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Welingkar’s Distance Learning Division

The Integrative Media
CHAPTER-7

The Leap of Mind

We Learn – A Continuous Learning Forum
Introduction
• We begin this chapter by describing the work of
the South African actuary turned social
entrepreneur - Taddy Blecher.
• Here we can observe the massive improvement
brought about by developing an integrative
thinking model and how it has been deployed to
improve the lives of thousands of South-African
youth, through the creation of an innovative
post-secondary education program.
Introduction
• Taddy Blecher is co—founder of CIDA City
Campus, an innovative South African university.
• He is the gold medal winner in 1990 as the top
actuarial science student in the country.
• Blecher has a firm belief that there is no place for
the word impossible.
• In fact he has made it his life‘s mission to prove to
the people and society that every social problem
has a solution.
Introduction
• He believes firmly in transforming the lives of
the poorest people.
• According to Blecher the problems associated
with poverty things are really serious, they
sound really impossible to solve but they are
so solvable.
• There are infinite numbers of ways that we
can create wealth in sub-Saharan Africa.
• There are so many jobs that could be filled.
Introduction
• The charisma and appeal that this integrative
thinker possesses can be understood for the way
the people react to him and his speeches.
• Audiences listen attentively when he speaks, and
they feel a sense of loss when the words stop.
• Members in the audience feel captivated and
walk up to him after his talks to volunteer to work
for the university, officially known as community
and Individual Development Agency City Campus.
Building Something from Nothing
Like the other integrative thinkers
we‘ve met, Blecher faced a crisis
when his life‘s work presented him
with a set of unacceptable trade-offs.
His dilemma concerned the state of
education available for the huge
population of young native Africans
in South Africa in 1999.
Building Something from Nothing
• The end of apartheid opened new political
opportunities to these young people, but they
enjoyed little in the way of economic opportunity.
• Unemployment among black youth was more
than 40 percent, and they had few opportunities
to upgrade their education—a serious problem in
a country where only 6 percent of the population
had a university education at all.
Building Something from Nothing
• Blecher had his unique challenges with the
education models in Africa.
• He wanted to offer his people a chance at an
education and a better life.
• He had two obvious options for attacking the
problem: traditional ―contact education or
the newer option of distance education.
Building Something from Nothing
• Although the educational models did not have
a flaw they were not suited to the poor
conditions in Africa.
• Traditional education was problematic
because it had been scaled to the European
minority, which traditionally was the only
segment of the population eligible to attend
university.
Building Something from Nothing
• A conventional university education cost more
than $5,000 year, a sum far beyond the reach of
native Africans families and more than the
government could afford on a scale large enough
to make a real difference.
• Due to the earlier Apartheid system the current
arrangement lacked the capacity to absorb the
backlog of young native Africans previously
denied education.
• And that was before any considerations of cost.
Building Something from Nothing
• Finding both models ineffective in his unique
scenario, Blecher set out to bring that third
model into being, using technology, ingenuity,
and sheer improvisational flair to provide to
native Africans the support, coaching, and
discipline that contact education had traditionally
given young South African Europeans.
• The strategy employed by Blecher was attack the
educational cost structure.
Building Something from Nothing
• Here is an example of the innovative approach
taken by Blecher - On CIDA‘s opening day in
1999, Blecher still hadn‘t received the
computers a donor had promised.
• He handed each student a photocopy of a
keyboard, and they used photocopies for
typing lessons.
Building Something from Nothing

When the computers finally up months later, students
were already typing proficiently. Resources are still
scarce, but even the most severe shortages can be
overcome by Blecher‘s boundless ability to make
something from nothing.
Building Something from Nothing
• The entire university community is enlisted to
weave a social support network out of nothing.
Students are required to ―adopt thirty students
each from their former high schools and help
prepare them for attending CIDA.
• Within five years after graduation, each graduate
is expected to fund a scholarship for one CIDA
student.
• By Blecher‘s estimate, such outreach efforts have
touched six hundred thousand South African
youths since the school‘s founding in 1999.
Building Something from Nothing
• In Blecher‘s perspective existing models are
just models, each with something useful to
offer but not the model that can provide a
solution to a unique problem.
• But there‘s a better model just around the
corner, and Blecher believes he can find it.
Building Something from Nothing
• The search will carry him deep into complexity
and will require him to wait patiently for a
better answer to take shape.
• But he‘s confident he‘ll find the answer.
• Thus we can easily detect in Blecher‘s stance
the tell-tale signs of an integrative thinker.
Generative Reasoning
• The first of the three tools is generative
reasoning, a form of reasoning that makes
inquiries into what might he rather than that
is.
• Generative reasoning helps build a framework
for creative resolutions that is sturdy enough
to withstand the rigors of the real world.
Generative Reasoning
• Most of us were never taught generative
reasoning.
• Western education emphasizes declarative
reasoning, which, as the term suggests, is a
cognitive tool for determining the truth or
falsity of a given proposition.
• It operates through deductive and inductive
logic, which dominate both education and
discourse in the world of business.
Generative Reasoning

Deductive logic—the
logic of what should
be—is the first modes of
reasoning most of us
were taught.

It involves establishing a
framework and then
applying the framework
to a problem.
Generative Reasoning
• Most of us learned to use ever more
sophisticated techniques of deductive and
inductive logic as we progressed through
formal on, all in service of declarative
reasoning—the ability to declare a proposition
to be true or false.
• We received little or no an equally useful form
of reasoning known as modal logic to inquire
into what could possibly be true.
Generative Reasoning
• In order to generate a creative resolution
Integrative thinkers reason about what might beabout models that don't yet exist.
• Modal reasoning makes use of deductive and
inductive logic, but it also requires a third form of
logic, dubbed abductive logic by Charles Sanders
Pierce.
• He explored the concept to help him explain the
logic that went into what he called Inventive
construction of theories.
Generative Reasoning
• To Peirce, neither deductive nor inductive
logic satisfactorily explained how entirely new
models carne into being.
• Deductive logic needed a pre-existing theory
or model on which to base its reasoning.
• Inductive logic sought to draw inferences from
experiences or observations.
• But invention, Peirce saw, required certain
logic for making ―leaps with your mind."
Generative Reasoning
• Deductive or inductive logic might prove a
particular model true or untrue over time, but in
the interim abductive logic generates the best
explanation of the data.
• That‘s why the process of using abductive logic
can be called ―generative reasoning.
• In essence abductive logic seeks the best
explanation that is, it attempts the best model-in
response to novel or interesting data that does
not fit an extant model.
Generative Reasoning
• Business is where abductive logic can be
leveraged in many applications.
• This process inquires after what might be, and
thus is modal in intent. It employs abductive logic
to leap beyond the available data to generate a
new model.
• Business managers, management theorist Jim
March and his colleagues observe, often have
only a handful of data points on which to make
highly consequential decisions.
Generative Reasoning
• March suggests a business with a poor record
of making major marketable discoveries.
• It wants to increase the return on its
innovation investment.
• Without an established innovation model, it
can‘t use deduction to determine the
soundness of a given course.
Generative Reasoning
• Generative reasoning is apt for just the sort of
routine business problem.
• Some design schools in the West teach
students to investigate users‘ needs that have
gone unrecognized and invent designs to suit
those needs.
• Thus modal reasoning and abductive logic are
not completely un-taught in the West.
Generative Reasoning
• Many big companies may not recognize this
type of reasoning as a authentic mode of
inquiry, but they unknowingly depend on it for
lasting competitive advantage.
• Generative reasoning facilitates the trial and
error that is integral to creative resolution.
Generative Reasoning
• As integrative thinkers put their resolution
through multiple prototypes and iterations,
they use generative reasoning—whose raw
material, remember, is what does not yet
exist—to work back down from resolution to
architecture to causality to salience.
Generative Reasoning
• Blecher firmly believed that he needed to
create entrepreneurs who can generate
wealth for themselves and their community.
• According to him the conventional method of
giving to the poor was not sufficient to
eradicate poverty.
Generative Reasoning
• Blecher didn‘t actually have sufficient data
either to make that vision his purpose in life or
to see CIDA as the means of achieving it.
• He couldn‘t prove it in advance or deduce or
induce it from the existing theories or data.
• It required him to make leaps in his mind to
reason about what might be
The Art and Science of Generative
Reasoning
• The students at Rotman are encouraged to shed
their deductive and inductive logic as the only
legitimate forms of reasoning to include the
generative form of reasoning.
• Existing models of reality are torn apart in order
to gain new insights.
• Based on these new insights the students are
taught to create prototypes and refine their
mental models and gather additional data with
each iteration.
The Art and Science of Generative
Reasoning
• Many students find it scary, and somewhat
transgressive, to flex their abductive logic
muscles, having been taught to see deductive and
inductive logic as the only legitimate forms of
reasoning.
• It‘s always a pleasure to see the light come on as
they realize that generative reasoning does not
destroy life as we know it.
• To the contrary—it opens the door to new
possibilities.
The Art and Science of Generative
Reasoning
• One group of executives that came through
recently was from a hair-care business that
wanted to increase its share of the styling—
products market.
– One evening, we arranged for them to visit a hair
salon and watch a group of women get their hair
styled.
– The next morning, the executives interviewed the
women in detail.
– The aim of the exercise was to give the executives a
deeper understanding of how users felt about the
styling experience.
The Art and Science of Generative
Reasoning
• One group of executives that came through
recently was from a hair-care business that
wanted to increase its share of the styling—
products market.
– We emphasized to the executives that we didn‘t want
them to gather a statistically significant sample hut to
seek a deeper understanding of the end users of their
products.
– Then we asked them to use chat understanding to
imagine new ways to meet the needs of the women in
the salon.
The Art and Science of Generative
Reasoning
• One group of executives that came through
recently was from a hair-care business that
wanted to increase its share of the styling—
products market.
– In other words, we asked them to infer backward from
their understanding to the ―best explanation‖—in
this case, a product that would meet their customers‘
needs better than anything yet on the market.
– We worked with them to prototype and refine their
new offerings until they were ready to be tested the
target customers—the ladies in the salon
The Art and Science of Generative
Reasoning
• Just as the hair-care executives did, the MBA
students work through a series of exercises aimed
initially at gaining a deeper understanding of the
users of a particular product or service.
• Then we ask them to visualize new ways of
serving those users and mentally work their way
through a series of prototypes of the new
product or service.
• Thus students sharpen their abductive reasoning
skills on challenges proposed by corporations or
non-profits.
Causal Modeling
• The second tool of integrative thinkers, also
illustrated by Blecher is causal modelling.
• Sophisticated causal modelling is a crucial
foundation for causality and architecture, the
middle two steps of the integrative thinking
process.
• Recall that in the causality step, the thinker
must consider non-linear and multidirectional
causal links between salient variables.
Causal Modeling
• In the architecture step, the thinker must keep
the whole interlocking structure of causal
relationships in mind while working out the
individual parts of a solution.
• To build sophisticated models, we need to
consciously acquire tools. We don‘t have to do
that to build basic models.
• After all, we‘re natural model builders, with a
factory setting biased in favor of shaping the
fabric of our experiences into mental models.
Causal Modeling
• Integrative thinkers differ from the rest of us
in being more conscious about the tools they
choose to use to model.
• Two forms of causation are important to
causal modelling:
– The first is material causation, which says that
under a certain set of conditions, x causes y to
happen:
• If we price our product 10 percent below our
competitors‘ price (x), our market share (y) will rise.
Causal Modeling
• Two forms of causation are important to
causal modelling:
– The second form of causation we need to know
about is teleological causation, which asks, what is
the purpose of y, or why do we want y to happen?
• Let‘s say you‘re a CEO who wants to increase market
share so your company can increase scale and reap the
resulting economies.
• For the causal modeller, material causation and
teleological causation connect the way things are to
their desired end—state.
Causal Modeling
• Blecher‘s task as an integrative thinker was to
build a causal model to get from the current
state to the desired end—state.
• For him the current state was of
disadvantaged, disempowered African youth
who had neither hope nor opportunity.
• His desired end-state was that they would
have self-esteem and capability.
Causal Modeling
• Blecher built a concrete causal model that
informed his actions in designing CIDA.
• His challenge as an integrative thinker
imagining what might he was to visualize the
causal relationships in enough depth and
detail that his vision would hold up in the real.
• When facing this challenge, certain tools
known as system dynamics, can improve the
causal modelling.
Causal Modeling
• System dynamics is a theory of mapping the
activity of complex systems that Jay Forrester of
MIT developed in the early l960s.

• He brought the tool set from the engineering
domain and applied it to the business world.
Causal Modeling
• System dynamics believes that the results of our
decisions are so often disappointing because we
overlook important causal relationships, or
because we misread causal relationships, usually
by assuming them to be linear and unidirectional
when they are in fact nonlinear and
multidirectional.
• A primary focus of system dynamics is one sort of
causal relationship: multidirectional feedback
loops that accelerate relationships between
variables.
Causal Modeling
• In system dynamics, the whole must be held in
mind to capture and understand all the relevant
feedback loops, this aspect is on the integrative
thinking lines, where thinkers explore and unravel
conventional models by looking at the bigger
picture.
• System dynamics tools help integrative thinkers
consider complex causal loops in creating their
models and help them build models in which the
whole is viewed together rather than split into
discrete components.
Causal Modeling
• Model building and generative reasoning
combine to form the most potent tools in the
integrative thinker‘s kit.
• Generative reasoning seeks to build new models
that take into account data that doesn‘t comport
with the current models available.
• A tool for forming such models is what George
Lakoff and Mark Johnson call "radial metaphors,‘‘
by which one devises a metaphor and builds a
model around that metaphor.
Causal Modeling
• The radial metaphor tool helps integrative
thinkers in two ways.
• First, it helps thinkers conceive of the situation at
hand in a way that‘s conducive to creating a new
model.
• The radial metaphor also helps with the Cognitive
heavy lifting of keeping a coherent whole in mind
while honing the individual parts.
• That skill is critical to integrative thinking, and the
radial metaphor can be an invaluable help.
Causal Modeling
Blecher's causal modelling of CIDA can be seen
at three levels:
Level 1: there‘s the combination of teleological and
material modelling (young people can gain the desired
hope and self—worth through education).
Level 2: Blecher modelled a dynamic system that takes
advantage of the feedback effects between happy,
motivated, and successful students and the
communities in which they live, work, and socialize.
Level 3: radial metaphor of the CIDA organization as a
family
Assertive Inquiry
• The third important tool for the integrative
thinker is assertive inquiry.
• Integrative thinkers use it to explore opposing
models, and in particular, models that oppose
their own.
• When we interact with other people on the basis
of a particular mental model, we usually try to
defend that model against any challenges.
• Our energy goes into explaining our model to
others and defending it from criticism.
Assertive Inquiry
• We need to develop a good amount of
understanding of the other person‘s model of
thinking.
• By dodging critiques of our model gives us a
deeper understanding of it, but it teaches us
nothing about the models other people hold
in their heads.
Assertive Inquiry
• In fact, the defensive stance helps ensure that
we never learn anything about models that
might oppose our own.
• And that keeps us from finding clues that
might lead to a creative resolution should our
mental model come into conflict with
someone else‘s mental model.
Assertive Inquiry
Assertive inquiry‘s intent:
• Not argumentative,
• Method isn't to ask leading questions
• Not to discourage challenge
• Assertive enquiry involves a sincere search
for another‘s views
• Tries to fill in gaps of understanding
• It seeks common ground between conflicting
models
A Failure to Communicate
• The author of the following personal case,
MBA student Philip, described his part in
bringing about a very painful clash.
• When each participant—including Philip—
clung tenaciously to his own model, the
outcome bore no relation to the ending Philip
had hoped to achieve.
Purpose of the Encounter
• Immediately after graduating with undergraduate
degree, he started up a small Internet consulting
company with two friends who were in similar
situations.
• The time of the following encounter was a little
over one year after they started the company.
• They had done well, in the sense that the
company made enough money for them all to live
on.
What I Wanted to Accomplish and
How I Hoped to Do So
• Philip saw the company essentially as a
venture of equals and wanted the ownership
shares to reflect this—says 4O/30/30 for
Aaron, and him
• He hoped to achieve this outcome by
explaining my reasoning and viewpoint along
these lines.
What I Wanted to Accomplish and
How I Hoped to Do So
• Philip recognized that Dennis was a
phenomenally talented guy who took initial
step to found the company, and as a result he
could be ―first among equals once ownership
shares were formally established.
• Philip believed that he and Aaron had equally
contributed to the growth of the company.
What I Wanted to Accomplish and
How I Hoped to Do So
• The conversation that ensued between the three
regarding the company share became a clash
between the three.
• Each person had their own version of reality
which clashed with the other person‘s
expectation.
• Some unnecessary words such as Moron‘ were
used to address each other because of the verbal
clash.
• Eventually Philip quit the company.
Concerns
• As stated above within a month after this
meeting, Philip left and accepted a job at a large
IT company in another city.
• Dennis and Aaron continued the Internet
consulting business.
• The business shut down three years later when
Dennis went to business school for an MBA and
Aaron decided not to continue the business so he
could pursue other creative interests.
Concerns
• Defence of their own model is on top priority
of each person in this clash.
• They energetically defend their stance.
• In the face of non-acceptance, each advocates
more forcefully or refutes what he
understands to the other‘s model.
Concerns
• They signal to one another that
each is completely
uninterested in understanding
the concerns, assumptions and
salient data that inform the
other man‘s thinking.
• The dialogue Philip recreates is
notable for its increasing
emotional heat.
Concerns
• Because neither man is actively engaged in
learning more about the other‘s thinking, no
creative resolution of their conflict is possible.
• A creative resolution requires one or the other
party in the dialogue to recognize additional
salient data and perceive more or causal
relationships.
• Repeated and intensifying advocacy broaden
salience, make causality more sophisticated or
holistic architecture.
Concerns
• In this case the deadlock could have been
broken by Assertive inquiry.
• The conversation would have gone much
differently if Dennis could have responded to
Philip‘s in an assertive manner.
Concerns
• Likewise, Philip could have answered Dennis‘s
initial response with something on the similar
assertive lines.
• Both responses combine advocacy embedded
in the restatement of other‘s point—with an
assertive inquiry into the salient data and
causal assumptions that underlie Dennis‘s
model.
Concerns
• A middle solution could have been created
using creative resolution by creating a dualclass share structure.
• This could have met both their needs.
• If both weren‘t so focused on defending the
validity of their own models, they could see
their way through to this resolution fairly
easily.
Concerns
• Personal cases help class participants see that the
tool of assertive inquiry can get them past the
dead end of unadulterated advocacy.
• By twinning advocacy with inquiry, participants
learn how to give their opposable minds a chance
to produce a constructive solution out of what
seemed at first to be a conflict with no exit.
• Tools such as assertive inquiry allow integrative
thinkers to give their stances force in the world.

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The Leap of Mind

  • 1. Welingkar’s Distance Learning Division The Integrative Media CHAPTER-7 The Leap of Mind We Learn – A Continuous Learning Forum
  • 2. Introduction • We begin this chapter by describing the work of the South African actuary turned social entrepreneur - Taddy Blecher. • Here we can observe the massive improvement brought about by developing an integrative thinking model and how it has been deployed to improve the lives of thousands of South-African youth, through the creation of an innovative post-secondary education program.
  • 3. Introduction • Taddy Blecher is co—founder of CIDA City Campus, an innovative South African university. • He is the gold medal winner in 1990 as the top actuarial science student in the country. • Blecher has a firm belief that there is no place for the word impossible. • In fact he has made it his life‘s mission to prove to the people and society that every social problem has a solution.
  • 4. Introduction • He believes firmly in transforming the lives of the poorest people. • According to Blecher the problems associated with poverty things are really serious, they sound really impossible to solve but they are so solvable. • There are infinite numbers of ways that we can create wealth in sub-Saharan Africa. • There are so many jobs that could be filled.
  • 5. Introduction • The charisma and appeal that this integrative thinker possesses can be understood for the way the people react to him and his speeches. • Audiences listen attentively when he speaks, and they feel a sense of loss when the words stop. • Members in the audience feel captivated and walk up to him after his talks to volunteer to work for the university, officially known as community and Individual Development Agency City Campus.
  • 6. Building Something from Nothing Like the other integrative thinkers we‘ve met, Blecher faced a crisis when his life‘s work presented him with a set of unacceptable trade-offs. His dilemma concerned the state of education available for the huge population of young native Africans in South Africa in 1999.
  • 7. Building Something from Nothing • The end of apartheid opened new political opportunities to these young people, but they enjoyed little in the way of economic opportunity. • Unemployment among black youth was more than 40 percent, and they had few opportunities to upgrade their education—a serious problem in a country where only 6 percent of the population had a university education at all.
  • 8. Building Something from Nothing • Blecher had his unique challenges with the education models in Africa. • He wanted to offer his people a chance at an education and a better life. • He had two obvious options for attacking the problem: traditional ―contact education or the newer option of distance education.
  • 9. Building Something from Nothing • Although the educational models did not have a flaw they were not suited to the poor conditions in Africa. • Traditional education was problematic because it had been scaled to the European minority, which traditionally was the only segment of the population eligible to attend university.
  • 10. Building Something from Nothing • A conventional university education cost more than $5,000 year, a sum far beyond the reach of native Africans families and more than the government could afford on a scale large enough to make a real difference. • Due to the earlier Apartheid system the current arrangement lacked the capacity to absorb the backlog of young native Africans previously denied education. • And that was before any considerations of cost.
  • 11. Building Something from Nothing • Finding both models ineffective in his unique scenario, Blecher set out to bring that third model into being, using technology, ingenuity, and sheer improvisational flair to provide to native Africans the support, coaching, and discipline that contact education had traditionally given young South African Europeans. • The strategy employed by Blecher was attack the educational cost structure.
  • 12. Building Something from Nothing • Here is an example of the innovative approach taken by Blecher - On CIDA‘s opening day in 1999, Blecher still hadn‘t received the computers a donor had promised. • He handed each student a photocopy of a keyboard, and they used photocopies for typing lessons.
  • 13. Building Something from Nothing When the computers finally up months later, students were already typing proficiently. Resources are still scarce, but even the most severe shortages can be overcome by Blecher‘s boundless ability to make something from nothing.
  • 14. Building Something from Nothing • The entire university community is enlisted to weave a social support network out of nothing. Students are required to ―adopt thirty students each from their former high schools and help prepare them for attending CIDA. • Within five years after graduation, each graduate is expected to fund a scholarship for one CIDA student. • By Blecher‘s estimate, such outreach efforts have touched six hundred thousand South African youths since the school‘s founding in 1999.
  • 15. Building Something from Nothing • In Blecher‘s perspective existing models are just models, each with something useful to offer but not the model that can provide a solution to a unique problem. • But there‘s a better model just around the corner, and Blecher believes he can find it.
  • 16. Building Something from Nothing • The search will carry him deep into complexity and will require him to wait patiently for a better answer to take shape. • But he‘s confident he‘ll find the answer. • Thus we can easily detect in Blecher‘s stance the tell-tale signs of an integrative thinker.
  • 17. Generative Reasoning • The first of the three tools is generative reasoning, a form of reasoning that makes inquiries into what might he rather than that is. • Generative reasoning helps build a framework for creative resolutions that is sturdy enough to withstand the rigors of the real world.
  • 18. Generative Reasoning • Most of us were never taught generative reasoning. • Western education emphasizes declarative reasoning, which, as the term suggests, is a cognitive tool for determining the truth or falsity of a given proposition. • It operates through deductive and inductive logic, which dominate both education and discourse in the world of business.
  • 19. Generative Reasoning Deductive logic—the logic of what should be—is the first modes of reasoning most of us were taught. It involves establishing a framework and then applying the framework to a problem.
  • 20. Generative Reasoning • Most of us learned to use ever more sophisticated techniques of deductive and inductive logic as we progressed through formal on, all in service of declarative reasoning—the ability to declare a proposition to be true or false. • We received little or no an equally useful form of reasoning known as modal logic to inquire into what could possibly be true.
  • 21. Generative Reasoning • In order to generate a creative resolution Integrative thinkers reason about what might beabout models that don't yet exist. • Modal reasoning makes use of deductive and inductive logic, but it also requires a third form of logic, dubbed abductive logic by Charles Sanders Pierce. • He explored the concept to help him explain the logic that went into what he called Inventive construction of theories.
  • 22. Generative Reasoning • To Peirce, neither deductive nor inductive logic satisfactorily explained how entirely new models carne into being. • Deductive logic needed a pre-existing theory or model on which to base its reasoning. • Inductive logic sought to draw inferences from experiences or observations. • But invention, Peirce saw, required certain logic for making ―leaps with your mind."
  • 23. Generative Reasoning • Deductive or inductive logic might prove a particular model true or untrue over time, but in the interim abductive logic generates the best explanation of the data. • That‘s why the process of using abductive logic can be called ―generative reasoning. • In essence abductive logic seeks the best explanation that is, it attempts the best model-in response to novel or interesting data that does not fit an extant model.
  • 24. Generative Reasoning • Business is where abductive logic can be leveraged in many applications. • This process inquires after what might be, and thus is modal in intent. It employs abductive logic to leap beyond the available data to generate a new model. • Business managers, management theorist Jim March and his colleagues observe, often have only a handful of data points on which to make highly consequential decisions.
  • 25. Generative Reasoning • March suggests a business with a poor record of making major marketable discoveries. • It wants to increase the return on its innovation investment. • Without an established innovation model, it can‘t use deduction to determine the soundness of a given course.
  • 26. Generative Reasoning • Generative reasoning is apt for just the sort of routine business problem. • Some design schools in the West teach students to investigate users‘ needs that have gone unrecognized and invent designs to suit those needs. • Thus modal reasoning and abductive logic are not completely un-taught in the West.
  • 27. Generative Reasoning • Many big companies may not recognize this type of reasoning as a authentic mode of inquiry, but they unknowingly depend on it for lasting competitive advantage. • Generative reasoning facilitates the trial and error that is integral to creative resolution.
  • 28. Generative Reasoning • As integrative thinkers put their resolution through multiple prototypes and iterations, they use generative reasoning—whose raw material, remember, is what does not yet exist—to work back down from resolution to architecture to causality to salience.
  • 29. Generative Reasoning • Blecher firmly believed that he needed to create entrepreneurs who can generate wealth for themselves and their community. • According to him the conventional method of giving to the poor was not sufficient to eradicate poverty.
  • 30. Generative Reasoning • Blecher didn‘t actually have sufficient data either to make that vision his purpose in life or to see CIDA as the means of achieving it. • He couldn‘t prove it in advance or deduce or induce it from the existing theories or data. • It required him to make leaps in his mind to reason about what might be
  • 31. The Art and Science of Generative Reasoning • The students at Rotman are encouraged to shed their deductive and inductive logic as the only legitimate forms of reasoning to include the generative form of reasoning. • Existing models of reality are torn apart in order to gain new insights. • Based on these new insights the students are taught to create prototypes and refine their mental models and gather additional data with each iteration.
  • 32. The Art and Science of Generative Reasoning • Many students find it scary, and somewhat transgressive, to flex their abductive logic muscles, having been taught to see deductive and inductive logic as the only legitimate forms of reasoning. • It‘s always a pleasure to see the light come on as they realize that generative reasoning does not destroy life as we know it. • To the contrary—it opens the door to new possibilities.
  • 33. The Art and Science of Generative Reasoning • One group of executives that came through recently was from a hair-care business that wanted to increase its share of the styling— products market. – One evening, we arranged for them to visit a hair salon and watch a group of women get their hair styled. – The next morning, the executives interviewed the women in detail. – The aim of the exercise was to give the executives a deeper understanding of how users felt about the styling experience.
  • 34. The Art and Science of Generative Reasoning • One group of executives that came through recently was from a hair-care business that wanted to increase its share of the styling— products market. – We emphasized to the executives that we didn‘t want them to gather a statistically significant sample hut to seek a deeper understanding of the end users of their products. – Then we asked them to use chat understanding to imagine new ways to meet the needs of the women in the salon.
  • 35. The Art and Science of Generative Reasoning • One group of executives that came through recently was from a hair-care business that wanted to increase its share of the styling— products market. – In other words, we asked them to infer backward from their understanding to the ―best explanation‖—in this case, a product that would meet their customers‘ needs better than anything yet on the market. – We worked with them to prototype and refine their new offerings until they were ready to be tested the target customers—the ladies in the salon
  • 36. The Art and Science of Generative Reasoning • Just as the hair-care executives did, the MBA students work through a series of exercises aimed initially at gaining a deeper understanding of the users of a particular product or service. • Then we ask them to visualize new ways of serving those users and mentally work their way through a series of prototypes of the new product or service. • Thus students sharpen their abductive reasoning skills on challenges proposed by corporations or non-profits.
  • 37. Causal Modeling • The second tool of integrative thinkers, also illustrated by Blecher is causal modelling. • Sophisticated causal modelling is a crucial foundation for causality and architecture, the middle two steps of the integrative thinking process. • Recall that in the causality step, the thinker must consider non-linear and multidirectional causal links between salient variables.
  • 38. Causal Modeling • In the architecture step, the thinker must keep the whole interlocking structure of causal relationships in mind while working out the individual parts of a solution. • To build sophisticated models, we need to consciously acquire tools. We don‘t have to do that to build basic models. • After all, we‘re natural model builders, with a factory setting biased in favor of shaping the fabric of our experiences into mental models.
  • 39. Causal Modeling • Integrative thinkers differ from the rest of us in being more conscious about the tools they choose to use to model. • Two forms of causation are important to causal modelling: – The first is material causation, which says that under a certain set of conditions, x causes y to happen: • If we price our product 10 percent below our competitors‘ price (x), our market share (y) will rise.
  • 40. Causal Modeling • Two forms of causation are important to causal modelling: – The second form of causation we need to know about is teleological causation, which asks, what is the purpose of y, or why do we want y to happen? • Let‘s say you‘re a CEO who wants to increase market share so your company can increase scale and reap the resulting economies. • For the causal modeller, material causation and teleological causation connect the way things are to their desired end—state.
  • 41. Causal Modeling • Blecher‘s task as an integrative thinker was to build a causal model to get from the current state to the desired end—state. • For him the current state was of disadvantaged, disempowered African youth who had neither hope nor opportunity. • His desired end-state was that they would have self-esteem and capability.
  • 42. Causal Modeling • Blecher built a concrete causal model that informed his actions in designing CIDA. • His challenge as an integrative thinker imagining what might he was to visualize the causal relationships in enough depth and detail that his vision would hold up in the real. • When facing this challenge, certain tools known as system dynamics, can improve the causal modelling.
  • 43. Causal Modeling • System dynamics is a theory of mapping the activity of complex systems that Jay Forrester of MIT developed in the early l960s. • He brought the tool set from the engineering domain and applied it to the business world.
  • 44. Causal Modeling • System dynamics believes that the results of our decisions are so often disappointing because we overlook important causal relationships, or because we misread causal relationships, usually by assuming them to be linear and unidirectional when they are in fact nonlinear and multidirectional. • A primary focus of system dynamics is one sort of causal relationship: multidirectional feedback loops that accelerate relationships between variables.
  • 45. Causal Modeling • In system dynamics, the whole must be held in mind to capture and understand all the relevant feedback loops, this aspect is on the integrative thinking lines, where thinkers explore and unravel conventional models by looking at the bigger picture. • System dynamics tools help integrative thinkers consider complex causal loops in creating their models and help them build models in which the whole is viewed together rather than split into discrete components.
  • 46. Causal Modeling • Model building and generative reasoning combine to form the most potent tools in the integrative thinker‘s kit. • Generative reasoning seeks to build new models that take into account data that doesn‘t comport with the current models available. • A tool for forming such models is what George Lakoff and Mark Johnson call "radial metaphors,‘‘ by which one devises a metaphor and builds a model around that metaphor.
  • 47. Causal Modeling • The radial metaphor tool helps integrative thinkers in two ways. • First, it helps thinkers conceive of the situation at hand in a way that‘s conducive to creating a new model. • The radial metaphor also helps with the Cognitive heavy lifting of keeping a coherent whole in mind while honing the individual parts. • That skill is critical to integrative thinking, and the radial metaphor can be an invaluable help.
  • 48. Causal Modeling Blecher's causal modelling of CIDA can be seen at three levels: Level 1: there‘s the combination of teleological and material modelling (young people can gain the desired hope and self—worth through education). Level 2: Blecher modelled a dynamic system that takes advantage of the feedback effects between happy, motivated, and successful students and the communities in which they live, work, and socialize. Level 3: radial metaphor of the CIDA organization as a family
  • 49. Assertive Inquiry • The third important tool for the integrative thinker is assertive inquiry. • Integrative thinkers use it to explore opposing models, and in particular, models that oppose their own. • When we interact with other people on the basis of a particular mental model, we usually try to defend that model against any challenges. • Our energy goes into explaining our model to others and defending it from criticism.
  • 50. Assertive Inquiry • We need to develop a good amount of understanding of the other person‘s model of thinking. • By dodging critiques of our model gives us a deeper understanding of it, but it teaches us nothing about the models other people hold in their heads.
  • 51. Assertive Inquiry • In fact, the defensive stance helps ensure that we never learn anything about models that might oppose our own. • And that keeps us from finding clues that might lead to a creative resolution should our mental model come into conflict with someone else‘s mental model.
  • 52. Assertive Inquiry Assertive inquiry‘s intent: • Not argumentative, • Method isn't to ask leading questions • Not to discourage challenge • Assertive enquiry involves a sincere search for another‘s views • Tries to fill in gaps of understanding • It seeks common ground between conflicting models
  • 53. A Failure to Communicate • The author of the following personal case, MBA student Philip, described his part in bringing about a very painful clash. • When each participant—including Philip— clung tenaciously to his own model, the outcome bore no relation to the ending Philip had hoped to achieve.
  • 54. Purpose of the Encounter • Immediately after graduating with undergraduate degree, he started up a small Internet consulting company with two friends who were in similar situations. • The time of the following encounter was a little over one year after they started the company. • They had done well, in the sense that the company made enough money for them all to live on.
  • 55. What I Wanted to Accomplish and How I Hoped to Do So • Philip saw the company essentially as a venture of equals and wanted the ownership shares to reflect this—says 4O/30/30 for Aaron, and him • He hoped to achieve this outcome by explaining my reasoning and viewpoint along these lines.
  • 56. What I Wanted to Accomplish and How I Hoped to Do So • Philip recognized that Dennis was a phenomenally talented guy who took initial step to found the company, and as a result he could be ―first among equals once ownership shares were formally established. • Philip believed that he and Aaron had equally contributed to the growth of the company.
  • 57. What I Wanted to Accomplish and How I Hoped to Do So • The conversation that ensued between the three regarding the company share became a clash between the three. • Each person had their own version of reality which clashed with the other person‘s expectation. • Some unnecessary words such as Moron‘ were used to address each other because of the verbal clash. • Eventually Philip quit the company.
  • 58. Concerns • As stated above within a month after this meeting, Philip left and accepted a job at a large IT company in another city. • Dennis and Aaron continued the Internet consulting business. • The business shut down three years later when Dennis went to business school for an MBA and Aaron decided not to continue the business so he could pursue other creative interests.
  • 59. Concerns • Defence of their own model is on top priority of each person in this clash. • They energetically defend their stance. • In the face of non-acceptance, each advocates more forcefully or refutes what he understands to the other‘s model.
  • 60. Concerns • They signal to one another that each is completely uninterested in understanding the concerns, assumptions and salient data that inform the other man‘s thinking. • The dialogue Philip recreates is notable for its increasing emotional heat.
  • 61. Concerns • Because neither man is actively engaged in learning more about the other‘s thinking, no creative resolution of their conflict is possible. • A creative resolution requires one or the other party in the dialogue to recognize additional salient data and perceive more or causal relationships. • Repeated and intensifying advocacy broaden salience, make causality more sophisticated or holistic architecture.
  • 62. Concerns • In this case the deadlock could have been broken by Assertive inquiry. • The conversation would have gone much differently if Dennis could have responded to Philip‘s in an assertive manner.
  • 63. Concerns • Likewise, Philip could have answered Dennis‘s initial response with something on the similar assertive lines. • Both responses combine advocacy embedded in the restatement of other‘s point—with an assertive inquiry into the salient data and causal assumptions that underlie Dennis‘s model.
  • 64. Concerns • A middle solution could have been created using creative resolution by creating a dualclass share structure. • This could have met both their needs. • If both weren‘t so focused on defending the validity of their own models, they could see their way through to this resolution fairly easily.
  • 65. Concerns • Personal cases help class participants see that the tool of assertive inquiry can get them past the dead end of unadulterated advocacy. • By twinning advocacy with inquiry, participants learn how to give their opposable minds a chance to produce a constructive solution out of what seemed at first to be a conflict with no exit. • Tools such as assertive inquiry allow integrative thinkers to give their stances force in the world.