Silent Spring, she painted a picture of mankind’s lack of feeling of responsibility for the earth. Professionals ridiculed Carson’s gloomy predictions, but when, in 1972, the same professionals raised the alarm with the report Limits to Growth, few shook their heads. The oil crisis had created a new awareness of the resource problem that grew in light of the growing prosperity and a menacing population explosion. The green wave of the 1980s put focus on ecology and 12 sustainability, and fitness centers appeared everywhere. With the political consumer’s boycott of Shell because of Brent Spar and French wine because of nuclear tests in the middle of the 1990s, consumer power was manifested. Since then, the triple bottom line has been a part of many companies’ accounts, and the development continues with renewed focus on corporate social responsibility (CSR) and the new corporate social innovation (CSI) that you can read more about on page 24. Today, fitness has become wellness, and so has gained a more spiritual and personality-optimizing character. New spa baths, treatment resorts, and other offerings are constantly appearing on the market, and the American wellness industry expects record-breaking sales of US$73 billion in 2006. The health and environment megatrend will have even greater significance in the coming years. There will come more age related illnesses, more lifestyle illnesses such as obesity and stress, and more mental illness. Men’s sperm quality has fallen greatly over the last 10 years, more children suffer from allergy, and smoking is banned in more and more places. There will be focus on clean drinking water – even in the countries that until now have not had problems drinking water from the tap. The World Bank calculates that the spread of avian influenza cold cost US$800 million a year and prompt a significant drop in GNP in the affected countries. The Asian Development Bank calculates, moreover, that a pandemic could create a period with low growth in which global trade would fall by 14%. The health megatrend is, therefore, of great significance for the world economy. The individual household uses more and more money on environment and health, and the number of new companies in healthcare has quadrupled in Denmark in just five years. The modern person buys vitamins, practices yoga and eats healthfully. In step with the individualization trend, more are interested in the body, beauty care and wellness, and more are aware of the connection between health and environment. For companies, it will also be more important to take into account employee health. Many already work to improve employee morale, loyalty and productivity through meal programs, fitness centers, etc. We will probably also see more countertrends to this in coming years. #8 Acceleration The industrial revolution was the starting signal for increased acceleration, which has only grown since then. Today, for example, there is more knowledge for the individual to consider, more to produce and consume, more to throw out, more to communicate, more to transport, and many more people to interact with. The pace of change is the number of changes in society per unit of time, and there are no absolute numbers for it. But that many people say there are more and more changes is sign enough of it. fo#05 2006 www.cifs.dk 10 MEGATRENDS TOWARD 2020 Changes touch us on many levels, and we change job, partners, friends, interests, home, knowledge, news and ideas faster than before. Information is not just more accessible today – the entry of new products on the market goes faster and faster. A single example is that it took 13 years before 30 million video cassettes were on the market, but just eight years for the same number of CDs and only five years for 30 million DVDs. Modern people much make far more daily choices than ever before, and our curiosity and our aspirations for development, new knowledge and improvements will be forces that will increase the pace of change in the future. So will new technologies such as nanotechnology and biotechnology. The pace of change already makes great demands on the ability of companies and organizations to reorganize. And that is not all: if you want to protect your competitive power, it is not enough to be change ready – you must be changeoriented so that you do not make do with subsequently and passively adjusting to the changes that happen in your world. According to a study by McKinsey, it is probable that a market leader will lose its position at the top in five years, twice as fast as 20 years ago. Speed and flexibility are other demands on companies and organizations in an accelerating development. #9 Network organizing To enter a network is a natural part of being human. Central to all networks is communication, because communication is the reason we have a society, a culture, an identity and an economy. Network organizing is a megatrend because network has become a central term that permeates our way of thinking. Cheaper transport, better infrastructures, the Internet, mobile telephony and increasing prosperity have revolutionized the opportunities for communication and network organizing. This megatrend is, in other words, closely connected to the development in several other megatrends, not least digitalization, globalization, and individualization, but also prosperity, immaterialization, and commercialization. A network’s value increases exponentially with the number of members who are in it. Changes in a network society do not happen linearly as they do in an industrial society. That means that many changes that took decades in the past now happen significantly faster. An example: just two years after the World Wide Web was launched in 1992, 10 million users were on it, while it took the telephone four decades to attract the same number of users. Network organizing greatly affects technological, societal, and economic development, and we have probably seen only the beginning. The rapid development potential in the network society means, on the one hand, that companies can expand incredibly fast, as happened with Microsoft, but, on the other hand, companies in all industries can risk outcompeting each other in a very short time. This applies even to Microsoft, which, even though 90% fo#05 2006 www.cifs.dk of computers use its programs, is losing share to the free operating system Linux. Networks drive out hierarchies and create many new open and decentral social structures. This applies to private life, especially for the younger generation, to the labor market, and business life. Medicon Valley in the Øresundregion is an example of one of Europe’s largest clusters of biotechnology companies. Network organizes also promotes urbanization, because urban regions with good infrastructure, good development possibilities, and a rich research environment attract the creative class. Network organizing challenges our entire way of thinking and traditional institutions such as the nation-state, the church, culture and language because people enter other and new networks than before. Google is an example of a company where the network principle has shown itself to be a good business ideology. The Google search engine’s strength is, in fact, that it lists search results according to how centrally a web site is in the network – that is, according to how interesting users believe it is. #10 Urbanization 48.3% of the world’s 6.5 billion people live in urban areas. The United Nations predicts that the share of the world population living in urban areas will rise to 53.6% in 2030, or about 3.9 billion people. While the average annual rate of change in urbanization towards 2030 is predicted to be only 0.5% in more developed regions, it is predicted to be 2.3% in less developed regions, primarily in Asia and Africa. Large-scale migration from region to region and countryside to urban areas continues in both Asia and the Middle East. Rapid urbanization poses a fundamental challenge the development of adequate infrastructure and liveable housing, and the maintenance of healthy environments. Other than that it also put stress on traditional ways of living, family structure and cultural values – creating a growing potential for social and political unrest. Nevertheless, there are also reasons for optimism. The historic association between economic development and urbanization is well established. Cities are crucial environments and institutional assemblages for economic growth. Current research indicates that even in less developed countries cities experience lower rates of natural population increase than rural areas, average household income is higher, and educational levels are well above those in rural areas. Thus, cities can also be seen as places of opportunity in which the major need is effective management and provision of services, creation of economic opportunity, and the provision of safe and healthy environments. 13 Johan Peter Paludans comments Trends, megatrends – and supertrend? Copenhagen Institute for Futures Studies’ mantra is - if anyone has any doubt – that the future does not exist and therefore cannot be predicted. It could be a good argument for packing up, getting on with one’s life and focusing on the present right now. As we haven’t already a long time ago packed up, it is because decisions must be made in the present but work in the unpredictable future. Thus: Back to the future. When the future in principal cannot be predicted, then trends (short-term tendencies for up to the next five years) and megatrends (tendencies which are expected to last for the next 10 to 15 years) do not make much sense. It is tempting to call them the future researcher’s learning support teachers. They are of course not just plucked out of the thin air but they can end up proving unsustainable. Demographic perspectives can be put to the test by a quick epidemic. Globalization can be brought into so much disrepute that it comes to a halt. Without socialism’s countervailing force, the capitalist system appears to be so brutal that the market system is seen in a bad light and commercialization stops. This can also alter the picture of welfare that characterizes our part of the world. Interest in health and the environment disappears because medical, environmental and technological development ensures that everything can be repaired. So, go ahead, smoke, and pollute as much as you like. It is no skill to present possible developments that can make megatrends irrelevant. When we use them anyway, it is because they appear fairly robust and because the probabi-lity of them holding true is therefore greater than not. This is, however, also because one must seize something – learning support, teachers, crutches or whatever one calls them – when one has to say something about something one can’t say anything about. One of philosopher Wittgenstein’s last and most cryptic statements was “that whatever you can’t say something about, you must be quiet about,” and while that is maybe true in a philosophical sense, in the real world it does not hold water. There is no dear mother here. Decisions have to be made. The strength in utilizing trends and megatrends is therefore that they both have a certain likelihood and that they are part of promoting an awareness of which assumptions about the future one actually bases one’s decisions on. Then one can at least see when one has made a mistake and that is not to be taken lightly. It can mean the world to change course in time. Trends and megatrends are however to a greater or lesser extent limited in time. They are not so flimsy as fads and the like, but over time, they nonetheless change focus. Some even turn out to be wrong. One did not use the expression megatrends in the 1970’s, but if one had done so one would probably have called the leisure society a megatrend. It turned out that for various reasons the leisure society was cancelled due 14 to a lack of support. It might pop up again even though now there is no sign whatsoever of this. The question is, however, whether one should not add to the trend-like comparison so that there is not only a trend and a megatrend but also a supertrend. There is maybe only this one. On the other hand, it is probably more sustainable than all the others put together. One could call that time or changes, or “time equals changes.” Changes take time; without changes, the concept of time becomes meaningless. The supertrend is really the mother of all megatrends. If society does not change, if things come to a halt, if events, days and years repeat the same pattern then there are no trends and definitely no megatrends. In the film “Groundhog Day,” Bill Murray is sentenced to eternal recurrence. Every day is like the day before and that is not funny. And so what? Without changes, there is no need for future research, because the future will in principal be predictable. It is exactly like the present. Nor is there a need for past research, sorry dear history, because the past is also a known entity. “For eternal idleness is death,” writes Kaalund in the song I love the colorful world, and that is what those who are against changes should maybe make a note of. In a general sense, and particularly for the Copenhagen Institute for Futures Studies, one must hope that time, like change, is a supertrend that has come to stay. This super trend can of course vary. Sometimes things go faster than other times. It is thus the megatrend we call ‘acceleration’. There are several changes per unit of time. The direction of the super trend is not debatable. Time has a clear development direction, and the past is behind us. When something is over, we put it behind us. The future is in front of us and it was therefore a bit of a sensation when an Indian tribe in Latin America, in their language, clearly expressed that they were standing and looking forward to the past and that the future came crashing in from behind. Even though we use the expression “something took us by surprise,” it is the same exception that confirms the rule about which way time goes: from the past and into the future. This does not necessarily mean progress. Being the pessimist he was, Kai Friis Møller said many years ago that: “Development continues even though progress seems to be stopped.” This implies however a basic assumption that development is irreversible. The pendulum is therefore a bad metaphor for the progress of time. A spiral is maybe a better metaphor. Now and again, one finds oneself in situations that resemble the past. The difference between optimists and pessimists is however in the understanding of the spiral’s movement. JOHAN PETER PALUDAN is director at CIFS. jpp@cifs.dk fo#05 2006 www.cifs.dk By Gitte Larsen Interview with John Naisbitt How (and why) did you coin the term Megatrends? I was trying to distinguish between trends and really big trends, between trends and major shifts, so several times in the manuscript I used my invented word “megatrends.” My editor picked it up, saying let’s use Megatrends as the title because the book is about 10 major shifts. What was the most exciting in writing your bestseller book Megatrends from 1982? - what drove you to do that? The most exciting was probably not so much the writing. The book was a speech before an agent, Ralph Sagalan, who heard me speaking came up to me and said: “I think there is a book in that.” As the concept had been developed over several years, writing was just putting my ideas to paper. The most exciting was the reaction of the people to the book. How does it feel to be right about the future you predicted more than 20 years ago? firmed “astoundingly precise predictions.” But -- if you have read Mind Set! -- you know that one of the reasons I was able to write Megatrends was that I was not afraid of being wrong. Had I worried at all about being proven wrong one day, I would not have dared to make some of the -- at the time -outrageous statements that made Megatrends so successful. Having to be right keeps you from questioning, correcting and changing yourself. So in any field of endeavor, and in personal life, don’t let having to be right run you. Which 3-5 megatrends do you consider the most important ones the next 10-15 years? I would say the twin paths of globalization and decentralization, China, and the current evolutionary era where for the next 50 or 100 years we will be perfecting and extending the great revolutionary breakthroughs of the last years of the 20th century: biotechnology, nanotechnology, and information technology. Not bad at all. And in fact it felt quite good when the Financial Times on the 20th anniversary of Megatrends con- fo#05 2006 www.cifs.dk 15 JOHN NAISBITT John Naisbitt is perhaps the world’s leading, global futurist, after he, in 1982, coined the term “megatrends.” His book, Megatrends, was on the New York Times bestseller list for more than two years. Megatrends has been published in 57 countries and has sold more than eight million copies. In October 2006, he published a new book: Mind Set! QUOTES FROM THE INTRODUCTION TO MIND SET! ”In this book [...] I focus on mindsets that are deliberately developed for a purpose. You can create mindsets that can instruct and organize you in your personal life and field of endeavor. Thus, this book provides not only the framework and the perspective of the first half of this century but also the fundamental attitudes that are necessary to anticipate the future, to receive the future.” ”My premier mindset is ’Understand how powerful it is not to have to be right.’ It is a great release in any field of business and private life, indispensable in any endeavor where you venture out. It is the mindset that will enable you to dare to say or try whatever you are working on, no matter how unlikely it seems at the time. It was the liberating mindset behind the success of Megatrends and the books that followed. It is a mindset that supports creative imagination.” JIM DATOR Jim Dator, one of the most popular and accessible futurist, has made countless futures workshops over the years. James Allan Dator is professor of political science at the University of Hawaii and director of the Hawaii Research Center for Futures Studies. Among his specializations are subjects such as political future, space, society, and media production. From 1983-1993, Jim Dator was general secretary/president of the World Futures Studies Federation, and is now a member of the Executive Council of the World Academy of Art & Science. Dator’s latest book is Fairness, Globalization and Public Institutions: East Asia and Beyond (with Dick Pratt and Yongseok Seo), University of Hawaii Press, 2005. QUOTE: ”Any useful statement about the future should appear ridiculous.” JOSEPH COATES (1929-) Joseph Coates’ nickname is “Uncle Joe,” and after decades, he is still one of the sharpest futurists in the world. He has often been overtaken by his own predictions, but is still much in demand internationally as an adviser. After more than 20 years in Coates & Jarrett Inc., which he founded in 1979 and retired from in 2001, Coates is still a consulting futurist. He has advised 45 of the Fortune 500 companies, and has written more than 300 publications about the future. KENNETH BOULDING (1910-1993) Kenneth Boulding was a normative economist who insisted on bringing more aspects of economic behavior in the economic life. He wanted to integrate the social sciences in economic theories, and believed that ethical, religious and ecological aspects should be part of a desired economic output. Hw worked with a three-part classification of economic activity – development, threats, and grants – of which he felt only the first had ever been included in economic theory. The other two aspects met great resistance and have only in recent years been taken serious. Think, for example, of the triple bottom line and the development within CSR (Corporate Social Responsibility). Read more about more about CSR’s successor Corporate Social Innovation on page 24. QUOTE: “Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.” PETER SCHWARTZ (1945-) In addition to oil, gas, and gasoline, Shell has also “produced” Peter Scwartz, who from 1982-1986 was head of the scenario unit in Royal Dutch/Shell Group. Peter Schwartz is also founder of the Global Business Network, and is an internationally recognized futurist and business strategist. He is author of a number of books on scenarios and strategic business development, and his first book, The Art of the Long View (1991), which has been translated into many languages, is considered by many to be a fundamental classic on scenario planning. By Søren Steen Olsen and Steen Svendsen The next megatrend: Social growth The new megatrend, social growth, will affect the agenda at social and market levels in the next 10-15 years. For the time being, just a few pioneering companies have drawn the outlines of the next phase of social responsibility and are moving from Corporate Social Responsibility (CSR) to Corporate Social Innovation (CSI). Developments are moving in the direction of our having to understand and implement innovation as an increasingly social process, because a larger and larger segment of society’s - and corporate innovational activities deal with research and development of human needs. What do IKEA, Arla, national pension plans, elective schools, cooperatives, meeting places, flex time, Wikipedia, blogs, mother klatches, micro-credit, open universities, evening school, Linux, public housing, child day care, Doctors without Borders, organic products, gray panther employees, recreational allotment gardens, Muslim cemeteries and the labor movement have in common? The answer is, they all represent new means of meeting social needs. In other words, they are all social innovations. In a time and a future when social change constantly challenges the traditional social framework and society’s models for finding solutions, social growth and social innovations— both commercial and those of society—will become the next Megatrend. It will be this agenda that creates the political arena of the future, and new market possibilities. The consequences are that the company’s CSR will become more innovative, and that the company’s innovation will become more social. Both are driven by market and social developments, and by corporate profit goals. A number of prominent companies, led by IBM, Novo Nordisk, Virgin, DHL, have already begun to delve into these new possibilities. 24 They are strategically working to join their business opportunities to their social responsibility. Social growth as a megatrend When we, as human beings, develop new technologies and forms of economic organization, we are also creating new modes of organizing society. This story has been told many times and from a number of different perspectives, by Karl Marx, W.W. Rostow, Jared Diamond, Alvin Toffler and Francis Fukuyama, to name a few. There is a general and often unspoken interpretation that social changes follow economic and technological changes, that they occur spontaneously when the technological and economic conditions are in place. But they do not. There can be no doubt that social changes can be spurred by “the pressure of need” coming from the economic and technological angles. At the same time, however, there is every reason to point out that there is no direct connection between economy and technology on the one hand, and concrete social frameworks and social patterns on the other. History has shown that an agrarian society can be Catholic or Protestant, Islamic or Buddhist, democratic or authoritarian, and highly-developed industrial societies can be welfare societies like those in Nordic countries, free market societies like the American model, or an authoritarian society like the one in Singapore. On a local level, there can be great differences between social patterns, for instance, two neighboring communities, two schools in the same municipality, two companies in the same industry, or two departments within the same company. What determines which concrete social frameworks are constructed, are the variety of social processes and activities that exist. It is the constant dialogue, discussion, rivalries and new ways of thinking--along with the constant counter reactions--that continually shape society. They shape a society’s institutions, the dominant understanding of the world outside, and the relations between individuals and groups. Some of these processes occur in the formal political arena, others take place in civil society—family, local environments, clubs/associations—and others occur in the marketplace and in companies. The point is that all these social processes are just as significant for the development of society as technology and economics are. They present an important source feeding the social growth of society, and they are driven by social innovations. Social innovations happen all the time, but at various degrees of intensity and at different levels. They come in waves appearing before, during or after an economic or technological shift. fo#05 2006 www.cifs.dk THE NEXT MEGATREND: SOCIAL GROWTH - By Søren Steen Olsen and Steen Svendsen It was the great waves of social innovation that created the modern Scandinavia. One wave was linked to cooperative housing, the system of elective education for the sake of learning, and the transformation of agriculture. Another wave was connected to industrialization, urbanization and the labor movement, factors that lead to the establishment of the welfare society. A third wave came in the 1960s, with the student independence movement, the (birth control) Pill and the women’s movement. Parallel to these were a number of smaller social innovations, for instance, housing reform, experimental lifestyles and new family patterns. There were parallel developments in most other countries, and inspiration and influences arrived from outside, but it was still, to the greater degree, the concrete social innovations that have been the defining factor in the uniqueness of Scandinavian society. There are many indications of our standing at the threshold of a new, broad wave of social innovation. The next wave Today, social innovation is categorized under many different names: political change, organizational change, changes in attitude, and market or technological development. The last includes, for instance, the many ICT developments and everything from new ways of using cellular telephony to Internet-based communities such as ohmynews.com, Wikipedia, myspace.com and blogs, and to the open-source operating system Linux. Nobody has really thought about describing them as social innovations, and the creators have not viewed them as such. It’s high time to focus much more sharply on the concept social innovation and compare social innovation with other types of innovation. This is because the social perspectives have forced their way higher up the agenda in a long series of contexts: - At the level of society, we now and in the future will face great challenges that will create a need for social innovation, both commercially and socially. This pertains to: integration, an aging population, chronic diseases, stress-related illness and the balance between work and the family. - In the marketplace, companies are becoming increasingly oriented around social relations. This pertains to customers, the media, the surrounding society, and not least, employees. - Technological and economic innovation garners much attention: it’s big business and gets strategic support. This is not the case with social innovations. They occur sparsely and in a fragmented manner, so we face the risk of seeing an all-too-negative degree of social innovation in society at the expense of society, the economy and competitiveness. - Social innovation doesn’t come along on its own and it doesn’t always arrive as quickly as other changes. It is fo#05 2006 www.cifs.dk important to know what promotes and what inhibits innovation. Increased awareness around social innovation is necessary to re-enforce it. That’s why social innovation is now coming into serious focus among a number of social initiative takers, politicians and companies. We’re seeing the beginnings of awareness about what social innovation is and how it can be developed in practice. The Danish minister of social affairs recently launched social innovation as a new focal point in social policy—a focus on development of new initiatives in cooperative activities between the public sector, volunteer social organizations and private companies. In the UK, the Young Foundation has objectives regarding social innovation. The organization supports and develops projects and initiatives that can lead to new ways of fulfilling social needs. Geoff Mulgan, leader of the Young Foundation and a former advisor to Tony Blair, cooperates with Conservative leader David Cameron to develop ideas about social innovation. Social innovation in companies Companies have always been significant players in social growth and innovation, but as a rule, it has been a by-product of their efforts to create profits by developing new products and processes, and to grow new markets. Several companies have now taken the next step and think more strategically in terms of social innovation. On the one hand, their own innovation processes have become increasingly socially oriented. On the other hand, it is because their social role—often called CSR—has increasingly become innovative. The influential management-thinker Peter Drucker provided an early contribution to CSI back in the 1980s. He believes we have put far too much weighting on science and technology as the major powers of change: “Social innovations – few of them owing anything to science or technology – may have had even profounder impacts on society and economy, and indeed profound impacts on science and technology themselves.” He names a number of non-technological innovations with long-term effects, such as the research laboratory (which he views as being an organizational form), agriculture consultants, mass social movements and management as a trade discipline. In the years that followed, an incredible number of people have become engaged in the topic of how companies can control and extend innovation. Developments moved in a direction of urging our understanding and implementation of innovation as an increasingly social process. It should be noted that we’re referring to technological and product-oriented innovations. Why? Because a growing volume of companies’ innovation activities deal in research and development to fill human needs. Companies increasingly deliver service and experiences in which customer involvement and feedback 25 ”Innovation has become social, because it is about social processes about feedback, involvement and communication.” EXAMPLES OF CORPORATE SOCIAL INNOVATION: A NEW STRATEGIC FOCUS The ability to create social innovations will become a vital strategic focal point in the future. Several good examples already exist. - IBM has explicitly launched CSI as the guideline for the company’s social responsibility. They have stopped donating money to charity and sponsoring worthy social projects. Even the widespread American practice of allowing employees to do community work—such as baking cookies for the local school bazaar—is no longer considered relevant for IBM. Instead, they enter projects where their specific skills can make a difference: IT courses for the long-term unemployed; implementation of computers and programs for preschool institutions to develop language and social-development skills; having employees from economy departments help NGOs establish systems. IBM’s contributions have great effect, which gives IBM new relations and input from the surrounding society. IBM employees experience a far more meaningful engagement in their own social responsibility. They gain insight and extend contact bases, which they wouldn’t otherwise attain, and which can be used in corporate developmental activities. - The global shipping company DHL’s efforts after last year’s earthquake in Pakistan provides another excellent example. Instead of contributing cash to aid organizations, they went in and took over vital logistics tasks of transporting and distributing emergency supplies. This action was much more valuable 26 in emergency-aid activities. The company created new relations and gained experience in problem solving within an unfamiliar context. - The same frame of mind lies behind Bill Gates’ social commitment. Instead of donating part of his fortune to existing organizations, he takes an active role. He assumes a leader role in providing social welfare, development-oriented research, disease prevention, and does so just as professionally as Microsoft runs its business when striving for a goal. The combination of corporate skills and social objectives provide the company with new forms of development. - A potentially more interesting development in the area can be attributed to another Bill—former US president Bill Clinton. He has launched his own program, Clinton Global initiative, which aims at getting companies to become engaged in areas such as global climate change, health, fighting poverty and the prevention of religious or ethnic conflict. The program is based upon a new model, called “commitment,” in which companies commit to original, concrete, goal-oriented initiatives. They do so by using corporate resources, often in collaboration with NGOs, the UN and authorities. - Virgin Airlines offers another example of commitment. The carrier aims to invest in sustainable energy. The company has committed to invest all of its profit from air and rail travel into research and development to find renewable sources of energy during the next 10 years. This commitment is estimated to be worth US$ 3.0 billion. fo#05 2006 www.cifs.dk THE NEXT MEGATREND: SOCIAL GROWTH - By Søren Steen Olsen and Steen Svendsen are part of the product—and, even when one delivers and develops physical products, there is usually a high degree of service included. It’s no coincidence that user-driven innovation has become a mantra. It’s not primarily the technological skills and patents a company can develop that will determine a company’s commercial success. It is how well it is able to understand and service users’ needs, and how well it can do it in a continual dialogue with users. Developments in technology and science certainly provide new opportunities all the time, and the company can add these to the process. The reverse is that the development of need also acts as an influence on developments in technology and science. Innovation has become social, because it is about social processes about feedback, involvement and communication. Corporate Social Innovation – CSI Developments in corporate social engagement only reinforce the conclusion about social innovation’s growing strategic importance. CSR has become an established part of many companies’ vocabularies, and for some—especially larger bellwether companies—social engagement is given as much importance as financial and environmental information in annual reports. In Denmark, the National Institute of Social Research has followed developments in companies’ practices in the area of social responsibility throughout the past eight years. They conclude that it has grown, according to all indicators. That CSR has come to stay is a safe conclusion. Consumers are increasingly politically-minded and aware of social perspectives. Employees want to identify with the values of their company. New media have contributed to increasing transparency. Competition is global and consumers can easily find alternatives. The media, politicians and authorities have become more demanding in relation to corporate behavior. Companies have reacted to these developments in the world around them with the concept of CSR, which is developing in a manner similar to an earlier wave of corporate engagement, namely: environmental responsibility. First, it starts with the most aware—and in some cases the most exposed—identifying the effects of their business activities. They introduce control routines, then monitor them and report on them in their annual reports. There is currently a further development of CSR. For the time being only a few pioneering companies are sketching the contours of the next phase of social responsibility: Corporate Social Innovation – CSI. Novo Nordisk is absolutely a pioneer in this area. They have long worked with what’s called the “Triple Bottom Line,” which accounts for the company’s financial, environmental and social results. Now they are taking the next step. As their CSR-responsible executive Lise Kingo expresses it: “In the future, corporate responsibility is likely to evolve into a platform for spotting and exploring needs for systems innovation and business innovation opportunities. A fo#05 2006 www.cifs.dk renewed understanding of how businesses and communities rely upon one another is gaining wider acceptance, even among the staunchest critics of corporations’ influence in society.” Social innovation is on its way to becoming a core activity at Novo Nordisk (see examples in box). The first generation of CSR was considered risk control. The next generation of CSR views it as a diving force in the company’s innovation, where CSR themes become business opportunities. Explicitly and practically, focus is placed on partnerships with NGOs and socially active entities. They are drawn into the company’s developmental activities. Companies enter partnerships or dialogues with public authorities. Among other things, this ensures that social innovations will be implemented on a large scale through the effects of demonstration, through the public sector’s own practices, or through legislation or legislative amendments. In this fashion, CSR becomes and integrated part of the company’s business activities and, not least, its developmental activities. Especially two things are worth paying attention to in the shift from CSR to CSI. The one is focus on business opportunities instead of risks, and the other is the importance of partnerships. Social innovation could become more of a determining factor for long-term development of society that both economic and technological innovation. It contains such great and important potential that neither companies nor society can ignore it or let developments occur incidentally. Social growth, and in turn social innovation, will become one of the strategic focal points of the future. Sources: Danish Social Minister Eva Kjer Hansen’s speech to the council for volunteer social work (Rådet for frivilligt socialt arbejde) 27 September 2006. Lise Kingo: “Corporate responsibility as a driver of innovation in health care” Vrije Universiteit Amsterdam, June 2006. Peter Drucker: “Social Innovation: Management’s New Dimension,” Long Range Planning, Vol. 20 Iss. 6, December 1987. Clinton Global Initiative: http//www.clintonglobalinitiative.org SØREN STEEN OLSEN and STEEN SVENDSEN are partners in the knowledge firm, Public Futures, which works in the area of long-term political development for ministries, municipalities, organizations, as well as Danish and international companies. www.publicfutures.dk PEACE PRIZE TO SOCIAL INNOVATION The Nobel Peace Prize was awarded this year to Grameen Bank and its founder Muhammed Yunus. But why? Because Grameen Bank has created a social innovation, a non-profit business model that gives microcredits to some of the world’s poorest people. The bank is not a charity but has an innovative approach to its target group and innovative methods for running a bank. Therefore, the most important perspective of this is greater than Grameen Bank and microcredits: Recognition of the value of social innovation. It is both encouraging and farsighted, because in the coming years, social innovation will be just as important as technological and economic innovation for social development, even in rich countries such as Denmark. 27 By Troels Theill Eriksen More Early Warning Early Warning Systems are already today an important competitive parameter for companies and organizations and the need for them will increase in the coming years. Read about why and get examples of how Early Warning Systems are used today and how they will be used in the future. An Early Warning System (EWS) is a fairly specific tool used by companies, organizations and government bodies to save human lives, time and money, among other things. EWS can be used for everything, right from ongoing monitoring of accounts to prevention of natural catastrophes and in product development. There are several Early Warnings Systems and they are all based on intelligent analyses of mainly newly recorded data and knowledge. The need for EWS has grown Changes and uncertainty play a big role in daily life in a business world that must respond to accelerating knowledge production, declining product lifetime, increasing product supply, less loyal consumers and more competition. The amount of risks companies have to handle in the future is continuously increasing and so too is the need for EWS. There are many examples of companies that were too self-sufficient and that did not manage to listen and adjust to the Early Warning signals they received. For example, the Danish East Asiatic Company overlooked warning signals about organizational changes and changes to world trade. Rank Xerox did not, to a great enough extent, take technological development seriously. A need will arise for the sorting of more and more information – a need that software producers have enthusiastically pounced on. The art is to navigate faster and in a carefully considered way and to turn risks into possibilities, by for example interpreting threats to one’s product as input to the development of new products. Carlsberg has, for example, utilized increasing pressure from the many new micro-breweries and foreign specialized beers by being responsible for the distribution of a large share of foreign beers and in addition by brewing their own micro-brew. 28 In the future, we will also see that EWS will be increasingly used to service us at home. This will happen in the form of for example more intelligent white goods and food products. There will also be more communication between individual electronic elements. For example, when you leave work to go home you can send a message to the heating system at home so that the heating is automatically turned. Today, it is also possible to perform stress tests based on blood tests and one can easily imagine that this will be a powerful tool in HR’s future work. Early Warning Classic In companies, EWS consists of Key Performance Indicators (KPI), which primarily are ongoing measurements of a company’s financial results, and measurements of other strategic factors such as working environment and customer satisfaction. In practice, forecasts are made – i.e. an expanded form of budgeting – of these key indicators, which are on an ongoing basis monitored and if there are big deviations, one can react and adapt for the future. The interval of time in which the KPIs are measured can range from real time to yearly. The huge penetration of KPI systems indicates on the one hand that Early Warning is a very useful and strong tool, but also that these types of EWS have weaknesses seen from a competitive point of view. EWS will in turn become quite interesting when they are innovative compared with competitors’ systems and when they give advantages in the form of faster and better information collection and thereby the possibility for faster adaptability. This concerns of course the system but also to at least the same extent the analyses of collected data. In this context it is interesting to distinguish between whether occurrences are exclusively measured, surveyed and analyzed if they have previously had significance for the company, or if measurements and analyses are also done on occurrences which have not happened before or have not been previously relevant for the company. It can be a vital competitive parameter if a company catches and utilizes exclusive information. Systems can also be too costly in relation to their potential return. EWS’ possibilities The possibilities for using EWS are as mentioned much broader than just Key Performance Indicators. If we stay in the business world, trend spotting, where one monitors the development of trends in for e.g. colors, textiles and food is also a kind of EWS. For those people who are considering a career move, EWS might be a possibility, and reportedly such a job consists, among other things, of going to a café to taste fo#05 2006 www.cifs.dk ”Whereas Megatrend analyses can primarily be used to say something about the overall development in the long-term, Early Warning Systems can be used to warn about the development in the short term. ” new exotic coffee types while observing young and beautiful people and their clothes etc. Another example of the new type of EWS is the fight against viruses and spam. Here well developed systems have been built to catch new viruses via for e.g. the network, search engines and other forums, so one can as quickly as possible develop an antivirus and have it installed at the customer’s workplace. All things combined, IT is a complete Eldorado for the development of EWS. Only the fantasy sets limits on possibilities. EWS is used in HR, for example by hiring workplace psychologists, who are aware of significant behavioral changes in employees in order to prevent stress, conflicts and depression. Early Warning and megatrends Great demands are placed on both innovative thinking and economical balance and the combination of EWS and the future researcher’s other tools are in this connection highly applicable. Megatrends are one of these tools, which can be seen as a “very early warning”-system. Take for e.g. the demographic development of years with small population growth and combine this with technological development, plus an increase in wealth: all this combined has put the sale of watches for children and adolescents under pressure because mobile phones have to an increasing extent replaced the need for standard watches. The watches that are sold today are mainly high-end watches, which function like jewelry. One could have predicted this development with the right analyses. Whereas Megatrend analyses can primarily be used to say something about the overall development in the longterm, Early Warning Systems can be used to warn about the development in the short term. The combination of for example these two tools can actually be ideal. MORE EXAMPLES OF THE USE OF EARLY WARNING SYSTEMS (EWS) EWS is not just a useful tool for companies but also particularly useful in relation to saving human life, ensuring safety, monitoring the development of society and helping politicians. Below are a number of examples of ways EWS are used today: - In meteorology and geography, EWS are used to predict natural disasters, pollution and global warming. Fr example, one can predict earthquake and volcano eruptions and research is being one in spotting and eliminating hurricanes, which are driven by water and warmth before they do damage. - In the political world, Early Warning is used for, among other things, peace and conflict analysis plus big political power analysis. Samuel P. Huntington’s book Civilisation’s collision? can be said to have predicted and warned against some of the conflicts we have seen in recent years between parts of the Muslim and western worlds. Furthermore, political parties use ÈWS in the form of opinion polls to monitor voters’ behavior and positions. - Early Warning Systems can also be used to predict social tensions. For example, it is claimed that instability in the suburbs of France during the fall of 2005 could have been predicted. It is essential for planners and politicians to gather information that can warn of adverse developments in society. An example of this is polarization in grade schools, which we have seen especially in recent years in Malmö, and which could result in adverse social tension over time. For more about this see the Institute’s (subscription) report #2 2006: Polarization trends. - At the public health level, key human figures are used to prevent obese epidemics, blood clots and lifestyle-related diseases. EWS is used in relation to health safety to warn against epidemics and a comprehensive warning system and international network is used in relation to food product control. TROELS THEIL ERIKSEN is a market analyst at the Copenhagen Institute for Futures Studies. tte@cifs.dk fo#05 2006 www.cifs.dk 29 By Piers Fawkes Privacy: Red Coat, Black Coat Technology is going to empower us, the consumers of the future. It can make us strong. Once we know what companies and brands know about us, then we can take action about it. Read this special feature, including a postcard from the future, about the privacy-free world and what powerful future it might give us – if we take action. Privacy seems to have been an ongoing concern for a while now – but it’s only recently I have noticed people make positive thoughts about the future. For the vast majority of us, we’re a little naive about the vast amount of information that has been gathered about us – and it’s only when there’s a slip – like AOL’s release of the search records of 650,000 users – that we are reminded about privacy. For a brief moment, AOL allowed access to the data logs of the search behavior of over half a million users. There was uproar in the online community. Why was the AOL release such a big deal? I’m no expert or computer programmer but if I had your search records, I could probably work out what you did for a living, where you shopped, what brands you liked, where you lived and worked and what the names of your children were. So, will we have a Big Brother-like future? Well, I’m not too sure – and I’ve tried to suggest the reasons why in a ‘Postcard from the Future’ called Red Coat, Black Coat. Read the postcard in box on the next page before you continue. THOUGHT-IN-MOTION This article is a write up of the US trendspotter Piers Fawkes’ notes that he prepared for an appearance on the BBC World Service show Culture Shock the state of privacy on Monday October 9 2006. The article includes his first version of Red Coat, Black Coat (see the second box) – a story he hopes to develop with help from feedback here and elsewhere to describe the options we have regarding a privacy-free future. Some of the article is also based on PSFK.com reader comments. So when you read this article, please remember, it is thoughtin-motion and not a final analysis. Piers Fawkes would love suggestions of other examples he can add to Jill and Steve’s story send to piers@psfk.com 30 The positive picture Privacy is dead. It’s over. Why am I painting an apparent invasion of privacy as useful? We can’t wear black coats anymore. Steve is looking for his 15 minutes of oblivion and it’s futile – whether he likes it or not. He needs to take action – he needs to understand what’s known about him and take action. He needs to present himself in a new coat, a coat that says something about him. It doesn’t have to be red – it could be navy and say ‘don’t approach me’ – but he needs to take that action – and in the end, I don’t think he wants to be alone. Monitoring and poor data management happens today already on every level. If you go into a nightclub today in American cities, they scan your driving license. Your driving license is one of the most important pieces of ID – and to get in and have a drink and dance – you have to pass it over to get all the information recorded. What happens to all that data? Where does it go? Many of the things I’ve mentioned in Red Coat, Black Coat exist today and we’re already shaping what is known about us. Like Jill’s music player, we can tell the online jukeboxes Last.FM and Pandora what songs they play to us we like, which ones we hate and they alter the selection for us. RFID tags in store or café loyalty cards can let managers and coffee makers know when you’re passing through the door. By looking at my shopping habits against my credit card bill, they already know my preferences – cappuccino or red hats - and because I know that, I can change it. Or even delete that. The idea of Steve’s bus changing route is not impossible to think of either. Today, in Internet cafes, the price changes depending on the amount of people using the service. Why can’t buses change direction depending on the real-time demand? Let’s also consider how Jill met all these new people in the café. This comes from personal experience. Online, I’m a pretty well known person. Although I started blogging with a false name I realized that people didn’t really know me – and couldn’t relate to the real me – so I put on my red coat and revealed more information about me. Just enough to help people make opinions about who I am. By doing this, I can place a notice for a coffee morning called Likemind on my blog and 30 people turn up who don’t even know me. The interesting thing is that the people who turn up aren’t exactly random. The group is self-selecting. Not anyone is going to come to a random coffee morning – it’s more likely that people who have got to know me – or Noah who also runs the coffee morning – from our blogs. We therefore all tend to be likeminded. Hence the name. fo#05 2006 www.cifs.dk POSTCARD FROM THE FUTURE: RED COAT, BLACK COAT It’s about that time again and Steve grabs his black Macintosh to go and meet his one and only real friend Jill. As he wraps it round him, he looks at the corners of his room, he looks out of his window then slips out of his front door without making a sound. Wrapped in his black coat, to anyone who spots him, Steve looks paranoid – trying to hide. In fact, Steve doesn’t just look paranoid. He is paranoid. Paranoid every time he swipes his card to get into work, every time he has to carry a mobile phone, every time he chats on the web, every time he removes the last can of soda from his fridge. He’s being watched. He knows it. Unknown organizations are watching his movements, brands are watching his consumption, details of every action Steve takes is being crunched by speedy computers that predict. Computers that predict Steve’s shopping habits, health habits, voting habits, sexual habits. Steve tries to shield himself from what he calls an invasion of privacy. He uses software to mask his identity, he gives false names, and he uses alternative underground brands. Jill leaves her house in her red coat and as she strolls down the street everyone seems to know her even if they haven’t met her before. Unlike paranoid Steve, Jill is considered as the socially evolved. It’s not only her red coat that presents an image to the world of how she wants to be seen. Jill understands and manipulates how the world sees her, how companies see her, how her friends see her. Using technology that was developed maybe twenty years ago, Jill knows nearly everything everybody else knows about her. And in the same way she uses his bright red coat to make a statement about herself, she manages the data about herself to present the image she wants. Information is like fashion – to be use, shown off and even bartered with. Her friend Steve hates people even knowing about his name – but what does a name really say about Jill. Or the school she went to, the color of her skin or her date of birth. Jill is Jill. Or the Jill she wants you and the companies who want to sell to her think she is. Of course, people know about Jill through her blog where she talks about all the things she wants to talk about. And, as she’s chatted to other bloggers, she’s found other likeminded souls. And that’s how she’s found new friends she’s never met before – even been contacted by a company that may have a job for someone just like her. At the bus station, Steve pays cash for his ticket in the machine. He doesn’t see the idling bus change its number and chug forward to the stop fo#05 2006 www.cifs.dk to take him on his way. Meanwhile, at the subway Jill dabs her thumb on the scanner and uses his frequent user reward to travel for free. On the bus, Steve pulls the collars of his coat around his ears to try to stop the blare from the ads. Papered on the back of seats, the moving graphics try to sell him shampoo, cheap holidays and a magazine for retirees. Jill’s subway ride is silent. It’s peaceful – with the ad panels temporarily turned down to let her enjoy the great tunes her music player has selected from a global jukebox. All this peace kindly brought to her by Target stores. At the café, Jill’s drink, the coffee makers start her mocha just as she enters the store. Just in time - Jill’s heavy with shopping bags as she just saw the greatest clothes to match her Red Coat in the window of her favourite fashion store down the way. And they fit perfectly. By the time Steve makes it to the café, he’s a mess – harassed by the world around him. The staff behind the counter guess the fake name he was going to give but they wrongly guess the drink he was going to have. He’ll have to wait until they make the drink again. “Don’t worry. Come over and meet my new friends,” she says as she waves to a table of people. “How do you get to meet new people like you?” Steve says. “I haven’t yet. I met them though the blog.” “But they look like they know you well…” “It’s the coat,” Jill replies pointing out their red coats too. 31 ”Think of how many red hat companies find it hard to find people with red coats.” Technology will empower us But what about all this information I give out about myself? Jill with her red coat knows that we have already lost privacy. We lost privacy when we adopted the web en-masse and when we started walking around with telephones. Many people feel that technology is going to create Orwellian scenarios – but it won’t. To be honest, I feel companies are doing a poor job with the information they have. If a reader looks at a person the same age in the office they work in – I bet they think that person is pretty different to them – but many companies today see them as the same type of person with the same interests. Technology is going to empower us. It can make us strong. Once we know what companies and brands know about us – then we can take action about it. How do we know about what people know about us? Well, there are laws like the Data Protection Act in the UK, which grants access to data companies own. But this is a very static thing. There’s a group called the Attention Trust in the US who is campaigning to make us more aware of the paper trail we are leaving. They link to a site called Root.net – and when you switch Root.net on, it tells you about all the information you are leaving and what companies think about you. Once you have knowledge like this, you have power. Power to do what? Like Jill and her red coat, you have the power to look a certain way and people and companies will react to you in a certain way. You can correct their opin- 32 ion and you can ask them to stop behaving in a certain way. You can even make money from your data. There’s a site called rootexchange.com that already allows people to sell their information to companies. I don’t think the implications of our power over our personal data have been fully thought through yet. But think of how many red hat companies find it hard to find people with red coats. In a common forum, they can ask for red coat people to come forward and say they will give $10 if Jill gives them the time of day to listen to a pitch to sell her a hat that matches her coat. Then that changes everything. PIERS FAWKES is the publisher of five web sites (PSFK, IF!, Marktd, ECO) aimed at introducing ideas and insights to an international audience. By managing the PSFK network of contributors, Piers and PSFK have provided a number of services to clients like MTV (content), Corona Beer (city trends tours), Philips Electronics (market research), Samsung (trends & inspiration), Smirnoff (comms concepting), Microsoft (inspiration), and CocaCola (trends sessions). www.psfk.com fo#05 2006 www.cifs.dk By Gitte Larsen A look into the future of Danish meat processing How do you communicate, to all the employees of the meat processing industry, two of several possible scenarios for future production conditions? And why are employers and the labor organization doing it together? Danish Crown is Europe’s largest pork processor and the next largest in the world. It’s an international food company that produces and sells fresh pork and beef along with value-added meat products. Danish Crown’s (cooperative) shareholders account for approximately 90 percent of all abattoir operations in Denmark and are the biggest employer in the industry. One of the major challenges for the future, like other industries, is globalization. For that reason, the meat industry employers’ organization SA took the initiative around nine months ago to outline the consequences of globalization for Danish workers in the industry. It was necessary to do this in cooperation with the food industry workers’ union NNF to be able to draw a picture of the future as realistic as possible. Debate in the lunchroom Preben Sunke is CFO at Danish Crown and the driving force behind the group working on the project, Future production conditions for the meat processing industry- (see box). He says that it is vital to include employers and employees to ensure the results are as realistic as possible. He hopes the publication will be received in the same spirit as that which went into the making of it; that is, business-like and humorous input about how the future will develop. “I hope it will be used as input for discussions in the lunchrooms at job sites, and that it will provide insight into the effects of globalization, along with ideas about development possibilities,” says Sunke. The brochure is an illustrative, lively capsule of a 100-pluspage report containing all the collective thinking SA and NNF have done on the subject of the consequences of globalization on meat industry workers’ everyday lives in Denmark. Sunke says that they chose to include the Copenhagen Institute for Futures Studies (CIFS) in the process, because they needed a voice that could lead them off the path of traditional thinking. “We needed inspiration and new input, so who can look into the future better than CIFS?” he says, adding, “There, you got a little plug.” fo#05 2006 www.cifs.dk ÅRET ER 2016… ILLUSTRATION: BRIAN EMIL JOHANNSEN, RED ALERT PRODUCTION SA and NNF have published a brochure presenting two scenarios for the future of Danish meat processing industry workers. The publication is based on reports from a major, mutual project. In the second half of November, 15,000 copies of the brochure will be distributed to employees in the meat processing industry. Exerts from the brochure appear on the following pages. FUTURE PRODUCTION CONDITIONS FOR THE MEAT PROCESSING INDUSTRY In a collaborative effort with a working group from the meat industry employers’ organization, SA, and the food industry workers’ union, NNF, the Copenhagen Institute for Futures Studies participated in the project, Future production conditions for the meat processing industry. The results provide participants from SA and NNF a common frame of reference and sketches of possible futures for the Danish meat processing industry. The five-month-long project placed emphasis on documenting a number of the most important data and megatrends that would influence an expanded cooperation between SA and NNF. Four future scenarios were developed. The project included several all-day meetings with SA and NNF managers, as well as a major background report that went out to managers and shop stewards at Danish Crown and Tican, the two largest companies in SA. 33 DET ER OGSÅ DIN FREMTID Det er ret almindeligt kendt, at man kun kan spå om fremtiden. Alligevel vil de fleste af os gerne vide, hvordan den ser ud, så vi kan forberede os – og så vi måske endda kan gribe ind i tide og være med til at sikre, at fremtiden bliver, som vi godt kunne tænke os, den skulle være. Ønskerne for fremtiden kan være forskellige – det kommer an på, hvem der ønsker.. om det for eksempel er ledelsen for en virksomhed eller medarbejderne på virksomheden. Men sikkert er det, at det er den samme fremtid, vi kommer til at leve i. Noget af den virkelighed, vi kender i dag, flytter med ind i fremtiden, andet bliver liggende – enten fordi det ikke var bæredygtigt – eller fordi det ikke kunne følge med tiden i et tilstrækkeligt højt tempo. Men undervejs til den fremtid, der ligger lige om hjørnet, kan vi gøre en indsats for at sikre, at vi får de rigtige ting med videre. Som for eksempel slagteri- og forædlingsindustrien i Danmark. 1. Danmark er et lille land, der producerer en enorm mængde svinekød – alt for meget til at kunne afsætte det på hjemmemarkedet. Fordi vi ikke i tide har udviklet produktet, konkurrerer vi udelukkende på pris. Produktudviklingen er gået i stå, så der er ikke ret meget forædling – det er for dyrt at forædle, hvis ikke vi kan levere produkter, der kan konkurrere på kvalitet og nytænkning. Derfor er der generelt færre arbejdspladser i sektoren i Danmark – det meste foregår udenlands – og de medarbejdere, der er tilbage i sektoren, har ikke samme værdi – og dermed heller ikke længere en god løn. 2. Danmark er et lille land, hvor det er dyrt at leve – både for medarbejdere og virksomheder. Alligevel klarer slagteri- og forædlingsindustrien sig godt på verdensplan i 2016, fordi vi i tide har udviklet et stærkt talent for nytænkning – både når det handler om produkter, og når det handler om fleksibilitet på arbejdsmarkedet. Det betyder, at det er lykkedes at bevare en meget stor del af de danske arbejdspladser, og at medarbejderne i industrien har mulighed for at udvikle sig i takt med nye krav. Vi kan konkurrere med de lande, der producerer til lavere omkostninger, fordi vi er i stand til at levere et efterspurgt produkt, som andre ikke kan matche. I dag omfatter det 21.500 direkte arbejdspladser – og hertil kommer de mange arbejdspladser i følgeindustrien. I alt er 175.000 mennesker beskæftiget på området. Og spørgsmålet er, hvordan vi sikrer de mange arbejdspladser en fremtid på den rigtige måde. DET SER SKIDT UD FOR DEN DANSKE SLAGTERIBRANCHE Året er 2016. IVAN har været ansat på et stort dansk slagteri i 26 år. Han kan stadig huske, da det var sjovt at gå på arbejde. Sådan er det ikke længere. Mange af de gamle kolleger er væk, og næsten hver dag er der nye medarbejdere ved slagtelinien – og han ved, de bliver der ikke ret længe. IVAN har igennem de seneste ti år måttet se lønningsposen blive stadig mindre fuld, fordi han er presset af den billigere arbejdskraft fra landene omkring Danmark. I 2016 er hans løn blandt de laveste i industrien. Sådan var det ikke i 2006... Der var hans løn blandt de højeste i industrien. Rigtig mange af IVANs kolleger kommer fra andre lande. Vi har skruet tiden frem til 2016 for at fortælle historien om hverdagen – som den kunne komme til at se ud for IVAN og BENT. Derfor satte medarbejdernes repræsentanter NNF og arbejdsgivernes repræsentanter (Slagteriernes Arbejdsgiverforening) sig sammen med Instituttet for Fremtidsforskning for at se, om de i fællesskab kunne pejle sig ind på slagteri- og forædlingsindustrien i Danmark i år 2016. Det er der kommet en stor rapport ud af, og i den peger Instituttet for Fremtidsforskning på en række muligheder – nogle mere tillokkende end andre. Der er mange hensyn og mange nuancer i spil, men der er to hovedlinier, som giver et fingerpeg om, hvor industrien kan være om ti år. 3 IVAN 4 BENT ILLUSTRATION: BRIAN EMIL JOHANNSEN, RED ALERT PRODUCTION ILLUSTRATION: BRIAN EMIL JOHANNSEN, RED ALERT PRODUCTION THE FUTURE IS ALSO YOURS That you can only speculate about the future is common knowledge. Still, most of us would like to know how it will look so we can prepare ourselves, and maybe even so we can step in beforehand to try to ensure that the future will be as we would like it to be. Wishes for the future can vary; it depends upon who is doing the wishing—for instance, whether it’s the management of a company or its employees. One thing is sure: both sides will be living in the same future. Some of the reality we know today will move into the future with us, while parts of it will remain in the past, either because they are not sustainable or because they were unable to keep up with the times. Along the way to the future that lies just around the corner, we can make an effort to ensure we move the right things forward—such as the meat processing industry in Denmark. Today it accounts for 21,500 jobs directly within the industry, along with many more jobs in related industries. All in all, some 175,000 people are employed in the area. The question is: How can we ensure that all these jobs will have the right kind of future? To provide answers, representatives from the meat industry employers’ organization, SA, and the food industry workers’ union, NNF, put their heads together with the Copenhagen Institute for Future Studies to see if they could draw up a sketch of the Danish meat processing industry in the year 2016. The efforts spawned a major report and in it the Copenhagen Institute for Future Studies points toward a number of possibilities, some more attractive than others. Loads of factors and aspects had to be taken into consideration, but two main lines point in the direction of where the industry will be in 10 years. 1. BLEAK OUTLOOK FOR THE DANISH MEAT INDUSTRY The year is 2016. Ivan has been employed at a large Danish abattoir for 26 years. He still remembers when going to work was fun. It’s not anymore. Many of his old colleagues are gone, and almost every day a new face appears on the butchering line. And he knows they won’t be there for very long. For the past 10 years, Ivan has watched his paycheck shrink, because he has been squeezed by the cheap labor flowing in from countries neighboring Denmark. His wage, in 2016, is among the lowest in the industry. It wasn’t like that in 2006, when he was among the highest paid in the industry. An overwhelming number of Ivan’s colleagues come from other countries. 1. Denmark is a small country that produces an enormous volume of pork, far too much to be consumed by the domestic market. As we did not develop the product early enough, we can only compete with price. Product development has stalled, so there aren’t very many value-added-product operations. Adding value is too costly if we are unable to deliver products that can compete on the merits of quality and innovation. As a result, there are fewer jobs within the sector in Denmark—most operations occur abroad—and the remaining employees in the sector do not have the same value, thus, they no longer earn a fair wage. 2. Denmark is a small country with a high cost of living, for employees and companies alike. Still, abattoirs and value-added processing plants are thriving on a global level in 2016. That’s because we managed to develop, in a timely manner, excellent skills for innovation, both in terms of products and as pertains to flexibility in the labor market. This means that we have managed to preserve a significantly large number of Danish jobs, and that employees in the industry have an opportunity to develop themselves to keep pace with new demands. We are able to compete with countries that produce at lower cost, because we are able to deliver a product that is in demand, one the others cannot match. We’ve turned the clock ahead, to the year 2016, to tell about how a routine day will look for Bent and Ivan. DEN DANSKE SLAGTERI- OG FORÆDLINGSINDUSTRI STÅR STÆRKT Året er 2016. BENT har arbejdet på slagteriet i 15 år. Det var egentlig slet ikke meningen, at han ville blive hængende så længe i jobbet, men der viste sig at være en del muligheder for at lære nye ting undervejs, og det meste af tiden er han faktisk glad for arbejdet. BENT kan stadig huske diskussionen om slagteriernes fremtid de første år, efter han var begyndt, og dengang fløj ordene ”konkurrencedygtighed” og ”globalisering” om ørene på ham og kollegerne, men det sagde ham ikke så meget. I dag er det ikke noget, de snakker så meget om, men det er vist mest, fordi det bare er blevet en del af hverdagen, for BENT ved godt, at hans arbejdsplads ikke ville eksistere, hvis ikke hans arbejde kunne konkurrere med andre lande. Han ved også godt, at det er derfor, hans arbejde stadig er meget værd. 12 ILLUSTRATION: BRIAN EMIL JOHANNSEN, RED ALERT PRODUCTION 2. BRIGHT OUTLOOK FOR THE DANISH MEAT INDUSTRY The year is 2016. Bent has worked at the abattoir for 15 years. He hadn’t planned to make a career out of it, but it has provided him with many opportunities for learning new skills along the way. And for the most part, he’s pleased with his job. Bent can still remember all the discussions – back when he started working—about the future of the meat industry. In those days, he and his colleagues were bombarded with buzzwords like “competitive” and “globalization,” but it didn’t mean much to Bent. Nowadays they don’t talk about it much, but that’s mainly because it has become a part of the daily routine. Bent knows that his employer would not exist if the work he does could not compete with foreign counterparts. He also fully understands that it is one of the reasons his work is valued. Things look bright for the Danish meat industry. We have set our clocks forward to 2016 to tell the story of everyday life – as it could come to pass for Ivan and Bent. 34 fo#05 2006 www.cifs.dk IVAN er heller ikke ret glad for at fortælle, hvad han laver, for de fleste mennesker i Danmark ser slagteribranchen som en industri, der hører fortiden til. Han har forsøgt at skifte branche, men en slagterimedarbejder har ikke høj status på arbejdsmarkedet. IVAN satser ikke på at blive ved med at være slagterimedarbejder… På IVANs slagteri laver man i dag kun den allerbilligste vare, for det er det, man konkurrerer på. Det betyder, at det er svært at få ret meget for varerne, så lønnen er ikke længere noget at skrive hjem om. Det er mange år siden, IVAN har betalt topskat... Det er også længe siden, IVAN sidst har fået mulighed for at lære noget nyt, for det er der ikke råd til i slagteribranchen 2016. 7 ILLUSTRATION: BRIAN EMIL JOHANNSEN, RED ALERT PRODUCTION ILLUSTRATION: BRIAN EMIL JOHANNSEN, RED ALERT PRODUCTION At Ivan’s factory, they now produce only the very cheapest of goods, because that’s how they are able to compete. This means it is difficult for the goods to fetch a good price, and that means wages aren’t anything to write home about. Many years have passed since Ivan was in the upper tax bracket. It’s also been a long time since Ivan has had the chance to learn anything new, because the meat industry of 2016 cannot afford it. And Ivan isn’t very comfortable telling people what he does for a living, because most people in Denmark view the meat industry as a thing of the past. He’s tried to get other kinds of work, but a meat worker doesn’t get a high priority on the labor market. Ivan doesn’t intend to spend the rest of his live in the meat business. Det krævede, at virksomheden var hurtig til at forandre sig og udvikle produkter, som kunne konkurrere på andet end pris, fordi de høje leveomkostninger i Danmark også betyder, at medarbejdere i danske virksomheder tjener mere, end medarbejderne i de fleste virksomheder i udlandet. Men han ved godt, at det faktisk også krævede en forståelse blandt medarbejderne. For ti år siden havde alle medarbejderne i branchen den samme løn, men i dag afspejler lønnen i højere grad den enkelte medarbejders kompetencer og anciennitet, og ligner situationen på resten af arbejdsmarkedet. BENT satser på, han også arbejder på slagteriet i 2026… BENT har været en del på kursus i de sidste ti år – både for at lære nyt håndværk og for at sætte sig ind i, hvad det vil sige, når en virksomhed konkurrerer på det globale marked, og i dag er han glad for, at han i tide var med til at tage ansvar for at bevare de mange danske arbejdspladser i hans branche. 14 17 ILLUSTRATION: BRIAN EMIL JOHANNSEN, RED ALERT PRODUCTION ILLUSTRATION: BRIAN EMIL JOHANNSEN, RED ALERT PRODUCTION Bent has attended a number of training courses over the past 10 years. Some helped him improve his craft, and others aided him in understanding what competing on a global market means. Today, he is thankful that at an early stage he took the responsibility to help ensure the future of Danish jobs in the industry. It demanded that the company was quick to adapt and develop products that were able to compete with means other than pricing. Due to the high cost of living in Denmark, employees of Danish companies earn more than workers in most foreign companies. But he also knows that this demanded a lot of understanding among his co-workers. Ten years ago, all employees in the industry earned the same wage, but nowadays wages mainly reflect the individual employee’s skills and seniority. The situation is generally similar to the labor market as a whole. Bent plans to be working at the abattoir in 2026. fo#05 2006 www.cifs.dk 35 FIRTZ LANG (1890-1976) Austrian Fritz Lang is from a time when futures research had hair on its chest. It was a time when some – and especially Friedrich Anton Christian “Fritz” Lang – showed an almost frightening courage to work with the most unsettling futures. He created the world’s first science fiction film, Metropolis, in the middle of the 1920s, while most were plowing fields with horses. See some of the stills from the film, and read more about it on the next pages. Metropolis 1927 DIRECTOR: Fritz Lang SCREENPLAY: Thea von Harbou (novel) and Fritz Lang (script) PRODUCER: Erich Pommer ART DIRECTION: Otto Hunte, Erich Kettelhut, Karl Vollbrecht COSTUME DESIGN: Aenne Willkomm ACTORS: Alfred Abel (Johhan ‘Joh’ Fredersen) Gustav Fröhlich (Freder Fredersen) Brigitte Helm (Maria/The Machine Man/Death/The Seven Deadly Sins) Rudolf Klein-Rogge (C.A. Rotwang, der Erfinde)r Fritz Rasp (Der Schmale/ Slim) Theodor Loos (Josaphat) Erwin Biswanger (Georg - No. 11811) Heinrich George (Grot) The world’s first science fiction film, Metropolis, is based on a novel of the same name by Thea von Harbou, the wife of director Fritz Lang. Filming took place from May 22, 1925 to October 30, 1026, and premiered January 10, 1927 in Ufa-Palast at Zoo in Berlin. Only few weeks after the premiere, the film was taken down. The original version, 153 minutes long, has never been found, but most of it can be seen today. For many years, viewers had to make do with the edited American version, which was far from fair to the original. In the film, Lang shows the metropolis he imagines in 2026, which is the consequence of more than 100 years of industrialization and conflict between capitalism and communism. There are two worlds in the film: the overworld with the ruler Joh Fredersen and his technocrats, and an underworld of anonymous workers. In the “Eternal Gardens,” the members of the ruling class enjoy themselves day and night. The film shows not just a class society, but also the emotional confusion that lies behind the creation of androids – represented in the film by the female robot, the false Maria. In 1927, Metropolis was the most expensive silent movie to date, which is not surprising when one sees the sets that had to be created, and the “special effects” that had to be produced in a time without computers and other modern technology. With that, Metropolis is one of the most ambitious science fiction films ever made. As the architect behind the models and constructions in the film, Otto Hunte, wrote in 1927, the style of the futuristic city Metropolis required solutions he could only find in his imagination, a view echoed by the woman who created the costumes. The effect that caused Hunte the most trouble was the “Tower of Babel” which had to appear to be 500 meters tall. The airplanes, trains, cars and people in this clip, which is six seconds long and shown twice in the film, were placed with the help of “special effects.” ALVIN TOFFLER (1928-) Alvin Toffler is one of the absolute elite in the field of futures research. His more journalistic and sociological view of the future has in its methodology and form created a school for many futures researchers after him, including the Copenhagen Institute for Futures Studies. Alvin Toffler is an eminent storyteller and writer. In April 2006, he and his wife, Heidi Toffler, published the book Revolutionary Wealth, which is about the prosperity of the future will be created, who will share it, and why. The best known of his books is Future Shock, published in 1970 and still a good read. In it, he foresaw that changes would happen so fast that we would become sick from it – future shock. QUOTE: ”If you don’t develop a strategy of your own, you become a part of someone else’s strategy.” ALAN KAY (1940-) Maybe Allan Kay did not know he was a futurist, but he is nonetheless one of the chief architects behind today’s computers. From 1957 to 1967, he was a professional jazz musician, but realized he had a flair for computer programming while serving in the US Air Force. In 1970, Kay became a consultant at Xerox PARC, which later refused to produce a prototype of a laptop. Steve Jobs, founder of Apple, met Kay in 1979 and had no doubt that Kay’s idea about the computer as a living organism, as a super-medium, was the road to the future. Alan Kay is the inventor of the Smalltalk programming language, the architect behind the modern “windowing GUI” and the direct inspiration for both the Apple Macintosh and Microsoft Windows. Since then, he has worked for Apple, Walt Disney Engineering, Hewlett-Packard, and is today director of Viewpoints Research Institute. QUOTE: ”The best way to predict the future is to invent it.” RICHARD A. SLAUGHTER The Australian futurist Richard A. Slaughter is an academic who, after 12 years at universities in the UK and Australia, became director of the Foresight Institute in Melbourne. Slaughter is a consulting futures researcher, and has worked with many different organizations around the world. He works systematically with the development of futures research methods and is especially interested in the use of futures research methods in education, business, and government. In recent years, he has been fully occupied with a new concept he calls “Integral Futures.” Described briefly, the concept is about how futures research integrates other and new powerful perspectives in work with the future. Slaughter is member of the board of the World Futures Studies Federation, of which he was president from 2001 to 2005, and is a professional member of the World Future Society. QUOTE: ”Capitalism is perfectly unsustainable and everyone knows it at some level, but that knowledge is repressed and there are massive interests keeping this system going, despite the cost.” HERMAN KAHN (1922-1983) Herman Kahn developed the scenario method, and if you can remember only one futures researcher, it should be Kahn. He was a military strategist and systems theoretician employed at the RAND Corporation in the USA. RAND is a non-profit institution that has for almost 60 years proved objective analysis and effective solutions to public and private decision-makers within such areas as national security, poverty, crime, education and environment. During the Cold War, Kahn developed strategies to contemplate the “unthinkable” – atomic war. He was an optimist about the future and our ability to predict it, and in 1961, he founded the Hudson Institute, a policyresearch organization that challenged the more pessimistic and leftist-oriented Club of Rome. Over the years, Kahn became even more conservative, and he was convinced that capitalism and technology had limitless potential for growth. His most famous books are Thinking about the Unthinkable (1962) and The Next 200 Years (1972), which describe an optimistic scenario for economic conditions in the year 2176. ELEONORA BARBIERI MASINI Eleonora Barberieri Masini was born in Guatemala, but has lived in Italy since the age of five. She is a professor of human ecology and of futures studies – the first woman of the type – and has taught futures studies at Gregorian University in Rome since 1976. For five years, she was general secretary of the World Futures Studies Federation, and was its president for ten. In addition, she is on the board of the World Future Society. Her greatest interests are futures research, methodologies, values change, and the role of women in the future. QUOTE: “Thinking, hoping or fearing the future is part of the life of the human being.” HUGUES DE JOUVENEL Hugues de Jouvenel was genetically blessed as the son of futurist Bertrand de Jouvenel, who helped developed the European branch of futures research, and who among others founded the “Association de Futuribles.” The successor to this organization, “Futuribles International,” has been led by Hugues de Jouvenel since 1974. He is also editor of the periodical “Futuribles.” Futuribles International and Hugues de Jouvenel want, as does the Copenhagen Institute for Futures Studies, to place themselves in the space between universities and consultants, and puts great emphasis on the future as a space of possibility. He is strategic adviser to companies, and is an international expert in forecasting and strategy. Along with Michel Codet, he is probably the best-known French-speaking futurist. BUCKMINSTER FULLER (1895-1983) Buckminster Fuller was one of the world’s first futurists and global thinkers. His friends called him “Bucky.” While he had neither money nor academic degrees, he invented such terms as “Spaceship Earth” and “synergy,” which he thought was a basic principle in all interactive systems. Throughout his life, he was most interested in whether humanity had a chance to successfully survive on earth. He wrote 28 books and made many inventions in design and architecture, but most of his inventions have never been put in production. Fuller was an incarnate skeptic of convention, and has a great deal of the honor that many more began to think “out of the box.” Many criticized him strongly, while others still believe his work has not gotten the attention it deserves. By Troels Theill Eriksen, Martin Kruse and Gitte Larsen The Scandinavian Way The Scandinavian countries’ labor and education policies, management style, and ability to innovate have in recent years been popular around the world. Foreign politicians and many others have been sent here to learn how we do it. Read about what Scandinavian management is capable of, and about the challenges the management style faces if the Scandinavian countries are to remain in the lead. When Europe needs vision, it looks increasingly often to the Nordic area. The countries to the north have managed to create a welfare system with free education, public support plans, and a well-developed public health service. The Nordic countries top the international rankings of the most competitive regions in the world despite their having some of the highest taxes in the world, and despite their workers working fewer hours than those of almost any other country. Measured in GNP per capita, the Nordic region, if defined as one country, is among the richest in the world, surpassed only be Luxembourg, Switzerland and Ireland. Moreover, the five Nordic nationalities are some of the world’s happiest. How is it possible? The special and so-called Scandinavian model is a big part of the answer to the question. Pragmatism, consensus, and “down-to-earthness” have allowed the Nordics to find their own third way, where equality and socialism from the east are combined with freedom and market forces from the west. You can read more answers by reading the latest member report from the Copenhagen Institute for Futures Studies, The Scandinavian Way (see box). Not least, the Danish flexicurity model attracts foreign attention, and is discussed widely in international periodicals and newspapers such as Newsweek, the International Herald-Tribune, and the Financial Times. Even the usually critical economists of the OECD have more or less praised the model. The international research world is also interested in 52 the model: Together with two other universities (including Aalborg University) and a business school, Tilburg University in the Netherlands has started a 3-year research program on the flexicurity model. In many ways, the Scandinavian Way is a dream that has already come true. So what should be the future dream? Or, in other words, how do we remain innovative when it comes to the development of welfare, labor policy, and management style? Can Scandinavian management be exported? Denmark leads the Scandinavian countries when it comes to good management, and according to the IMD, Denmark has the world’s best management practice. In IMD’s study of management practice, Scandinavia is at the top, mainly because of exceptional strength in ethics, social responsibility, environment, health, and accounting. Each of the countries is represented at the top. Moreover, Scandinavia leads in areas such as shareholder value, customer satisfaction and management trustworthiness The interest in the Scandinavian management style is not new, but the need for a new management style that works in the knowledge economy is growing in many countries. Many believe the Scandinavian management style is better suited for addressing the challenges companies and organizations face in the knowledge society. The style is network-oriented and motivating, and managers manage to empower employees to a greater degree than with other management styles. In Scandinavia, companies manage with goals and values rather than control and strict chains of command. IKEA’s management style around the world is thought to be informed by the Swedish management style. According to Waldemar Schmidt, former CEO in the global service company ISS with more than 350,000 employees, the Scandinavian style can be exported. Schmidt made a study, with IMD and McKinsey, a management consultancy, of Group 4, Securitas, Compass and Sodhexo. Through acquisitions, Compass and Sodhexo had become familiar with Scandinavian management style, and were considered to have a Scandinavian islet NORDIC REGION AND SCANDINAVIA The Nordic countries are Denmark, Finland, Iceland, Norway and Sweden. The Scandinavian countries are Denmark, Norway and Sweden. fo#05 2006 www.cifs.dk ”The flat structure has the strength of breaking down the borders between management and staff. What is maybe especially Scandinavian is that the low power structure is often followed up with great interest and consideration for the staff.” in their management. Something the studies could confirm. All of the companies beat their American rivals. Nevertheless, is that enough to conclude that Scandinavian management style is better than other management styles? Scandinavian management is democratic management. Democratic managers are results-oriented, and enter into discussions with subordinates to achieve consensus. Democratic managers who are both relation-oriented and goal-oriented, are better at creating productivity, employee happiness, and collegiality among the staff. They create greater staff efficiency, more risk-taking, and a feeling of accomplishment. A study of the organizational structure of 1000 Danish companies, undertaken by Rambøll, showed that traditional companies with a hierarchal organization earned an ROI of 2.45%. Modern companies, characterized by more democratic management, achieved ROI of 6.4%. 29% of the traditional companies operated with losses, against only 16% of the modern ones. Confidence, care and motivation An often mentioned example, when the discussion turns to Scandinavia, is the especially short power distance that makes it easy to create a flat company structure. The network philosophy and the idea of the flat organization were not born in Scandinavia. It became popular in the US largely thanks to Tom Wolfe’s excellent article about the inventor of the microchip, Bob Noyce, who is also known as the Henry Ford of Silicon Valley. Scandinavia offered fertile soil for this new way of thinking, because it put words to an existing specifically Scandinavian organizational trait. In 1985, Scandinavian Airlines CEO Jan Carlzon published his book Riv Pyrmiderna (published in English in 1989 as Moments of Truth.) The Swedish title “Tear down the pyramids” probably better illustrates Carlzon’s thinking about flat organizations. The book and discussion about Carlzon have, perhaps more than anything else, helped cement the understanding of something uniquely Scandinavian. The flat structure has the strength of breaking down the borders between management and staff. What is maybe especially Scandinavian is that the low power structure is often followed up with great interest and consideration for the staff. The manager manages to communicate to his employees that they are important to the company, and that their values have meaning. Therefore, it is not surprising that the Nordic countries top the IMD list for corporate values. fo#05 2006 www.cifs.dk The core values in Scandinavian management are care and trust, and trust is at the same time an expression that great responsibility is delegated to the individual employee. The prerequisite for delegating responsibility is the generally high education level and that Scandinavians from childhood are taught to think independently and critically. Nordic employees have developed their professional skills out of personal interest and not from the likelihood of getting a job or good salary. That gives a high level of competence and some of the world’s most motivated workers. That combination is particularly important, because research into creativity shows that the combination of strong qualifications and motivation is required for creativity and, in the end, innovation. In a number of areas, the Scandinavian culture is thought to promote a more creative workplace. The short distance from top to bottom strengthens the flow of ideas through the organization. In Scandinavia, it is not so much the position in the organization as it is the arguments that decide what is right or wrong. That means there is greater possibility for more and freer debates. The strongly relationoriented management style strengthens openness and trust in the company, which again helps promote well-being and motivation, both critical for creativity. At a time when the need for innovation and change-readiness perhaps has never been greater, because of the growing competition from abroad, there are selected companies around the world who in remarkable ways differentiate themselves from others. Nevertheless, there is probably no region in the world that, to the degree found in Scandinavia, has this company culture from childhood. Mads Øvlisen, former CEO of Novo Nordisk, a pharmaceuticals maker, represents the Scandinavian management style. This is how he describes his experience with the American model: ”Already in my time in the USA, the terrifying thing for me was that the people, who are a company, did only what was expected of them and not what they were capable of. I did not want to work in an American company. It was a type of military organization that was completely hopeless. One that decided how much time you used, when you were promoted, what you said to whom and whom you addressed. A hierarchy I simply could not use.” Anil Kapur, chef for Health Care Novo Nordisk India, comes from another management tradition. He says:”Mads’ greatest contribution to the company is that he has shown 53 THE SCANDINAVIAN WAY - By Troels Theill Eriksen, Martin Kruse and Gitte Larsen trust and confidence in people. Shown trust in their ability to take care of things, and shown them interest. If one person does someone a good deed, then that person will do something similar for others down the chain, and that form of snowball effect will end with something we can call a corporate culture... Maybe some will ask: how can a person contribute so much to the culture in a whole company? Well, if that person happens to be the company’s top manager, and he acts like that every day with people, it will trickle down through the company.” Kapur points out, moreover, that when one shows people trust, they will honor it. In that sense, we can say that elements of the Scandinavian management model can be beneficially exported. The good manager Over the last 60 years, at least, business has tried to figure out what characteristics are shared by good managers. In these studies, researchers have decided that management qualities NEW REPORT: THE SCANDINAVIAN WAY the Scandinavian way Medlemsrapport nr. 3/2006 The Scandinavian way Copenhagen Institute for Futures Studies Instituttet for Fremtidsforskning 54 depend on personal qualities. Put simply, a manager is not what you become, it is what you are. Good management is, however, also contextual. It is changeable and related to the surrounding world. Today, a good manager is measured against a sensible combination of goal-oriented and relation-oriented behavior. Professor Göran Ekvall has added a third category, change and development-oriented behavior. Ekvall shows two managerial types are especially well suited to run a modern company. The one organizes, planning from the small steps principle. Seems to handle everything, takes no unnecessary risks, but is not against change. Development happens over time with continuous development. The other is, to a greater degree, aimed at change and is strongly relation-oriented. There is a focus on understanding and the opportunity for the individual worker to be creative, and the management understands how to take care of the gifted workers and get them to grow. There is more focus on leadership than management. BEST PRACTICE: SWEDEN – WORLD-CLASS RESEARCH & DEVELOPMENT Sweden is interesting by European standards because it has been decades ahead of other countries when it comes to research and development. In 2000, the EU set an ambitious goal for itself, the so-called Lisbon strategy. The goal is to be the most dynamic, competitive, knowledge-based economic region by 2010. By 2010, the EU should use 3% of GNP on research and development, a share that most EU countries have not yet attained. Sweden, however, reached this goal in 1993 BEST PRACTICE: NORWAY – SUCCESSFUL OIL ADVENTURE. In 1970, Norway began an oil adventure that has given it the highest GNP per capita in the world. Therefore, it should come as no surprise that Norway can afford a welfare state. However, the standard of living has not tempted Norwegians to rest easy. How can Norway have the world’s most productive economy, when history shows that an economy based on natural resources often achieves little growth and can be fatal for a country? Norway is an example of Best Practice when it comes to the ability to manage a natural resourcebased economy in a responsible manner to the benefit of the Norwegian society. The Copenhagen Institute for Futures Studies’ newest Member Report, The Scandinavian Way (#3 2006), covers the factors behind the so-called Scandinavian model. The report focuses on the Scandinavian models future opportunities and threats, and offers insights into the central challenges facing the Nordic countries. In this Member Report, CIFS has chosen topics that are particularly characteristic of Scandinavia, and that may be of interest not just to Scandinavians, but also to our international customers who desire insight into Scandinavian conditions. The report is aimed at decision makers in international companies and organizations who want to understand the Scandinavian labor and education policies, management style, and innovation efforts. In the report, you can read about the history and special characteristics of the welfare state, and read special best practice reports from Denmark, Norway, Sweden, and Finland. BEST PRACTICE: FINLAND – THE NECESSARY SKILLS Finland has been forced to make radical changes to survive. A new modern Finland has risen from the wreck of the Finland that was left on its own when its biggest cooperative partner, the Soviet Union, collapsed. Crises often compel leaders to show leadership and make unpopular, but necessary, decisions. Instead of rescuing industry, Finland invested in higher education, with a view to the society of tomorrow. In the last five years, Finland has held first place on the World Economic Forum’s list of the most competitive countries. Finland uses the second most on research and development, and ranks first on the OECD’s ranking of educational performance. The report reveals the secret behind the Finnish results in education, and gives a unique insight in to what can be achieved when the will to change is there. BEST PRACTICE: DENMARK – FLEXICURITY The design of the Danish labor market has gotten a serious revival. The rest of the world is impressed with and interested in how we have managed to combine a great degree of labor market flexibility, which benefits business life and the economy, while ensuring a great deal of security for employees. In the report, we describe the flexicurity model and the reason why foreign delegations have lined up in recent years to hear more about the model that is over 100 years old. NEWS: Receive the report in English. The Copenhagen Institute for Futures Studies member report is published four times a year – now both in Danish and English. All employees in CIFS member companies can request free reports. If you are uncertain if your company or organization is a member, consult the list of member companies on the back cover of this issue of FO/futureorientation. The next member report, Family and Everyday Life 2017, will be published in early December 2006. fo#05 2006 www.cifs.dk THE SCANDINAVIAN WAY - By Troels Theill Eriksen, Martin Kruse and Gitte Larsen These two management styles describe many of the facets that are used to describe Scandinavian management style. A leadership style that thinks strategically long term, has an eye for the employees’ personal development, and is strongly relation-oriented. When managers are tested for basic personality traits, studies show that the extroversion and conscientious behavior indicate who is the good manager. Interestingly enough, these are the traits that are emphasized when Scandinavian management is discussed, which is especially characterized by strongly relation-oriented and conscientious behavior. In that connection, one could assert that Scandinavian culture helps promote qualities that are positive in connection to management. That is not to say that Scandinavians are born managers, but the Scandinavians who are born to be managers are possibly helped by a culture that promotes these traits. Future threats and challenges The most serious threat for someone practicing Scandinavian management can be the inclination to fall into laissez faire management. While a laissez faire mood among the staff is the most optimal for creativity, it is paradoxically a very de-motivating form of management. Employees want independence and a creative organization with freedom and responsibility, but in practice, too much freedom can be destructive for an organization. Laissez faire management is, fully in line with modern management philosophy, characterized by offering greater freedom, but the laissez faire manager often forgets to manage in an attempt to be friends with everyone. A characteristic of laissez-faire managers is that they delegate responsibility and authority not to improve the business, but to get out of managing. They bury themselves in paperwork, are conflictshy, have no clear goals for the company, which means there is no clear direction. For employees, it means there is less group cohesion, less concentration on work and lower quality If other countries would learn from Scandinavia, they must build understanding that Scandinavian management is more about relation-oriented management that the flat organization. One cannot create a flat organization without compensating for the strongly hierarchical structure with an equivalent relation-oriented effort. Democratic management differentiates itself from laissez faire management by, among other things, following up on delegating tasks, and ensuring employees meet the standards. Studies have shown that managers who advance most quickly were more relation-oriented and goal-oriented in their management style. The balance for Scandinavian managers is, therefore, is managing to create a mood of autonomy, where the employee has freedom within marked areas, without that independence degrading to the employee feeling left to his own devices. Scandinavian management style appears to be ideal to lead the workers of the future, but it is a demanding management style, where the manager appears more as a personal coach than a traditional management figure. Management practice varies with the economy. When business is good, the soft values are ascendant, and in reces- fo#05 2006 www.cifs.dk sions, management tightens up. The increasing international competition could mean that there will be pressure to maximize labor productivity. Scandinavian managers judge themselves to be less goal-oriented than, for example, American managers, according to a survey by MandagMorgen and Øresundbroen. The American management style can, therefore, be expected to make inroads in recession, or when the global competition is marked more strongly. Scandinavian managers also predict that we will see more of this bottom-line focused management style. The advantage is that Scandinavians may become more goal oriented. The disadvantage is that in the long term it may undermine the management style that both Scandinavians and management philosophers around the world increasingly believe is a clear competitive advantage. If a more Americaninspired management model makes inroads, we will probably see grater use of more measurable management stools with clear payoffs for the employees who perform. But in that connection, managers must be aware that even if that increases productivity, it is not a management method that can be used to lead knowledge workers in a company that must survive by being creative, because studies show that management style creates more ideas, but of poorer quality. Managers and companies who believe that innovation is the way forward should think carefully. Managing is obviously easier when one can document quarterly improvements. The middle manager is obviously better equipped at salary negotiations when he can show he has optimized, with measurable efficiency results at hand. However, just because it is easier and less complicated to manage does not mean that it is better in the long term. It is not necessarily the way to create an environment for a labor force that must be changeready and creative. The challenge for the managers of the future, in Scandinavia and elsewhere, is to strike a balance between a strongly relation-oriented management, where the focus is on the employee being taken care of, happy and motivated to be able to perform, and a strong profit focus. Close personal contact between manager and employee will probably become even more important than it is today. The understanding of when to pressure workers and when to back off, may make the difference between a worker who can perform far above target or collapse with stress. If the Nordic/Scandinavian countries can successfully continue to be innovative in their labor market policy, and if Scandinavian managers can resist pressures to take a shortsighted view, we are well on our way into the future. However, it requires more than that: we must also be able to integrate other ways of thinking and managing in the Scandinavian management style. Read more in the article ”Challenge from the East” to gain insight into this perspective. TROELS THEILL ERIKSEN is a market analyst the Copenhagen Institute from Futures Studies, tte@cifs.dk, MARTIN KRUSE is a research assistant at CIFS, mkr@cifs.dk, and GITTE LARSEN is editor of FO/futureorientation, gil@cifs.dk . 55 By Gert Holmgaard Nielsen Challenge from the East China is the market of the future. In theory, it has been for the past couple of centuries. Now it’s a reality. Western companies need to take a close look at Chinese business and management cultures if they are to have any hope of long-term success in such a culturally foreign market. One of the most important challenges is to learn how to use both halves of the brain. Trade between China and Europe has never been greater than it is today, but China is a difficult market. Many Western business executives visiting the country have, repeatedly, experienced the feeling of crashing into The Great Wall of China when negotiating with Chinese businessmen. Just as many individuals stationed in China have had the same experiences when they communicate with Chinese employees working under them. Fang Xiaohui, or Dr. Tony Fang as he prefers to be called, is a lecturer at Stockholm University. He recently held a seminar in Beijing for Chinese employees of Nordic companies in China. He touched upon a widespread inside joke about how Western businessmen do not always understand a Chinese “no.” The problem is: the Chinese rarely answer directly with a no ”Yanjiu, yanjiu” A Swedish businessman phoned a Chinese organization, which could become a future customer, to hear about the possibility of collaboration. Before the conversation got going, the Chinese blurted a question: “Do you know me?” “No,” said the man, “but ... “ “Do I know you?” “No, but ... “ 56 “Do I know someone who you know?” The Western businessman could not answer affirmatively. Afterwards, he got the chance to speak his piece. The Chinese executive listened politely to a suggestion about a mutual business project, and promised he would look into the matter and get back to the man. Nothing happened. “Yanjiu, yanjiu” means, “we’ll look into it,” and virtually means “no” in Chinese, says Tony Fang. China is a society with little trust in strangers or the system. On the other hand, great trust is placed in people they know. So, in China you get to know each other before doing business with each other. When sitting in negotiations with Chinese business partners, the thing to do—generally speaking—is to forget everything you learned at home. The Chinese respect and trust people they know and mistrust those they don’t know. It pays to take the time to establish a trusted relationship, and that is why “no” is a no-no. For someone from the West, it is a process that demands patience. “In China the signing of a contract is simply the beginning of the relationship between the partners,” Fang emphasizes. Individualization in Chinese When a Westerner is given the task of managing Chinese personnel, then it’s about getting them to forget about what they have learned at home. “When we hire new people, they learn within the first couple of weeks to think about what they themselves mean about things, and not what they believe the boss means,” says Johan Björksten, a Swede. Björksten, founder and leader of Eastwei Relations, has lived in China for the past 12 years, but paid frequent visits to the country between 1986 and 1994. He speaks fluent Mandarin. “They learn to offer their opinions here, and discover they won’t be fired for doing so,” he ascertains. That is the harsh reality of a Chinese company; if you criticize the boss, you are fired. And if you separate yourself from the flock and take an initiative, you also risk losing your job. Just as everything else is changing in China, however, this practice will undoubtedly also become a victim of rampant modernization in China. Fang indicates that China is developing a welfare system, and that the labor market is open and competitive. Therefore, individual creativity will become increasingly appreciated. This does not necessarily mean it will be an easy transition for Chinese employees. In the Swedish company IKEA, fo#05 2006 www.cifs.dk ”When you are used to waiting on and taking orders from a superior, it can be extremely difficult to make the transition into being allowed to take the initiative for offering new ideas.” a lot is done to inform new employees about business values. The first day on the job, they are given a book that tells them they do not simply exist for IKEA, but that IKEA also exists for them. IKEA founder, Ingvar Kamprad, has drawn up a series of bon mots, one of them being: everybody makes mistakes—except those who are asleep. Action and experience Writing a fine book and offering fancy words is not enough. It’s action that counts if Chinese employees are to be convinced. In Beijing earlier this year, the business was being moved from a site in Madian to newly-built, larger facilities near Siyuanqiao—IKEA’s next-largest outlet, after Stockholm. Hao Jia, personnel manager at the store, remembers an episode when a newly-hired young woman was helping to assemble furniture for a display in the new store. She happened to assemble a piece incorrectly. It broke and had to be thrown away. She cried, because she was afraid she would be punished for making an error, Hao recalls. Despite the fact that she was informed from the start that IKEA employees need not worry about making mistakes, but are expected to learn from their mistakes so they wouldn’t be repeated, she was still afraid. In such a situation, the reaction of management is important. If the woman is told the company has lost money because of her, she will never believe the theory she learned when she was hired. She was naturally informed that she had made a mistake, but was reassured when she was told she was new, was doing a good job and that she simply needed to gain more experience. She was told to continue assembling the pieces, but also to be aware of where she had erred in the first place, to concentrate, and to ask for help from experienced co-workers. With this, she learned what it means to learn from one’s mistakes. Active communication When you are used to waiting on and taking orders from a superior, it can be extremely difficult to make the transition into being allowed to take the initiative for offering new ideas. This is one of the situations IKEA is trying to avoid, through active communication with employees. “We have always been told by our parents and teachers that we should not think for ourselves, but to strictly do what those in authority say we should do,” says Hao. In other words, you never ask your superiors about anything, for fo#05 2006 www.cifs.dk that would be interpreted as confrontation and show lack of respect. That is exactly why IKEA uses a highly visible system to demonstrate good example. “Our managers—no matter how busy they are--hold a personal meeting with each of their employees once a month,” says Hao. At the meetings they discuss the personal goals of the employee, and how things are progressing, they talk about skills and competency evaluation, and about whether the employee needs help from superiors. The employee is also urged to give feedback to superiors. Each year, every IKEA around the world does an employee survey where employees have the chance to evaluate the company as an employer and evaluate their superiors. “I’m not sure Chinese companies can see the value in letting employees evaluate their superiors,” Hao points out. It is a long arduous task to ensure that Chinese employees understand the rules of a foreign and more open form of management. “It’s as if there are no rules,” admits Gao Min, executive vice-president of Norwegian-owned Norwex. He quickly reverts to his Chinese roots and tells, ”There is an old Chinese expression that says the best rule is no rule. That stems from Taoism and is around 2000 years old. It means, when you are unable to learn the rules for something, then that’s simply the way it’s meant to be and you must respect that.” The problem of (mis)understanding is mutual. It can be very frustrating for a Western manager, who believes an assignment is being carried out, but then discovers nothing at all has been done because the Chinese subordinate who was given the assignment does not dare to report that problems have arisen. Building bridges between the EU and China This past summer, the EU and China embarked on a major initiative to help European and Chinese executives build bridges across the cultural gap. Managers Exchange and Training Program (METP) was launched with €17.2 million in funding from the EU and €5.8 million from China. The aim of the program is to send 200 young business people from export industries to China over the next four years. They will get intensive courses in Mandarin and Chinese culture: 10 months of language studies followed by three months as an “apprentice” at a Chinese company or organization. Just as many young Chinese business people will get the chance to come to the EU. Their program is planned as, seven 57 CHALLENGE FROM THE EAST - By Gert Holmgaard Nielsen weeks of management training followed by an apprenticeship. The lucky ones chosen—Chinese and European—will receive a grant to cover all education and living expenses. “It’s an initiative that appeared at the right time,” says Franz Jessen, who is second-in-command at the European Commission’s “embassy” in Beijing. “Especially in light of the fact that Chinese trade with the EU has risen by nearly 70 percent during the past five years. There is a clear need for both sides to develop an understanding of each other’s business culture.” As a rule, Nordic companies try to introduce—with success, but not without problems—a management structure that is somewhat egalitarian and more open than the Chinese are used to. In these cases, the Chinese are the once who have to do the learning, but Jessen says both sides need to face some demands. Psychologist Kirsten Høgh Thøgersen confirms there is a strong, mutual need for this. She has lived periodically in China for a total of 10 years and now has her own practice in Shanghai. She and the American anthropologist Nandani Lynton recently publicized the results of a study of the differences between Chinese and Western executives’ ways of thinking in negotiation situations. The conclusion among the subjects surveyed was that Western companies with success in China had all understood how to transform over to the Chinese way of thinking. Tom Behrens-Sørensen, the head of Maersk Sealand in Beijing, is one of them. Problems dis-solved executives’ experiences with the Chinese method. An executive they interviewed relates the following: “We recently had some incredibly difficult meetings with our joint-venture partner. Later, they refused to meet with a member of our board. We were in a situation where we had to inform them that headquarters was worried, and that we believed the relationship had been ruined. To our astonishment, they did not reply. Instead, they invited us to attend a performance of Carmen, along with their CEO. My colleague believed it was a cheap way to bribe us. But that’s not the way they think. In their eyes, we were sensible, therefore, not so easy to talk to. They had to figure out what to do with us. They thawed the icy relationship by giving us a pleasant experience. Then their CEO asked if our CEO could help the head of a theater company enter a cooperation with a German opera house. Of course, he had done his homework; he knew our CEO was an opera lover. From our point of view, all would be well if it was a success, and our relations improved. If it didn’t work, then they would attempt something else. Not that it would solve the problem; it would simply move it just a bit.” Does that sound like a convoluted process? Thøgersen has no doubt about the Chinese method working. “They move faster than we think they do,” she says. “We say what we think, but we don’t know what they’re thinking. It’s applied Zen Buddhism. They are very aware of what goes on around them. And they are incredibly well prepared. We cannot keep up if we don’t learn to think intuitively,” she opines. Courses in intuitive management Chinese executives think holistically and practically. This is demanding, for they use both halves of the brain as opposed The problem is, there are not very many courses in intuitive management. Until now, it has mostly been learning by doing to the process of thinking logically as we do in Europe. We for Western businessmen operating in China. activate only the left side. Chinese do not take one individual problem at a time, and they don’t necessarily strive There isn’t any indication that the EU’s METP grant addresses the issue of increasing understanding of the to find a direct solution. The route to a solution can wind Chinese intuitive method. It is, however, important to learn along a series of detours, with one reason being: to avoid the method. “It can determine whether you do well or not,” personal confrontations. While a Western executive will says Thøgersen. She and Lynton are examining the possibilmove directly toward an outcome, obstacles in China are ity of developing a training program. The first group to begin best overcome indirectly. activities under the METP grant start in February 2007. “The advantage of this method is speed,” says Thøgersen. “They quickly construct a building or move a factory, and they Recommended reading: Nandani Lynton and Kirsten Høgh Thøgersen, “How work as effectively as ants. Naturally, sometimes things go China Transforms an Executive’s Mind,” in Organizational Dynamics, Vol.35, nr.2, wrong—maybe more wrong than they do in our world—but pp. 170-181. www.TonyFang.com things progress rapidly and there are a lot of hands pitching in.” What a Westerner might interpret as the Chinese veerGERT HOLMGAARD NIELSEN is a Beijing-based freelance journalist who works for the Danish news agency Ritzaus Bureau’s Beijing Office. ing away from problems is really a manifestation of how the Chinese work using all their senses. They evaluate a situation, they consider the counterpart in negotiations, and at all costs they avoid confrontations that can stop a project in its tracks. In the West, we face a problem and solve it; In China, they face a problem and dis-solve it, is how Thøgersen puts it. “By focusing on a number of smaller, practical details, they dissolve the problems,” she says. To illustrate, she tells about an episode that is also mentioned in her and Nandani Lynton’s article about Western 58 fo#05 2006 www.cifs.dk By Sean Pillot de Chenecey ‘07 Man A growing body of opinion from men is that the age-old binary, narrow definition of maleness is out, and that a DIY approach to masculinity based upon respect, decency and intelligence is in. But not all male literature is apparently agreeing. So what are the real male trends in 2007? In the US, New York magazine recently published a piece regarding ‘Grups’ (grown-ups) where they talked of the irritation these ‘Grup’ men have with the ‘meaningless’ consumer youth culture that exists now. They also resent being talked down to by younger guys who ‘haven’t earned the right’ - hence quotes about how they find it distasteful that the popular culture of their youth, in which they once invested so much raw emotion, is enjoyed by younger people today as a form of kitsch: “That pisses me off. They’ve created no fresh culture of their own. All the recent or current music is so derivative. Oasis sounded like the Beatles, the Dandy Warhols sound like the Stones and Kasabian sound like the Happy Mondays,” the article states. Three books are currently appearing in just about every maletrends presentation: The Alphabet of Manliness by Maddox, Masculinity by Harvey Mansfield and Marian Salzman’s The Future of Men. But which gives the clearest pointer towards ‘real’ male trends in the near future? When youth culture was for real A bullying tone In the best-selling US title The Alphabet of Manliness by Maddox (a pseudonym), he talks of the A-Z of modern man in stereotypical US ‘jock’ culture terminology i.e. phallic aggression, violence, contempt for animals, women and other cultures, intimidating rhetoric, obscure penile references, etc. including ‘ass-kicking, copping a feel, eating hot sauce, pirates, road rage and yelling…’ Indeed reflecting (at least some of) this attitude has been a massively successful approach for the publishing industry. Young men’s magazines still tend to have a bullying tone that promoted low aspirations - where work, fatherhood & homosexuality are all taboo. In Masculinity and Men’s Lifestyle Magazines by Bethan Benwell, she talks of a ‘lad media’ that promotes muscular/working class values - sexism, exclusive male friendship & homophobia. Bethan Benwell writes: “The style is knowing and ironic, with men being immune from criticism. They’re not interested in work, preferring to drink, party, holiday and watch football.” Having a purely hedonistic and ‘surface deep’ attitude is what enrages many older men when they observe the current crop of youth tribes. An ongoing trend for new bands to look and sound exactly like those from the past – with every cool fashion reference learned seemingly by rote by new bands and their followers - is causing friction amongst those men in their thirties and forties that refuse to let go of ‘their’ youth culture. fo#05 2006 www.cifs.dk Yet, in the UK, one of the most interesting trends in male culture relates to a peace now breaking out in the ‘age-wars’, a trend led by the (genuinely) young. Simply put, getting older no longer automatically throws up the barriers between generations that it used to – at least according to youth. With youth culture now ‘officially’ more than fifty years old, a growing realization amongst young people and the youth press is that the original teenagers (who are now reaching retirement age) may well include their older relatives and neighbors – who can tell them all about what it was like first time round when youth culture was ‘for real’. The vast numbers of new guitar bands, currently shown by those like The Young Knives and The View etc., shows no sign of abating, and youth culture continues to obsessively look to the past for ‘cool’ inspiration, but in what is often derided as a ‘surface deep’ level where context is forgotten and ‘the look’ is everything. It’s often been said that the fashion industry trivializes everything it touches, and with music per se now being dismissed by many cultural commentators as purely being another arm of the vast entertainment industry (i.e. about as ‘edgy’ as the current favorite video game) perhaps the agitprop music-based movements of old really have had their day. Revolt into style indeed. Dead man living So ‘cool’ is lightweight and meaningless, argues Harvey Mansfield, where in his new book Masculinity, he calls for a resurgence of ‘Real Men’ and strong and positive male role models. He talks of the US ideal of manliness being a totally confused one, with the answer – that most Americans give when asked to define a ‘real man’ – being ‘John Wayne’, a male icon who’s been dead for over a quarter of a century. 59 ‘07 MAN - By Sean Pillot de Chenecey Mansfield suggests the renewal of themes like Public Duty, Honor, Moral Obligation, Emotional Restraint and Fatherhood are the answer to the crisis in masculinity caused by the rise of absent fathers, broken families, delinquent sons and the disastrous collapse of paternal authority. Many support his view – especially amongst the Republican right – i.e. those like the US ‘Men’s Activism’ movement where one of their mantras or ‘Warrior Goals’ (as found on the website: mensactivism.org) is to ‘Become a better father’. Elsewhere, a reaction to these ‘dangerous modern times’ (where, to quote Francis Fukyama “Fear, Uncertainty and Doubt” rule) is shown in male-icon terms by the renewed respect for ‘proper men doing manly things’ as illustrated by the blue collar rescuers of 9/11 and a new mood for ‘Manly Assertiveness’. Meaning and happiness Indeed every trend researcher working on male consumer projects hears men in focus groups or depth interviews complaining of a feeling of rootlessness - something that Mansfield puts down to living in a pop culture society and a desire for testing themselves. A direct knock-on effect of this has been shown by the huge popularity of books and programs that deal with social history, currently illustrated by an obsession with our great grandfathers generation and the First World War, consumed by real young people, and not merely war obsessives who’ll happily read or watch anything that comes with a few guaranteed explosions. Yet the opposite of the resurgent traditional type of masculinity required in Mansfields ‘real world of harsh reality’ and certainly the opposite of being constricted by a 1950’s style binary version of it, is demonstrated by the huge popularity of those obsessed with living second or online lives via role play games like ‘Everquest’ and ‘World of Warcraft’. Not that these are purely the domain of (terminally dull) men, as shown by the 40 percent female following of the equally uninspiring ‘City of Heroes’ where a ‘hermitizim for the win’ clarion call proudly proclaims the benefits of never forsaking the comfort blanket of your PC, or indeed actually leaving the house. What’s remarkable in cultural terms here is the methodology of achieving success in these games. Namely people working together using their individual skills to gain something useful for each one of themselves – a utopia that sounds at odds perhaps to the day-to-day reality of mutual suspicion and subterfuge for most office workers. And it’s also in day-to-day office life that we see trends illustrating real signs of major, structural change where happiness is of prime importance. Cultural studies tell us that, in day-to-day terms, masculinity was merely about production, work and responsibility. Old stereotypes of (male) work were often summed up by statements like ‘men deny themselves in order to provide for their wives and families’ where work was essentially something to be endured and was the premier location of a mans expression of his individuality. So 60 a continuing move towards adding pleasure via having ‘the job of choice’ is also a driver of the modern man. In his book The Happiness Hypothesis, Professor Martin Seligman of the University of Pennsylvania, the father of positive psychology suggest that the happiness formulae can be boiled down to: pleasure + engagement + meaning = happiness. The new maleness: the urban knight So, for “‘07 Man” perhaps what’s emerging is summed up by Marian Salzman in The Future of Men where she discusses a masculinity that combines the best of traditional manliness (strength, honor, character) with positive traits traditionally associated with females (nurturance, communicativeness, cooperation). A mode of living that is personalized and gender neutral or ambivalent. A lifestyle that emphasizes higherquality emotional and physical pleasures - male pleasures - that comes from knowing oneself and ones potential. Marian Salzman forecasts the future of masculinity to be one involving renewed respect, a broadening of what’s masculine, men adopting female traits and accepting differences by letting everyone play the game. She agrees that men are indeed requesting and adopting new ways of living and working, and that the foundations and aspirations of quality and success are being redefined. And it’s this issue of redefinition that is setting the tone for men as we look to the near future. A growing body of opinion from men is that the age-old binary, narrow definition of maleness is out, and that a DIY approach to masculinity based upon respect, decency and intelligence is in. For the modern city living, office bound man, this perhaps means waving goodbye to the urban warrior and saying hello to the urban knight. SEAN PILLOT DE CHENECEY is a researcher & trends analyst based in the UK. www.captaincrikey.com fo#05 2006 www.cifs.dk By Christine Lind Ditlevsen Can women play the game at executive level? The ability to play will be a professional qualification In the future. Playing will become a greater part of our working life in these times where creativity is in high demand. But what does it mean to play? Meet the researcher and the future researcher in a conversation about men’s and women’s different ways to play and read about the consequences for the future labor market. Playing is essential for people throughout life. Adults play almost as much as children – it is just called something else. We play when we do something that is exciting and fun and that we cannot leave alone: when we want to create a good mood or when we pursue leisure activities like sports, music, collection mania or another hobby, or when we meet at a party or other social event. We play because we get a kick out of it, just like children can be excited by a good game that absorbs them. But there is a difference between how women and men let themselves be absorbed and how they play. Until now, women’s games have been hidden in aesthetics, shopping and in conversation. At first glance, these activities are not seen as games, because men historically define the framework and conditions. Traditional masculine games are competitive games, chance games and “rush games.” Today, games belong mostly to private life, but as new social media, the network way of thinking and individualism make headway in the market and workplace, women’s games and skills needed to play them will be good cards to hold. Why women don’t play The table is nicely set with tea and freshly baked buns. But we do not have time to enjoy them because we are heavily engaged in a conversation about female truckers. We have met to discuss why women don’t play. The host is Thessa Jensen, lecturer in digital media at the Institute for Communication at Aalborg University and a dedicated fo#05 2006 www.cifs.dk researcher of society’s relationship to and use of playing and games, with special focus on interactive digital media. The guest is the author, a futurist at Copenhagen Institute for Futures Studies. I am very interested in knowing if I am right in my claim that women do not play. I ask Jensen whether women play when they work and if they can handle using the game’s qualities in their professional life. “If we are to apply the four ways to play (see box about play on page 65) to working life, it is obvious that Alea, Agôn and Illinix are masculine ways of playing at work. It is men who play in the share market, invest and put money into projects. The competition game, Agôn, is also for men. The woman as a rule does not compete at all, and if she does, she must act like a man and be completely at the mercy of men’s terms. So she is not characterized as a woman. It is just the same with Illinix. Who is it that lets it tingle in their tummy? It is the entrepreneur, who without much planning borrows one million and jumps into an adventure. Women start very small and very safe, preferably with some art & craft, and with both feet planted firmly on the ground,” says Jensen. The woman fits well into the last mode of playing, which is called Mimicry or mimic game. Indeed, the idea of copying something and letting oneself be absorbed by an already existing agenda is women’s specialty. Maybe that is why the top female manager is a rarity? Already from childhood, dollhouses and “Dad, Mum and child” are favorite games for small girls. In these types of games, the “as if” way of thinking is used to the maximum degree. Even though playing is fundamental for people and society, so too are many of the historically traditional man-games. In other words, women mostly play games that have different starting points to men. Chance games, competition and, perhaps, the “rush games” are classic adrenalin-pumping, targeted games that often appeal more to men than women. But when girls play, and we say women don’t play, is it because we quickly stop being girls? That is the case according to toy makers. Jensen says that girls quickly stop playing. This happens already at the age of eight, while boys first stop at the age of 12, when they continue wit, for example, advanced computer games. After girls have turn 8, they no longer need to develop new games and props, because they enter the adult world by continuing to imitate it through fashion, chat rooms and mobile phones. In other words, they no longer play with traditional toys. 61 “In the future, maybe people will – freed up from their job as work – become the constant homo ludens, whose life is invention: The human who plays all his life.” 62 fo#05 2006 www.cifs.dk CAN WOMEN PLAY THE GAME AT EXECUTIVE LEVEL?- By Christine Lind Ditlevsen Ability to play at work The creative industries’ economy has moved playing as a cultural creator into every day life in such forms as computer games, and into working life in the form of demands for creativity and innovative thinking made on employees. Playing is therefore no longer something that can be isolated from what we otherwise do – playing has actually become a part of normal life. Working life places great demands on the individual employee’s performance. It is not enough to spend most of one’s hours awake at work, deliver on time and overall do what is expected. The employees must be able to challenge his/her own limits, to think “out of the box,” be creative in his/her work processes and demonstrate that he/she can understand and use the workplace’s unspoken rules of the game. Women have, since they began seriously participating in work outside home in the 1960s, have worked primarily in production, services and in offices. These roles invite little independence or creativity. With new demands also on these types of jobs, which are still mainly filled by women, our ability to play at work is seriously put to the test. The workforce’s demands on women and men respectively are linked to society’s basic needs for and perception of play. One example is the transport sector, which needs people, and where now there is talk of bringing in women. The effect is not, however, as positive as one might think. A common phenomenon is that when women begin to take jobs traditionally filled by men, both the status of the job and its salary fall – as with the case of physicians. It is tempting to cast an eye at Callois’ Mimicry concept here. Thessa Jensen believes that it is because women are very good at slipping into existing expectations and living up to the role she expects must be hers. This means that she does not make demands or challenge limits the way men do. Another example is salary negotiation, where men are much better at asking for a raise. A third example is that more women than men break down with stress. Women do not, to the same extent as men, say no to demands they cannot meet – they just try harder. Maybe we still live with the tradition that women do not get the chance to do much? Not even in playing either. We live with an attitude that women must be happy if they can get the same jobs as men can. Is this possibly an expression of the fear of failure, which results in a victim mentality? Or is it because women dare not ask for more in salary because they think: “I already have so little responsibility and pay, and I am about to die of stress. How would it ever work out?” Thessa Jensen responds, “Yes I think so. I also want to ask why it is not the man who works part-time when things are falling apart. If a woman had more spare time, would she then use it to take time off? Women are driven by a double sided problem which consists equally as much of poor selfconfidence and as well as a belief that everything will fall apart if we are not there.” fo#05 2006 www.cifs.dk According to social discourse, men have always had more important work than women. He has had more responsibility and has earned more. His role as the provider has been more important than the woman’s role, which in the beginning could best be described as self-fulfilling. Therefore, he has been able to take it as a matter of course that he has the right to knock off when he was not at work - and actually seriously relax without tidying up or planning. The woman has always on that account been in debt, and so it was she who was domestic when both were off work. It was also in the home that the woman could demonstrate the best she could. This is how it was in our grandparents’ time and our grandmothers taught our mothers this. So if women do not play, it is maybe because they are busy working outside the home and inside the home after work. But what is it that makes it so unattractive for the man to be involved in cleaning and cooking? “The man doesn’t find this attractive because cleaning and cooking are routine jobs. He is not allowed to play there,” says Jensen. If the man is to take an interest in cleaning and cooking, the jobs have to be an experiment. Would it be attractive if he could make his own bacteria exterminating Molotov cocktail and vacuum with a machine that is as noisy as an F16 and which displays the processes in the vacuum through a transparent lid? Thessa Jensen continues: “I have not yet met a man who has said: “What! Isn’t the kitchen cleaned up? We can’t go anywhere until the kitchen is cleaned up. The woman makes these demands – woman to woman. Our mothers and sisters raise us to believe that we must handle all the practical things before we start anything else. Women do not give themselves the chance to relax. But if the man can sit and relax one hour in front of the computer, so can the woman.” Why are we so afraid of what our female peers think about us? Maybe the next step for equality of the sexes is freedom from other women’s expectations? Women play in the home All surveys show that it is women who buy things for and decorate the home, and it is the woman who sets the overall guidelines and timetables, and who organizes big events in the home. The woman is the home’s project leader. Of the project groups that Thessa Jensen advises at the university, the pure female groups work the best. Right from the beginning they have the framework and role split worked out and they normally end up with a good grade for the project. The male groups are polarized: One kind consists of unstructured guys who sit and yell about how cool this project is and how fantastic their performance of tasks will be. They typically end up with low grades. The other type is with guys who really don’t have a grip on anything but who follow a wild idea and they are awarded now and then with the highest grade. “I experience that the male students play their way through their studies. They practically throw themselves into something with a kind of “let’s see what comes out 63 CAN WOMEN PLAY THE GAME AT EXECUTIVE LEVEL?- By Christine Lind Ditlevsen of this” like attitude, whilst the women know what they want What one looks at and dreams about when shopping could and are focused,” says Tessa Jensen. possibly be considered as things one really doesn’t need, like luxury goods. So shopping is often viewed as frivolous. Can it be that men lack will power and women lack vision? We agree that women love responsibility and hate it We do not shop to buy a new washing machine or a car. when men do not take it. Women need to have control of eveShopping is actually not necessarily about buying, but much rything and so we can conclude that at least part of a woman’s more about dreaming. “We have a research group at the unigame must be linked with control. While we take one last look versity that works on aesthetics, advertising and shopping. at women’s work in the home, it becomes evident to us that in One group consisted of middle-aged men discussing how a addition to a lot of social compulsive behavior, biological clock shopping center should be designed in terms of aesthetic arrangements and remainders from the battle of the sexes, the experiences etc. Instead, they sat and discussed how women woman simply gets a lot of pleasure from running a household spend heaps of money, and they actually don’t do that. They – in decorating and making things around her beautiful. spend time,” says Jensen. Do women play when they arrange an inviting cheese Women spend time investigating what is available platter? Do we play when we make sure the pillows, lights – finding out where one has to go to find what is interesting. and curtains match? According to Thessa Jensen, that is Women also spend time dreaming, talking and building relaexactly what we do. It is just that much more complicated to tions. All of this has to be considered in the shopping center call aesthetics a game, because such a game is not about copy- if it is to be a success. It sounds a bit like we are close to ing, getting tingles in our tummy or winning. women’s number two game. It is possibly here where women can experiment and go beyond barriers. “Broadly speaking, women are just not cut out for competitive society, because we can’t compete on our key compeDo women play when they shop? “Yes, I actually believe tence. We cannot be challenged at being the best to give birth they do,” answers Jensen. She believes that when women to children,” says Jensen. One could say that what women shop they step out of the controlling and overview-like role. compete about today is who the perfect woman is, so in this Who said that shops cannot be pink and full of candy way we participate in a competition. But it happens only on and magazines? Why does a computer bag have to black?” at a meta-plan level, because there are no agreed rules, and she asks. On the other hand, I think and ask: Why does it many of those who participate are not aware of it themselves. have to be so fluffy because it is for women? Jensen answers: “Yes, and most importantly: It is not a game, because it is not “Why not? Why can’t we make a pink difference and still be a question of “as if”. Women must be perfect and we take it able to demand to be taken seriously?” dead seriously,” emphasizes Jensen. Conversation as a game One could claim that there is something called aesthetic When little girls play together, they use all the time on setcompetitions. When women ‘flash’ surplus energy by serving ting up the framework and definitions, whilst the boys jump homemade orange marmalade, having home-embroidered straight into the situation (the battle, the hunt, the race). Can pillows and showing off the children’s room which is smart and spotless, it can be compared with playing with a “life-size” one claim without lying that women are terrible at playing, because we are so good at keeping house and managing? doll’s house. It must be the feminists who stick their necks out. Just “Society is kept going by consumption,” says Jensen, who adds, “and aestheticizing is very much linked to consumption. because women’s requirement or need for a well-groomed home is different from what men demand – and is most The aestheticizing of our home and ourselves requires that likely based on aesthetics rather than functionality – it is we follow trends. This requires that we have the latest design still a demand. “The woman reverts to an image of herself as of placemats. To be aestheticizing has become an industry, which constantly leads us on to new trends and shows us new oppressed when she focuses on being taken seriously by the man instead of by the criteria she stands for, which are not ‘toys’. It is in this way that our game is constantly described met. And we have not even seriously spoken about the guilty by society.” In other words: Women play in the home, but it conscience related to thinking of oneself first rather than letdoes not resemble play in the male defined form. ting the children or the man be the first priority.” Women play when they shop Having a guilty conscience about the children is caused Shopping is the favorite pastime of many women. “Women by two things: We do not have enough time and the relatake shopping seriously. It is a free space which does not tionship to our children is not, like in the past, based on the have to be rushed by the man because he wants to go to parent as the raiser, safe haven and financial source, but Bauhaus,” says Jensen. In Germany, there are bars where about the parent as the love source. And you can’t ever give one leaves the man and pays 10 Euro. Inside there is the enough love, because it should be limitless. So this is where possibility to do some handicraft, read the newspaper or the involvement of children – and playing with them – comes watch sport and he can have something to eat. The woman to resemble events. Every time mum or dad have a spare can simultaneously take the time necessary to buy grocerhour it must be used to give love and attention to the child, ies or shop. and one does not therefore use the time to carry newspapers 64 fo#05 2006 www.cifs.dk CAN WOMEN PLAY THE GAME AT EXECUTIVE LEVEL?- By Christine Lind Ditlevsen downstairs or to bake some bread. One “carries newspapers down” and “bakes bread” so that the child can experience this together with the parent. In this way, we create event families. There is never any time that is allowed to just go by. “While we know that it is the woman who is responsible for arrangements, the maintenance of the home etc., it doesn’t leave much time for playing,” points out Jensen, who continues, “the woman is both the project leader and the communication director of the home. The women are relation creators and maintain them: the family dinners, the birthdays, the dinners with other couples, festivities etc. When the woman communicates, it is to keep the network alive. Conversations were the traditional society’s news mediums and survival networks, whilst today they still give the woman’s life cohesion. Conversation creates a link between all the functions the woman has.” What do women do when they finally knock off work? They talk. Men meet for a beer or sport. Women meet to talk. It is a female thing to maintain a friendship, to talk about this and that and mirror oneself in each other’s lives. Men’s internal sociology makes them compete. A potential conflict lies in men’s time together because it is based on the “I am better than you” way of thinking, whilst in women’s togetherness there is a potential softening in the discourse and an “I am like you” mindset. The relationship creating conversation is a female talent. This fits well with the fact that more women than men are employed in the branch of communication. Thessa and I agree that conversation must be women’s third way of playing. WHAT IS PLAYING? The cultural historian and play theorist Johan Huizinga studies in his book Homo Ludens (The playing human, ed.) the role of playing within a number of cultural phenomenons. According to him playing is “a voluntary act or function which is played out within certain set spatial and time limits. Despite voluntariness the game is played according to strict binding rules, is a goal in itself and is accompanied by a feeling of excitement and happiness and a sense of it being something else than normal life.” But even though playing is an intermezzo which is not taken as seriously as the rest of life, Huizinga believes that playing however has a bigger role in people’s existence. Playing is actually fundamental for being a person and he writes: “It gives life fullness and color and is to an extent essential both for the individual as a biological function and for society, based on its significance and symbolic value, and because it creates spiritual and social relations. In brief it is indispensable as a function of culture.” According to anthropologist Gregory Bateson, a human plays by putting inverted commas around certain actions and in this way creating an “as if space” in which the players’ behavior is not taken seriously. Bateson points out that it is not only the human who plays but that we – unlike our hairy relations – have the advantage of having the possibility to describe and stage our games. We can put words on what the game is and let the game be the discourse for many different actions. Playing is not just something that happens in the children’s room and on the rounders (baseball-like game) field, but a part of our activities all over, for e.g. in the form of creative behavior, games, entertaining actions and informal togetherness. Many other philosophers and social researchers have studied playing as part of – or actually fundamental for – adult humans’ lives. Friedrich Siller considers for e.g. playing as an aesthetic experience - in other words, as the way we unite the physical world with the conceptual world. But the cultural sociologist Roger Callois follows in Huizinga’s footsteps and further develops the idea of playing being culturally creative. Callois splits playing into four archetypes: MEN AND WOMEN IN DANISH BUSINESS - There are many more male entrepreneurs than female and they perform better. In a list of Denmark’s 50 wealthiest, published by Danish business magazine Berlingske Nyhedsmagasin, female entrepreneurs have not yet created any of the country’s largest entrepreneurial successes. Out of the 50 richest Danes there are 27 entrepreneurs who have gone on the journey from inventive entrepreneur to self-made billionaire. None of them are women. 1. 2. 3. 4. Women’s games and working life Women will probably never make it to the top of the knowledge economy unless they let go of their belief that they have to be men to be allowed to play the game at executive level. On the other hand, there are good possibilities if women use their abilities in the world of playing – also in their working life. In our conversations, Thessa Jensen and I have found that women play in three ways: 1. The aestheticizing game, which today primarily occurs in the home. These games are about conceptualizing and managing, but also about changing something for the better by making it more inviting, appetizing or in line - There are significantly more male top managers – both in the public sector and in private industry. In the new Danish municipalities women hold only 16% of the senior executive positions, i.e. board of management, including city manager. In more than 20 of the municipalities there is not one female senior executive and the difference in salaries between men and women employed in the municipality is on average 13%. The Danish Employers’ Confederation showed that only 16.6% of senior executives in private industry are women. At group management level women occupy less than one quarter of the jobs. - Traditional masculine branches like engineering and IT are still full of men. Only 15% of Danish engineers are women, while 23% of the Union of Commercial and Clerical Employees’ members employed within technical IT areas are women. In the computer giant IBM only 25% of all employees are women. Source: InfoMedia Alea or chance games (for e.g. Lotto and dice games) Agôn or competitive games Illinx or “rush” games (for e.g. parachuting and roller coaster riding) Mimicry or mimicking games (for e.g. role playing) In the chance games the idea is to win by luck. In competitions you win by being clever. In “rush” games it’s about experiencing a rush of adrenalin. In mimicking games one has an empathetic experience. The first two types of games distinguish themselves by both being about winning, while the later two are experience oriented. fo#05 2006 www.cifs.dk 65 CAN WOMEN PLAY THE GAME AT EXECUTIVE LEVEL?- By Christine Lind Ditlevsen with the integral whole and by having a personal influence on things. 2. The shopping game, which women play when they are consumers and which is about jumping out of the role as the one who has control to being like a child again in a candy store, where the especially attractive goods are chosen. Women delight in finding the right things for the right occasions. 3. The conversation game. Last but not least, women also play a more subtle game, namely a social, relationship creating, empathetic and potentially softening game: the conversation. Women can advantageously implement these three types of games into workplaces and into working life. The labor market is right now seeking people with abilities to communicate and create networks and people who have management skills in the form of single mindedness, tact, and social drive. The search is on for self-managing employees with an overview and quality awareness and who have a talent for letting form and content create a synthesis. These competencies, like women’s ways to play, are in reality in high demand in the labor market. They just need to be re-launched and described as valuable, female competencies and in this way complement the traditional virtues in care and practical functions, which have for a long time been the image of women’s abilities. All three types of games demonstrate that women are clever project managers – professionally, cross-functionally and socially. But if you look into each individual game, you find even more fuel, which can make working life in the future run more smoothly. The aestheticizing games indicate that women could take responsibility for our workplaces being designed so they are nicer to be in. As it is, people who create value in the creative knowledge economy, employees probably also need some other frameworks than gray offices. Maybe it should be women who design the future’s office environments and think about light, sound, color etc. in their entirety? The shopping game demonstrates that women are good at putting together teams and cross-functional project groups. Everything indicates that the ability to have an eye for beauty and the special, and the ability to find the right combination of people for the right assignments, will be in even more demand in a future where working life will be further fragmented. Finally, the conversation game indicates that through their communication abilities women will have a big advantage in the future. The anarchistic consumer is already a big challenge for the market and the development of, among other things, the social media forces companies to enter into very close dialogue with the world around them and to think more in terms of establishing relationships than in managing an image. As relations are more important than positions, women will therefore be able to seriously play the game. Sources: ”Hvad kvinder og mænd bruger tiden til”, (Ed. “What women and men spend time on”), Social Research Institute 2003. ”Leg fortolket for voksne”, (Ed. “Play interpreted for adults”), Tem Frank Andersen, Aalborg University. ”Homo Ludens, Vom Ursprung der Kultur im Spiel”, (Ed. “The cultural offspring of playing“), Rowolhlts Encyclopedia, Germany 2004). http://www.anetq.dk/undrblog/ Discussion topic: ”Hvorfor leger kvinder ikke”, (Ed. ”Why don’t women play”), comments from 12 bloggers. InfoMedia: ”Iværksættere: Kvinder bygger ikke imperier” (Ed. ”Entrepreneurs: Women don’t build empires”), Danish news magazine, Berlingskes Nyhedsmagasin November 25, 2005. ”De nye kommuner: Mænd har magten” (Ed. The new municipalities: Men have the power”, Danish newspaper JyllandsPosten January 3, 2006. ”Døren åben for kvinderne” (Ed.”The door is open for women”), Danish newspaper Morgenavisen Jyllandsposten January 4, 2006. ”Status på kvindenetværk” (Ed. ”Status of women’s network”), Danish newspaper Berlingske Tidende, March 15, 2006. ”Kvinder beslutter bedre” (Ed, ”Women make better decisions”), Danish financial newspaper Erhvervsbladet, May 5, 2006. ”Fremtidens leder er en kvinde” (Ed. The future’s leader is a woman), Danish financial newspaper Børsen, July 17, 2006. ”Det stærke iværksætter køn” (Ed. “The strong entrepreneurial sex”), Danish newspaper Berlingske Tidende, July 24, 2006. ”Flere kvinder vil være ingeniører” (Ed. “More women want to be engineers”), Danish newspaper Dagbladet Roskilde, July 29, 2006. ”Dansk Metal: Flere kvinder til it-branchen” (Ed. “Danish Metal Workers Union: More women for IT”), Danish newspaper Morgenavisen Jyllands-Posten, August 2, 2006. ”Kvinderne tør ikke” (Ed. “Women don’t dare”), Danish newsletter Ugebrevet A4, August 28, 2006. CHRISTINE LIND DITLEVSEN is a religion historian and future researcher at the Institute for Future Studies. cld@cifs.dk FO subscription fo042006 tema: Consulting Time FO/fremtidsorientering #4 2006 Copenhagen Institute for Futures Studies Instituttet for Fremtidsforskning PRICE: Annual subscription (6 issues): EURO 250 + shipping.This includes one printed copy of each issue and online access to the growing database of FO articles (currently about 100 articles in English from the period 2003-2005). 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