Roger Martin
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Dean of the Rotman School of Management, author on integrative thinking, business strategy expert
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Claims by Roger Martin (20 of 48)
The core job of humans in deterministic domains (where things cannot be other than they are) is to understand causes so they can optimize; the core job of humans in possibility domains (where things can be other than they are) is to be the cause of the effects they want to see, i.e., to create new possibilities.
America's capital markets were a competitive advantage from 1930-1980, helping companies grow and prosper, but by 2020 have become a detriment to American competitiveness because they force companies to remove managerial slack and optimize for the short term, which hurts long-term innovation and competitiveness.
If you analyze smartphone adoption using historical data from 1998 (when they didn't exist), the scientific method would predict they would never be adopted, because there was zero usage, yet this prediction would be completely wrong because it violates Aristotle's principle that the scientific method cannot apply to domains where things can be other than they are.
Establishing too-frequent earning guidance and quarterly guidance systems forces CEOs to optimize for short-term results, causing them to pass on NPV-positive investments to make this quarter's numbers, which 40% of CFOs admit to doing, ultimately making companies perform worse than they could.
Paul Pullman at Procter & Gamble introduced compact detergent (which he observed in Japan) to the US market despite analytical data not supporting it, making a $250 million bet that was arguably a 'fireable offense' if it failed, but it succeeded spectacularly and transformed the industry, destroying Unilever's US position.
Grade 4 teachers could identify which grade 3 students had been taught integrative thinking with 100% accuracy based on behavioral and questioning differences, without knowing which teacher taught which students, indicating that integrative thinking training produces measurable, observable changes in how children think and behave.
Canada's transformation from zero tennis players in the top 20 (before 2005) to three in the top 20 (most recently, tied with Russia) was achieved by Tennis Canada applying integrative thinking to combine the best features of the controlled French system and the open US system, rather than choosing between them.
A complex adaptive system has multiple feedback loops and second-order effects; pulling one lever (tightening hiring criteria for security) produces unintended consequences elsewhere (loss of creative problem-solving, higher costs), suggesting that institutional designers need to think through systemic consequences rather than assuming isolated lever-pulls.
Business schools and business leaders mistake hiring and promoting people who avoid delusional thinking as a virtue, but entrepreneurial economies depend on massive amounts of productive delusion—90% of startups fail, and this high failure rate only produces successful innovation because deluded entrepreneurs start them thinking they'll be the one success, not the nine failures.
A CEO can create discretion to make long-term decisions by building up slack and margins of safety, which short-term pressures try to eliminate, and this requires the CEO to consciously resist market pressure in ways that may look inefficient in the short term but enable positioning for multiple possible futures.
The Toronto International Film Festival's introduction of the People's Choice Award exemplified integrative thinking: Pierce Handling loved everything about the inclusive community festival but wanted the international media buzz of exclusive festivals, so he created the People's Choice Award which got the buzz through public voting (maintaining inclusivity) rather than an exclusive jury, making the festival more inclusive while gaining the desired feature of the exclusive model.
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