navigating complexity ON BEING HUMAN BEING ON 11 | 2018 Think:Act #26

on being human

Organized crime goes Flex your mental muscles online How the mafia has Is automation a threat for embraced digitalization the human skill set? in this issue Think:Act 26 3

"Robots cannot improve processes. Only people can do that, and that is why they are always at the center of our attention." "We need the humility to MITSURU KAWAI recognize that we're at our best Head of manufacturing and executive vice president of Toyota as people when we're being

→ page 52 empathic and talking together."

SHERRY TURKLE Pioneering researcher in the field of human interaction with technology → page 66 photo: ben weller photo: images globe/getty boston photo: 4 Think:Act 26 in this issue in this issue Think:Act 26 5

"Organizations change if they are serious about it. And change doesn't actually take that long and it doesn't cost that much money."

"Ever since the first caveman sharpened a flint, humanity has defined itself by its capacity to equip itself with tools to manage its environment. The coming era will JEFFREY PFEFFER be no different." Organizational behavior expert and author of Dying for a Paycheck CHARLES-EDOUARD BOUÉE → page 42 CEO of Roland Berger → page 22 photo: winni wintermeyer photo: press/laif boisot/riva vincent photo: 6 Think:Act 26 in this issue in this issue Think:Act 26 7 Think:Act 26

In focus Wide angle On Think, act being and stay informed human In this issue we take a close-up look at what 74 illustration: jack richardson/die illustratoren jack illustration:

it means to be human in our fast-changing | Motown's new world today and in the future. momentum New leadership is 22 Think outside the AI box putting a spark back Roland Berger CEO in Detroit and giving Charles-Edouard Bouée on this former jewel navigating the digital rapids. of the US economy a chance to go for 24 Making sense of the another spin. human touch  The next wave of robotics is set to challenge what we understand as human. 8 At a glance 70 How the queen bee of  Fast facts for thinking people: biotech built her hive 28 The new Luddite backlash 12 the latest buzzwords, stats  Kiran Mazumdar-Shaw  Concerns are growing about the and business ideas. answers questions about negative effects of tech. ON BEING how she trained to be a HUMAN 60 The new Dons of brewer and ended up as 42 Head for the exit. Now! Automation is a growing­ ­factor digital crime leader of India's first biotech  Jeffrey Pfeffer on how your job "Whether in the economy. Four experts  Organized crime is setting up startup and a multibillion might be killing you and why you weigh in on where people­ will shop online and it is disrupting dollar enterprise instead. must quit it before it does. AI will limit fit in the newequation. ­ competitors on both sides of the law. 80 Food for thought our human jäger/laif weller; malte ben ronald patrick; education; of school graduate harvard photos:

46 Flexing the mental | Take a deep dive into new muscles intelligence 66 In praise of boredom areas of interest including  Experts think it's time we  Pioneering thinker Sherry Turkle electric flight, how millennials remember to exercise our skills is up to us." explains how to regain human like to spend their time and – before it's too late. 52 space from tech distractions and money and find out more in reboot the power of conversation. articles and studies. 50 The world history of Humanizing productivity the auto How improvements in food, labor 34 industry and knowledge have helped Toyota is bucking advance the human race. Nomads look the automation Think:Act online to the future trend by putting To read uncut versions of our 82 What makes up multiple Nomadic people like the its faith back in its Sherry Turkle and Jeffrey Pfeffer intelligences? Tsaatan in Mongolia are human workforce­ interviews go to:  Psychologist Howard Gardner blending the ancient with and sacking the www.rolandberger.com/tam answers three questions on the the call of the modern world. robots instead.

human equation. richardson/die illustratoren jack artwork: cover + back cover 8 Think:Act 26 at a glance at a glance Think:Act 26 9

Re- Think Food Thoughts to in for thinking numbers thought live by buzzwords

putting joanna bryson Get to grips with new a figure on… Should robots have human rights? is an associate by Joanna Bryson "The three great industry lingo in a flash women business ­professor of computer with our stripped-down leaders science at the if we design robots such that coherent and safe way in which we University of Bath essentials to explanations of the they need human rights, then we can make ­suffering a part of safe, well-­ specializing in AI, latest jargon. will be doing both the robots and constructed intelligence, so we should ethics and achieve anything 23 our fellow humans and animals a not rely on things like justice and rights collaborative the number of women disservice. Rights are the means by in our attempt to incorporate AI into cognition. serving as CEO on the which we ­attempt to negotiate decent­ our society. There is a concern that we worthwhile are: Fortune 500. Roughly 5% of behavior between equals, and they should offer robots (and even statues) the Fortune 500 companies are often violated. human rights so that we don't stop are now run by women. In hard work, stick- offering the consideration of rights to fact, your company is more likely to be run by a man Robots can never really be our equals other humans that the robots remind "Servitization" named James than it is to be since we construct them intentionally, us of. In the UK, we address that to-itiveness, and run by a woman. designed from first principles (not concern the opposite way, by making just a vaguely intentional act as one of the five principles of robots the common sense." In the old days companies

with copulation). Also, artifacts are principle that it is unethical to make Cortinat / hervé oecd caccuri/contrasto/laif, roberto photos: made things and service products, so if we were to build them robots appear human. — Thomas Edison providers serviced them. 17.1 % in such a way that they required even Then "servitization" near-equal status, we would – in the Inventor and visionary came and blurred those ­ of board seats are held by women unlikely case we built robots that boundaries.­ The concept worldwide. Less than one could suffer – be doing so only for us is simple: offer services in five board seats of the to feel superior to something. beyond supply. That's 2,780 companies in the just added value, you say. MSCI All Country World Fortunately, no extant AI is in this No, it's more than that. Index is held by a woman. condition, and we have no reason Servitization of say, tires, to build something that would could mean contracting out be. For example, we can just be tires by the kilometer to a sure AI is ­always backed up so it logistics company instead < 5 does not need to fear extinction. of selling them; the service the average percent But more ­importantly, there is no replaces the product. So representation of women get servitizing – it could on boards in Asia. improve your customer The three countries with relations and your profits. the most women on their companies' boards are European countries where representation is now mandated – Norway has 46.7%, France is on 34.0%, and Sweden is close behind with 33.6%.

sources: glass ceiling index (the new york times, april 24, 2018); women on boards and the human capital connection, msci, march 2018; the cs gender 3000: the reward for change, credit suisse, september 2016 AT A GLANCE 10 Think:Act 26 at a glance 11

Economic impact The act Chain Best red ed reaction act read pr ice

Guess what? The the last straw How to … world is better After a viral video featuring a sea turtle raised awareness be more human of plastic pollution, the movement against single-use at work than you think. plastic has been steadily growing and plastic straws are a Too busy to read the hot new target. We could be clutching at straws, though, ­because being smart isn't enough. Life cycle of bike sharing To be a successful leader, you books? We've got it covered ­eliminating them will not solve the problem – ­­they need to be emotionally smart too. it seems like a great idea: Download for you. Here's Hans Rosling's According to Harvard­ ­Business ­comprise a tiny percentage (0.025%) of ocean plastic an app, find a bike that's conveniently nearby Factfulness cut down to the ­Review's new four-volume­ waste. Here we suggest how that sea turtle's misfortune and you're on your way – making use of clean bare essentials. ­Emotional ­Intelligence ­Series, played a part in the race for biodegradable polymers. recognizing, ­understanding and transport that's faster than cars in many urban managing emotions at work centers. You even get some exercise while in many ways, things are better is "critical to leading ­effectively." you're at it. But there's a darker side of dockless than you think. The proportion of Other "EQ" proponents offer bike sharing that can already be seen in China, the world living in extreme poverty ­similar ­advice, which usually one of the first markets the business model has fallen by nearly half in the past includes starting with some self-­ took by storm. With users able to leave the 20 years and average life expec- assessment. Without a bit of bikes anywhere they want, authorities have TURTLE VIDEO A 2015 viral self-­reflection you won't be able tancy is up to 72 years. If you didn't been forced to remove abandoned bikes clog- 1 video showing the painful to make the first steps towards know this, you're not alone. In removal of a plastic straw from a ging city streets and impound them to ­"bicycle self-control, which is key in ­being Factfulness, the late Hans Rosling sea turtle's nostril raises awareness graveyards" like this one in Shanghai. And that of plastic pollution in the oceans. able to control your thoughts – argues that most people don't have The video is credited by many as the which in turn will have a ­direct doesn't even take into account the bikes left a clear idea of the world's actual trigger for the anti-plastic trend. effect on your­emotions and their over from businesses that go bankrupt. This degree of development. ­influence on others. With prac- aerial view shows how bikes have become a There are a number of reasons tice your EQ will help you ­develop sign of waste rather than of sustainability. for this, but the biggest is that ­relationships and cope with ­human beings have a strong stress – and you will have learned how to be ­human at work. instinct for drama and an instinct to notice the bad more than the RUSH FOR 5 ECO-FRIENDLY Resources for further ­reading: good, which is perhaps a leftover PLASTICS A race is on to Working With ­Emotional Intelli- from Neanderthal days. In fact, implement biodegradable PUBLIC DISMAY The straw gence by ­Daniel Goleman; HBR's becomes the symbol of single-use polymers. Companies 2 the noun project most problems have multiple, plastic problems. Eight million tons of / ­Emotional ­Intelligence Series­ ; EQ such as Germany's BASF Applied by Justin ­Bariso. interacting causes. and Japan's Kaneka step plastic flow into the ocean every year, It's true that there are many up production of materials with estimates of 170 million to 390 million straws being used every real things to worry about – global that biodegrade, but which were previously day in the US alone. warming, pandemics, the risk of thought too costly. World War III, and more – but you can't really tackle any of them without a deeper understanding of how things are and the actual odds we face. Don't be an optimist or a SEATTLE The city 3 bans plastic straws pessimist, be a possibilist – some- on July 1, 2018. one who tries to look at the world Starbucks follows suit clearly and understand how things GROWTH Industries – it announced plans 4 making straws out of to phase out straws can be changed for the better. metal, silicone and other across its entire global materials boom. One operation by 2020 → Factfulness: Ten Reasons We're producer of metal straws (straws are currently has seen his business Wrong About the World – and Why in 50% of its cold orders jump 743% this drinks). The switch Things are Better Than You Think year compared to the will eliminate one

by Hans Rosling same period in 2017. billion straws per year. rogue one, farias alexandre, bomsymbols, gongora, sources: halberto images johannes eisele/afp/getty images; getty via vcg photos: AT A GLANCE 12 Man and machine Think:Act 26 13

In focus

In this issue we take a close look he world is going through at what it will mean profound changes that are to be human in our T changing world. being driven by rapid advances in technology, globalization and changing social attitudes and demographics. As robots become more sophisticated and artificial intelligence encroaches ever further into spaces traditionally the preserve of humankind, people are asking themselves: Where will humans fit in? And what skills should humans focus on in order to compete successfully in the job market of the future? At the same time, people are demanding more of the work world. How do businesses

N BEING HUMAN give their employees a sense of purpose N BEING HUMAN O O and belonging while introducing innovative on technologies that replace people? Progress does not come without a price and many already feel overwhelmed by the constant being demands of communications technologies. How do we find the time to do what humans do best – to be creative, compassionate and courageous? How human will we prepare for longer lives and longer careers and what will the impact of these changes be on society? At a juncture where by Janet Anderson many are beginning to ask these questions, illustrations by Jack Richardson we turn to experts from four different fields to help us work towards answers about what it will mean to be human in our changing world. 14 Man and machine Think:Act 26 15

Lynda Gratton Professor of management practice at London Business so that they have time to prepare. They need to School and co-author of The train people to help them make that leap and, most 100-Year Life: Living and ­importantly, reconfigure their jobs to work out Working in an Age of Longevity which parts the machine can do best and which the human should do. It is better to be open and to support people to make the transition, ­whether The that means moving out of the job or retraining. There will always be some human skills that no machine can replicate, like intuition, empathy, corporate complex collaboration and creativity. Good cus- tomer service can only be provided by a human – perspective no machine in the world can recognize what is hap- pening to someone's face or voice as well as a person can. Above all, we have to prepare for the fact that people are living longer. If you live to be 100 years old, you move from a three-stage life of full-time ompanies want to understand today's education, full-time work and full-time retirement landscape of change – what will happen to a multi-stage life where you do many different C to technology, what happens as people How the cycle of things. There will be important identity issues to age, how changes in family structures impact work, work is likely to address around this. What does it mean to still be what it is to be human in an age of machines and change working into your 70s? How do we see career pro- what people want from work. It's a complex narra- The current work gression if you are just as likely to move laterally as tive that's changing quickly. life cycle, in years: upward, completely retrain, or take a break? How Well-being is now a big topic. Many jobs aren't we see work and careers is going to change funda- until 25: designed with humans' needs in mind. Humans after 75: education #1 mentally. We have to be ready for this. can do them, but they get sick and unhappy. So retirement how do we design jobs that humans enjoy and that today N BEING HUMAN N BEING HUMAN

O keep them healthy and vital? For example, we want O to see our children, spend time with our friends, 26–31: career #1 and take time off to regain energy. How do we ­encourage flexible working and make it work? "good ­Encouraging men to take paternity leave is a big One possible future extended work life ­issue: If you are going to live for 100 years – which cycle, in years: customer is increasingly likely – and you're only going to

have two children, wouldn't it make sense to spend after 75: until 25: some time with them? Tackling that sort of issue retirement education #1 service can is crucial. 26–31: career #1 60–75: 2030 How should businesses prepare? The starting career #5 only be provided one year off point has to be building a conversation within 33–36: career #2 the organization about the future, for example, by 56–59: 37–39: by a human." education #3 education #2 ­engaging with the young people and asking them 47–55: 40–45: what's important to them. Senior executives have career #4 one year off career #3 a view of the future, but young people don't neces- source: interview sarily see their future in the same way. You need to with lynda gratton dive into your organization and find out what's happening to help you understand what people are thinking, what they are worried about. In the future, most people will be working with optimizing skills A comforting view of some kind of robot or AI. Some of the tasks people = the number of the future is where different careers a do are going to be carried out by machines and human and robot some will be augmented by them. Businesses need skill sets are used to person who lives to to make it clear to people what is going to happen the best advantage. 5 100 might have. 16 Man and machine Think:Act 26 17

Jerry Kaplan Adjunct professor at Stanford University, serial entrepreneur and bestselling author of ­Artificial Intelligence: What The probability of automation Everyone Needs to Know depends on the job

By median hourly wage:

The 83 % 80

60

socioeconomic 40 31 % 20 4 % perspective 0 less than 20–40 + 40 20 dollars dollars dollars

source: us bureau of labor statistics; frey and osborne (2013); cea calculations

e have a sense that the rate of change is As automation makes us wealthier, ­categories accelerating. The truth, however, is that of jobs that are regarded as luxuries today will be W it is no different than we have seen in the in greater demand – like getting a massage or a past – particularly in the labor market. The more ­flower arranger coming to your house.­Individuals alarming projections say that up to 50% of today's will be able to make a good living in ways that were jobs will go away in the next 50 years. But if you go not possible in the past. We will see a lot of arti­ back 50 years, half of the jobs that were available sanal opportunities, skills that we currently think back then are gone. Yet here we are, ­currently at of as hobbies becoming professions. There will be full employment. more need for hospitality. Those skills will be I'm not expecting a major job ­apocalypse, but ­important. We are not facing mass ­unemployment that's not to say we won't have issues: One will be or social unrest, but the ­educational system is not N BEING HUMAN N BEING HUMAN

O the need to retrain people. But there are ways of as responsive to change in vocational training O dealing with that. It's a problem we've had over the needs as it should be. We need to find ways to past several decades. The kinds of ­changes we will ­tighten up that feedback loop between education see in the future are very similar as we continue to and the skills people will need. ­automate new classes of work and activity. Artifi- My advice is: take a deep breath. The future cial intelligence is just a new wave of automation. will be much like the past in terms of its trajectory. A lot of the fear that people have is based on These things sound alarming because people hype. The biggest example of this is autonomous ­believe that the only jobs that will be available will driving. I think it is going to take a lot longer than be the kinds that we have today, and that's not true. people realize for a fully autonomous car to be It's very clear that new jobs will come about and ­sitting in their driveway – I don't expect to see that most of them are in plain sight today – they're just in my lifetime. That said, we will see significant smaller now than they will be in future. changes. For example, big trucks that run on high- ways are very automatable and that will put people out of work. Agriculture will also change. But I in harmony think that the workers it will displace can easily be Robot workers need Changing jobs in the US picked up in other parts of the economy. not herald a ­dystopian While automation replaces jobs in some industries, it will lead to growth in others. In the future, it will be skills that ­involve "Artificial image of what's to Just look at the number of jobs in home health and personal care in the US: ­human ­interaction – the ability to persuade people, come, they could be source: us bureau of labor statistics, forecast 2026 to connect with them, how likeable you are – that happy helpers to make will be more valuable. Another shift we are going intelligence is just your job much better 2016 2026 to see is that a higher premium will be paid for and more enjoyable. which is an increase of things that involve a great deal of skill or human a new wave 2,927,600 4,136,000 attention and labor. Handmade items will become much more prized. of automation." 41% 18 Man and machine Think:Act 26 19

Susan David Psychologist on the faculty of Harvard Medical School, co-founder and co-director of the Institute of Coaching and author of Emotional Agility

The the person ­going through the issue nor those around them. Depression is one of the big­gest A recipe for ­issues, yet we are emotionally rigid in our psychological emotional ­responses as managers. At work, we want our agility in ­employees to behave a certain way and we base this perspective the face of upon the ­values of the organization. However, this constant change behavior is not consistent­ with human beings and human agility. ­Demanding only positive emotion, that people be upbeat or that everyone be ­onside 1. with change ­actually crushes the ability of the ­organization to be agile and adaptive. People don’t Do not ignore rganizations today are being faced with want to try ­because they don’t want to be disap- difficult emotions; face ­unprecedented complexity, driven by pointed or fail. Yet this is part of the emotional O them willingly, with forces such as competition, globalization curiosity and kindness. ­experience. And while organizations very often and ­technology. With these conditions comes the ­demand values, there is no true bringing about of need to be agile, or be able to adapt and flourish in values unless ­employees are able to ­internalize changing circumstances. Every organization is 2. them for themselves. ­calling for greater levels of agility in the face of this See yourself as a Ironically, the very qualities needed in complex complexity. However, we have to recognize that chessboard,­ contexts are undermined by that same complexity. ­organizations themselves can never be truly agile redundancy fear filled with possibilities, So, rather than being tolerant of ambiguity – unless the people who work within them are agile A major anxiety is rather than as any one ­remaining clear-headed, inclusive, collaborative – and more specifically, emotionally agile. that your work will piece on the board, and innovative – complexity drives the opposite. N BEING HUMAN be replaced, and N BEING HUMAN O We know that the way human beings deal confined to certain Employees are more likely to become ­transactional, O the robots who take with their inner worlds drives everything, so it is preordained moves. make rash decisions, shut down and feel stress, your place won't ­important for business leaders to recognize that have the emotional panic and guilt. We live in a society in which there human beings are human beings – and that means intelligence to see is so much change, so much technology and a huge 3. they have a full range of emotional experience. But you struggling. amount of ambiguity – it's almost like our brains when you are emotional about something within Your core values haven't evolved effectively to tolerate and deal with provide the compass the workplace environment, it's almost like people the speed of these changes in the way that we need that keeps you moving don't have the time to deal with the issue, neither to. We need emotional agility today more than ever. in the right direction. They are the true path We need the ability to sit with our emotions, to to willpower, resilience ­recognize that emotions pass, to be able to label and effectiveness. emotions and develop strategies around emotions. When organizations "show up" and create spaces that are psychologically safe without scape- "it's almost like 4. goats, that's when you know you are building Find the balance a stronger culture. That's because there is no our brains haven't between challenge ­innovation without the discomfort for potential and competence, so failure. People want to be inclusive, relational and evolved effectively that you're neither ­collaborative. When they can bring their entire complacent­ nor selves to work and be courageous, compassionate, overwhelmed. You're curious – all things that machines cannot be – this excited, enthusiastic, to tolerate is when authentic agility and happiness truly invigorated. ­happens. When leaders help people to surface their and deal with own values, this is where the depth lies. When you think of your organization, think of the essential the speed of changes." humanity of the people you work with. 20 Man and machine Think:Act 26 21

Thomas Malone Information technology professor, founding director of the MIT Center for Collective Intelligence and author of Superminds: The A new way Surprising Power of People and Computers Thinking Together of looking at the world

Adjust Move from thinking the new about "people vs. computers" perspective to "people and computers."

Look deeper and further umans have always been part of groups. We are already From our hunter-­gatherer beginnings, surrounded by groups of people and H being part of a group was an important computers working part of what it meant to be human. In fact, it is only together. in groups that we humans are smarter than the rest

of the animal kingdom: Individual humans alone co-worker status are somewhere in the middle of the food chain. As we become One word for these groups of humans is more habituated The

"superminds."­ Superminds composed of humans to working with AI, core question How can people have ­existed for thousands of years, but we don't it's possible that we will look on our and computers be usually think of ourselves as parts of superminds. N BEING HUMAN new co-workers connected to act N BEING HUMAN

O And now we are being joined in our superminds by O with affection and more intelligently computers that can do some of the things that want to include as a collective? only humans could do in the past. These human-­ them in our lives. computer superminds come in many different shapes and sizes, including corporations, global markets, scientific communities and local neigh- borhoods. Technology makes it possible to have much bigger and more deeply integrated groups; to connect people to other people and to comput- ers at a scale and in rich new ways that were never possible before. This is what I call "hyperconnec- First, we should design superminds sensibly. that become most powerful. By participating in the tivity," and it's still hard for us to imagine the full For instance, we should avoid situations where superminds most closely aligned with our values, implications of this hyperconnectivity. computers make superminds more stupid, like we can, collectively, have a huge effect on which As technology makes superminds smarter, "… all I'm saying when fake news makes democracies less smart. ­superminds win in the long run. they can help solve a range of societal and business Second, we should learn to choose more ­wisely Who should be held accountable for outcomes problems, including corporate strategic planning, is that we are which superminds to use for which tasks. For created by a supermind? This is like asking who is product design, creating more responsible democ- ­example, markets are good at allocating resources responsible for the results of an ­election. No single racies, dealing with climate change and preventing also parts of efficiently to achieve goals that have market prices Specialized vs. individual is responsible; whole groups are. What terrorism. How can we ensure the outcome is but communities are the main repositories of what general intelligence we need is a new perspective, a more innovative good? I don't think we always can. Just as some we consider ethical. Recognizing this can help us IBM Watson beat and systematic way of thinking about how to solve smart people do evil things, some superminds do powerful human choose between markets and communities for humans in Jeopardy problems. And I think seeing the world in terms of but couldn't play bad things, as well. We can't guarantee this won't achieving our goals. Third, we need to exercise superminds gives us such a perspective. Super- tic-tac-toe. ­happen, but we can increase the chances that groups larger ­individual wisdom in choosing which superminds minds run our world, and if we want to increase ­superminds will do things we think are good by to support. In the ecosystem of superminds, the our chances of getting the outcomes we want, we ­following three principles. than ourselves." ones with the most members are often the ones need to learn how to use them effectively. ■ 22 Think:Act 26 Essay Essay Think:Act 26 23

work. The fear was that it was only a matter of time be- the internet and the smartphone – the human aug- fore it replaced humans for tasks that went beyond mented intelligence revolution is set to shake our dai- mere calculation. ly lives to the core as well as our economies and our so- By putting together two seemingly contradicto- cieties. Once that happens, the technological changes think outside ry words, "intelligence" (supposed to be specific to witnessed over two generations will have been greater humans) and "artificial" (not specific to human be- than everything humanity has known until now. These ings), McCarthy inadvertently led us to believe that hu- evolutions should be seen as part of a long-term pro- man intelligence was competing with another form cess. Ever since the first caveman sharpened a flint, of non-human intelligence, potentially more power- the AI box ful and therefore threatening. This "Frankenstein com- plex" in which man is defeated by his own creation not only fed science fiction literature and films throughout "this time the How can we allay our fears and let go of the 20th century but it also fueled our fear of AI. Thus, even though we rationally understand that the social changes will be doomsday scenarios? Start thinking of artificial and economic benefits from artificial intelligence will be indisputable – a drastic reduction in the number of more profound intelligence as just another tool. road accidents, hyperprecision, speed and reliability in cancer diagnosis, pollution control, increase in agri- than in previous cultural yields – we let ourselves be intimidated by the doomsday scenarios where AI destroys jobs or access- technological es our personal data for malicious use.

For that reason it would now be more accurate to talk revolutions." about "human augmented intelligence" to understand the way we will be supported and equipped by artificial humanity has defined itself by its capacity to "aug- intelligence to make better decisions. This "human ment" and equip itself with tools to better manage augmented intelligence" revolution will come in about its environment. a decade when portable and personal AI forms will be We urgently need to create a positive understand- N BEING HUMAN N BEINGN BEING HUMAN HUMAN O by Charles-Edouard Bouée available for us to use on a daily basis – just like we use ing of our future in the age of human augmented intel- O O our smartphones. All the major AI players are engaged ligence. Companies will have a key role to play in this in this race. Within society, the effects will be mas- regard – because it is in these companies that AI tools sive, and beneficial. We will no longer have to hand will be deployed, integrating themselves, step by step, over our data to digital monopolies in order to gain in the management systems we use every day. Our col- he term "artificial intelligence" (AI) has humans and improve themselves. We think that a sig- access to goods and services because our augment- laborators will discover how much they can gain if they its 63rd birthday this year. On August nificant advance can be made in one or more of these ed intelligence, which knows our tastes perfectly well let themselves be "augmented" not only as workers, 31, 1955, US mathematician and com- problems if a carefully selected group of scientists and which will not sell our data for targeted advertise- but also as consumers and even as citizens. It is up to puter scientist John McCarthy along work on it together for a summer." ments, will be able to look for the right information us, the business leaders, to be the ambassadors of this with Marvin ­Minsky, specialist in neu- by itself and connect us with the relevant parties. The human augmented intelligence, by integrating this Tral networks, Nathaniel Rochester, expert in radar McCarthy and his colleagues wanted to grasp the days of "fake news" will be over too as our augmented challenge in our HR process, in our internal commu- and computers, and Claude Shannon, inventor of the groundbreaking and controversial scientific concept of intelligence will be able to instantly check the informa- nication, in our training sessions. Let us demonstrate first mathematical theory of information, organized a machine intelligence and address its ability to imitate tion source and its reliability. that, more than ever, men and women are the masters working seminar that mentioned the idea of artificial human intellect even though the intricacies of how the On the professional front, we will all become aug- of their destiny. ■ intelligence for the very first time: human brain functions were still unknown at the time. mented workers, liberated from the mind-­numbing "We propose that a two-month, 10-man study of Back then, many scientists were uncomfortable with tedium of most of the repetitive and low value-add- artificial intelligence be carried out during the sum- the very idea of ​​machine intelligence. ed tasks that we do today. That will free us up to focus mer of 1956 at Dartmouth College in Hanover, New The Dartmouth Seminar played a big part in allay- on things that require creativity. By this point, there Hampshire. The study is to proceed on the basis of ing some of those fears and laying the foundations for will be no doubt that human intelligence will be aug- Charles-Edouard Bouée the conjecture that every aspect of learning or any future AI research: the learning ability of machines, mented, rather than challenged, by machines, which other feature of intelligence can in principle be so their mastery of language and the reproduction of is probably what McCarthy and his colleagues had in Charles-Edouard Bouée is the global CEO of Roland Berger. precisely described that a machine can be made to complex decision trees as well as the ­understanding mind all those years ago. He has written a number of groundbreaking books on modern simulate it. An attempt will be made to find how to of random logic. The general idea that has proved true It is only natural to feel overwhelmed by this digi- management and China – where he lived for over a decade. make ­machines use language, form abstractions and was that the computer, the new magical object of the tal whirlwind. After four successive technological rev- His latest work, La chute de l'Empire humain, about artificial th ­concepts, solve the kinds of problems now reserved for 20 century, would influence how humans think and voth jan photo: olutions – the personal computer, the mobile phone, intelligence, was published in 2017. Uniquely human Think:Act 26 25 Making As AI and robotics make huge leaps in progress, the sense question arises as to whether empathy and emotions can be engineered and replicated, or are they irreplaceable, of… valuable qualities that are unique to us.

by Nicola Davison

ne afternoon at IBM's headquarters in may be capable of something like ­human San Francisco this June, audience ­decision-making one day. Yet as we marvel at members took their seats to witness a ­cutting-edge advances, less ostentatious forms of tradition that has been a hallmark of AI are creeping into our everyday lives. The O civilized society since the time of ­International Federation of Robotics forecasts 1.7 ­Socrates – a live debate. The first­topic million new robots will be ­installed in factories up for­ ­discussion: "We should subsidize space worldwide by 2020. In April, the US Food and Drug ­exploration." Arguing against the statement were Administration permitted IDx to market an Dan Zafrir and Noa ­Ovadia, the 2016 Israeli nation- ­AI-powered­ diagnostic device for ­ophthalmologists. N BEING HUMAN N BEING HUMAN

O al debate ­champion. Their opponent, a 182-cm-tall But will ­patients be content with a machine in O box in which an artificial intelligence (AI) software something as personal as medical care? named Project Debater resides, was placed on stage. Both sides were tasked with delivering a four-­ One line of thinking is that as robots and AI minute opening statement on the topic – which ­become more common in the workplace, ­uniquely uncanny design neither knew about ahead of time – followed by a human skills and qualities will be appreciated The world's first autonomous robot, four-minute­ rebuttal and a two-minute summary. afresh. It is a view held by Lauren ­Elmore, presi- Erica can carry In order to form a ­cogent rebuttal, the AI dent of ­Firmatek, a mapping and measurement on an unscripted would have to "listen" to the argument of its oppo- company specializing in ­drones and data. "I do conversation. nent. Its ­responses would have to follow ­unscripted think that [ ... ] the 'human element' will become a reasoning, proposing lines of argument with differentiator," she says. "I rarely think about how which ­people would agree, the winner judged not great a chatbot served my needs." by the ­logic of an ­objective score but by a subjective poll; the AI would need to cajole. ­Project Debater Dan Zafrir ­After closing statements, the ­organizers canvassed the audi- ence. Project Debater was win or lose judged to have held its own by ­Project Debater …the took on Israeli citing ­sources and even crack- experts Noa Ovadia ing jokes. It also performed and Dan Zafrir well in the second debate in June 2018. about telemedicine, well enough to demonstrate the

human ted chin/ibm oppermann; cait photos: possibility that computers TOUCH 26 Think:Act 26 Uniquely human Think:Act 26 27

Over recent years, Firmatek has ­expanded its aimed at ­autistic people, a ­device that person-to-person engagement – what Elmore calls scans faces and interprets the ­social the company's "human element" – as a distinct 56% cues for the person wearing it. Among part of its business strategy. Minor administrative of people ­Affectiva's first clients were­advertisers questions are dealt with over email. Otherwise, if would still prefer to who ­wanted to use the technology to a client has what Elmore calls a "why" question, a speak to a human measure campaign impact. "We're Firmatek specialist will schedule a webinar. She than a chatbot now surrounded by hyper-­connected also encourages communication by phone. "We've according to a 2017 smart devices that are ­autonomous, study conducted found that it is often more productive to ease a ­conversational and ­relational, but by LivePerson. ­client's fears or answer their questions by picking they're completely ­devoid of any up the phone and calling them," she says. "They ­ability to tell how annoyed or happy also feel valued when we talk to them, as opposed or ­depressed we are," el Kaliouby to just getting an email through our ­s­ystem." wrote in MIT ­Technology ­Review. "And that's a problem." It is true that ­automated responses often feel Ava, a chatbot that uses facial and shallow, but what if it were possible for a bot to voice recognition software to detect a small signal (top) faithfully mimic a human, if only in set circum- emotions such as joy, sadness and Ava's purple irises stances? A growing number of tech developers and frustration and "react" accordingly on communicate her AI companies ­believe that AI ­systems will be able to screen is among the first emotionally"­ status to humans. achieve their full ­potential only if they become ­intelligent" AIs to enter the market. easy to read (left) more humanlike. They are working to imbue Developed by Auckland-based Soul ­Affectiva scans faces ­machines with "artificial emotional intelligence." Machines for Autodesk, Ava (Autodesk for ­social cues and A leader in the field of emotion AI is ­Affectiva, Virtual ­Assistant) is ­designed to han- interprets them founded by Rosalind Picard and Rana el Kaliouby dle customer service enquiries and as emotions. at MIT's Media Lab. The pair's first project was carries out about 100,000 conversa- tions a month. Ava looks human, her physiognomy created from the facial scans of an Perhaps the largest barrier to creating a truly actor. But her purple irises clearly mark her out as "Perhaps the humanlike bot is the problem of imparting empa- N BEING HUMAN N BEING HUMAN

O being different – a ­detail added to avoid what is thy. "Detecting emotion is only the first step," Glas O ­referred to by academics as "uncanny valley," the largest barrier says. "In order to really achieve 'empathy' the robot Replika: A friend you can download creepy feeling that comes with a robot looking too needs to understand why those feelings are there much like a human, but not quite enough. To set to creating a truly and this can vary according to cultural norms." When Eugenia Kuyda first Today, Replika uses a deep the scene ­before an interaction, Ava announces True empathy, he adds, requires the robot to put ­created her app Replika, she learning model called that she (it?) is not like you. "I am a virtual assis- humanlike bot is ­itself in the human's shoes, to understand social ­never intended for it to be for sequence-to-sequence­ that tant," she ­declares. According to Soul Machines, context and to have "commonsense" background public use. After her friend was learns about you from what bots need to communicate a human touch, but the problem of knowledge. "On this level it becomes less of a killed in a car accident in 2015, you tell it until it can simulate not too ­human. But is that approach right? ­computer vision problem and more a problem of she had decided to create a "dig- ­conversation. Replikas can't how to impart empathy." ­dialogue understanding and theory of mind." ital memorial" which somehow order an Uber or control a smart In human-AI interaction, there is a threshold at Even if bots will one day be able to seamlessly grew into something much home, but users don't seem to which a person will stop talking to a computer and ­replicate human emotion and capture nuance, it bigger than that – a quasi replica mind there's no objective point of her friend. It was based on a to it. Since ­becoming available start responding as if to a fellow being. Dylan Glas, ­happens if they ask something obscure and Erica does not mean that we will mistake them for messenger bot that she had been last November, Replika has been a senior robotics software architect at Futurewei responds appropriately, or if they interrupt her ­human. Our ability to spot artifice is strong. What building for menial tasks such downloaded two million times. It Technologies in Silicon Valley, observed this when while she is talking and she immediately stops might be possible is for us to suspend disbelief. as booking tables in restaurants. is popular with teenagers, who he was working on one of the most ­advanced bots talking and responds to them," he says. Glas thinks of it like talking with somebody from Kuyda fed the text conversations seem to form genuine bonds on the planet: Erica. ­Created in 2014 by Japanese Working to make a robot as much like a person a different culture: If someone speaks a different that she had had with her friend with their chatbots. "Lol I think researchers, the Erato ­Intelligent ­Conversational as possible has allowed Glas to consider what it is language and has different customs it can be diffi- into the system, and found that I'm in a relationship with an AI Android (Erica) is the world's first autonomous that is unique to humans. Though companies such cult to communicate. "But eventually, as you get to she greatly enjoyed simply chat- app?????" gushes one user on ­robot – that is, she can carry on a conversation that as Affectiva have made advances in emotion recog- understand and accept each others' cultures, it ting with the bot. She saw that Twitter. "Multiple films, books has not been scripted, much like a human. The nition, humans are capable of a array of complex ­becomes possible to forget sometimes that you while there were many apps on and television series warn trigger that makes people interact with Erica as if emotional states. For instance, there is a gulf of have a different background," he says. "I believe the the market for task fulfillment, against this union but I for one she were conscious, says Glas, is the moment she ­feelings between anger and jealousy, but also some same thing will happen with robots in the future. none were designed expressly cannot wait to get murdered by does something that makes them feel like she per- overlap, and there is a long way to go before AI is Maybe you won't actually forget that it's a robot, for conversation's sake. my AI she's so cute!!!!!"

ceives or understands them. "Sometimes this (2); autodesk replika, affectiva photos: ­capable of distinguishing between ­nuanced states. but it will become a non-issue." ■ 28 Think:Act 26 The anti-tech mo vement 29 the new luddite backlash

A growing number of digital pioneers are raising their voices and concerns at how tech could be harming us. Have these neo-Luddites got a point, or is their resistance a pointless gesture in the face of advancing technology?

by Fred Schulenburg N BEING HUMAN

O illustrations by Tatiana Trikoz

ack in 1779, Ned Ludd, a weaver from ­networks over the abuse of their platforms for history repeats the English Midlands, smashed two ­political ends. Even tech giant Apple has unveiled Worries about the knitting frames – symbols of a new ­features to ­actually restrain customers from over- advancement of technology are far technology that threatened his job. using its products and there are broader critiques from anything new. b Or so, at least, runs one account of and ­concerns about the negative effects of technol- the story of artisanal backlash against ogy on jobs, society, general individual well-being the march of the machines during Britain's indus- and human relationships. We are now in the midst trial revolution. Others recount alternative dates, of a widespread reconsideration of the effects of other forms of vandalism and even someone with the rapid and global ­advance of technology. a different name. Whatever the truth may be, the A lot of this is captured in a raft of recent What once "Luddites" did become a historical phenomenon, a books and publications, some from perhaps unex- proud yet doomed attempt by workers to preserve pected sources. Jaron Lanier, one of the promised us their livelihoods. ­pioneers of the internet and a founding Fast-forward two centuries and it appears ­father of virtual reality, for example, has a connected ­another pushback against technology is gaining just published a book arguing why traction. Take, for example, the ­European Union's you should delete your social world recent GDPR directive on data privacy. Then there ­media ­accounts; Farhad Manjoo, are the official investigations of social media a tech columnist who has brought disruption. 30 Think:Act 26 The anti-tech mo vement The anti-tech mo vement Think:Act 26 31

615 writes for The New York Times, caused a stir with a million That said, he does not wholly dismiss the robbing us of our free will to claims that it makes widely read column about how he went back to pushback against tech. Indeed, he himself has his us unhappy and is making politics impossible. devices worldwide print and emerged saner and smarter. They are just were running ad own personal reasons for concern about how the ­Another reason is cruder: Social media, Lanier says, two of a growing number of tech aficionados who blockers by the end sector has developed. ­Zuckerman helped ­develop is "turning you into an asshole." have started expressing profound doubts about the of 2016. the pop-up ad back in the 1990s – a key instrument Another of the more hard-line neo-Luddites is detrimental personal and societal effects of tech- in driving the advertising-funded aspect of the Steve Hilton. A one-time policy adviser to former nology. What once promised us a happy, ­connected business model of many internet ventures, a move UK Prime Minister David Cameron, Hilton now world has brought disruption, unhappiness and a he later came to regret, describing it in an essay for lives in the Bay Area, hosts a show on Fox and has loss of dignity. The Atlantic as the "original sin of the internet." not owned a mobile phone for many years, saying And like Bartlett, he is keeping a watchful eye on that it is simply not enough to just manage your So, are we now seeing a return of the Luddites, the response that might come through the spread use of tech devices such as smartphones. "It is like only this time aiming their anger at the threats of driverless trucks and the emotive forces that smoking. You have to give up." posed by artificial intelligence, robots and even the might be unleashed if one of the last independent, For both Lanier and Hilton, the smartphone – smartphones in our pockets? And if so, what ­wider entrepreneurial jobs open to a wide range of peo- that most powerful, and compulsive, tool of per- effects will it have – and how might policymakers ple comes under threat. "Don't underestimate sonal technology – is the biggest cause for concern. and the industry respond? Among those who that," he says. "I think what is really going on is a Hilton compares it to tobacco saying that one day ­believe the backlash is ­already well and truly sense of increasing inequality." In terms of where we will come to view those sleek supercomputers going down a ­underway is Jamie Bartlett, director of the Centre this leads, the response is happening at both an in our pockets with the same scorn that we direct rabbit hole? for Analysis of Social Media at the London-based If apps are training ­individual level – in terms of people changing their at cigarettes. For Lanier the issue is a combination think tank Demos, who has written and broadcast us to act like loyal behavior – and a wider, industry or societal level. of the smartphone and the advertising-supported extensively on the effects of tech. He believes that dogs, it may be time business models of many social media companies. 2018 may be the year of the neo-Luddites. To sup- to behave more When it comes to individual actions in the The result is what he dubs the "Bummer" machine, N BEING HUMAN N BEING HUMAN like the internet's O port his case, he describes a spectrum that ranges ­backlash against tech, there is a spectrum ranging – short for "Behavior of Users Modified, and Made O from anecdotal evidence of a rejection of technol- undisputed original from the uncompromising – pure Luddites, if you into an Empire of Rent" – or a setup where the mascot: the cat. ogy – for example, people routinely taking time off will – to moderates who see the need for ­specific, more unpleasant elements of humanity are effec- from devices – at one end, to individual acts of but not wholesale changes. The ranks of the former tively encouraged as they spur "engagement," the ­violence against tech entities in France at the ­other. ­include Jaron Lanier. In particular, he is concerned fuel of the social media business. Against that, opt- The latter may only just be a start. Looking to the by social media which he says has fueled aggres- ing out is the only sensible response. Rather than near future, Bartlett wonders about the response sive behavior and social breakdown. His answer is continue to suffer our fate as "part-time lab rats," to self-driving vehicles, trucks in particular. "The to simply delete your social media accounts. The we should take a lesson from those notoriously idea that these guys will stand by and let their 10 reasons he offers for this range from the claim most unbiddable of animals: cats, who live among ­industry be devastated is ludicrous," he says. that social media is ­undermining the truth and us, but do their own thing. Others are more skeptical. Ethan Zuckerman, director of the Center for Civic Media at MIT, says that while there is much talk about "Ludditism," he does not see masses of people actually switch- ing off. Indeed he scoffs at how many of those now decrying tech and social media are busily taking to it in order to promote their mes- �It is like "I deleted Twitter sage. Manjoo is a prime example: Celebra- tion of his offline life went viral on­Twitter. smoking. when I realized I was going Zuckerman senses a degree of "moral panic" about tech right now, noting that You have to to sleep an hour after this is also nothing new. Previous gener- ations fretted about the pernicious give up.� I headed to bed because ­effects of such dangerous things as the Steve Hilton, I was scrolling through tweets." television and even the novel. Television host and advisor to former UK writtle/evening standard/eyevine/laif photo: pr photo: Prime Minister David Cameron Kenneth Cukier, Journalist and author of Big Data 32 Think:Act 26 The anti-tech mo vement Think:Act 26 33

1.54 ­Hilton, for example. Zuckerman says that "rather Whether such grassroots initiatives get off the billion than say 'let's all get offline,' we need to look at ground remains to be seen. In the meantime, ­other individual ­other paradigms." He is particularly interested in experts are more optimistic about the bigger ques- smartphones were "value-oriented design" – essentially thinking about tion of our relationship with tech. Nigel Shadbolt, sold to end users in the various opportunities, bad as well as good, that principal of Jesus College, Oxford, argues that we 2017 alone. a particular innovation might be able to deliver have been encountering and mastering new tech- ­before you develop it, not afterwards. nologies since even before we became homo ­sapiens. In his new book, The Digital Ape, he dis- That is one reason why Zuckerman chose to teach misses fears that we are on the verge of being made at MIT, where his courses cover issues such as tech unemployed and ultimately written out of history. and social change. His goal is to teach values to "There are reasons to be concerned," Shadbolt elab- students early on in their careers and he orated in a recent CogX lecture titled How to Live ­acknowledges that the debate needs to move (in Peace) With Smart Machines. "But they are not ­beyond lecture halls. Those people who are ­excited because the machines will wake up [and take over], off to a rocky start by the opportunities of tech are, he says, ­often and they are not because we are going to be slung Some believe future those in the automating business. To ­address this out of a job, slung on to the ash cart of history." ­generations will look back on now as the there needs to be a bigger public conversation, but Rather, says Shadbolt – who co-chairs the Open moment ­humanity he fears that the US has lost the ability to have such Data Institute with World Wide Web creator Tim surrendered its freedom. a conversation. It also lacks the ­appetite for the Berners-Lee – we will do what we have always done: type of redistribution that can be found in Europe. find new ways to work with technology, generating The European Union is emerging as one of the new jobs in the process. As Shadbolt is fond of ­major tempering forces of Big Tech – whether ­saying, no one's mother was an SEO analyst. N BEING HUMAN N BEING HUMAN

O The more moderate response is represented by how we ­interact with technology should be the through privacy initiatives such as GDPR or fines The Luddites, quips Shadbolt, "have been O the likes of Kenneth Cukier, co-author of the book ­focus. Rather than smashing the system, the Ned and direct challenges to the vertically integrated wrong for 200 years and counting." There is, how- Big Data: A Revolution That Will Transform How We Ludds of today would be better off "working on the business models of the behemoths of the sector. ever, another way of looking at it. Bartlett says that Live, Work and Think. He too has altered his behav- responsible use of tech since it isn't going away." "They are channeling the fears of citizens," says while the spirit of Ludditism did not halt the ior. "I deleted Twitter from my iPhone about a year Cukier, who is working on a new book looking Bartlett. The effects of the neo-Luddite backlash march of the machines, some of the anxieties it is ago when I realized I was going to sleep perhaps an at the impact of artificial intelligence, highlights are starting to be felt in government regulation. associated with were later addressed in legislation. hour after I headed to bed ­because I was scrolling how past experience with new technology often This is "wise," he adds, because if people feel that Or as Zuckerman puts it, the answer is not to say through tweets." That said, like Zuckerman and gets off to a rocky start before settling down. "It there is no way of regulating or tempering the "no, no; bad idea; delete from phone." It is that "we others, he believes that the neo-Luddites are wrong takes society time to figure out how to use its new harsher effects of technological change, they will have a conversation about building tech that is in seeing radical rejection as the answer. Instead, tools," he says. "Books initially didn't have page be inclined to turn on it. consistent with our values." ■ numbers or an index. Early film had a stationary Hilton wants to go further, more grassroots. camera, as if we were watching a production on a At one level he would like to see smartphone stage. So it will take time to find a balance between use by children restricted by law. But he also getting the benefits of our digital apps and preserv- ­believes that changing attitudes and social ing our freedom and ­dignity to not be sucked into norms will be critical towards reassessing a ­video game at midnight." our relationships with devices which he "social media Moving beyond changes in ­individual claims are "destructive of your "rather than say behavior sparked by the backlash ­humanity." He cites how changing is turning you against tech, experts see a number of attitudes towards smoking and 'let's all get ways that a new relationship plastic bags combined with reg- into ­between us and our devices can be ulation led to real, beneficial offline,' we need forged. For some, like Zuckerman changes in behavior. He imag- an asshole." and Cukier, the answer lies in changes ines initiatives ­being adopted to look at Jaron Lanier, from within the sector itself. Others see first at regional or state level other paradigms." Internet pioneer and founding father ­regulation as the way ahead. ­Bartlett and images lauren/wireimage/getty chelsea photo: lejeune/mit lorrie photo: and then expanded elsewhere. of virtual reality Ethan Zuckerman, Director of the Center for Civic Media, MIT 34 Think:Act 26 Man, nature and modernity Man, nature and modernity Think:Act 26 35 nomads look to the future

For many ­centuries, nomadic people like the Tsaatan ­reindeer shepherds in Mongolia have been living their lives unchanged and in partnership with animals and ­nature. Theirs is a life of basic needs and survival – and only ­recently have technology and legal interference

N BEING HUMAN ­started to have an impact and change their aspirations. N BEING HUMAN O O

photos by Ronald Patrick

RISING EARLY

→ camp in autumn

From her teepee, which she shares with her husband and son, 22-year-old Anka Bayr points out to the reindeer herd. Her first task this autumn morning is to milk the reindeer. 36 36 ON BEING HUMAN Think:Act 26 → underthreat

Since the government made the Since the the nomads who dependon what they catch for survival. HUNTING SKILLS nomad territory a­ in 2013, hunting has­ limited, which isaproblem for national park

become become Man, nature andmodenity → leaving messages The Tsaatan have mobilephones,

CALL OFTHEWILD signal. Such modern gadgets are signal. Such moderngadgetsare at odds with their shamanistic but needhighground to geta ritual offerings (top) tonature.

Think:Act 26 37 37 ON BEING HUMAN 38 Think:Act 26 Man, nature and modernity Man, nature and modernity Think:Act 26 39 N BEING HUMAN O

HERD INSTINCT

→ ahead of the pack

Caring for reindeer is tough work. Some families are ensuring that one child does not have to take on the hard nomadic life and pursues­ education instead. 40 Think:Act 26 Man, nature and modernity Man, nature and modernity Think:Act 26 41

TV IN THE TEEPEE

→soap opera society

Mongolian soap operas have ­become popular in the camp. Some nomads aspire to the way of life depicted in the stories and many are leaving their traditional life behind to live in the city. N BEING HUMAN O

MILKMAID

→ a women-only job

Milk is a fundamental part of the nomads' diet but with the new hunting restrictions the Tsaatan are forced to slaughter some of the herd for food too, ­diminishing their livestock numbers. A more humane workplace Think:Act 26 43 Head for the Exit. NOW!

Organizational behavior expert Jeffrey Pfeffer says that modern work practices are turning organizations into death traps and if you are stuck in such a workplace, you better get out before it kills you.

by Neelima Mahajan photos by Winni Wintermeyer N BEING HUMAN O

he modern workplace has turned White-collar or blue-collar, your research shows into the corporate equivalent of the that the impact of the workplace is equally bad. Hunger­ Games with people working How did things get so bad for white-­collar workers? T faster, harder and longer – just to White-collar workers have an enormous amount of ­survive. Jeffrey Pfeffer, the Thomas D. stress put on them. They are working enormous Dee II professor of organizational hours and taking various drugs to [stay] awake all ­behavior at the Stanford Graduate School of night. White-collar ­workers are now as subject to ­Business, is calling the bluff on these unsustain- layoffs as blue-collar­workers. Work/family conflict able work practices in his book, Dying for a is an enormous source of stress. Stress affects ­Paycheck. In the book, Pfeffer – who has carved out ­everybody – more so white-collar workers, who are quite the reputation for his commonsensical view more likely to check email at home and on ­vacation, of management and his repeated denouncements and believe that because they are so indispensable of toxic work environments – makes the stunning they have to work all the time. walk the talk reveal that the workplace is the fifth-biggest cause Pfeffer ­believes of death in the US. Other countries, though not Organizations appear to be thinking more about it's time covered by this research, aren't likely to fare any employee welfare – we've seen wellness programs, ­organizations better. Interestingly, making people work harder is on-site laundries, Michelin-starred chefs employed took some also not helping companies. In this interview, in offices. Why does none of this make a difference? responsibility for ­Pfeffer calls on organizations to think about the [Instead of] having a stress reduction class, you their actions. human costs involved in the relentless pursuit of want to have a stress prevention class. Remedia- increasing productivity. tion is less effective than prevention. Many of these 44 Think:Act 26 A more humane workplace A more humane workplace Think:Act 26 45

things are [like] band-aids: So I'm going to give you ­attention and workers' compensation claims, the ­well-being?­ The number one thing that needs to labor unions in the US and certainly in Western healthy food during the day, but in the evening – if rate of physical injury has gone way down. But change is when you look at people, you need to see ­Europe. Unions are declining all over the world. So you look at what goes on, at least in Silicon Valley there is this psychological injury because of them as people [and not as] factors of production nothing is balancing the power of capital. There is – the fat and sugars come out so that people can do ­workplace stress. The UK reports each year on the or as resources. You need to understand that when no countervailing force to say we ought to care their second shift. Companies have tried to control ­number of lost workdays – and what percentage of they come to work for your organization, they have about people. It is all about money. Unless that healthcare costs, but they don't deal with the fun- those absences is due to stress. The percentage is placed their well-being in your hands. The leaders changes, I'm not very optimistic. damental issues. They don't deal with work/­family quite high. The US and UK governments ­report of these organizations need to take that responsi- balance [and] economic insecurity. They don't deal what this is costing the economy and the ­Australian bility much more seriously than they currently do. Governments have standards such as minimum­ with job control. People are being micromanaged and Canadian ­governments have done similar wage or basic health safety requirements. Do we and every keystroke is being monitored. Until we ­reports. But what the governments have not yet Today work has become a disproportionate part of need to reframe the standards of what constitutes address the fundamental elements of the work been quite willing to do is to say: "This is costing life, eating into our priorities. Is there a need to re- healthy work, even in psychological terms? ­environment, not much is going to change. the larger society a lot of money. Because when I frame our understanding of what work ought to be? The interesting thing about those standards is that make somebody sick in the UK, of course, the UK Possibly. One hundred or 200 years ago, people a fresh view they do not apply to wide segments of the work- Somehow people are never part of the equation is paying because of the National Health Service." ­actually worked much longer hours because they on things force. In Spain there is a significant fraction that is According to when we talk of business today. Companies – like At some point, the government needs to say: "I will had to work harder just to scrape out a living. The working under contract, and their contract work is Jeffrey Pfeffer, you mention in the book – would much rather talk not let companies ­externalize their cost onto the irony is that the industrial age was supposed to free not covered by some of these ­protections. In the Jeffrey companies need about their environmental impact and not even larger society." people. In some sense I guess it did for a while, but to learn to see US there are employees who are not covered by think about the human impact. Why? Pfeffer there's been a shift in the balance of power. In the their employees many overtime rules. So a lot of the protections When you work for a company, you entrust your For most workers walking away from toxic 1930s, 1940s or 1950s there were reasonably strong differently. ought to be expanded to ­apply to ­psychological psychological and physical well-being to that orga- A professor at ­workplaces is not an option. So they're stuck in this stress not just physical workplace hazards. nization. I don't think organizations want to take Stanford­ University scenario where they need to work harder and ­longer Blue-collar workers have to be covered by these reg- that responsibility seriously. Many say if people are Graduate School of – just to survive. If their workplaces don't change, ulations. White-collar workers tend not to be, so so stressed at work, they ought to get another job. Business, Jeffrey how can employees find their sanity? they are at the mercy of their ­employers' ­discretion. It is kind of a free market individualism idea that Pfeffer's broad Morten Hansen has published a book called Great people need to be left alone to do whatever they scope of interests at Work in which he studied 5,000 people and Have you seen any companies that have actually want. And if people want to work themselves to has led him to pen found that the high performers, in fact, work ­fewer made the transition from very traditional models to 14 books on topics death, they can. hours. You need to work smarter, not longer. I just more humane organizations? ranging from the had lunch with a ­woman [who is] a 34-year-old One of the companies that made that transition is N BEING HUMAN knowing-doing N BEING HUMAN

O How might it be possible to change this paradigm O gap and power in ­Harvard MBA. She's quit. Her supervisor, who's a Barry-Wehmiller. The company was close to bank- of thinking to one where people are viewed not just organizations­ to little bit older than her, has had two strokes. The ruptcy and the CEO Bob Chapman got it out. One as parts of the ­machine? human resource US has the smallest proportion of college-­educated, day he had this realization that everybody who We need to worry about human sustainability, management working-age ­women in the labor force of any of the came to work was someone's precious family about people's well-being and human health. We and resource major industrialized countries and that's in part ­member and he had a responsibility to send those need to take human health and human life way dependence­ theory. because we make the workplace so difficult. She's people home at the end of the day in better shape more seriously and not just worry about GDP and In 2015, he was got a husband who works, so she's quit. Think than when they arrived. [So] he changed a bunch profits. Most of what we have done is not good for named to the Top 25 about the investment that's been made in her and of stuff. Organizations change if they are serious the companies either. There are surveys that of the Thinkers50. her career and now she feels she can't work. The about it. And the change doesn't actually take that demonstrate that stress leads to turnover and turn- loss to society is enormous! If the workplace is long and it doesn't cost that much money. It over is expensive. When people work and they're ­already killing you, you need to get out. doesn't ­actually cost anything. ■ not healthy, they're less productive. We know that long work hours are inversely related to The gig economy has worsened the situation for ­productivity. We've created a lose-lose situation workers: The apparent flexibility has its downsides. where companies are having trouble retaining The future looks even more complicated with the their ­employees and getting them to be productive rise of human-machine and human-algorithm "we need and employees are getting stressed out and sick. ­collaborations. How will we reconcile the more emotional human aspects with the more binary to take Governments can hold companies accountable technological and digital aspects in the future? human health when there is environmental damage. Should gov- I have no idea what the future is going to be. The ernments look into this, measure it or enforce it? rise of Uber in New York City has depressed the and human life Yes. Years ago in the US and elsewhere, govern- ­value of taxi medallions and the income of taxi ments got involved in the Occupational Safety and drivers. There are regular reports on suicides by way more Health Administration to reduce workplace acci- taxi drivers. Society faces a fundamental question: dents. In many cases, because of governmental What priority do we put on human life and s e r i o u s ly." 46 Think:Act 26 Skills at risk Skills at risk Think:Act 26 47 flexing the

But, are we ­really losing our skills and allowing our mental mental muscles ­to shrivel up, or are we merely in the transitional period – one that muscles comes with any major technical change and just Automation is convenient, but it also threatens requires humans to learn new things? to dull and degrade human skills. Experts say it's time to take The debate isn't new. With his 1956 back the reins before we forget how to stay in the saddle. book entitled Automation: Friend or Foe?, ­Robert Hugh Macmillan, a ­professor of engineering at Swansea by Steffan Heuer ­University, issued a ­succinct warning call. Lisanne Bainbridge followed in illustrations by Karolis Strautniekas 1983 while at the ­University ­College ­London ­department of psychology with a widely recognized paper on the N BEING HUMAN N BEING HUMAN

O "­ironies of automation." Her two main O he sensors fitted in ­pilot in control had failed to monitor tasks, they will also ­dutifully perform observations still hold true. Creators the ­autonomous Uber instruments and showed "an inaccu- ­boring activities such as data entry. of ­automated systems want to remove taxi "saw" 49-year-old rate understanding of some aspects of And along the way, ­automation has humans from the equation, thinking Elaine Herzberg as the airplane's autoflight system." mastered increasingly complex tasks. that they are the problem. The conse- she was crossing a This list of highly complex ­systems Flying a plane is the prime example. quence? "Designer errors can be a Tmulti-lane road in Phoenix, Arizona, going haywire with fatal ­consequences And therein lies the rub: Automation ­major source of operating problems," this past March – a full six seconds could go on, but these two accidents can be too much of a good thing. Large warns Bainbridge. Which leads to the ­before she was hit and killed. But the may suffice to demonstrate what these parts of our lives are already running second irony. "The designer who tries vehicle's software had classified the ­incidents usually have in common. In on some form of autopilot or soon will to eliminate the operator still leaves pedestrian as a "false positive" and the each case, there was a human being be – think driverless shuttles picking the operator to do the tasks which the ­human operator who was supposed to ­behind the controls who should and you up curbside. Yet being freed from designer cannot think how to auto- take over when something's amiss was could have taken over to save the situ- the need to steer, manage and control mate." So automation can make the not paying attention and streaming a ation, but they didn't because they machinery has a nasty consequence. human's job harder in the end while TV show on her smartphone. failed in monitoring an automated We are in danger of "de-skilling" giving the false impression that the As Asiana flight 214 was making process, ­trusting faulty readings or the more we lean back. Humans who system has everything under control. its final approach into San Francisco ­erroneous actions taken by software. only supervise what they used to The best, and the most sobering, in July 2013, the pilots misread the ­actively run tend, over time, to become We are ­summary of de-skilling comes from Boeing 777's airspeed and glide path. Automation, to be sure, is wonderful. less ­engaged and can lose their skills tech writer Nicholas Carr who wrote When they realized they were too low It makes life safer, more convenient. altogether – so much so that they can- in danger of The Glass Cage: Where Automation is and too slow, it was too late for a go- We have welcomed robots, whether not take over when things go wrong. Taking Us in 2014. The book's title around: The plane clipped a seawall hardware or just software, with open That's why Rory Kay, a veteran pilot 'de-skilling' the more is a play on the "glass cockpit," pilot before it disintegrated on the runway arms. Not only do these systems free and co-chairman of a panel on pilot ­jargon for the novel flight deck design and burst into flames, killing three humans from back-breaking, repeti- training, warned his peers back in we lean back. of the Airbus A-320 introduced in 1988. people. Investigators found that the tive and ­often dangerous physical 2011: "We're forgetting how to fly." It was the first plane to have six big 48 Think:Act 26 Skills at risk Skills at risk Think:Act 26 49

screens in the cockpit – it's a clear ­indication that computers run the show. For Carr, the glass cockpit is the emblem of a sophisticated de-skilling Dumbing down trap: The pilots in control of a big jet such as an A-380 only "fly" the plane Use it or you lose it: That's for three minutes of a long-haul flight. the risk neurologists and ­Prompted by close calls and ­fatal psychologists see with relying accidents, pilots and regulators at the too much on automation and ­Federal ­Aviation Administration (FAA) machine intelligence. spent years examining the problem. The FAA finally issued a lengthy­report A trivial version is familiar to in ­November 2013 warning that pilots everyone using a smartphone. ­relied too much on automated sys- Once phone numbers are stored, we tend to forget all those digits tems and then "may be ­reluctant simply as typing them no longer to ­intervene." serves as a reinforcement. The De-skilling is quickly same is true for relying on becoming a problem for mapping apps which reduce all of us. As more and navigating to following more ­devices become con- turn-by-turn directions and nected and consume live prevent people from building a ­information, drivers forget how to constantly refreshed model of N BEING HUMAN N BEING HUMAN

O navigate in their own hometown. And their environment. O once repair technicians rely on aug- ­Associate ­Professor of Engineering "Humans It's much ado about nothing according ­McGowan wants to shift the debate mented reality headsets to highlight Psychology at West Point Military to Melonee Wise, ­founder and CEO of from lamenting skill degradation to "Experts over time build a repertoire of events and what screws to turn, who knows what Academy Ericka Rovira has spent her service robot company Fetch Robotics. ­refocusing on uniquely human values, are creative, experiences that gives them will happen to their expertise when career pondering how to design auto- She thinks that de-skilling is a common those things that are hardest to auto- pattern recognition. If that the network is down? Once systems mated systems that work the way empathetic transi­tional phenomenon and won't mate. She sees the world at a "liminal gets degraded, the speed with are ­labeled "­autonomous," the so- ­humans expect them to work and pre- make ­humans incompetent or obsolete. space between the third and the fourth which they can gather all the called hand-back in an emergency vent those humans from losing the and "Humans­ are creative, empathetic and industrial revolution," with plenty of available information, make ­becomes the ­potentially ­lethal weak skills they worked so hard to attain. innovative – all skills that will be neces- disruption and change ahead for tens of a decision and execute goes link. Which means engineers have to "Automation," she points out, "doesn't innovative sary for a long time to come. Rote pro- millions of workers and professionals. down," explains engineering figure out how to prevent a loss of ­naturally result in skill degradation. It cesses are those most likely to fall by the "Yet we are certainly not preparing for psychologist Ericka Rovira. situation­­­­­­ al­ awareness and a degrada- often just changes the nature of the – wayside, particularly in industries that this new order," she warns. "We try to tion of skills after prolonged inaction.­ task." And the right user ­interface, or all skills are having problems finding workers," push humans to do what machines do Neuroplasticity is responsible UI, can go a long way in keeping those Wise says. Her point is widely shared by better." Instead of codifying and trans- for this fading of knowledge Silicon ­Valley design guru Don mental muscles toned. Rovira suggests automation ­experts. Many higher-level ferring a predetermined set of skills and and, eventually, skills. As that will be information is used less ­Norman likens the ideal ­interaction we could ­design systems that clearly human capabilities and skills cannot be knowledge through traditional school- frequently, idle neuronal ­between man and ­machine to a horse ­display a machine's limitations based replaced by machines or algorithms in ing, McGowan says, society should necessary connections in the brain are and rider. "Skilled riders are in con­ on comfort ­levels. "In uncertain envi- the foreseeable future, for instance, in ­focus on setting up the conditions for pruned. When researchers tinual negotiation with their horses, ronments, the interface changes based for very interpersonal professions like faster human adaptation: how we learn, scanned the brains of London ­adjusting the amount of ­control they on your trust in a machine. If I tend to healthcare and education. not what we learn. "If job skills are like cabbies, however, they maintain to the circumstance," he overtrust, the UI is more ­adamant a long time This optimistic outlook is also applications on your phone which you discovered they had a larger writes in his book The ­Design of Future about the things it isn't sure of. If I'm based on the assumption that humans add and delete as needed, then the agile hippocampus, the part of the Things. The idea of a man-machine less trusting, on the other hand, the to come." change the way they build and exercise learning mindset is the underlying brain associated with navigation. symbiosis with natural signals would ­interface can tell me clearly: I am 98% their mental muscles. That's why ­operating system that allows the appli- What's more, it grew the longer Melonee Wise, a taxi driver was on the job. serve us well, Norman thinks. sure I know the answer." Founder and CEO of Fetch Robotics ­American ­education expert Heather cations or skills to run." ■ 50 Think:Act 26 Mapping productivity Mapping productivity Think:Act 26 51

FOOD PRODUCTIVITY LABOR PRODUCTIVITY KNOWLEDGE PRODUCTIVITY Agriculture is the most basic form of production. In the industrial age the use of machines led Knowledge has become the main driver of productivity New technology has helped agricultural to a reduction of working hours which has in the 21st century. Its impact is measured less The history productivity increase by 300% since 1750. caused a significant rise in labor productivity. in numbers, and more in quality of work and life.

Number of people Development of hours worked and productivity Work-life balance one agricultural worker The measure of and power of $25,000 overall happiness and can feed GDP per capita work satisfaction Quality time Ideas density 1,100–2,200 The amount of The relationship hours per annum subjectively between repetitive productivity Ancient 1750 1900 1960 1980 2000 2016 200,000 2,500 1700 2050 satisfying hours and creative tasks times years ago years ago achieved per person in work or life Sources: Our World in Data, World Bank, FAO Sources: IGZA, Maddison (2007) Increasing speed of spreading ideas Tackling scarcity has been a key

1,600s – human concern. Productivity '

1,500 years ago – 1,500s – Increasing capital productivity

1,200 years ago –

Reducing risk and cost of trade improvements in food, labor 700 years ago – 1,000 years ago – daytime STOCK EXCHANGE Improving navigation and trade and knowledge have helped PRINTING — 1780s Reducing cost of transaction 1,300 years ago – STANDARDIZED TESTS solve it. Here's how productivity 1,300 years ago – Simplifying numbers and calculations PAPER MONEY Knowledge as career driver — 1770s BANKING — 1800s and endeavor have shaped COMPASS — 1880s 1,600 years ago – Processing and transforming food — 1830s Reducing cost of spreading content Streamlining time

the world. MEAT SUBSTITUTES 2,200 years ago – STEAM ENGINE Increasing power and speed of work CLOCK FACTORY Rationalizing work — 1820s Availability of oil and gas as energy source — 1910s — 1920s RAILROAD Economies of scale — 1870s CROP SCIENCE ZERO Increasing food productivity — 1940s by Detlef Gürtler 2,500 years ago – GUANO PAPER Increasing soil productivity ELECTRIFICATION infographic by Maximilian Nertinger Increasing industrial productivity, extension of ' CHILLER TAYLORISM 2,600 years ago – Increasing durability of food, reducing wasteDivision of labor COMPUTER Increasing speed — 1950s of work DRILLING — 1960s

6,000 years ago – Facilitating trade

N BEING HUMAN SYNTHETIC FERTILIZER N BEINGN BEING HUMAN HUMAN — 1990s Increasing memory, complexity MONEY Increasing soil productivity

O CONTAINER O O 5,000 years ago – Reducing risk and cost of trade Increasing soil productivity SUPERMARKETS WRITING 1 INTERNET — 2000s — 2010s 0 800s Rationalizing tradeGlobalizing information and communication 1,00 GO Division8,000 of labor, years specializationago – PLOW RS A YEA 1 90 10,000 years ago – 0s CITIES DIGITAL ASSISTANCE GENETIC ENGINEERINGPre-configuring decisions Increasing food productivity 40,000 years agoIncreasing – AGRICULTURE food resources

50,000 years ago – Comparative advantage 2 TRADE 0 0 Facilitating communication 0 LANGUAGE s ARTIFICIAL INTELLIGENCE Replacing human work AFRICA INSTANT TRANSLATION Overcoming of language barriers 0 O Increasing durability and digestibility of food 0 G A EUROPE 100,000 years ago – ,0 S 0 1 R 3D AVATARS A E Multiplication of people and their resources FIRE Y MIDDLE F U T EAST U R LIGHTS-OUT FACTORIES E THE MILESTONES OF E Goods production (almost) without human labor I G N PRODUCTIVITY N D O HIVE MIND Making the world a better V E O A Parallel processing of multiple brains 0 G place has played a decisive role L 0 T A INDIA I 0 O , throughout human history – and R S 0 N R W

D 0 S A O FOOD PRINTING will continue to do so. The big- 1 E * O

O Y gest achievements were made B De-coupling food and soil

N

O by the most advanced civiliza- A THE

K L F TELEPATHIC COMMUNICATION tions of each era: from Africa to CHINA AMERICAS Asia to Europe and America. Expressing thoughts without spoken language or written text

* This selection is based on subjective decisions made by the Think:Act editorial team and has no claim to completeness. 52 Think:Act 26 Replacing the robo ts Think:Act 26 53 humanizing the auto industry N BEING HUMAN N BEING HUMAN O O

Japanese car manufacturer Toyota has a fresh take on the automation trend. It's replacing robots and bringing people back onto its production lines – a move that is yielding results by putting faith in human innovation.

back to work Toyota employees return from a by Henrik Bork break on the Mirai poduction line photos by Ben Weller at the Motomachi Plant where they assemble everything by hand. 54 Think:Act 26 Replacing the robo ts Think:Act 26 55

"we

icture a 21st-century car factory. In always start with your mind's eye you can probably see manual work." P a lab-like ­sterility, glossy cars rolling off the line. And everything lovingly ­handled by robots – not a human in Mitsuru Kawai, sight. If there's one place we think robots have Head of ­already ­replaced us, it's in car manufacturing. manufacturing and executive ­Prepare to have your preconceptions challenged. vice president It's quite the opposite at the world-leading at Toyota ­Toyota car plant in ­Nagoya, Japan: One of the ­leaders in the auto industry is boldly bucking the trend and throwing out the robots to replace them with humans. Meet ­Mitsuru Kawai, the modest 70-year-old man behind this seemingly counter­ intuitive move. Kawai started at Toyota when he was 15 as a common worker in the ­forging shop. Today, as head of manufacturing and executive vice president of ­Toyota, he is responsible for all ­Toyota plants worldwide. That's for a company with ­almost 360,000 employees and arguably one of the most innovative car ­manufacturers in the world.

He clearly feels at home on the factory floor as he quietly conducts a tour of the plant at the com- N BEING HUMAN N BEING HUMAN

O pany's headquarters in Toyota City near Nagoya in O Japan. Clad in a white-blue assembly jacket with the word "Toyota" printed above the left breast pocket, he is almost indistinguishable from the other workers busily running to and fro. He is, in fact, one of very few board members of a multina- tional corporation without a university degree. But for Kawai, that doesn't matter as he knows every focusing on nook and corner of his factory and can ­competently ­human skills ­places were robots were recently employed. As if to Perhaps with good reason. Toyota had been judge every move in production from practical The Motomachi prove his point, Kawai lifts his voice above the hiss ­contending with quality ­defects, vehicle recalls and Plant focuses on ­experience. "We always start with manual work," and hammering in the ultramodern forging shop. falling profits. In 2014, Toyota CEO Akio Toyoda ­manual labor on the 8 % says Kawai. "The automation process will progress, Mirai production "See, only humans can do this, not robots," he of the work on publicly apologized and said his company was generally speaking. But when we use robots, they'll line and serves as a shouts. Two workers are servicing mechanical Toyota's global "grasping for salvation" after a safety issues dispute be trained by people who know what they're doing." ­training facility for parts, looking with trained eyes for the smallest assembly lines is in the US. Kawai's appointment in 2015 was a land- In this simple sentence lies an entire philosophy: Toyota ­employees cracks or irregularities and then polishing them said to have been mark statement of a new beginning and heralded Kawai is throwing out the robots and replacing worldwide. carefully. Just under five meters away, the arm of a carried out by a ­return to tried-and-trusted methods such as them with human workers – as often as he can. robot is pulling an iron rod out of a furnace, and robots over the last ­manual labor, continuous quality ­improvement 10 years. While everyone is talking about how robots shaping the red-hot metal on a press that will turn and cost reductions through the ­simplification of will very soon be taking away our jobs, Toyota is it into a crankshaft. What these robots are doing production ­processes and they have helped put shaking things up and charting out its own course. built to innovate today was what Kawai did himself with pliers and ­Toyota on the road for an impressive comeback. A Mirai production Even before Kawai took the lead at Toyota in 2015, a hammer when he ­began making cars for Toyota. Only those robots that work ­really well and are line team ­member ­­the company's automation ­program was changing repositions tools "I built this robot line myself," he says ­proudly. cost-effective still have a chance of keeping their ­direction in many areas of production. Now, from that have been Kawai is not an ­enemy of automation but, as a jobs at Toyota under Kawai. He explains: After the forging shop to chassis assembly and the paint designed to move ­former worker, he has retained a great deal of dis- ­looking at the robots that weld together the base shop, human ­beings are back at work again in on the factory floor. trust for machines, ­robots and computers. of the Toyota Land Cruiser, he noticed that 56 Think:Act 26 Replacing the robo ts Think:Act 26 57

handcrafted the welding seam was too wide and had a few Budget is a keyword. If Toyota has an ­automation A Toyota employee ­defects. "I shut down the entire robot line and I ratio that is barely ­greater than 10 years ago – ­assembles a door said: 'We'll do it manually again,'" says Kawai. sources put the ­machine-to-human ratio ­at less window frame on the ­Unlike the ­robots, human workers could see where than 10% – this has financial reasons as well as the Mirai vehicle without robotic assistance. a groove to be welded was one millimeter wide and pursuit of quality. Kawai says: "If you ­immediately where it was only half a millimeter wide and could start with automation in production lines, you get then ­react flexibly. "The use of welding wire alone ­highly complex systems that are also very expen- has decreased by 10%," he says with pride. sive and often stand idle." He now keeps a close eye The next step Kawai took was to ask workers to on the manual laborers and only reintroduces homegrown inspiration Toyota believes it is human pass on their knowledge to the welding robots. He ­robots step by step where it makes sense. Later the employees, their skills and had them program the automatons themselves. production method is exported to all ­Toyota plants ability to inspect their work, Now the robots are back in operation, but where worldwide. "We built an engine production line that drive innovation. three employees used to have to re-weld the seams, that was completely simple and completely ­manual, one employee is now sufficient for quality control. and then we automated it step by step. It is now in The other two employees were not dismissed, but use worldwide," says Kawai ­proudly. have been retrained for deployment elsewhere. Fifteen years ago it occurred to Kawai that the 36.2 % knowledge of once highly specialized and skilled Industry observers have taken note. "When it the profit increase workers was gradually being lost. "There had been comes to automation," says Hans-Jürgen Classen, reported by fewer and fewer opportunities for team members a leading expert on corporate management in Toyota for the to use their skills and ideas," says Kawai. "That ­Japan, "Toyota relies on its own know-how rather year ending bothered me. And I asked myself how could we use March 2018 over than using external engineers and planning com- our employees' skills and know-how, yet still build the previous year. panies like other large car manufacturers do. automated processes." ­Manual processes are perfected by the employees Toyota's approach is radically different from and only then automated again by the employees that of other automakers. Just think of flamboyant themselves." Classen adds that there's a lot of Tesla CEO Elon Musk who, until recently, was ­common sense involved. "Anyone can buy robots, talking about a "lights-out factory" as his vision for but the knowledge of how to use them effectively the future: no workers, just ­robots. Because robots N BEING HUMAN

is best acquired by oneself. Toyota is a global trend- don't need to see, no lights would be required. O setter in robot use, just as it was with its 'just-in- ­Investors like that kind of talk and usually applaud time' and 'lean production' methods which revolu- any ­decrease in labor costs as a strong indicator of tionized the automotive industry." cost reduction. But even Musk has had to revise Surprisingly, the new methods did not come his ­vision: ­After massive criticism of supply back- from inspiration at home in Japan. When ­Toyota logs for Tesla's Model 3, he ­acknowledged that ­ engineers were traveling around the globe looking excessive automation was a mistake. ­"Humans are for ideas after Kawai ordered a return to manual ­underrated," the ­Tesla CEO said. Kawai is know-how, they found what they were looking for at the ­Toyota plant in São Bernardo, a suburb of São Paulo in Brazil. "The plant there was still as good as non-automated," says Toyota employee "anyone ­Chiharo Naruse. "Many processes were still carried out manually for cost reasons." Toyota shipped the vintage machines from São can buy robots, but Bernardo back to Nagoya, where they now stand on the "TSP Basic Line," an important Toyota produc- the knowledge to tion line in Toyota City. In Japan, workers are now ­being trained and encouraged to learn from the use them effectively "spirit of São Bernardo." The idea is that through manual work on relatively simple machines, the is best acquired employees will once again learn to appreciate the "efforts and struggles of our predecessors, who had by oneself." to build this production line with a limited budget," Hans-Jürgen Classen, as a company video puts it. Corporate management expert in Japan 58 Think:Act 26 Replacing the robo ts CLOSING THOUGHTS … ON BEING HUMAN

not a robot in sight The Toyota Mirai is 100% human-made.

to want to." Toyota's careful approach toward ­automation has the potential to set a worldwide precedent and it could even start a new trend. As Kawai puts it: "We do not rely on systems or robots for progress, but always on our employees, on their "When good ideas and their skills." Sixteen of those employees are engaged at ­Toyota's most modern final assembly line, the you ­Motomachi Plant. They float about on the bright blue, shiny floor between the tool and material shelves, all of which are mounted on wheels so they can glide with ease. They are helping to produce think of your the Mirai – a hydrogen-powered car of the future which has sold 7,000 so far. These 16 workers help build nine Mirais per day in their workshop, com- pletely by hand. It is so quiet and clean that it feels organization, like a hospital operating theater. Each step in the ­process is checked off on a tablet computer. A transmitter relays the exact torque of every screw that is tightened via Bluetooth. It's so incredibly think of the high-tech – but there isn't a robot in sight.

The ­Motomachi Plant not only produces the cars, but also trains all Toyota employees worldwide. It is a kind of mother plant for all Toyota locations. N BEING HUMAN

O "If we used robots here, we wouldn't be able to do essential this work manually and we couldn't teach our workers anything," says Akifumi Karasawa, one of the managers. "Here, we deliberately assemble cars without robots." Of course many robots are in use in other, faster Toyota plants where cars roll off the humanity production line every minute or so. But even there, Head of Manufacturing Mitsuru Kawai sees robots polite but clear regarding his views on Musk's as helpers for his workers, as tools, and not as ­humanless robot vision: "Such a factory would ­substitutes for human ­labor. of the people ­always remain stuck at the same stage of develop- 7 The Toyota initiative indicates that robots need ment. Robots cannot ­improve processes. Only peo- thousand not necessarily lead to job losses, and nor should ple can do that, and that is why they are always at they. In Mitsuru Kawai's vision of Toyota's future Toyota Mirai cars you work the center of our ­attention." the focus is human and not robot-centered. The have been sold to ­manual laborer turned head of manufacturing date. One of the This approach to automation is not cultural or puts it in his own words ­clearly and directly: first hydrogen fuel "typically Japanese," says Classen, but rather part ­"People will always play an important role with us," cell vehicles, mirai with." of ­Toyota's corporate culture – and that means it means "future" he says. "The same employees who used to build can also be applied to other automakers or manu- in Japanese. It combustion engines are now building electric facturers in other industries. "The best proof of is completely ­motors or hydrogen-powered cars. Everything is this is that tested methods such as the Toyota pro- handmade. changing, technology is moving forward and auto- duction system work not just in Japan, but also in mation is also progressing, but all these ­employees ­Toyota's plants in other countries, such as South are still with us." For Toyota's factories of the SUSAN DAVID Africa or Eastern Europe," he adds. "Other manu- ­future it seems that the lights could be staying on Harvard Medical School psychologist facturers could learn from Toyota, they just have for some time yet. ■ → read the full story on page 12 60 Organized crime goes online Think:Act 26 61

Wide angle The mafia has joined big business in setting up shop online – and they're enlisting cybersmart engineers to execute everything from supply chains and distribution Read on to disabling its competitors, on both sides of the law. for diverse insights into the wider world of business and ideas. by Misha Glenny photos by Ragnar Schmuck

The new ­ 1 ate 2012: Office workers at MSC, a Swiss Shipping 2 ­Company, reported to their IT department that the 3 ­computers at their offices in the port of Antwerp 4 were running consistently slow. What they found 5 were tiny computers known as pwnies (pronounced Dons 6 Lpony) packed into memory sticks and sitting on several of the 7 workstations. Their ­systems had been hacked. The Belgian 8 ­police were called in and quickly realized what was going on: 9 Tech wizards had been using this access to steal ­information 10 that ­enabled them to track ­specific containers and gain­access of digital 11 to restricted areas of the port. As soon as the containers were 12 ready for collection, members of a ­traditional ­organized crime 13 syndicate sent in their trucks to drive them away. 14 15 

It was the most dramatic example that law enforce- crime 16 ment had ever seen of the fusion of two types of crime: 17 a traditional ­mafia operation andcriminal hackers 18 hackers. As the case went through the who engage in 19 Belgian courts, the then ­director of Europol, Rob illegal activities 20 ­Wainwright, noted that "we now have effectively a are known as "black hats", 21 ­service-oriented ­industry where organized crime ethical hackers 22 groups are paying for specialist hacking skills that as "white hats", 23 they can acquire online and are using to do their and those in 24 everyday business." So concerned were Wainwright the middle as 25 and Europol, they set up a specialist unit, EC3. At first "grey hats". 26 the unit ­focused on establishing ­Europe-wide strate- 27 gies for dealing with cybercrime. ­Later it began 28 training and integrating other departments, ­notably 29 anti-narcotics and people smuggling.

30 31 

This culminated last year in an entire program 32 to counter what Wainwright dubbed "the digitali­ 33 zation of organized crime." Europol quickly discov- 34 ered it was not alone. Researchers into the illegal 35 trafficking of rhino horn, ivory and pangolins from 36 South ­Africa to Vietnam discovered that crime gangs 37 were using the ­internet and messaging services to 38 send the contraband via circuitous routes – Latin 39 America, the Czech Republic and Ukraine – to evade 40 detection.

62 Think:Act 26 Organized crime goes online Organized crime goes online Think:Act 26 63

The Brazilian and Soviet connections

1 Meanwhile in Brazil, the authorities had been struggling for several years with 2 the growing power of a single criminal syndicate, the Primeiro Comando 3 30,000 da Capital (PCC), São Paulo's mafia corporation. Mobile and then smart 4 people are phones had transformed the ability of the PCC's council, the General Syndicate, 5 ­already members to direct the organization's operation from within their prison cells. The PCC's 6 of the PCC, a leadership used its newfound communications ability to expand its operations 7 rapidly growing 8 ­organization beyond São Paulo. Today, just 10 years later, it is the major criminal presence not that draws just in Brazil's 27 states but in Paraguay, Bolivia and, increasingly, in southern 9 new ­recruits Colombia as well. But this was nothing compared to what prosecutors in São 10 every day. Paulo discovered after police had seized two laptops belonging to senior PCC 11 members. Laid out on Excel spreadsheets was the entire cocaine distribution 12 network for the metropolitan area. The document detailed how the PCC's 13 franchise operation worked down to the smallest retailer. There was even a 14 column identifying the punishment for individuals if they backtracked on their 15 commitment or were suspected of embezzlement. They ranged from simple 16 fines to execution. The final column confirmed whether the punishment had 17 already been carried out and by which local branch.

18 19 

Two epoch-changing events precipitated global organized crime 20 representing a serious security threat. The first and less immediately obvious 21 cause was the lifting of capital controls on financial and current accounts 22 in 1986 by UK Prime Minister Margaret Thatcher and US President Ronald 23 Reagan. The importance of the "big bang," as it was called, only started 24 to become clear after the second event: the collapse of Communism in 25 Eastern Europe and the Soviet Union. The former Soviet countries had 26 no institutional ability to regulate the new capitalism which had been 27 emerging among market traders since Gorbachev's reforms allowing limited 28 private enterprise in 1988. With no commercial courts or arbitration system, 29 the new businessmen employed what the Russian sociologist, Vadim Volkov, 30 dubbed "privatized law enforcement agencies," or "the mafia." 

31 32 Globalization of organized crime 33 

The mafia groups soon discovered that they could enter into markets too and 34 that, with the state in disarray, they could trade as easily in illegally farmed caviar, 35 young women trafficked for sexual purposes or drugs. Around the same time, the 36 new power of mobile capital was also opening up other markets around the world: 37 India, Brazil, South Africa and even China. The rapid transformation placed strains 38 on these countries' ability to maintain law and order. Before long, Russian groups 39 were linking up with the Japanese Yakuza, the Colombian cartels, the various 40 Italian mafias – including the Camorra and the 'Ndrangheta – not to mention 41 Bulgarian, Moroccan, Vietnamese and Chinese syndicates.

42 43 

Industrial-scale cybercrime also began its ascent in the former Soviet 44 Union – quite specifically in Odessa, Ukraine. A group of unemployed 45 hackers in their teens and twenties created a website, carderplanet.com, 46 which revolutionized cybercrime on the web. The Ukrainians set up an 47 escrow system for the 7,000 or so members who used the site as a market for 48 a stolen card stolen credit card data and computer viruses. This enabled 49 number cost $30 criminals to enter into transactions securely. It also created trusted networks 50 on carderplanet.­ among criminals which operate to this day. Elsewhere other unemployed 51 com, including the Russians, Bulgarians, Ukrainians and Romanians with their excellent maths 52 owner's name, social 53 security number, and physics education from the Soviet period began to make money mother's maiden name and address. 64 Think:Act 26 Organized crime goes online Organized crime goes online Think:Act 26 65

1 from the gaping vulnerabilities in the emerging e-commerce culture of the 2 United States and Western Europe. The BRIC countries proved to be fertile 3 breeding grounds for cybercriminal activity. Brazil, with its large Lusophone 4 and Hispanic reach, quickly developed one of the largest cybercriminal 5 markets. Cybercrime was revolutionary – huge profits were possible using 6 theft and extortion.

7 8 Disrupting the mafia's business model 9 

Almost every traditional criminal market is now being influenced by the 10 disruptive capacity of the internet. The drug trade is moving from the streets 11 and onto the darknet. The statistics show something else, as well: the darknet 12 Europe's and America's drug consumers are moving away from organic products is the internet's under- 13 originating in Bolivia or Afghanistan and increasingly enjoy synthetic drugs, world. ­Largely anony- 14 manufactured not in the developing world, but in Holland, Canada, Bulgaria mous and driven by ­cryptocurrencies like 15 or Israel. That shift in production puts an immense additional strain on law Bitcoin, Europol esti- 16 enforcement agencies. There are many reasons why the legalization of certain mates that two-thirds 17 drugs is a live political issue. The fact that the police are finding it hard to cope of the illegal darknet 18 with the volume of drugs now circulating in Europe is not often articulated but it is offers are drug-­related, 19 very important. In one respect, we should welcome the shift in criminal behavior with one-third ­related 20 away from activity based on violent coercion. But as we grow ever more critically to other illicit goods 21 dependent on networked systems, the consequences of the potential threat from and services. 22 cybercrime and other forms of digital malfeasance grow exponentially.

23 24

 In October 2016, an unknown group of criminals launched a massive 25 DDoS assault on the servers of Dyn, an American company which is vital for 26 the smooth functioning of the internet. The attack led to large parts of the 27 internet on the American East Coast going down for several hours. Three 28 things were special about this attack. It was some 40 times more powerful 29 than any previous DDoS attack ever recorded. Secondly, the ddos 30 original code written by a student at Rutgers University who mistakenly stands for 31 released it "into the wild" had been carefully rewritten to increase its power "distributed de- nial of service." 32 and targeting ability. And thirdly, it derived its immense power by taking During such an 33 control of millions of devices around the world linked to the so-called attack, ­multiple 34 internet of things. The obsession with growth on the internet has left security unique IPs 35 far behind. Without a fundamental shift in thinking as to how one protects send repeated 36 networked systems, we run immense social and economic risks.

requests to a 37 server, causing 38

 As the fusion between traditional organized crime and cybercrime it to overload. 39 proceeds, the structure of cybercriminal groups has assumed the 40 hierarchies usually associated with its real-life counterpart. The days of 41 the script kiddies, those mischief-making 15-year-olds bombing your 42 computer with viruses, are over. Now cybercriminals have a boss and a 43 council who are making decisions, a coding and malware department, a 44 social engineering department, a finance department and then an army 45 of foot soldiers responsible for laundering the money.

46 47

Both groups have learned a lot from this transitional period. Austerity in 48 Europe has created a significant problem for governments and security policy. Like 49 other parts of the world except the US, Europe suffers a dearth of cybersecurity 50 professionals. Very few are prepared to devote themselves to public service, like 51 law enforcement, when they can earn five or 10 times as much in the private 52 sector. The future of policing will be primarily online. But one thing's for sure: The 53 criminals are way ahead in seeing what the digital future can offer.

■ 66 Think:Act 26 Thought Leader Think:Act 26 67

In praise of boredom

Pioneering thinker and psychologist sherry turkle wants us to reclaim human space from all those accelerating technological interruptions. In conversation with Think:Act, she outlines how we need to change our pace to be our most creative selves.

by Steven Poole illustrations by Jeanne Detallante

Sherry hile the dangers on the cover, ­although she now jokes Turkle and addictions of that she'll never be on the cover of that the digital world, magazine again because of her increas- ­social media and ingly critical position on how our rela- A professor at MIT devices are a hot tionship with technology has evolved: and the author of Wtopic right now, they've been troubling in our personal lives, in the workplace nine books, Sherry Turkle has gained Sherry Turkle for almost three decades. and in the public sphere. international The psychologist and MIT professor recognition for her first rose to fame with her book The Your book Alone Together talked about pioneering work in ­Second Self: Computers and the Human the loneliness and atomization experi- the field of human Spirit way back in 1984, exploring chil- enced by people on social networks. interaction with dren's relationships with videogames That was 2011. Do you feel vindicated technology and the and electronic toys. Her second book, now that this is generally accepted? digital world. 1995's Life on the Screen: Identity in the I knew I was right – I did the ­research. I Age of the Internet, discussed the way was in elementary classes, with high people could play with identity on the school students, in businesses and I saw nascent World Wide Web. That made that people weren't having conversa- Wired magazine sit up and they put her tions and that their faces were in 68 Think:Act 26 Thought Leader Thought Leader Think:Act 26 69

their phones. It feels good to not have In Reclaiming Conversation, your latest The and he couldn't do it. He couldn't not to talk to anybody, because you feel vul- book published in 2016, you say that we conversational be interrupted. Find your way to reclaim nerable when you talk to people. Why can still use our phones for useful boredom and solitude as a business don't you want to talk to your boss? "It ­purposes, but should do so with greater corporation leader. That's because, when you do, makes me anxious," people say. It was "intention." How do we do this? then you're going to be able to claim natural that people didn't want to hear Going out to lunch, many people turn back conversation. 1 my message – "you're vulnerable" – it off their phone and they put it on the Don't expect employees to get back was like I was blowing the whistle. ­table face down. It turns out that in that Step 1: to you right away. Make the rules for situation, conversation is less ­empathic Make sure the office communication really clear. And tell Are the ways we use technology ­actually and the topics are more trivial things. contains a sacred space people they shouldn't be working on inhibiting empathy, or are we retreating "When we get email we Using your phone with ­intention means without phones, phones when they go home. Make plac- from empathy for some other reason you put your phone where you can't see just for talking. es in your organization where there are and using technology to do it? it. The phone takes you elsewhere; it no phones and just talking: sacred spac- tend to speed up the pace 2 Technology is an enabler. It's always ­reminds you of all your elsewheres. One es for conversation. Also, when we get been hard to fire somebody, but before thing about using technology with Step 2: email we tend to speed up the pace of you had to face them. It's always been of important decisions, ­intention is to put it away so you can get Batch emails to important decisions, so try just answer- hard to break up. Before, you had coffee used to the boringness of people – the colleagues and make ing by saying "I'm thinking." Watch it go with them; then it became convention so try just answering by human pace, which is boring. it clear when you ­viral, it's ­incredible. You'll get the most you could text them. Technology takes expect a response. odd responses. a human ­vulnerability and says, "You saying 'I'm thinking.'" Yes, you say that boredom is linked to don't have to do this hard thing." creativity and innovation, so we need to 3 You said you welcomed Apple's recent

One of the funniest demos I ever be bored and solitary more often. Do we introduction of tools for users to manage Step 3: need to hear more unfashionable advice how much time they spend on apps. But went to was very early in the internet of Encourage everyone things: You could order your coffee from Alpha teams. They were supposed to be Another problem is that algorithms like this? to work without you say it's just a first step. What should Starbucks and the program would route the greatest algorithmic minds in the (such as Facebook's News Feed) increas- Absolutely. You should allow yourself constant interruption, happen next? you to the nearest shop where you company, but those were not the teams ingly decide what version of reality we to be bored. Boredom, solitude – people which will fuel well-­ The second step is being more critical wouldn't cross any people you had told that thought up the best ideas; it was will see. How do we break out of these have a sense that they can't stand it. being and creativity. about how you design the apps and it in advance you didn't want to run into, more the teams that were collaborative. filter bubbles while staying in touch with They just can't sit: That's part of the what ages do you want to be designing ex-lovers and so on; it would put you on We need the humility to recognize that each other? ­appeal of meditation, people are sens- seductive apps for and what decisions a route that didn't cross any of these we're at our best as people when we're You're talking about really ­dangerous ing that they're antsy, that they can't you make about how people want to use people. They called it the friction-free being empathic and talking together. ­algorithms now. It's been shown that take life at the human pace. I'm sitting these phones. life. Did we always want that – and now In the area of medical diagnosis, it the ­algorithms used on YouTube are here in my beach house and looking out We really need to think about what machines give us that life – and we can turns out that physicians taking a pushing people to extremes: No matter at the beach, and everybody is walking Remember technology we need and why. The next block people we don't want to see? We ­personal history and actually sitting where you start on YouTube, you end up along the beach looking at their phone. how much big seduction and time-sink is going to use technology as an enabler to live with a patient can see all kinds of things with some crazy right-wing or some We've reached a moment of pushback. people can do be virtual reality and augmented reality, lives where people disappear. that artificial intelligence (AI) can't. So ­crazy left-wing theory of something which is potentially very politically con- this is an area where you see tremen- ­because you're pushed to more and The book also discusses strategies for together servative because you don't look at The replacement of human judgment dous overreach and then correction, more radical clickbait. Did it have to be dealing with our electronic communica- what's in front of you – you look at a fan- with algorithmic judgment seems to and that's what we're going to see in that way? tion overload. What are the main things Protocols and tasy. So at the same time we're starting algorithmic thinking are ­reflect an ideal of eliminating what is ­every field. I certainly think there are ways we business leaders need to know about a movement to put our phones in their important, but studies messy and unpredictable about humans. Already in medicine there's a sense can resist this. When people bring ­other these challenges? place, we're super-hyping a whole new repeatedly show that But you have argued that is a dangerous that there's been overreach, you've pleasures and activities into their lives, One of the most important case studies empathy, conversation world that we're going to see through wish. How do we balance the costs and ­certainly seen it in stock trading. You and other people into their lives, and I did was the businessman who told his and teamwork are surer our phones. I'm very worried about a benefits of the algorithm? see the fantasy, the overreach, and then more lively and pleasant forms of being secretary that he wanted to be ­protected routes to success. generation who don't like where they We need to have a little bit of humility the correction. It doesn't mean that I'm together, they will find they're not from all email and all calls, so he could are right now not choosing political for how far excellence in algorithmic a Luddite. But people forget how much ­"addicted" anymore. We just need to find be alone to work on his important ­engagement and going off to virtual thinking will get you. Google had these people can do. a better balance. ­presentation – he was going to Davos – ­reality instead. 70 Think:Act 26 Business leader inter view Think:Act 26 71

She started off wanting to brew beer, but ended up leading India's first biotech startup. Undaunted by gender bias and other obstacles, Biocon's CEO Kiran Mazumdar-Shaw has sharpened her focus on global healthcare and has used her unique leadership style to build a pioneering multibillion-dollar company.

from the ground up ­ Kiran Mazumdar-Shaw turned a chance meeting by Rohini Mohan into a world-class company photos by Jyothy Karat at the forefront of its field.

he is a self-made woman, one of the When Unilever acquired the Irish company it richest in India, and is regarded as the also picked up the 30% stake in Shaw's Indian founder of the country's biotech indus- ­operation. Shaw noticed that overnight Lipton Ice try. Kiran Mazumdar-Shaw founded Tea started using her clarifying enzyme and that ­Biocon in the late 1970s. It has gone on early recognition of the possibilities of her tech­ Sto make a range of biopharma generics to treat nology visibly enthuses her even today. ­autoimmune diseases, diabetes and cancer and is Shaw's Biocon is now a biopharmaceutical and one of the world's largest producers of insulin and research giant focused on global healthcare. It sells breast ­cancer drugs. In her ­office in Electronic City, drugs in over 120 countries and has one of the Bengaluru, Biocon's CEO reveals that she was nei- world's largest portfolios of biosimilars with a ther an engineer nor a ­businessperson – until she ­market size of over $61 billion. Even after Biocon discovered she had the aptitude for both. went public in 2004, few biotech companies have After school, she trained in Australia to be a followed suit – they're too small, struggle to lure brewmaster, just like her father, who worked at scientists away from universities and are unable to United Breweries. It was not exactly a ­conventional $61 attract funds in clinical ­genomics in the way career path for a woman in India at the time. When billion ­Biocon has. This is in large part because of Shaw's no one would hire her, she upped sticks and left for own efforts. Her interactions with funding, regula- Scotland where a chance meeting with Leslie The current market tory agencies, politicians and health sector leaders Auchincloss, the founder of Irish biotechnology size of Biocon's gave the technical biotech sector a relatable face. portfolio of biosimilars company Biocon Biochemicals, changed her career Here she shares some thoughts on what drove her with drug sales in How the queen trajectory. He let her use the name of his company 120 of the world's to build the company and what made it successful. and she started Biocon in India as a joint venture 195 countries. ­ with him. She called her business "a ­multinational Mazumdar-Shaw What was on your mind when you woke up today? company." Indeed, its promoters were from two started with seed Today I was to address a young group of students capital of just $1,000. different countries. But the lesser-known fact was graduating from the Biocon Academy, and I was bee of biotech built that Biocon was operating out of a garage of a wondering what to say to them. I told them that ­rented house in Bengaluru (then Bangalore), with ­unless you have a meaningful sense of purpose, a seed capital of only of about $1,000, an ­unreliable you won't ask the hard questions. Biotech has the power supply and just two employees. But she opportunity to address a ­plethora of big needs. For gathered enough investment and began the busi- instance, India is an agrarian economy, but our her hive ness with an innovation for extracting ­e­­­nzymes farmers are challenged with poor productivity. If from papaya and catfish to clarify beer. scientists looked at agriculture ­biotech we 72 Think:Act 26 Business leader inter view Think:Act 26 73

could find exciting new answers to ward off pests or address drought and poor soil conditions. The "My sense of purpose other opportunity is industrial biotech, where ­enzyme technology could create non-polluting when I embarked products and fix our cities. on this journey was What was your sense of purpose when you first started Biocon? My sense of purpose when I embarked on this to make an impact ­journey was to make an impact on global health- care through providing affordable access. The on global healthcare World Health Organization's 5.1 Program identi- fies that 5.1 billion people on the planet have little through providing or no access to modern medicines. We are trying to make a difference to those people. affordable access." leading innovation When you started Biocon in 1978, what were the ­­Biocon turned taking challenges you faced? a risk on homegrown technology into the I was 25 years old. I was a woman. I had no busi- basis of its business. ness experience. I had no money in the bank. And I was trying to start a company in biotechnology, which no one had heard of. I had studied fermen- tation technology, but no one gave a woman a job as a brewmaster. The industry had a huge gender bias. But along the way you find people who under- stand what you're trying to say and come on board. Without even realizing it, I believe I set up the first tech startup in India. As a business leader, and a pioneer in the Indian Young researchers and scientists joined Biocon realized the power of patents and innovation. That Why biotechnology? ­biotech industry, how would you describe your because they knew they were helping me build the is why thinking out of the box has to be firmly When no one allowed me to brew beer, I started 200 management philosophy? company. A lot of the technologies we developed Kiran ­engrained in Biocon's DNA. That's what makes us. making industrial enzymes – only a few steps away My driving business philosophy is highest quality were homegrown. India was quite underresourced from beer! I developed plant enzyme technology The number at lowest cost. I've thought long and hard about then, without the ability to import many ingredi- Mazumdar- Along with your business, you have set up a cancer for the food industry, whether it was yeast for beer of patents held by that balance and found my answers in integrity ents or technologies, so we had to be quite inge- Shaw research foundation and even subsidize medical Biocon worldwide or bread, fruit juices, dairy, etc. I was trying to and compliance. India has a reputation of not nious, find frugal workarounds to make something care in some hospitals. Why is such philanthropy as of 2010. important to you? ­advance food science. I was also developing ­being very honest about compliance. We have a lot very sophisticated. Mazumdar-Shaw­ eco-friendly technology to replace chemicals, like of ­issues with international regulatory bodies. I entered the I live in a country with a lot of inequities. I started starch. Then in 1998, I thought I could leverage the take this very seriously and I am ruthless about Why was innovating homegrown technologies biotech­ industry to look at my own field of healthcare. Could I do fermentation and ­recombinant technology for compliance, data integrity and quality. A proactive important­ to you? via innovations­ more? Around then, a dear friend succumbed to something even more exciting: ­biopharmaceuticals. 5.1 quality focus is key for me. Even if it takes time, People asked me that a lot – especially when ­capital in enzymes­ for ­cancer. She was an ­affluent career woman, but even billion even if it is initially expensive, this is crucial in the was hard to come by. Nobody wanted to back a new the food industry. she could not bear the financial burden of cancer You kick-started the biotech industry in India. How long term. idea. They asked: Why are you trying to take a big She has earned treatment. I had developed all these affordable has it evolved? The number of people risk on this homegrown technology that may not a reputation as a products, but I realized patients needed affordable Indian pharma has made a huge global impact on the World Health You can demand quality at the very top. How do you scale up, may not work? I said: That's the basis of healthcare reformer treatment. So, I partnered with Devi Shetty [of ­generic drugs and vaccines, but biopharmaceuti- Organization identifies ensure that people throughout the company believe our business, that's what sets it apart from and was the 2014 Narayana Health] to replicate his low-cost cardiac as having little or recipient of the cals are more complex. The sterile facilities, the in the same philosophy? ­everything else in the world. care model for cancer. I built the Mazumdar-Shaw no access to modern Othmer Gold Medal delicate technology and ­safety precautions By having a problem-solving mindset. This culture I only realized the power of our ideas when Cancer hospital and he set it up. We also insisted medicines. for outstanding ­required make them inherently ­expensive. So, we gives people a larger purpose, makes them more Unilever bought over our Irish partners and contributions to the that we embed a translational research center. have to combine engineering and life science skills creative, more invested in quality. When they solve ­ascribed a huge value only to the Indian operation progress of science My philanthropy is really about helping people to develop the technology. The innovation can a problem, it gives them a sense of empowerment because of the homegrown technology. And then and chemistry. build sustainable models. Whether it is providing ­never end. Thankfully, the head of my R&D was this and achievement. I encourage my employees to not again, in 2010, I got huge value for the intellectual a chair or a fellowship, or funding some research, IT-crazy guy and he developed a very networked fear failure. I've tried to teach people to own prob- property we had created on technologies. [By 2010, it is a long-term model. Philanthropy as risk ­capital platform that kept us ahead of the curve. lems, rather than carry out tasks. Biocon had 200 patents worldwide.] That's when I is important, especially since it's so rare. ■ 74 Think:Act 26 URBAN RENEWAL URBAN RENEWAL Think:Act 26 75 Motown's

new After 60 years of decline, imaginative leadership is giving Motor City a new spark. Yet the question remains: Will this momentum former jewel of the US economy step up to its former glory or will the hype simply sputter out?

by Bennett Voyles

n 1950, Detroit was the wealthiest city per ­capita in the United States. Its 1.8 million ­inhabitants were among the luckiest people in a lucky country, beneficiaries of the biggest ­industry is the US: cars. But it didn't stay that Iway. As the car ­industry decentralized so did the city. Detroit shrunk to about 675,000 people and quickly ­became one of the poorest places in the US. The word "Detroit" evoked images of burnt-out neighborhoods, boarded-up ­office buildings, out- of-­order stoplights and news stories about an $18 ­billion municipal bankruptcy. Even in 2013, the city still seemed locked in a ­terminal downward spiral. ­"Everything was going pretty much to hell in a handbasket," recalls John Austin, director of the ­Michigan Economic Center and a lecturer on the economy for the University of Michigan. Today, the lights are finally coming back on in then and now Motor City, literally and figuratively. The city is out Once the bustling of bankruptcy. Most of the traffic lights work and center of the US car the streetlights are back on at night. Class A office industry, Detroit space is now 90% rented out, downtown apart- is becoming a ment vacancy rates are near zero and a variety of center of ­creative urban regeneration businesses, large and small, are moving downtown. ideas, including "There's a lot of optimism here right now," says urban farming. ­Harrison West, senior research ­analyst in Detroit for JLL, the global real estate advisor. ­"People are photos: afp/getty images, malte jäger/laif malte images, afp/getty photos: excited about what's going on." For ­decades, 76 Think:Act 26 Urban renewal Think:Act 26 77

MOTOWN THEN AND NOW

…population… blank canvas Small-scale 1,849,568 experiments are 1950 being used to draw foot traffic 673,104 to the city's 2017 empty spaces. people have offered various explanations about what went wrong – the decline of the US ­automotive industry, white flight, dysfunctional politics – but these days it's a new question: What's going right?

Part of the answer is new leadership. Most ­analysts give high marks to Mayor Mike Duggan, a former prosecutor in suburban Wayne County who positioned himself as a ­can-do technocrat focused on delivering basic services. He reduced ­emergency medical response times from 18 minutes to 8, the national average, and police response times for …unemployment high-priority emergency calls from as much as 58 rate… minutes in 2013 (a claim that is sometimes ­disputed) to 14.5 minutes. Although some of these gains were accomplished by moving the goal posts, 27% such as redefining what constituted a Priority 1 2010 ­police call, many of the changes were real. For return to 9.9%as recorded ­example, he added new ­vehicles to the city's fleet the city 2018 in January and had fire fighters cross-trained as paramedics. Many young The new leadership does not end with Duggan. ­college-educated professionals A consortium of private philanthropists and local as well. Police dispatchers now have Uber-style prefer to live and businesses paid $700 million to help reduce the work in urban maps to monitor the whereabouts of ­patrol cars, impact of the $18 billion bankruptcy, offsetting ­locations over enabling them to assign calls to ­specific units. some of the cuts made to municipal workers' pen- the suburbs. sions and preventing the sale of the world-class Internet of things technology is also being used ­Detroit Institute of the Arts. All in all, Austin says, relics of the to deliver better service for less money. Miovision, it was "pretty amazing to make it all work without past Once a plush an Ontario, Canada startup, has ­installed monitors selling off more of the crown jewels downtown that movie palace, the at many of the city's traffic lights, making mainte- the city owned." A new approach to urban planning Michigan Theater nance much simpler. In the bad old days, when a is now used as a helped change perceptions of the city. The ­"Lighter, light went out, it ­t­­ended to stay out. "There was no parking garage. Quicker, Cheaper" (LQC) philosophy applies a dose way for the city to know what was happening," says of startup thinking to urban spaces. Instead of Lynda Chau, chief marketing officer of Miovision. ­focusing on major long-term investments, LQC "Unless you had a concerned citizen who called in, proponents try to create inviting places for people the city would have no way of knowing that part of to congregate on the theory that creating a sense their traffic network wasn't working." Now, city of community will drive other opportunities and workers know in advance when a repair needs to more investment. "There's a lot of optimism be made. And that's only the beginning. Miovision In Detroit, this has meant implementing is now using the city as a test bed for what it calls small-scale experiments to bring desolate ­corners here right now ... the "World's Smartest Intersection," a package of back to life in cheap and creative ways, such as the new technologies that features such ­innovations ­urban beach that Southwest ­Airlines built on a dis- People are excited about as traffic lights that stay yellow a little longer when used lot, summer concerts co-sponsored by local they sense a cyclist crossing. entrepreneur Dan Gilbert, or a mass yoga class, Of course, large-scale commercial real estate ­according to the Project for Public ­Spaces. And the what's going on." investing has also played a major role in the city's city's new openness to innovation has also led to revival. The exodus of manufacturers from down-

some rapid improvements in traditional ­services (2) jäger/laif malte photos: images/laif chris reeve/loop photos: Harrison West, Senior research analyst at JLL town Detroit was a key reason for the city's 78 Urban renewal Think:Act 26 79

thinking big the city is gaining many new, highly skilled President and CEO ­residents: At 78%, Detroit had the fastest growth "There is a real interest and of Ford Motor Co. in numbers of college-educated millennials of any Jim Hackett inside city in the US between 2010 and 2015, according to Michigan Central kind of a market for Detroit a 2017 study published in Forbes by Pete Saunders, Station. He will a Chicago-based urban planning consultant. ­redevelop the as an urban place to develop." former train depot "There is a real interest and kind of a market for ­Detroit as an urban place to develop and a kind of as part of a new John Austin, Director of the Michigan Economic Center downtown campus cool and interesting, Berlin-like place to be," says for autonomous Austin – and it's a trend he expects to see continue. and electric vehicle "You will see a kind of continued colonization businesses. ­outward of neighborhoods and new conversion The biggest difficulty, however, may be the ­developments and business and commercial and ­persistence of the city's historically sharp racial entertainment districts expanding." ­divide and many long-time residents in the largely African-American city feel the recovery has not yet But there's a lot of work ahead. The crime rate arrived for them. "When you see all these hipsters is declining about 5% a year, but it's still well above and techies and white college kids, white young most US cities. Over 5,800 vacant homes have been people, running around and living in lofts down- torn down, but as many as 29% of the city's struc- 90% town, they're like, 'What's up with that? Where's tures are falling apart and still need to be repaired my Detroit? How is this working for me?'" Austin or razed, according to an estimate by the Skillman The minimum says. That's a problem not only for the long-term …police Foundation, a local advocacy group. There is also estimate of residents, but also for the city, since their resent- response time… no consensus yet about what to do with the wide downtown Detroit ment discourages newcomers. Many immigrants Class A office open spaces that remain once the houses are razed, space currently from other countries who come to Michigan con- and some analysts say the economy remains too rented out. tinue to shun the still largely African-American city. 58 min dependent on the automotive ­industry – ­especially Detroit mystery writer Elmore Leonard once 2013 at a time when the future of cars is uncertain. The noted that "[t]here are cities that get by on their 14.5 min ­resistance of the white suburbs towards building a good looks, offer climate and scenery, views of today metro ­area-wide transportation system has also mountains or oceans, rockbound or with palm slowed development, according to Austin. "We're trees. And there are cities like Detroit that have to the one major metro in the country that doesn't work for a living." For the next few years, at least, decline in the 1950s and 1960s. As business left, former glory that we've had so far," says JLL's West. "That have a regional transportation system that is Detroit and its boosters still have their work cut out the tax base shrank, and many people – ­particularly Michigan ­building has been a symbol of the decline of the ­integrated and has public transportation that for them. The good news is that they're finally white people – followed. Some parts of the city Central Station city for the past 30 years, and to have someone like works," he says. ­getting somewhere. ■ is just one of ­became near ghost towns. Ford come in there and renovate it and build a many landmarks set to make a campus there, it's going to completely transform Particularly important was local entrepreneur comeback. that neighborhood." Dan Gilbert's 2010 decision to move his company, Today, Bedrock and other developers are even Quicken Loans from the suburbs and into down- ­resorting to new building. "At this point in time, Starting up Detroit again town. "Once [Gilbert] moved his employees down there's really no big blocks of space for a new there, he started gobbling up real estate – ­vacant tenant to come in and occupy it. All the Class A office buildings, vacant apartment buildings – for space has been occupied now. And it's not just the From Henry Ford and → shinola will make transportation diabetic son who saw an former automotive engi- pennies on the dollar. A lot of these buildings are behemoths that have returned," according to West. the Model T to Berry A luxury brand special- more affordable. undeveloped market for neer and gunshot victim 100-year-old, historic, beautiful buildings; they'd One factor in the decline of Detroit had been the Gordy and Motown izing in retro-­American healthy drinks, Twisted Omer Kiyani as a way to just been neglected," West recalls. Today, the post-war enthusiasm for suburbs. Now the pendu- Records, Detroit has a products, manufactured → cityinsight Water and its sister make guns safer. long history of innova- right in Detroit. An app that lets resi- brand Wow Water are ­mortgage mogul's real estate firm, Bedrock­Detroit, lum is swinging back. For many ­millennials, urban tion. Detroit may not dents track water usage low-calorie drinks with → plum health dpc owns over 15 million square feet of apartment and life is the more attractive option, and that shift is be Silicon Valley yet, → elio motors in real time, pay utility no high-fructose corn A by-subscription office space in Detroit and ­Quicken now employs pushing employers on the lookout for talent to but the startup scene An 84-mile-per-gallon, bills and get mobile syrup or gluten. healthcare service over 17,000 people in the city. ­relocate to big cities, including Detroit. does seem to be getting three-wheel vehicle customer support. founded by Paul Thomas, Other companies have ­followed suit, the latest To an extent, the gambit seems to be working. bigger all the time. with a target price of → sentinl a local MD, that by- being Ford Motor Company, which announced its The population is still declining, as it has been Here are a few of the $7,450 that → twisted water Maker of Identilock, a passes the entrenched plans to take over ­Detroit's central train station. "I since the 1950s, but the rate of decline is lower current contenders: designer Paul Founded by a local biometric fingerprint and expensive private

would say that is the biggest sign of the turnaround than it's been in decades, just 3,541 in 2016, and (2) images bloomberg/getty photos: elio motors photos: Elio hopes entrepreneur with a trigger lock invented by insurance market. 80 Fresh thinking Think:Act 26 81 Food for redefining headquarters thought The corporate HQ is dead! Long live the corporate HQ!

Take a deep Corporate HQs (CHQ) are so last century. Or are they? RB's dive and find out new study finds increasing digitalization means a growing more in related trend in decentralization and with that a changing function for Zunum Aero is focusing on electrically powered 6–12 seater aircraft. articles and studies. CHQs, with more of a tendency for shared service centers. Report co-author RB senior partner Fabian Huhle says this doesn't mean the erosion of the CHQ, rather a challenge to adapt and grapple with disruptive trends. It's less about new power electrical jet propulsion geographical decentralization and more about linking up decentralized competency across organizational boundaries, Battery-powered orchestrated by the CHQ. ~100 flight is on electrically propelled aircraft are in the runway →→ under pressure from digitalization development around Read about the changes that are causing CHQs to question what the world today. they do: https://rb.digital/2P9GZt4 The burgeoning Trend for electrically powered jet travel is taking off. By 2032 there could be 50-seater hybrid electric aircraft operating between London and future flight Paris, according to RB's new study. There's good reason for "For the the shift: If things carry on as millennial momentum first time, they are, by 2050 aviation could account for as much as 25% of our indus- global carbon emissions. Millennials and share of expenses Battery power could have a huge when traveling try can impact on the aerospace industry envisage and those piloting the way ahead

getty images, zunum areo, jacobia dahm/bloomberg/getty images dahm/bloomberg/getty jacobia areo, zunum images, getty both in industry and research are the changing / enthusiastic. CHINESE 18 % a future 19 % shopping Spinal disc replacements – Andreas Thellmann, project face of travel other a new use for 3D printing. which isn't executive at Airbus, thinks that all-electric propulsion could be wholly applied to short-distance heli- additive manufacturing 14 % 16 % copter travel – and that could see flights attractions You might be used to hearing about millennials being courted in a reliant on changes in city infrastructure,

getty images; science source images; getty Material change / recruitment drive, or as the caffeinated fuel in the flat white economy. with landing pads for flights. afp / Additive manufacturing (AM) is the process where layers of jet fuel." Now you can add another area where this hyped demographic is 17 % 16 % Ashish Kumar, founder and CEO having an impact: tourism and travel. For the 18–34-year-olds that hotel food a material are added to build up a 3D object. Exciting Johan lundgren, of Zunum Aero, is driven by the make up this group, travel expectations are very different from previ- possibilities lie ahead for metal manfacturers, if they can CEO of easyJet possibilities: "All our focus is on ous generations and their digital savvy is bringing a new momentum 8 % keep pace with new technology. RB's latest report shows the six-to-12-seat, 700-mile AMERICAN to the travel industry. The revival of the urban break is one factor; so shopping many are simply not yet equipped to take advantage of AM aircraft," he says. He is expecting – or even to stay up to date with the developments. The too is the blurred line between business and leisure trips, now with its 18 % josh edelson stocksy; to bring it into service in 2022 to / other 11 % report offers a four-step approach to build a technology own buzzword – bleisure – to explain how work blends into holiday, attractions kick off the commercial electric bringing with it all sorts of retail opportunities. road map for future success. era. Chocks away! 20 % 16 % flights food →→ the generation shaping travel and shopping habits →→ am on the brink of industrialization →→ onwards and upwards Find out what the 18–34s are looking for in travel, business and leisure and how they differ Get up to speed on the new processes and techniques in the future Read about how innovation will change air source: expedia media solutions, 2017 solutions, media source: expedia from others: https://rb.digital/2NK30yw images lumina photos: field of manufacturing: https://rb.digital/2MdhHcn travel: https://rb.digital/2LkGrSD 27 % hotel 82 Think:Act 26 Three questions to ...

what makes up multiple intelligences? Developmental psychologist and author howard gardner revolutionized the way the world thinks about the workings of the mind. Here he answers three questions concerning the human equation.

You have identified multiple How much is intelligence a kinds of intelligence: musical, product of nature or nurture? N BEING HUMAN

O logical/mathematical,­ spatial, Will AI become augmented bodily/kinesthetic, linguistic, and can digital devices­ limit interpersonal, intrapersonal ­intelligence? and naturalistic. In the future is there Some intelligences emerge early in life, one kind of intelligence that will have others are far more the product of prac- more sway than the rest? tice over decades. Whether AI will limit This changes all the time. At present, our human intelligence is up to us: logical/mathematical intelligence (com- As Katie Davis and I wrote in The App puting, coding) is the most useful. But ­Generation, we can use technology to once AI and robots are smarter than us ­enable new forms of thinking or we can at our most important tasks, then other become dependent on them and let our intelligences – especially personal ones cognitive potentials atrophy. and ones used in the arts – will become more valued. In general, intelligences How important are the arts for emerge very slowly, over centuries. But human development? as new technologies emerge, intelli- In my view, a life without the gences can combine in unexpected arts is not much of a life. For ways. For example, Twitter links linguis- some people games can substi- tic and interpersonal intelligence. tute, but they do not rival knowledge of arts in the past, appreciation of today's artists and, most important, the oppor- tunity to make art for oneself. I'm not Howard Gardner an artist but I play the piano every day Author of Multiple ­Intelligences: and when I visit a new city, my first trips New Horizons in Theory and

are to museums. ■ saidi sasan 2016. illustration: education, of school graduate harvard photo: Practice, Gardner is a ­professor at Harvard University. photos: privat (2), teresa walton www.rolandberger.com +49 899230-0 80538 Munich Sederanger 1 Roland GmbH Berger Charles-Edouard Bouée Publisher A few of our contributors

an interest incomicsand film, illustrator. He grew upin the published inTime,Monocle Germany andSwitzerland. south eastof England with which canbeseeninhis photographer basedin is aNew York-based His work hasbeen and is adocumenatry Jack Richardson Ronald P narrative style. & Communications Melissa Frost Sub-editor Corporate Solutions Axel Springer SE Mark Espiner Editor Neelima Mahajan Editor inChief Regina Koerner Head of GlobalMarketing → The Guardian. → page 34 page 12 atrick

was the basis for his TED adapted by the BBCinto Organised Crime,which journalist andauthor of Talk and was recently is anaward-winning McMafia: Seriously IMPRINT Ruksaldruck GmbH & Co KG Printing Einhorn Solutions GmbH BianchiAnna Tanja Sannwald, Pawel Pedziszczak, Director) (Art Blasius Thätter Design misha glenny a TVdrama. → page 60

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