Skip to main content

Trying predictions

I have always believed future is too hard to predict. Not that it can't be predicted but the possibilities are so huge it is futile even to try predicting them. Especially, if the events are linked in some ways it becomes harder.

This post is deliberately divided into three parts. One carrying on from where other drops off.

Part 1: Seth Godin: Predictions

Seth had predicted everything correctly 6 year back, but of course he was joking. But who would have imagined these and much much more!

  1. Predict that the number of blogs will explode, to more than a hundred times as many as we have now. If you're an opinion leader, you'll have one.
  2. A virtually unknown politician, a black man who's father is from Africa, will be elected president, in a landslide. He'll take the office from George W. Bush, leaving with the lowest approval rating of any president in history.
  3. Fidel Castro will step down.
  4. People with AIDS will be living longer than ever before, but the disease won't be cured.
  5. Americans will watch more video online than on TV.
  6. An earthquake in Myanmar will kill more than 100,000 people and their government will do nothing.
  7. The economy will be in the middle of a once in a century meltdown.
  8. Apple will make a cell phone and dominate the MP3 market as well. And the music industry will be in tatters. Napster will fail.
Point: No one imagined this future. Its too deviant. Too random. Just doesn't fit any 'curve'.


Part 2: Stumbling on Happiness (Daniel Gilbert)

Gilbert's central thesis is that, through perception and cognitive biases, people imagine the future poorly, in particular what will make them happy. He argues that imagination fails in three ways:

  1. Imagination tends to add and remove details, but people do not realize that key details may be fabricated or missing from the imagined scenario.
  2. Imagined futures (and pasts) are more like the present than they actually will be (or were).
  3. Imagination fails to realize that things will feel differently once they actually happen -- most notably, the psychological immune system will make bad things feel not so bad as they are imagined to feel.

The advice Gilbert offers is to use other people's experiences to predict the future, instead of imagining it. It is surprising how similar people are in much of their experiences, he says. He does not expect too many people to heed this advice, as our culture, accompanied by various thinking tendencies, is against this method of decision making.

Point: There is no point in imagining the future because imagination is based on imagined/experienced events

source Wikipedia


Part 3: Ken Robinson

I am reminded on Ken Robinson's talk in TED. He is an author, educationist, innovator and has been working on inculcating creativity in school education. The point he makes is very simple:

The children who are enrolling in schools today, are the ones we are preparing to take on 50 years later. But we have no idea what the world will look like 5 years from now or even 10 years from now. We are teaching them what we think is going to be the future - which is wrong. Instead we should just enable them or prepare them to face uncertainties. By being prepared for uncertainties, they will be much more adaptable to random events.


Point
: Creativity is perhaps the only thing that will help. If we are not fluid enough then we are not fluid enough.


The best thing that we can do it to be AWARE and ADAPT to the opportunities that is thrown up by the winds of change. One thing for sure, it may NOT fit our view of the world, the way we imagined, but that surely the reward for being first-mover will be generous and worthwhile.

Comments

Popular posts from this blog

Cognitive rules of business presentations

In his recent book, Clear and to the Point, Kosslyn explained that the four rules of PowerPoint are: The Goldilocks Rule, The Rudolph Rule, The Rule of Four, and the Birds of a Feather Rule. Here's how they work. The Goldilocks Rule refers to presenting the "just right" amount of data. Never include more information than your audience needs in a visual image. As an example, Kosslyn showed two graphs of real estate prices over time. One included ten different numbers, one for each year. The other included two numbers: a peak price, and the current price. For the purposes of a presentation about today's prices relative to peak price, those numbers were the only ones necessary. The Rudolph Rule refers to simple ways you can make information stand out and guide your audience to important details -- the way Rudolph the reindeer's red nose stood out from the other reindeers' and led them. If you're presenting a piece of relevant data in a list, why not mak...

Value of dollar - Part 1

A Simple Perspective Will Do The date is 2000-05-28. Don't you get tired of all the bad news bears reminding you of all these instabilities, excesses, and 'potential' tensions in the global economy? After all, hasn't it always been like that? Yes it has, but not in money it hasn't. Increasingly, investors find it harder to know where to put their savings. What about Government Bonds? Wrong. Their recent record of capital losses have wiped out your guaranteed yields, probably because the stock market keeps crowding them out, and this even in a strong dollar and low inflation environment. Furthermore, there is no reliable liquidity and potentially poor quality debt in the corporate sector. Foreign assets? Wrong. Most of the world's economies are riskier, have been under performing, and also, there is this thing called currency risk. Like how is the average person gonna cope with currency...

Depreciation of British Pound 1900-2000

When the Bank of England was formed the powers to create money was finally transferred to private hands. The creation of Fed in US, was just a part of this cycle. Though it is a common knowledge US Dollar has depreciated nearly 100% since the creation of Federal Reserve, the same is the case of all the currencies across the globe. For example, below is the UK Parliament data that highlights the depreciating value of Pound.