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John Hagel is in a small category of thinkers who manage to routinely be thinking ahead of the curve ( he calls his blog, where he features longer but more infrequent posts than is typical,  Edge Perspectives). I want to draw attention to the core conclusion of his latest:

Challenging Mindsets: From Reverse Innovation to Innovation Blowback

Innovation blowback

Five years ago, John Seely Brown and I wrote an article for the McKinsey Quarterly entitled “Innovation Blowback: Disruptive Management Practices from Asia.” In that article, we described a series of innovations emerging in Asia that were much more fundamental than isolated product or service innovations. We drew attention to a different form of innovation – institutional innovation. In arenas as diverse as motorcycles, apparel, turbine engines and consumer electronics, we detected a much more disruptive form of innovation.

In these very diverse industries, we saw entrepreneurs re-thinking institutional arrangements across very large numbers of enterprises, offering all participants an opportunity to learn faster and innovate more effectively by working together. While Western companies were lured into various forms of financial leverage, these entrepreneurs were developing sophisticated approaches to capability leverage in scalable business networks that could generate not just one product innovation, but an accelerating stream of product and service innovations.

…. Institutional innovation is different – it defines new ways of working together, ways that can scale much more effectively across large numbers of very diverse enterprises. It provides ways to flexibly reconfigure capability while at the same time building long-term trust based relationships that help participants to learn faster. That’s a key breakthrough – arrangements that support scalable trust building, flexibility and learning at the same time. Yet this breakthrough is occurring largely under the radar of most Western executives, prisoners of mindsets that prevent them from seeing these radical changes.

Read the whole thing here.

Hagel is describing a mindset that is decentralized and adaptive with a minimum of barriers to entry that block participation or information flow. One that should be very familiar to readers who are aware of John Boyd’s OODA Loop, the stochastic/stigmergic innovation model of John Robb’s Open Source Warfare, Don Vandergriff’s Adaptive Leadership methodology and so on. It’s a vital paradigm to grasp in order to navigate and thrive in the 21st century.

Western executives (think CEO) may be having difficulty grasping the changes that Hagel describes because they run counter to cultural trends emerging among this generation of transnational elites ( not just big business). Increasingly, formerly quasi-meritocratic and democratic Western elites in their late thirties to early sixties are quietly embracing oligarchic social stratification and use political or institutional power to “lock in” the comparative advantages they currently enjoy by crafting double standards through opaque, unaccountable authorities issuing complex and contradictory regulations, special exemptions and insulating ( isolating) themselves socially and physically from the rest of society. It’s a careerism on steroids reminiscient of the corrupt nomenklatura of the late Soviet period.

As the elite cream off resources and access for themselves they are increasingly cutting off the middle-class from the tools of social mobility and legal equality through policies that drive up barriers to entry and participation in the system. Such a worldview is inherently zero-sum and cannot be expected to notice or value non-zero sum innovations.

In all probability, as an emergent class of rentiers, they fear such innovations when they recognize them. If allowed to solidify their position into a permanent, transnational, governing class, they will take Western society in a terminal downward spiral.

The French equivalent of the Supreme Court reveals the extent to which global warming alarmism was always intended as a justification for a sophisticated tax-farming rip-off of normal people by oligarchical elites:

….The tax, which would have started on Jan. 1, was set at 17 euros ($24.38) per ton of carbon-dioxide emissions, President Nicolas Sarkozy said in September. To make the tax more palatable, he partially or fully exempted power plants, public transport, airlines, farming and fishing, as well as 1,018 older cement, steel and glass factories.

In all, 93 percent of all industrial carbon emissions in France would have avoided paying the full tax, the constitutional court said in a decision published on its Web site. The tax would have fallen disproportionately on fuel for heating and cars, it said.

Emphasis mine. 

Jesus, 93 %? Was anybody with connections paying the tax?  Warmer, colder, who cares?  Just so long as widows, hotel maids and slum dwellers are paying through the nose in carbon taxes while Total S.A. skates! That is to say, the burden is on the ignorant peasantry who did not go to Ecole Nationale d’Administration.

Or on our side of the pond, Harvard.

ADDENDUM:

Science Daily – No Rise of Atmospheric Carbon Dioxide Fraction in Past 160 Years, New Research Finds

One law for them, another for the rest of us.

Courtesy of Dianne Feinstein (D-Ca.) and Richard Durbin (D- Daley Machine).

Goldman Sachs and other banksters wrangled swine flu vaccines ahead of most medical workers and high risk patients. Nice.

Do not hold your breath waiting for a Congressional investigation or a New York Times or Newsweek expose of how this happened and who is responsible. Much like when we endured the ridiculously laudatory coverage of the death of the corrupt and not especially pro-American Benazir Bhutto,  whose Ivy League matriculation and socializing with the American elite decades ago ensured her enduring American political support, plenty of MSM senior editors went to school with these guys. And the congressional staffers with their sons.

The Greco-Roman historian Polybius is instructive on this matter. He writes in his The Histories :

Rise and Fall of Aristocratic Rule

15    But as soon as the people got leaders, they cooperated with them against the dynasty for the reasons I have mentioned; and then kingship and despotism were alike entirely abolished, and aristocracy once more began to revive and start afresh. For in their immediate gratitude to those who had deposed the despots, the people employed them as leaders, and entrusted their interests to them; who, looking upon this charge at first as a great privilege, made the public advantage their chief concern, and conducted all kinds of business, public or private, with diligence and caution.

16    But when the sons of these men received the same position of authority from their fathers-having had no experience of misfortunes, and none at all of civil equality and freedom of speech, but having been bred up from the first under the shadow of their fathers’ authority and lofty position-some of them gave themselves up with passion to avarice and unscrupulous love of money, others to drinking and the boundless debaucheries which accompanies it, and others to the violation of women or the forcible appropriation of boys; and so they turned an aristocracy into an oligarchy. But it was not long before they roused in the minds of the people the same feelings as before; and their fall therefore was very like the disaster which befell the tyrants.

The Oligarchy of Good Feelings is here.

ADDENDUM:

Dan of TDAXP has sharp commentary and additional links on this disgusting story of insider corruption.

Of course, we should not be surprised. Recall during the Anthrax terror attacks how Senators, staffers and connected Beltway bandits who were not exposed to Anthrax, hoarded Cipro for themselves while the postal workers who had been endangered by bioterrorism received nothing? The mail guys were only peons of course. Not like they went to Harvard Business School or Yale Law or anything….

UPDATE:

Fabius Maximus takes issue with how the media, and by extension, myself as well, have characterized this issue:

More media madness: rich fat bankers get flu vaccine while children die!

It is a good counterpoint and worth reading – though I still find the damage control effort of the public health official cited  by FM to not be terribly convincing, the program would at least seem to be legal. Whether scarce vaccines should be distributed this way is another issue.