duminică, 19 mai 2019

Fighting people is harder than overcoming nature: why large organisations fail

I saw the Russian movie Salyut 7 movie in which a team of 2 Russians cosmonauts try to fix orbital station with same name.
Problems in cosmos are man made, we went where we are not suppose to be, with our faulty technology.
In the movie fighting communist bureaucrats was harder than to sent 2 people in space.
Alexis de Toquevile said in 1812 work "About democracy in America" that USA will overcome Russia because in USA you fight mostly with nature, while in Russia you fight against people.
Overcoming nature is easy, nature is honest, measurable, it doesn't have a position to protect, it doesn't blame on you, it is punishing you fairly if you make stupid mistakes.If an organisation is hierarchical complex, more time and effort you dedicate to politics, and more you trade off safety and technical craftsmanship for political gains to forward the project.
Kennedy had to make some facilittes in Houston TX to "bribe" Texas senators to support his space program.
Another example where political compromise had affected safety is Challenger who was launched regardless of engineering warnings because of political pressure.
Another one is Boeing 737 Max, in which management didn't ensured the safety of the plane for desire to make profits.
We can discuss the morality of  these decisions where people caved in to the pressure, despite the fact that they didn't risk deportation in Siberia.
It seems that regardless of the political system (dictatorship in URSS,democracy in USA) the organisations too big to fail make serious blunders.
The reasons is two fold:
First: they are powerful organisations and their management wasn't challenged enough. Prussian army during Bismarck was a new army and had to fight stronger opponents. The German army during WW1 was respected army and failed.
Bankers till 2008 were not challenged seriously by a crisis.
Second: concentration of power. Economies of scale and military power concentrate power in hands of few people that are unchallenged. So a bad decision is transmitted to lower level and the company crashes with terrible force.
Solution? Make things smaller an multiples as in this article.
The democracies are more robust than absolute monarchies because the leadership is shared, and limited.
The death of the king plunged the country in a civil war, the death's of Lincoln,McKinley and Kennedy didn't affect very much the american democracy.

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