Esko Kilpi on Interactive Value Creation

The art of interaction, the design of digital and the science of social complexity

Tag: Katri Saarikivi

Disrupting Unemployment

The concepts that govern our thinking and language in relation to work are not just semantic entities, but influence what we perceive and what we think is possible or not possible. Usually we are not aware of how these concepts prime our thinking. We simply think and act along certain lines.

A seminal concept related to how we perceive work is the division of labor, the notion of work as activities separated from other activities, as jobs. The industrial management paradigm is based on the presupposition that activities are the independent governing factors of creating value. The organizational structure of jobs comes first. Then an appropriate system of co-ordination and communication is put into effect. The scheme of interaction conforms to the planned division of labor as a secondary feature.

What if the increasing global competition, the Internet and the huge advances in communication technologies made it possible, or even necessary, to think differently? What if interaction was seen as the governing factor? The smartphone has now become information technology’s key product. Surely, then, it has an impact on the way we work. As jobs and communication are mutually dependent, it means that if there are changes in interaction, so the activities will change.

In the mainstream conceptual model of communication (Shannon & Weaver 1948) a thought arising within one individual is translated into words, which are then transmitted to another individual. At the receiving end, the words translate back into the same thought, if the formulation of the words and the transmission of those words are good enough. The meaning is in the words.

Amazingly, our conceptualization of value creation has followed the very same model. Companies transform ideas into offerings that are delivered to customers. At the receiving end, the products translate back into the same value that the company has created. The meaning is in the product.

Management scholars have lately made interesting claims saying that although the product is the same, different customers experience the value potential of the product differently. They say that it is in fact wrong to say that companies create value. It is the way the offering is contextually experienced and used that creates value, more value or less value. The bad news is that our present conceptualizations of work make it very hard to do anything about it. The good news is that for the first time in history we can do something about it. Companies can connect with users and be digitally present when and where their products are used.

Tor Arne

But we need a new conceptualization of communication if we want to have a new conceptualization of work. Luckily, there is one. A completely different approach to communication exists. The alternative view is based on the work of George Herbert Mead. This model does not see communication as messages that are transmitted between senders and receivers, but as complex social action.

In the social act model, communication takes the form of a gesture made by an individual that evokes a response from someone else. The meaning of the gesture can only be known from the response, not from the words. There is no deterministic causality, no transmission, from the gesture to the response. If I smile at you and you respond with a smile, the meaning of the gesture is friendly, but if you respond with a cold stare, the meaning of the gesture is contempt. Gestures and responses cannot be separated but constitute one social act, from which meaning emerges.

Gestures call forth responses and products call forth and evoke responses. Value lies not in the product but in the (customer) response. Accordingly, work should then be conceptualized as an interactive process, a social act, because the value of work cannot be known in the separate “job” activity or be understood through the capabilities of the worker.

If we subscribe to this relational view, it means that people and actions are simultaneously forming and being formed by each other at the same time, all the time, in interaction. Perhaps in the future it will not be meaningful to conceptualize work as jobs or even as organizational (activity) structures like the firms of today. Work will be described as complex patterns of communicative interaction between interdependent individuals.

All interacting imposes constraints on those relating, while at the same time enabling those people to do what they could not otherwise do. Enabling and energizing patterns of interaction may be the most important raison d’être of work.

The relational view is a new conceptualization of work, potentially opening up new opportunities to disrupt unemployment. Perhaps it is time to change the focus from creating jobs to creating customers – in new, innovative ways. To quote Max Planck: “If you change the way you look at things, the things that you look at change.”


Thank you Katri Saarikivi

A new theory of growth

For most of human history, creativity was held to be a privilege of supreme beings, initially, the gods who shaped the heavens and the earth, and then it was extraordinary human beings who were the creators and not the helpless, dependent subjects of the wrath of the gods. We switched our views further as we began to understand more how the world worked. Whether this has helped the human race is debatable. But it would help us if we realized the responsibility that comes with our new role.

Our future is tied to human creativity.

You would think that given its importance, creativity would have a very high priority among our concerns, but we face a disturbing reality if we look at what is really going on today. The arts are seen as unessential luxuries and instead of exploring creative new solutions, cutting expenses is the approach of most managers trying to deal with global competition.

What holds true for the arts and the economy, also applies to education. The models of mass society and mass production still prevail in the world of mass education. The industrial society is re-born daily at the expense of a different sociocultural context that would embrace creativity.

The sociocultural context matters because creativity is a systemic rather than an individual phenomenon. Workable new solutions to our most pressing concerns will not appear by themselves as isolated ideas of independent people. Creativity is born in connections and in enriching interaction.

To say that Thomas Edison invented electricity or that Albert Einstein discovered relativity is a popular, but misleading simplification. These breakthroughs would have been inconceivable without (1) the social and intellectual network that stimulated and advanced their thinking and (2) the people who recognized the value of their contributions and spread them further. A good, new idea is not automatically passed on. From this standpoint a lighted match does not cause a fire. Rather the fire took place because of a particular combination of elements of which the lighted match was one. One cannot be creative alone. These qualities are co-created in an active process of mutual recognition.

The creative era is about interdependence, not about superhuman individuals.

MiinaAn inspiring person is only inspiring by virtue of others who treat her this way. A good decision is only good if there are people around to agree with it. It is not enough to look at the individuals who seem to be responsible for a new idea. Their contribution, although important, is always a node in a network and a phase in a movement of thought. Creativity takes place in connections and communication. The network is the enabler and amplifier. It is time now for a new epistemology; new ways of talking about knowledge creation.

However, people have always networked. Scholars depended heavily on correspondence networks for the exchange of ideas before the time of the universities. These communities, known as the “Republic of Letters” were the social media of the era, and resembled the communication patterns of today astonishingly closely. The better-networked scientist was often the better scientist. Today, the better-networked knowledge worker is usually the better worker. In the future, the better-networked student will always be the better student.

The main difference from the time of letters and the printing press is the transformative efficiency of our new interaction tools. A “man of letters” may today be a man of tweets, posts and updates, but the principle is the same: what matters most is the way we are skilfully present and communicate using all the different means that are available.

Mutually recognizing and mutually supporting relationships are the core of creative progress and growth.

To be human means communicative interaction. Creativity is an emergent pattern of that interaction.


Thank you Ari Manninen, Pasi Aaltola, Katri Saarikivi, Kenneth Gergen, Doug Griffin, Edmund Phelps, Esa Saarinen and Mihaly Csikszentmihalyi

More on creativity and non-routine work

Neuroscience, The Internet and Leadership

The structures of the brain and the Internet look the same. In the brain there are neurons that link as a result of being active at the same time. This firing together creates a connection, a wiring together, that increases the strength of the connection. On the Internet there are wired servers and people that are linked in temporal interaction, sometimes as a result of being inspired and interested in the same topic, firing together. This short-term communication sometimes leads to a longer-term relationship, increasing the strength of the connection. New connections are formed, connections get stronger and connections are lost.

It is not uncommon to think that knowing is something that goes on in the brain. Yet the evidence that it is really so is not quite clear. Some scientists have expressed doubts. The mind, they have argued, is not a thing to which a place can be allocated. Intellectual life is essentially social and interactive, they say. Life is carried on through communication between people. These researchers claim that interactions are not secondary by-products of thinking. They are the primary sites of that activity.

We often think of individuals as independent and self-contained. The view suggested here sees individuals as interdependent nodes of the complex networks they form interacting with others and co-creating themselves and the reality in which they participate.

According to Cathy Davidson, attention blindness is the fundamental structuring principle of the brain. Attention blindness is also the fundamental structuring principle of our society. We see and understand things selectively.

The opportunity lies in the fact that just as we don’t all select the same things, we don’t all miss the same things. If we can pool our insights we can thrive in the complex world we live in.

Amyarta Sen has written that wealth should not be measured by what we have but what we can do. As we engage in new relationships we are creating new potentials for action. Every human relationship, every connection, serves as a model for what is possible. Within any relationship we are in the process of becoming. Each relationship will also bring us into being as a certain kind of person creating a huge repository of potentials. What social technologies are making possible is a much, much richer repertoire than what we were used to before the Internet.

The dominant ways of thinking about the world have their origins in Newtonian mechanics in which the universe was simply the sum of its independent parts. At the moment, this part – whole thinking is being directly applied to the ways we think about leadership. Interdependence plays a minor role and anyway it is seen as the result of a deliberate choice. The Populist political thinking follows the logic that we can choose not to be interdependent.

The old ways of understanding human behavior are not up to the task any more. In contrast to Newtonian traditions, the science of social networks and modern neuroscience offer an entirely new way of understanding the fundamental interdependence of human beings and the human society.

There can be no change without changes in the patterns of communication. Organizations of any kind, no matter how large or how small they are, are continuously reproduced and transformed in the ongoing interaction. These patterns are highly correlated with performance.

In this way of thinking, we leave behind the idea of the self-governing, independent individual for a different notion, of interdependent people whose identities are established and developed in complex interaction with each other.