The best Regulation for BP or Bankers - Prison

Rediscovering what they were supposed to already know

starfish by TheMarque

1997 Warning on Deep Blowouts: ‘Options Are Limited’
[Via Dot Earth]

It should come as no surprise that experts in avoiding and stopping blowouts of oil and gas wells long ago saw the deep-ocean drilling frontier as particularly dangerous terrain.

[More]

As often happens in human endeavors, people get complacent and take shortcuts. The only way to prevent this is to make sure there is a cultural focus on doing it right. This often means that some people who fail to follow proper procedure need to be tried criminally.

And not just the poor guys on the platform but their bosses who pressured them.

Yep, I’m a liberal because I believe that might actually work. Well, it would actually work if we ever held anyone accountable. Lack of accountability by those in charge has been a hallmark of the last 20 years.

Richard links to an important article on how risk actually works. People naturally drift to cut corners - the O Ring for Challenger - How BP was finishing the well.

If we recognize this, then we have to make the PERSONAL stakes high for drift.

If BP gets hit with a $10 billion dollar fine as is now possible and The Senior Rig folks and Mr Hayward go to jail - we can be assured that there won't be ANY drift in the future.

Test this - your CEO goes to jail if you mess up - how tough will be the safety oversight?

'Square' iPhone Credit-Card Reader to Change the Banking Game?

square reader

Twitter co-founder Jack Dorsey just flicked on the public spotlight over his new venture: Square. It's a tiny plastic blob that gives smartphones the ability to act as secure credit card readers. It's clever, disruptive, but will have to evolve very rapidly.

Square was born extremely rapidly: It began as an idea in February 2009, and the new company came out of stealth mode just yesterday--that's a window of just ten months, which is swift even though the idea behind the device is extremely simple. Essentially it's a small piece of electronics that translates the signals from a magnetic strip reader into an audio signal. This audio signal, corresponding to the data on a credit card swiped through the device, goes in through the headphone/microphone socket of an iPhone, where it's decoded by the special Square app and wirelessly routed off to Square's remote servers which then perform the usual banking jiggerypokery that more ordinary credit card readers do.

I just posted an old film from the CBC archive showing the debit card and the ATM machine in its infancy.

It makes sense to me that the next progression will be to a handset of some kind.

Be fun to return to this in 20 years and see if I am right.

Fibonacci applied to stock market - Phi is everywhere

My regular readers know that I think that the Fibonacci sequence maybe the order that can offer an insight to all systems. In particular to ideal human groupings - organizations - the use of social media etc.

This video shows us a glimpse of the work going on to use this sequence to understand the apparently chaotic nature of markets - My bet is that this work has only juts begun and that in time, Fibonacci Numbers will help us "see" the shape of most natural systems.

Simple vs. Complicated vs. Complex vs. Chaotic - NOOP.NL

When you're managing software development projects, you need to know the difference between complex and complicated. Not knowing this difference means you might apply exactly the wrong approach to the right problem. (Or, if you prefer, the right approach to the wrong problem.)

It's a simple message, really. But if you don't get it, you're headed for chaos.

Simple = easily knowable.

Complicated = not simple, but still knowable.

Complex = not fully knowable, but reasonably predictable.

Chaotic = neither knowable nor predictable.

My car key is simple.
It took me about three seconds to understand how my car key works. OK, maybe that's not quite correct. Mine has a battery in it. If I take it apart it might take me another three hours to understand its details. But yeah, I'm smart, I'll manage.

My car is complicated.
It would take me years to understand how my car works. And I don't intend to. But if I did, then some day in the far future I would know with certainty the purpose of each mechanism and each electrical circuit. I would fully understand how to control it, and I would be able to take my car apart and reassemble it, driving it exactly as I did before. In theory, of course. In practice, only real men do things like that.

Car traffic is complex.
I can travel up and down the same street for twenty years, and things would be different every time. There is no way to fully understand and know what happens around me on the road when I drive, how other drivers operate their vehicles, and how the people in the streets interact. I can make guesses, and I can gain experience in predicting outcomes. But I will never know for sure.

Car traffic in Lagos (Nigeria) is chaotic.
When things get too complex, they easily become chaotic. Traffic in Lagos is so bad, it is not even predictable. Poor infrastructure and planning, heaps of waste, pollution, lack of security, floods, and many more problems make it one of the worst places in the world to be, as a simple car driver.

My computer is complicated. My software project is complex. My house is complicated. My household is complex. My blog is complicated. My thoughts are complex. Your dinner is complicated. Your dog is complex.

Simple and complicated systems are all fully predictable.

The main difference between predictable systems and complex systems is our approach to understanding them. We can understand simple and complicated systems by taking them apart and analyzing the details. However, we cannot understand complex systems by applying the same strategy of reductionism. But we can achieve some understanding by watching and studying how the whole system operates.

What's important for managers is that this also works the other way around. We create complicated systems by first designing the parts, and then putting them together. This works well for mechanical things, like buildings, watches and Quattro Stagioni pizzas. But it doesn't work for complex systems, like brains, software development teams, and the local pizzeria. We cannot build a system from scratch and expect it to become complex in the way that we intended. Complex systems defy attempts to be created in an engineering effort.

Complex systems are not constructed, they are grown.

Some people picture complexity as a state that somehow surpasses that of complicatedness (see next picture). But this view is incorrect.

Scrumcomplexity

From: Managing Game Design Risk: Part I

"Complicated" refers to a system having many parts, making it somewhat harder to understand, whereas "complex" refers to a system being not fully predictable. What is complicated is not necessarily complex, like two cars in a garage. And what is complex need not be complicated, like two people in a bedroom. (But what these people do in the bedroom can be quite complicated. And unpredictable.)

As I start the series on "Seeing through the Complexity of Culture" with Stuart Baker, I will offer up what I think are some of the best pieces from others. Here is post from Jurgen at NOO.NL that offers an exceptionally elegant description of the key problem of today - that we refuse to see the complex and work as if complexity was complicated or simple.

Stuart and I hope that we can help you at least see the elements of the complexity that is human culture and so be able to make more assured judgments about what might happen.