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How stupid can ‘smart cities’ be ?

home for every new yorker
Demonstration for affordable housing – Photo: Getty Images

Smart cities intent deploying big data, information and communication technology to become more sustainable and livable. At best, they proceed not only in favour of their citizens but together with them in the first place. In addition, they enable citizens to develop initiatives of their own. So far so good.

Who is invited to the party?

The question is arising: who are those citizens? Or using Suketu Mehta’s words: Who is invited to the party? After all, making a living in big cities becomes unattainable for many. Buying an apartment in New York City is virtually beyond reach even for double-income couples. Not to speak about renting one. A mattress in a room in Chinatown NYC during an eight hours timeslot a day, costs you $ 200 a month.

Chinatown

Chinatown apartments – Photo: Getty Immages

Already now 50 percent of households in NYC spend more then 30 percent of their income at housing. Thirty percent of all households spend more than half of their income. As a consequence, 14 million households in the USA have already moved out of urban areas during the last decade. In the same period in Chicago only, the number of school children decreased by 145,000. We are in the middle of a large-scaled process of de-urbanization.

The real estate revolution

Saskia Sassen has been studying real estate in world cities since the eighties. Throughout this period, the size of speculative investments has increased annually. Over the past five years, rise has been spectacular. In 2015, it went up to $ 1 trillion, compared with ‘only’ $ 600 billion in 2014. More striking is that nowadays real estate transactions often include whole territories, for instance old industrial areas or railway yards. The purpose of these investments is demolishing existing structures and erecting fancy offices and expensive apartments. A recent example is the acquisition of Atlantic Yards in NYC for $ 5 billion. Currently a territory with small industries and homes. They will be replaced by fifteen giant apartment complexes.

Atlantic Yards

Atlantic Yards, NYC – Photo AP

A similar phenomenon can be observed in London. The sale of entire areas – for instance the area of the Battersea Power Station –  is accompanied by the privatization of public space. Granary Square near Kings Cross station is one of the biggest London ‘pops’ (private-owned public spaces) with its own rules and guards.

Granary Square, Kings Cross London – Photo: John Sturrock (the Gardian)

Booming housing costs: A global phenomenon

Booming housing costs are a global phenomenon. Even a sharp rise in rentals (sometimes 300%) indicates the beginning of gentrification in the favelas in Rio de Janeiro, which have become safer places due to pacification programs. The next next step will be large scale housing in cheap high-rise apartment buildings, as happened happening in many Asian cities. Leaving a lot of empty space for prestigous destinations.

The tragic human cost of smartification

In Africa, the process of smartification also took off. A number of smart cities are being built from ‘scratch’, for instance Eko-Atlantic City in Lagos (Nigeria). Bulldozers and police force are mighty tools in the process of their creation. Recently, the High Council of Nigeria has stopped the demolition of Mpape, a neighborhood of at least 300,000 inhabitants adjacent to the capital city of Abuja, because of the absence of any prospect of rehousing of the expelled residents.

The abolition of Otodo Gbame, Lagos (Nigeria) – Photo: Common Edge

In the end, the result of unbridled speculation might be that only the rich will benefit from smartification. Amsterdam too must be vigilant. During 2013 – 2014, property sales to investors increased by 248%. In 2016, the average price for housing increased by almost 23% compared with 2015 . Affordable rental is virtually non-existant.

Because of the exclusion of a large group of citizens, the process of smartifcation is at risk turning into a proces of foolification. Foolish cities are sterile cities, inhabited by a rich cosmopolitans. Without young people socializing at in the squares, craftsmen in their workshops, middle classes people in their shops and a diverse and plural group of inhabitants, they will become dead cities, in spite of all smart technology.

This is the second of a sequence of six reviewing aspects of the smartification of cities. Fiction or reality, mission or marketing, progress or illusion. This article has already been posted in The Smart City Hub.

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If smart cities are the solution, what was the problem?

Looking for an answer to this question[1] I found the proceedings of the symposion Beware of Smart People! Redefining the Smart City Paradigm towards Inclusive Urbanism held in Berlin on 19 – June 20, 2015[2]. This post is partly based on this report, in which I recognize many ongoing discussions.

The world’s population is growing and concentrating in cities. Needless to say that this causes major problems, especially in emerging countries. At the same time, business also concentrates in urban areas. Consequently, cities compete at world level and – inspite of all problems – position themselves as global, affluent, mundane, and smart.

The concept of a smart city refers at a loosely connected set of confluences between data, digital and other technologies, and urban proceses. The promise is of the digitally-enabled data-driven, continually sensed, responsive and integrated urban environment and a manageable entity[3]

Whether this promise will be kept is questionable: What remains to be seen, is the extend to which the smart city agenda is anything else than another instantiation of corporate power grabs, entrenching surveillance, private control over urban management and repacking neoliberalism in the dressing of seductive technologies and reimagined municipalities and citizens[4]. The modern city is a battleground of market forces, an icon of consumerism, and it is characterized by growing inequality, alienation and intolerance. Digital technologies are associated with control and power.

Naamloos3
Control center in Rio de Janeiro

Opposite to the technology-dominated image of smart cities is the concept of commoning: Citizens share, shape and maintain their living space together based on principles of share-economics and direct democracy more than on the basis of technology. Residents’ initiatives to enforce an alternative land-use at the former Tempelhof airport in Berlin are a frequently cited exemple.

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Commoning at the former Berlin airport Tempelhof

Another way to frame the smart city is the perspective of urban utopia. Examples are Songdo (South Korea), Mazdar (UAE), Dholera (India) and PlanIT Valley in Portugal, who are all developed from scratch. Investors value these cities as assets in global competition, because of attractive living conditions, full-featured office space, outstanding connectivity and accessibility and high environmental standards. Residents are considered as benificiaries but in a lesser degree as active participants. In spite of the huge investments, these smart utopias rarely are a successful. In some cases they turned intp ghost cities, like Ordos in China. Songdo (South Korea) is sucessfully attracting residents from the adjacent overcrowded town of Seoul but the number of international companies remains far behind expectations. Trafic on the $ 1.4 billion,12 km long six-lane suspension bridge connecting the city to the airport is low while a fast rail link with Seoul is seriously missed.

Naamloos 5
An artists’ view of Songdo

One might wonder whether these different approaches of smart city are compatible.

I believe that the the answer is confirmatory. However, four questions must be answered in advance:

  1. What is the most desirable use of urban space, seen from a multi-actor and multi-stakeholder perspective?
  2. How can all residents maximize their participation in urban life?
  3. What mix of companies generate the most diversified sustainable employment?
  4. What is the best way to involve as many citizens as possible in decision making at all levels?

The role of data, digital facilities and other technologies must be considered in conjunction with answering these four questions. The ‘real’ smart city needs to start with the city and its attendant social problems, rather than looking immediately to smart technology for answers[5]. Proceeding this way prevents narrow technologal thinking and opens the road to low-tech or no-tech solutions. Consequently, a city can claim to be ‘really’ smart if “… investments in human and social capital and traditional (transport) and modern (ICT) communication infrastructure fuel sustainable economic growth and a high quality of life, with a wise management of natural resources, through participatory government.”[6]

A special contribution during the symposium came from Gautam Bahm from India. In his opinion, the smart city does not exist; placeless concepts have no meaning. A smart city in India is something completely else than a German one. In Indian cities commoning is the norm: Big parts of cities are auto-constructed, deploying another logic than planners and architects do. However, there is a great need for a basic infrastructure: About 17% of the ground is covered with ramshackeled pipelines for water supply and sewerage. The same goes for the wires for electricity and telephone. Here is an tremendeous challenge for urban planning, which is willing to adapt the existing fabric of local communities, rather than destroying it, as is happened in China and many other places.

Naamloos 1
Commoning is the hard of many cities in India

The concept of ‘smart city’ might become an icon of a new digitally facilitated form of living in urban space. This requires a view of the city as a place that is inclusive, shared and negociated and that considers residents as active producers and contributors because of their thorough local knowledge, expertise, creativity, networking skills and entrepreneurship

This post has already been published in the Smart City Hub

[1] Free paraphrased expression of Cedric Price, architect (1933 – 2003) who wrote: “Technology is the answer, but what was the question?

[2] Find the report at https://goo.gl/cgDemx.

[3] This and the following quote are from Colin McFarlane’s contribution (p.89)

[4] Smart cities are strongly pushed by IT-companies. These companies are the main investors behing PlanIT Valley in Portugal.

[5] Robert Hollands: Critical Interventions into the Corporate Smart City Cambridge Journal of Regions, Economy and Society. Vol 8 (1) 2015, p. 61.

[6] Andrea Caragliu, Chiara del Bo en Peter Nijkamp: Smart Cities in Europe, Journal of Urban Technology, Vol 18(2), p. 652011, 70).

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Instead of diplomas: Badges

For a long time courses are completed with a diploma. However, the number of different qualifications has grown exponentially. in the US there eight times more different diplomas than 20 years ago. There are thousands of providers and most of these are not accredited. In addition, we are dealing with diplomas from many countries. In short, the value of a degree is difficult to judge beforehand.

But there is another side. Many people – young and old – do not aspire to graduate. They want a specific job, have appropriate training and receive a certificate that proves they possess the required competences [1] .

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For both problems is a solution in the form of badges, micro-credentials or email credentials: These are (digital) documents proving that someone has specific knowledge and / or skills. There are now more than 3,000 organisations who provide badges, including educational institutions and 9corporate)  training institutions [2] .

For a well-functioning system of badges  several conditions must be fulfilled. Here are the main ones:

Level

The knowledge and / or skills a badge is referring at must be unambiguous. Also, there must be an unmistakable reference to the level of mastery that has been acquired. It measurement should be made explicit. The Degree Qualifications Profile , prepared by Lumina is a useful tool to identify the level [3] .

Compatibility

Badges must have a common technical standard and they have to include include information about the owner, the supplier, the content and the way in which this knowledge and skill is measured. The Open Badges Standard of IMS Global Learning is likely to operate as such. In the Netherlands, SURF is working on a technical specification of badges [4] .

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Visibility

Owners must have a platform to show their badges. For this purpose various websites are in use, such as Backpack [5] .

The main enabler of badges is the rapid spread of competency-based education. This type of education requires an accurate description of learning outcomes; The knowledge and skills that a person has acquired after participating in formal, non-formal and informal learning activities.

Concordia University in Wisconsin is – as far as I know – the first university program -Master in educational technology – that is certified by  badges. There are 50; each of which corresponds with some learning outcomes [6]. The time that students have spend to reach this goal is irrelevant.

Another interesting development is that providers of training (formal and non-formal) in a specific region or city work together and offer a broad range of badges. Here too, local employers are concerned [7] . The Open Badge Network [8] (Europe) has drawn up a brief Charter. In the US, the Cities of Learning initiative, for example, Chicago City of learning, can be mentioned [9] .

screenshot second copy

I see many advantages in the development outlined here, but at the same time I am also afraid of a fragmented focus on learning.

I have repeatedly accentuated the importance of the acquisition of critical thinking. It is inconceivable that students learn to think critically by taking part in just one educational activity. Therefore critical thinking can not be checked by just one single badge. The ability to think critically develops gradually if students are confronted repeatedly with realistic social and scientific problems, gain knowledge about these problems, do research, weigh solutions and eventually come to a judgement. This means that earning badges alone is not enough, but additional requirements are necessary concerning their consistency.

A more precise use of the term competence can contribute to this. A separate badge means that a student has demonstrated to own a certain amount of knowledge and skills. In that case, badges can be connected to modules, courses or work in practice. In contrast, a competency  refers to the (intellectual) capabilities of a graduate.

The badges system is far from mature. It is a hopeful start to honour  extracurricular experiences, and to enable the debundling of the acquisition of knowledge and skills by deploying various learning opportunities at home and abroad.

[1] For the requirements that can be imposed on badges: http://www.openbadgenetwork.com/wp-content/uploads/2016/01/O4A3-OBN-Guidelines-for-Open-Badges-in-Territories. pdf

[2] For an overview of what has been achieved in five years https://drive.google.com/file/d/0B7kHRuri9QdPQmRfdXZrblpSX0U/view

[3] The framework is developing rapidly and has eight levels. It is specified for knowledge and skills. these are in turn broken down into specialized skills, personal skills and social skills: https://www.luminafoundation.org/files/resources/connecting-credentials.pdf . This framework is very similar to the European Qualifications Framework for lifelong learning a life https://ec.europa.eu/ploteus/sites/eac-eqf/files/leaflet_nl.pdf

[4] , see: https://www.surf.nl/binaries/content/assets/surf/nl/2017/open-badges_surfnet-pilot-scenario’s_frans-ward_3feb.pdf

[5] are now more than a million badges placed on the Backpack website https://backpack.openbadges.org/backpack/welcome

[6] Educational institutions collaborate with employers. For example, this is done by the Foundation for California Community Colleges and the New World of Work

[7] Examples of this are: Open Badges Scottish Education Group, the UK Badge the project and the Open Badges DACH User Group in Germany. For a discussion; http://www.openbadgenetwork.com/wp-content/uploads/2016/01/O4A3-OBN-Guidelines-for-Open-Badges-in-Territories.pdf

[8] portal:  www.openbadgenetwork.com

[9] https://chicagocityoflearning.org

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Own country second, world first!

Redeeming the losers of globalization

Multinational companies[1] worldwide earned gold money in the years 1980 – 2013. In 2013 their profit after tax reached $ 7200 billion, almost 10% of the gross national product of the world. Half of the 2013 profits belong to North American and West European corporations[2]. The tremendous increase in profits is a direct consequence of globalization: The expanding global trade of goods and services at ever-lower prices, made possible by global competition, automation, offshoring, and low cost of raw materials[3].

Samenleving - olifantscurve

The question is who has benefited most from the increased wealth and who least? For many years the Serbian-American economist Branco Milanovic has focused  on answering this question[4]. He divided the world population into 10 groups for 30 consecutive years: The poorest 10%, the second-poorest 10% and so on. He calculated the change in income for each of these groups within this period. The graph below depicts the outcomes. This graph is called the elephant curve because of the eye-catching similarity with the back of an elephant.

The-Elephant-Curve

Worldwide, there are two groups of winners and two groups of losers.

The winners:

  • The richest 5% of the world, the 1% richest in particular. Half of the benefits of economic growth went to this group. Fabulously wealthy people can be found in all countries. However the majority are living in North America and West Europe.
  • The middle class within Asian countries. Its income increased about 200 to 300%. Hundreds of million people are involved, but the total monetary value of this growth is relatively limited as incomes were low.

The losers:

  • The poorest 10% of the world population. This group has gained nothing in 30 or more years. In the Republic of Congo, the average real income remained unchanged in 100 years due to corruption, self-enrichment by the rulers, natural disasters and wars.
  • The middle class in the rich countries. This group has also seen no progress in 30 years. As a matter of fact, many jobs were lost due to offshoring and automation in particular. Many people who belonged to the middle class in the end of the 20th century now have to settle for a job in the lowest paid sector. Here they enter into competition with migrants, who belong to the other group of losers.

Samenleving - wrong side of capitalism

Social democracy in Western countries has failed to notice this structural change and as a consequence its voters left for the extreme right or the extreme left. In the USA, the frustrated middle class helped Donald Trump to power and in the UK it voted for Brexit.

Policy makers in Western countries can learn from the elephant curve. Among others, the following policy measures will support the revitalization of the middle class worldwide:

  • Reduction of difference in status and income between jobs
  • Redistribution of jobs through a reduction of working hours and flexible retirement, supplemented with the option of a basic-income
  • Fair tax payment by companies, among others to co-finance the external effects of automation.
  • Realistic prices for raw materials and agricultural products for the benefit of the workers in poor countries and the farmers in rich countries
  • Supporting entrepreneurship in developing countries
  • Discouraging labour migration, among others to limit brain-drain
  • Continued support for peacekeeping in conflicts around the world, therefore strengthening UN rather then NATO.

In the long term fighting inequality is in everyone’s interest.

[1] Included are listed and unlisted companies with a turnover of at least $ 200 million. See: https://hbr.org/2015/10/the-future-and-how-to-survive-it

[2] Companies around the world still make huge profits, but the share of ‘Western countries’ has decreased as the distribution over the world of production is becoming more evenly . Further, especially in Western countries small innovative companies take over part of the production of the powerful but rather inflexible multinationals.

[3] He is from 2014 professor at New York University and was a researcher at the World Bank. For a recent interview: Humo February 8, 2017: https://blendle.com/getpremium/item/bnl-humo-20170207-132032

[4] Where necessary, he further subdivided these groups.

 

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Smart higher education: both face-to-face and online

The number of participants in higher education is growing rapidly worldwide. Apart from the growing number of adult participants, the variety of students in general is increasing. However, the organization of universities is hardly able to deal with this growing variety. Students can chose between campus or distance-teaching universities and between full-time or part-time studies. A thorough redesign must offer relief.

The value of personal contact between students and teachers

Whether students are enrolled in a campus or a distance-teaching university, they spend most of their time on independent study: At home, at work, on the train or in the library. The difference between the two types of universities is the way they support these activities. The majority of campus universities are deploying a combination of lectures and seminars. Distance-teaching universities offer a sequence of assignments, which students have to submit in order to receive feedback. When it comes to getting acquainted with knowledge or theoretical insights, both ways are effective. However supporting independent study online is definitely outperforming lectures and seminars with respect to efficiency and scalability[1].

Unknown-1The value-added of campus universities should rather be sought in teaching methods where the degree of interaction between students and teachers goes beyond incidental questioning and answering in lectures and seminars. Think of tutorials (meetings a few students with a tutor), projects (intensive meetings of students, occasionally attended by a teacher), working groups in problem-based learning (10-15 students, who meet with a tutor regularly) and some types of training. Activities like these outperform the capabilities of education online with respect to the support of aims like critical thinking and problem solving. Unfortunately, the domination of lectures and seminars prevents that campus universities take advantage of this potential value.

The value of self-paced learning

The majority of educational programs – campus-based or distance teaching – are starting once or twice a year and their length is fixed. For the rapidly growing group of students who combine study with a job, music or sport, a family and a social life, this system is untenable. Students differ with respect to the time they can spend on their study each week, to the distribution of the available time during the year, to the speed at which they learn and to the knowledge and skills they already possess.

Fortunately, a growing number of distance teaching institutions is able to deal with differences between students with respect to the time they need to complete their studies. These institutions offer unlimited opportunity to enrol as well[2]. In order to stimulate that students prioritize their study as much as possible, they offer active mentoring and count a fixed monthly fee under the motto learn as much as you can. Unfortunately, the majority of online programs fail to realize the benefits of flexibility.

Distance teaching and campus-based education both have potential advantages, whose benefits are not fully used. However, students will benefit best, if these advantages are made available for all of them.

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The value of blending learning

Education online is perfectly well equipped for enabling educational aims like the acquisition of knowledge and the development of theoretical insights. With respect to this aim, campus-based universities can economize by substituting lectures and seminars by online teaching methods. As mentioned before, some types of face-to-face interaction between teachers and students are superior in the realization of educational aims like critical thinking and problem solving. All students – in campuses or online – will benefit from occasional participation in tutorials, projects, small group meetings or intense trainings like boot camps. For some students it will be feasible to be on campus daily, for others one day every week suits best or they prefer a few residential weeks a year. By offering a variety of blends of face-to-face meetings and activities online, university campuses could become nodes in educational networks and be able to host many more students than at present. The functional combination of independent study with both face-to-face and online support is representing the best of both worlds at lower costs.

The value of freedom what or where to learn

The body of scientific knowledge is doubling every nine years, disciplinary borders get blurred and best research is interdisciplinary. As a consequence, the disciplines that emerged in the 19th century have become obsolete. Nonetheless, they still dominate the educational landscape. It is time to exchange traditional subjects for broad fields of study that offer ample opportunity to chose introductory and advanced course and projects.

At the same time, students will increasingly obtain their degree by visiting several universities within their country or abroad. Thus, students take maximum advantage of the differences between institutions. In order to assess students, universities should describe their examination rules in terms of competencies to achieve instead of courses to follow.

A variety of blends of face-to-face and online activities to support students’ independent learning could become the new normal.

[1] Read my post: The lecture is the iconic symbol of wastage in higher education: http://wp.me/p3lna5-6M

[2] Self-paced learning is a common characteristic of the most innovative educational institutions in the USA. For instance, the College for America, which is a part of the Southern New Hampshire University (60,000 students) and the Western Governors University (70,000 students). See: Alana Dunagan College transformed. Five institutions leading the charge in innovation http://www.christenseninstitute.org/wp-content/uploads/2017/02/College-transformed.pdf

 

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The failing doctrine of shareholder value maximization

In the last decades of the 20th century management as a profession has fallen into a deep crisis. The preceding decades had revealed a promising development: From the beginning of the 20th century, companies hired professional managers who supervised companies on behalf of the owners. As dedicated professionals they took into consideration the long-term interests of all stakeholders.

However, the rise of neoliberalism – in politics and science – put shareholders in the role of the owners of listed companies. Increasing shareholder value became the primary task of a company’s management.

samenleving-greed-484x336

The income of top managers – worldwide – increased explosively during the last years of the century because their remuneration package consciously consists of a large part of shares (options). The idea is that shareholders’ interests were guarantied if they coincided with the financial interests of managers. Professional managers sold – so to say – their soul[1].

Recently, a prominent business school has disclosed the unsustainability of this view. Cass Business School, part of City University of London, initiated for two years the Purpose of the Corporation Project[2]. This project was completed in Brussels on 28th September 2016 in a meeting of scientists, politicians and business leaders from Europe and the US.

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Maximization of shareholder value is inherently a short-term policy. It has several effects that harm the profitability and even its existence in the long term:

  • Declining investment in research and development
  • Irresponsible risk-taking
  • Externalities like loss of confidence from society, undermining monetary stability and exploitation of the environment
  • Cost reduction resulting in restructuring and related closure of business establishments (mergers, acquisitions, buyouts)
  • Tax evasion, limiting the resources for investment in infrastructure

The only viable perspective is a “corporate purpose” in favour of the creation of value for all stakeholders and to contribute to social welfare and environmental quality.

The final report is build on five so-called Modern Governance Statements regarding business law, management, accounting, economics and public policy. These statements are based on an extensive review of literature. A significant number of scientists have discussed and approved each statement.

Here is a selection of edited quotes from the five statements:

  • Almost in any country, the answer to the question ‘who owns a company with a legal personality’ is ‘the company itself’. By no means shareholders do.
  • Companies can raise capital, for instance by issuing shares. Shareholders are entitled to receive dividends and to raise their voice in a number of clearly defined subjects.
  • In almost all legislations the fiduciary duties of the management of a company include its long-term survival.
  • No law requires management to pursue maximum profits for shareholders. If they do, it is because they succumb to pressure from activist shareholders or for their own gain.
  • In the ’90s monitoring the reporting of companies passed from national governments and parliaments to the International Accounting Standards Board. As a result, the focus of the reporting narrowed to the provision of information to investors and the calculation of the assets based on market value.
  • The idea of a social partnership between civil society institutions – including businesses – went lost.

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The final report of the Purpose of the Corporation Project[3] kept two options to managers and shareholders: Whether persisting the current direction, which will ultimately result in the disappearance of the company or redesigning the company as a social institution serving the interests of all stakeholders.

How? Here is a selection of the recommendations in the report.

  1. Values (“Purpose”)
  • Companies explain their values and goals and define their responsibilities with respect to all stakeholders such as employees, customers and shareholders and society and nature al large.
  • Management establishes the implications of the purpose for strategy and (investment) policy and also how to reduce associated risks.
  • Companies accentuate their intentions with regard to the achievement of social objectives by adopting the status of B(enefit) Corporation.
  1. Operating as a community
  • The intensified control of the employees has resulted in loss of their engagement and quality of their work as well.
  • Employees who organize their work independently perform better and feel more satisfied. After all they have product and market knowledge and maintain relationships with suppliers and customers.
  • New organizations deploy less hierarchy, reduce of the number of managers and transfer management tasks to employees.
  1. Revision income stimulus
  • Top management will receive a fixed salary that is part of the remuneration structure of the company. All incomes are transparent.
  • Variable remuneration applies to all employees and is linked to the achievement of long-term objectives and the satisfaction of the customers as well.
  1. Participation of stakeholders
  • Representation of employees, clients and shareholders in the board and in the General Meeting will strengthen the relationship between the company (management) and its stakeholders
  1. Search for patient capital
  • Distinguishing between different categories of shareholders will stimulate stewardship by shareholders with a long-term interest.
  • Making shareholders’ rights dependant from the duration of their involvement in the company.
  1. Protection from hostile takeovers
  • In order to protect their long-term policy, companies deploy mechanisms to prevent hostile takeovers, for instance by transferring shares to a foundation.
  1. Reporting
  • The method of reporting is geared to long-term policy. The Integrated Reporting Framework is an alternative for common accounting rules who intend to inform investors in the first place
  • The main goal of reporting is disclosure of value creation in the broadest sense, including in relation to non-financial capital.

The Purpose of the Corporation Project has provided a new benchmark for corporate governance, the financial world and professional managers. But it is also a new benchmark for the relation between society and business. Finally, it is a signal for shareholders to avoid short-term thinking.

[1] In 1993 CEO’s of the top 25 companies in the US earned 195 times the salary of an average worker. In 2012 their salaries were raised to 354 times the salary of an average worker. Institute for Policy Studies
1112 (16th Street NW, Suite 600)
Washington, DC 20036

[2] Overview of the background of the project: https://goo.gl/vNJQjr

[3] The final report reads like an up-to-date introduction to corporate governance: “Corporate Governance for a changing world: Final Report of a Global Roundtable Series” https://goo.gl/bdEaQp

 

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Agility and the future of universities

Higher education is the subject of sustained criticism. 81% of US employers are referring at a skills gap[1] and 51% believe that graduates are underprepared for the labour market[2]. Young teachers in particular complain being overburdened and underpaid. Students are contesting growing performativity, alleged commodification and subsequent rigidity of the curriculum, lack employment and in the US towering debts.screenshot-5At first sight, students’ and employers’ interests are opposed. The recent Reimagining Education Conference at Wharton University revealed quite a different perspective[3]. According to Santiago Inigues, dean of IE Business School (Madrid), most employers mention specific skills (coding, accounting, marketing, language) but in the first place they prefer broad education (‘Bilding’), including critical thinking and problem solving skills, ability to communicate, to work in groups, to handle conflicts and language proficiency. Employers won’t believe it, but these competencies are exactly the intended earning outcome of liberal arts colleges.

Unfortunately, liberal arts colleges have a brand trust issue. Participants of the conference agreed that many do not deliver what they promise. There is ample evidence that quite a number of its students lack any progress in problem solving and critical thinking skills during their undemanding study[4].

On the other hand, those who want to acquire specific skills like coding, marketing, accounting or foreign languages should avoid universities. A growing number of dedicated institutions like Fullbridge and General Assembly offer competency-based courses on line, blended or face-to-face. These courses are better and cheaper than the offer of any university whatsoever. According to Jaime Casap (Google) companies like his’ are monitoring job applicants’ competences and are not or only remotely interested in their subject, grade or university. Universities seem to have lost their way.

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What went wrong? According to Martin Luckmann and Christiana Prange universities are no longer what their name suggests: Universitas magistrorum et scolarium literally means community of teachers and students[5]. Instead, universities have become a credit-point producing industry, delivering grades of variable but mostly mediocre importance. The problem is not that teachers aren’t competent in their subject: They fail in supporting the development of students’generic academic competences or in plan language, as academic educators[6].

imagesLuckmann and Prange compare the current approach to learning in universities with the development of enterprise software. The implementation of massive all-embracing software in companies seldom results in satisfying solutions. The same applies to a curriculum that has to serve hundreds of students at once. In software development the agile approach is gaining ground, which in essence is based on interaction between developers and customers, taking customers’ needs and wants as starting point.

images-1In the same way, agile universities will put the interaction between students and teachers in the centre. Therefor they rely in a large degree on self-organization. A rich variety of teaching-learning interactions appear, mostly based on co-design. Students are getting acquainted with a broad range of disciplines and learn to search, apply and deepen relevant knowledge in projects, favourably in collaboration with parties outside the university.

The agile university has not to be more expensive than conventional universities. Getting acquainted with theoretical knowledge can be self-organized by deploying free available high quality open educational resources. Lecture halls are superfluous. Instead, universities will become networks of academic workplaces, varying from townhouses to sophisticated labs. The agile university has no fixed study length. Students will combine study with other work or invest in their own development.

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Graduates of the agile university have been stimulated to adapt their study path to their emerging interest in an intensive exchange with fellow-students, teachers and people outside the university. Their acknowledgement with the agile method will enable them afterwards to be adaptive in a large range of situations where their professional or personal opinion is demanded.

Disclaimer

Any master plan that intends to reinvent a university or faculty as an agile workplace will fail. The development of agile learning places requires agility itself, carefully taking into consideration local personal and characteristics, opportunities and constraints. Eager proponents at best facilitate teachers and groups who want to change teaching and learning practices. Their example will be followed, criticized and improved and agile workplaces will emerge. The result might be excellent, albeit in an unpredictable way.

[1] Survey American Society for Testing and Development (2012)

[2] McKinsey (2012)

[3] My account of this conference is based on a World Economic Forum publication: Education vs work skills: what do employers really want? http://weforum.org/agenda/2016/02/education-vs-work-skills-what-do-employers-really-want/

[4] Read about the lack of progress in critical and analytical thinking skills in my post ‘Why universities underachieve’: http://wp.me/p3lna5-4n

[5] Luckmann and Prange wrote a though provoking contribution in Global Focus, the magazine of the EFMD: Agile Universities http://globalfocusmagazine.com/wp-content/uploads/2016/06/Issue_2_2016_agileuniversities.pdf

[6] The obvious exception are universities with an elaborated system of tutoring like Cambridge and Oxford

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How much knowledge do we need more to save the world?

 images-2Knowledge has become ubiquitous. The same applies to stupidity, greed, fundamentalism and the quest for power. Definitely, it applies not to peace, happiness or wisdom. In spite of undeniable progress with respect to income, medical care, education and technology last decades the world did not become a better place. The ubiquity of knowledge has not been very helpful. On the contrary, knowledge has been a steady accomplice in the decline of the earth.

The production, distribution and use of knowledge

The number of academicians has never been higher than today. Moreover, knowledge is produced in many places outside universities: company research labs, high-tech start-ups, research institutions, think tanks and newspapers. Not to forget tacit knowledge that is emerging in practice. The growth of knowledge has gone far beyond anybody’s capacity to absorb. The time when academic knowledge could be stored in textbooks is long gone. The best scientists prefer to explore their own niches, sometimes between disciplines, using a variety of methods. Unfortunately they stick together in rather homogeneous clans.

imagesPrinted or electronic sources in which knowledge is stored are ubiquitous too. The sheer number of scientific publications is doubling every 9 years since 1950[1]. Unfortunately, many publications are incomparable due to differences in assumptions, variables, definitions, methods and size of research populations. Besides, potential beneficiaries from scientific research rarely read scientific publications. The chance that they will find information that is useful to them has decreased significantly during the past decades[2]. The fact that some publications explicate their practical relevance in a few sentences at the end is by no means a solution for this problem.

A new perspective

Fortunately, some politicians, entrepreneurs and public servants do be open for academic support for the benefit of themselves, their company or institution and for society. At the same time, a growing group of scientists regrets the arduous contacts between science and society. The solution is mutual engagement: Groups of scientists team-up with representatives from for example companies, NGO’s and not-for-profit institutions and try to match research interest and practical needs in collaborative projects.

Higher education

unknown-3Many teachers assume that students have to be saturated with disciplinary knowledge first before its application can be practiced. This outmoded idea has proven not to work because of the abundance of scientific knowledge, the blurring of disciplinary borders and the situated character of ‘real problems’. In stead, students acquire meaningful knowledge only if they learn to deal with unstructured problems from the first day they enter university. The development of a more structured knowledge base can wait and might be reserved for students who aspire a career in academia. Disciplinary bachelor programs might be replaced by the study of societal problems like environment, migration and integration, healthcare, energy and the like.

Knowledge in general is abundant but is meaningless for saving the world. In the meantime, knowledge that is developed and learned within the context of understanding and solving real problems is badly needed.

[1] A rather conservative estimation of the growth of the number of scientific publications: http://goo.gl/UkQbtj

[2]Pearce, J. L., & Huang, L. (2012): The decreasing value of our research to management education. Academy of Management Learning & Education, 11(2), 247-262.

 

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The lecture is the iconic symbol of wastage in higher education

Close your eyes and imagine a large industrial site at the end of the 19th century. 1000’s of laborers are sitting behind sewing machines. Still keep your eyes closed and imagine a lecture hall, again rows and rows of students who hurry to copy the words of the teacher.

The resemblance is clear. The difference too: The industrial site is history. The lecture hall is present-day[1].

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My thesis is: The essence of higher education is under pressure. The reason is that universities failed to adapt their educational methods to the large growth of the number of students. As a consequence, the small classrooms of the past made room for the lecture halls of the present.

The universities of Oxford and Cambridge – who largely stayed unchanged – demonstrate what the essence of higher education might be. Once or twice a week students meet their personal tutor. During each meeting, tutors challenge students with assignments based upon scientific or societal problems. Subsequently, students read a lot and they write down their findings. In a next meeting the tutor is giving feed back, elucidates new viewpoints, suggests additional reading and occasionally initiates research projects, relating theory and practice.

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The description above allows me to define two essential pillars of scientific education:

  1. The active acquisition of scientific knowledge, which goes far beyond the capability to reproduce it.
  2. The growth of students’ competence to analyse, reflect and solve real live-problems, and to think and judge in a critical way

Onderwijs - academically adriftThe majority of contemporary universities are realizing these outcomes only partially. Research in the US has revealed that about 40% of college students did not make any progress with respect to analytical and critical thinking skills in four consecutive years[2].

As far as universities are aware of their own failure, the usual reflex is blaming government because funding largely stayed behind the growth of the number of students. I do not expect any substantial change in this respect. And maybe it is better that universities economize themselves first.

So, universities face the challenge to improve the quality of their education and to deal with a growing and ever more differentiated student population, while funding is remaining largely the same. If they fail, they risk disruption in the next decade. This challenge will be solved only, if universities innovate, in particular by deploying ICT.

Availability onlineUniversities can economize by flipping their classrooms radically and supporting their students in choosing appropriate open educational resources like MOOCs (= massive open online courses). At this time, MOOCs cover any part of scientific knowledge. The best scientists are involved in their development and educational technologists have designed the best visual support. The only expenses relate to delivering feedback at student’s assignments.

MOOCs or other digital sources are able to contribute significantly to the active acquisition of knowledge, the first pillar of higher education. But what about the second pillar; developing the competence to analyse, reflect and solve real live-problems and to arrive at critical thinking and judgment. This pillar definitely goes beyond the capabilities of open educational resources.

Onderwijs - Aalborg 5

The one way to develop this competency is engaging students in independent work, like writing theses and doing projects. Projects might be executed in small groups and students learn to deal with real problems and their owners. This independent work must cover a substantial part of students’ time. Of course students need expert teachers’ supervision. After having reduced their activities with respect to knowledge transfer significantly, teachers will have ample time to act as project supervisors and most will love it.

Finally, government might play a role the transition of higher education. This is supporting the execution of transition plans to be submitted by higher education institutions.

[1] This blogpost is based on my contribution to a round table discussion about innovation in higher education at August 30th in Maribor (Slovenia) in presence of the minister of education.

[2] See my blogpost Why universities underachieve http://wp.me/p3lna5-4n

 

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Will Self-management replace managerialism in higher education?

Onderwijs - schaalvergroting ROC Leiden
The megalomaniac building that paved the way of a Dutch educational institution into bankruptcy 

In the eighties of the 20th century managers started taking over power in educational institutions[1]. Their ambitions were towering: More well paying foreign students, higher scores at international rankings, monitoring systems to control the duration of studies, institutionalized quality control systems. Numerous mergers, ostensibly for reasons of efficiency, impressive buildings and private drivers fuelled the egos of the new managerial class. New Public Management offered the exquisite administrative instruments they needed: integral management, hierarchical leadership and performance indicators to control middle management, teachers and students.

Meanwhile, the results have become visible: Occasional successes but many failures: Towering debts – often as a result of real estate projects – rising admission fees, calculating and consumptive students, overloaded – mostly not tenured – teachers, dominance of research over education, and growing organizational clutter[2] and overhead. Traditional well-known small-scaled colleges, where teachers and students formed close-knit communities, went lost.

Change is in the air. Students and teachers are revolting against the commodization of the educational system, universities in particular. They fear one-sided vocational orientation, uncritical collaboration with commercial firms and decreasing academic quality. Besides, a long row of scientific publications gives strong evidence that the mergers and acquisitions are increased costs, rather than bringing savings[3].

More democracy and autonomy must be paired

Worldwide students and academics ask for more democracy. More democracy often is identified with empowering representative bodies, without necessarily easing the regulative power of the government of universities. If this is all, the lack of freedom in the workplace and the pressure of bureaucracy will persist. As a consequence, democracy at institutional level must include a satisfactory level of autonomy in the workplace, where research and teaching are organized.

Onderwijs - rendementsdenkenHierarchical personnel management and extensive planning and control systems enabled late 20th century companies to produce massive volumes at low prices for relatively stable and continuously growing markets. Nowadays, the environment is changing at high-speed, requiring flexibility and development of new products in short notice. The labour force is well educated and prepared to take or share managerial responsibility. At the same time most workers feel disengaged under conditions of vertical control.

The demand for self-management is growing worldwide and goes beyond educational institutions. A growing number of publications have created an inspiring picture of the 21century organisation. One of the first protagonists of self-management was Ricardo Semler, who asked for more happiness and relaxation at work[4]. Lars Kolind has disclosed his own experience in a self-managing company[5], Brian Robertson has described his creation of holacracy, an elaborated model of self-government[6]. The absolute bestsellers of Laloux[7] and Getz[8] offer descriptions of companies and other organizations that have implemented self-management.

The ultimate goal of the transformation process of educational institutions, as part of a broader movement, is better education and research under responsibility of teachers, researchers and students practising distributed management, supported by a capable staff and enabled by engaging leaders. Less bureaucracy and overhead will increase money for education and research.

[1] Wikipedia is describing managerialism as belief in the value of professional managers and of the concepts and methods they use. It is associated with hierarchy, accountability and measurement.

[2] Decluttering higher education is a challenge. Read my last blogpost: http://wp.me/p3lna5-5G

[3] Ben Martin: What’s Happening to our Universities? From: Science Policy Research Working Paper Series, University of Sussec 2016. https://www.sussex.ac.uk/webteam/gateway/file.php?name=2016-03-swps-martin.pdf&site=25

See also: David Matthews: Centralising Universities ‘ignores evidence of what works best’ in Times Higher Education February 15th 2016 https://www.timeshighereducation.com/news/centralising-universities-ignores-evidence-what-works-best

[4] Ricardo Semler: Semco style, 2013

[5] Lars Kolind & Jacob Botter: Unboss, 2014

[6] Brian Robertson: Holacracy, 2015

[7] Frederic Laloux: Reinventing organizations, 2015

[8] Isaac Getz and Brian Carney: Freedom, Inc., 2014.