Cybernetics: Dan Davies on the science of management that almost was

by Aline Normoyle

In 1948, Norbert Weiner published a book called Cybernetics: Control and Communication in the Animal and the Machine. At the time, it was a best seller and the prefix cyber became eponymous with futuristic technologies. In fact, intellectuals associated with cybernetics were sought after management consultants and public intellectuals.

Jacket with embroidery

In fact, the 1971 Chilean government, under Salvatore Allende, even recruited a cyberneticist, Stanford Beer, to design a new, flexible, and resilient modern system of bureaucracy for Chile. The system was called Cybersym and it aimed to create a flexible administration that preserved the independence and autonomy of its citizens. These goals would be achieved through dense information networks with decision-making authority at every level in a hierarchy, not strictly top-down. Unfortunately, Cybersym never got past the design stage, as Pinochet overthrew the Chilean government in 1973, forcing Beer to flee. Beer would relocate to the UK where he remained an energetic intellectual, attempting to build a computer based on algae in a pond, studying art and poetry, holding lectures, writing, and conversing with other interesting people such as Brian Eno (!). But his career as a management consultant never recovered.

Computer-generated image of Project CyberSyn operations room. by Rama

In his book, The Unaccountability machine, Dan Davies defines cybernetics as “the study and control of systems”. Unlike economics, which historically relies on simplified models of human behavior to describe system effects (e.g. from the inside out), cybernetics instead tries to understand systems by observing its behaviors holistically (e.g. from the outside in). The cybernetic approach to understanding systems treats systems as a black-box: we can only understand the black box by studying how different inputs affect the output.

POSIWID

Large organizations are complex systems that consist of multiple, interacting box boxes. As Davies describes it, the defining characteristic of these systems was feedback, or “the cyclic and recursive use of the output of one black box as the input of another, then back again”. Feedback between many black boxes is what makes the high-level behaviors of these systems so hard to analyze and understand. An organization, such as a school, can consist entirely of people who care a lot about education, but the school system produces credentials (hopefully, but not necessarily tied to learning). Davies describes these systems as “unpredictable, but not random”. Beer summarized this phenomena — the tendency of organizations to produce outputs at odds with its mission — with the phrase “The purpose of a system is what it does”, or POSIWID. Davies gives the following examples.

the purpose of academic publishing is to generate citations for academics and profits for publishing houses; the individuals involved might want to expand and communicate human knowledge, but the system behaves in ways that support its goals, not theirs. The purpose of the pet hotel at Schiphol Airport was to shred squirrels; everyone involved may have cared about animal welfare, but the system had been set up to ensure compliance with import regulation at the lowest cost possible, so that’s what it did.

Homeostasis

The only way to determine the behavior of a complex system is to understand its steady states. In other words, how do the paths of least resistance within the organization combine together to create predictable and habitual responses? Whereas economics has the concept of ‘equilibrium’ where the system ‘stops’ because everyone has achieved an optimal state, cybernetics defined the concept of homeostasis. In homeostasis, the system continues to change, but does so in a way that produces predictable patterns — like the cycles of water or seasons.

Resource Bargains

Stanford Beer believed that good management, with the right structure, could allow large organizations to interact effectively with a complex world. Through Resource bargains, layers within the organization would have areas of responsibility within which they would have complete autonomy. Davies explains as follows.

Beer was trying to adapt hierarchical systems so they were fit for their purpose in a changing world. He saw a strict command-and-control approach as dangerously inflexible, while excessive delegation would destroy the organisation’s ability to act as a coherent system.

Davies uses a military platoon as an example.

It’s a concept that might be most easily illustrated by thinking of a military platoon that’s given an objective – to capture a bridge, say. There is a higher level of the hierarchy that is responsible for coming up with objectives, fitting them into an overall battle plan and making sure that different platoons don’t get in the way of each other. But once the orders are given, capturing the bridge is the responsibility of the platoon, using the soldiers and equipment assigned to the task. The general doesn’t keep on managing the attack; the next piece of communication he or she expects is either that the bargain has been kept (the bridge is captured), or that some external factor has interfered, and the resource bargain needs to be renegotiated by the survivors.

In this setup, both managers and workers have a reciprocal responsibility to each other: manage for providing clear objectives and organizing with other units; workers for getting tasks done. Contrast this with the ubiquitous command and control management structures we see today: call centers where employees can only follow a script and have no authority to help a customer. Their job is to act as an accountability sink — a place where for information to be ignored — or as David Graeber would describe it in Bullshit Jobs, as duck tapers, people who patch broken systems with temporary fixes that keep it hobbling along.

Dan Davies on accountability sinks

by Aline Normoyle

In his book, The Unaccountability Machine: Why big systems make terrible decisions and how the world lost its mind, Dan Davies offers several compelling reasons for why modern life, particularly in the United States, feels so dysfunctional and inefficient. One of the reasons are accountability sinks. An accountability sink occurs when an organization takes the authority for decision making away from people in favor of rigid rules and policies. Davies gives a typical airport experience as an example:

UnaccountabilityMachine

Someone – an airline gate attendant, for example – tells you some bad news; perhaps you’ve been bumped from the flight in favour of someone with more frequent flyer points. You start to complain and point out how much you paid for your ticket, but you’re brought up short by the undeniable fact that the gate attendant can’t do anything about it.

It is a familiar, frustrating situation but to yell at the airline attendant is unfair: they had nothing to do with the policy and now agency to help you. Davies continues:

Somehow, the airline has constructed a state of affairs where it can speak to you with the anonymous voice of an amorphous corporation, but you have to talk back to it as if it were a person like yourself.

It is easy to see how this situation benefits the corporation. Davies summarizes the situation beautifully:

Meanwhile, the managers who made the decision to prioritise Gold Elite members are able to maximise shareholder value without any distractions from the consequences of their actions. They have constructed an accountability sink to absorb unwanted negative emotion.

When customers get angry, a low-paid employee absorbs the anger. The connection between the decider and those affected is severed. However, there are risks to willful ignorance: an inability to anticipate problems, respond to
emergencies, or even respond to the normal variability of the real world in ways that make sense. To give an extreme example, Davies described how the Dutch airline, KLM, killed 440 squirrels using a shredder machine because of a policies about importing animals. Even the ideology to maximize profits for shareholders is itself an accountability sink. The brainless pursuit of a reductive objective function at the cost of society and the environment is also madness. As a result, our corporations (as well as the many other institutions that have modeled themselves after corporations) are dysfunctional, inefficient, and routinely surprised by predictable crises. Davies effectively invokes Hanlon’s Razer.

The decline in individual accountability for unpopular decisions is not – or not only – a form of moral decline on the part of our rulers. It’s also a consequence of the fact that there are fewer decision makers than there used to be. Nearly all the commands and constraints which afflict the modern individual, the decisions which used to be made by identifiable rulers and bosses, are now
the result of systems and processes.

On the other hand, it is not correct that a world without policies and rules would be better. Davies acknowledges that policies and rules, like laws, are alternatives to systems in which capricious authorities make all the rules on a case by case basis. Good procedures have the potential to be transparent, fair, and flexible in light of common sense special cases. The problem is that in order to handle special cases, someone must take responsibility for that decision if it goes wrong. Thus, we have accountability sinks, e.g. systems whose decisions are officially made by no one. On this point, Davies includes the following quote from George Orwell’s review of James Burnham and the Managerial Revolution (1946):

Capitalism is disappearing, but Socialism is not replacing it. What is now arising is a new kind of planned, centralised society which will be neither capitalist nor, in any accepted sense of the word, democratic. The rulers of this new society will be the people who effectively control the means of production: that is, business executives, technicians, bureaucrats and soldiers.

Also in this book, Dan Davies also likens corporations to artificial intelligences, describes how the abandoned field of cybernetics theorized about effective management, and how the Friedman doctrine has led to an dysfunctional economy.

If you are interested in talking about books like this one with other interesting people, come to the Neo-Luddite Reading Group at Iffy Books!