Complex Systems with Patrick McKenzie (patio11)

Balancing control and chaos: cybernetics, fraud, and modern organizations with Dan Davies

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Aug 22, 2024

Dan Davies, author of "Lying for Money" and "The Unaccountability Machine," delves into the complexities of cybernetics and its impact on modern organizations. He explores how organizations adapt as they grow, revealing the intricate relationship between financial fraud and system design. The conversation highlights the dangers of detachment in decision-making and the innovative solutions required for managing modern complexities. Davies also shares insights from his journey transitioning from banking to writing, emphasizing the true value of community connections in publishing.

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INSIGHT

Cybernetics

Cybernetics applies mathematics to systems where key aspects aren't quantifiable.
It studies information as a control mechanism, balancing system chaos.

INSIGHT

Free Markets vs. Systems Analysis

Post-WWII, the West prioritized free markets over rigorous systems analysis.
This approach, while initially successful, may be reaching its limits.

INSIGHT

Internal vs. External Markets

Capitalism uses price signals and markets between firms.
Within firms, command and control structures prevail.

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