Preference patterns in futuring efforts

 

Foresight tendency among futurists and forecast tendency among their clients

 

By Vahid V.  Motlagh

 

Abstract

 

The intent of this article is to shed light on some preference patterns of individuals who are involved in futuring efforts. In particular, the preference patterns of clients to collect helpful information for enhancing their knowledge of success factors in such efforts are addressed. These factors include:

 

Nature of future problems and opportunities

Probability of encountering future problems and opportunities

Inherent uncertainties about when and where future problems and opportunities may unfold

 

The study indicates that there is a mismatch between what clients expect to know when they need future-relevant assistance and what futurist experts can provide for them. In fact, clients appear to prefer resolving the inherent uncertainties of the future rather than obtaining worthwhile information about the nature of future hopes and fears. In other words, clients tend to embrace forecast while futurists usually advocate and encourage foresight.

 

 

THIS century can best characterized as an era of uncertainties and overwhelming speed of change. We usually tend to reduce such uncertainties, to identify the nature and types of change, and to get control over the probable courses of change. Today such knowledge is very much valuable. People interested in futures exploration and identifying promising as well as challenging trends can enhance the quality of future-related decisions. However, any final judgment about the quality of individuals' performance when they are dealing with future-related decisions is necessarily plausible in retrospect. Indeed, when uncertainties that affect the quality of decisions become certainties we can reasonably reach a stable conclusion about the degree of achievement. In technical terms, minimizing the regret could be a reliable measure of performance. If economic agents, and broadly speaking, decision makers have a miraculous access to worthwhile information about the future conditions they become necessarily able to reduce their regret to zero.  However, there are other factors which determine if the regret could become actually zero. These factors include assets, skills, abilities and competencies, either tangible or intangible, which could be helpful to fully use such information in practice.

 

Thus, achievement in futuring efforts depends upon two important areas. One is to acquire helpful information that enhances knowledge of surrounding environment which in turn helps to resolve different uncertainties of future conditions. The other is to gain the right abilities to fully use such knowledge at the right time. Although we focus on the area of acquiring information, it is noteworthy that helpful knowledge without appropriate abilities cannot contribute to achievement. For instance, an individual who through regularly studying technology trends figures out that biotechnology is a promising field, yet has not the right abilities for this field cannot possibly benefit from such knowledge in the future. To the contrary, a software engineer who is virtually unaware of the potential changes in computing industry will probably have poor performance relative to a colleague who vigilantly monitor and follow the industry trends. Hence, helpful information and appropriate abilities together increase preparedness. Any individual who is more prepared to face future conditions can benefit from such conditions more than others. Therefore, more preparedness implies less regret.

 

It is a difficult and expensive task to collect information about existing realities, let alone about emerging realities. Moreover, to collect perfect information and thereby to provide perfect knowledge about the future conditions is, by definition, impossible. Nonetheless, the most important challenge of individuals who are involved in futuring efforts is to collect helpful information about the emerging realities and thus produce future-related knowledge as much as possible. Naturally an important question arises: Can we reliably understand and handle such realities in order to grasp their outline in advance even though their details are unknown today? The first step to answer it might be to categorize these emerging realities into problems and opportunities.

 

Between problems and opportunities there are no considerable differences in terms of the necessity to carefully think about them and to take the required measures to deal with them. They are distinguishable, however, in respect to whether they induce positive or negative effects on the mind. Problems discomfort while opportunities delight people. One reflects fears and threats and the other reflects wishes and hopes. People's attitude toward problems and opportunities may be utterly different. For example, some individuals prefer to avoid any kind of problems while others may prefer to face them in order to enjoy conquering them. Also, people based on their life experiences may always expect the next problem or the next opportunity. Often it is emphasized that opportunities, unlike problems, are not imposed on individual and they are always put on the agenda at will. Attitudes and mental processes influence the very recognition of problems and opportunities. It is quite possible that a specific subject could be a problem in the eye of individual A and an opportunity in the eye of individual B. For instance, sweeping changes in the top management of an organization is a potential problem for a conservative, practiced employee who is willing to preserve the status quo, while it is a potential opportunity for a newcomer who welcomes any radical change in the organization. In addition, optimism or pessimism in various forms, say, to assume that fortune favors only others or a strong belief in fatalism can keep even big opportunities unrecognized. All in all these biases point to the relativity in the nature of problems and opportunities. Thus, to examine preference patterns of individuals who do not produce future-related works it is better to use some metaphors which could induce concern and fear effects (hence problems) or hopes and happiness effects (hence opportunities) in their mind. Falling into a big hole and finding a treasure are examples of these metaphors. Although they do not represent real world problems and opportunities, they cause a response that is similar to what occurs in real world situations. Metaphors help to neutralize attitude biasing among different people such that we can assure that the categorization is not relative and enjoys sufficient stability.

 

People have to challenge several kinds of uncertainties when they try to grasp emerging problems and opportunities. These uncertainties include, though are not limited to, the following.

 

X) What are the nature and characteristics of future problems and opportunities?

 

Y) What are the likelihoods of appearing future problems and opportunities?

 

Z) When and where future problems and opportunities may unfold?

 

The above questions indicate three main fields for information collection in futuring efforts. Without doubt, as mentioned before, an objective of futuring efforts is to reduce unknowns and uncertainties associated with these fields through applying different methods and thereby to provide a piece of knowledge, even if imperfect, about the future conditions. Sometimes providing future-related knowledge is not much difficult due to the kind of system that is being addressed. For example, a scientist can easily forecast that the solar system will undergo profound changes nearly five billion years later due to the exhaustion of hydrogen fuel in the Sun such that it will definitely be impossible then to sustain life on the planet Earth. We can make this prediction because the solar system is a natural reality that obeys deterministic physical laws. However, any future-related statement about social systems that concerns, for example, the prospect of regional and international peace and war, especially in terms of when and where future problems and opportunities may unfold is prone to considerable errors. Social realities always follow stochastic laws and therefore any prediction about them is usually discouraged. In other words, resolving those uncertainties associated with when-where issues which we call them "inherent uncertainties" is extremely unrealistic in social systems.

 

Individuals who are involved in forecasting efforts usually try to predict future events with the help of information and often zero in on estimating probabilities and resolving inherent uncertainties. Examples include weather forecasts which aim to estimate the odds that tomorrow or next week there will be, say, snow showers in Los Angeles. In energy sector, too, people may try to forecast oil price fluctuations within next quarter, say, in the Middle East. Less inherent uncertainties and better specified probabilities in a future-related statement essentially imply a forecast. Often in forecast statements the nature, characteristics, and consequences of future problems and opportunities are taken for granted and there is little, if any, discussion about such details. Conversely, when future-related discussion is limited to the nature, characteristics and consequences of emerging realities and there is little, if any, attempt to estimate probabilities and to resolve when-where uncertainties, then a future-related statement essentially implies a foresight.

 

It is needless to say that a critical component of any careful long-term planning is the identification of future needs, requirements, weaknesses, strengths, and superiorities. To do this, individuals who are involved in long-term planning tend to reasonably surmise about the number, nature, characteristics and consequences of emerging problems and opportunities, thus they encourage and advocate foresight. A common feature of forecast and foresight statements is that they both articulate predictions. The former predicts mainly when-where issues while the latter predicts mainly nature-related issues.

 

Eliciting individuals' preference patterns for information collection provides important insights about whether they favor forecast, foresight, or both. Let us first clarify what we mean by preference patterns.

 

If two alternatives, say, A and B, are compared we have three different preference patterns as described below:

 

1-Alternative A is preferred to Alternative B ( A>B )

2-Alternative B is preferred to Alternative A ( B>A )

3-Alternatives A and B are indifferent ( A=B )

 

Thus, considering three different alternatives, namely the Nature (X), Likelihood (Y), and When-Where (Z), there are as many as 16 preference patterns for information collection that are listed below:

 

1- X>Y>Z

2- X>Z>Y

3- Y>X>Z

4- Y>Z>X

5- Z>X>Y

6- Z>Y>X

7- X=Y>Z

8- X=Z>Y

9- Y=X>Z

10- Y=Z>X

11- Z=X>Y

12- Z=Y>X

13- X>Y=Z

14- Y>X=Z

15- Z>X=Y

16- X=Y=Z

 

The chance that each of these preference patterns, say, X>Y>Z, occurs accidentally is one sixteenth or 6 per cent. Different preference patterns for information collection can be related to different tendencies in futuring efforts. For instance, if an individual invariably prefers to collect information about the nature of future problems and opportunities, that is to comply with X>Y>Z or X>Z>Y or X>Y=Z preference patterns, then we say that a foresight tendency is observed. Similarly if an individual invariably prefers to collect information about when-where issues, that is to comply with Z>X>Y or Z>Y>X or Z>X=Y preference patterns, then we say that a forecast tendency is observed. All the remaining preference patterns indicate both forecast and foresight tendencies to varying degrees. The chance that the preference patterns associated with foresight or forecast tendencies occur accidentally is three sixteenth or 19%. Consequently if the per cent of observations of foresight or forecast tendencies is exceedingly more than 19% in a sample of individuals then it is reasonably claimed that the sample has foresight or forecast bias.

 

In this study we examine preference patterns of two groups of individuals. First a group of clients and second a group of futurist experts. Individuals such as top managers, politicians and investors whose main goal is to acquire and collect information for effective decision-making and further achievement comprise the group of clients. The group of futurist experts is comprised of analysts and consultants whose main aim is to collect and provide information for assisting members of the first group. Often clients of futuring efforts have the direct responsibility of decision-making while futurist experts usually play the role of advisors and indirectly contribute to effective decision-making.

 

As mentioned before by using metaphors we can elicit preference patterns of clients. In this study we develope a simple and understandable metaphorical space that is called "contest in the foggy woods". Major components of this space are listed below.

 

A.    Minor and major problems

B.    Minor and major opportunities

C.    A strategic objective

D.    One competitor

E.    An environment abundant in inherent uncertainties

 

 

In this metaphorical space the inherent uncertainties are accounted for by the foggy weather. In fact, because of the foggy weather no one knows exactly when and where future problems and opportunities may unfold. Contest in the foggy woods and the questionnaire associated with preference patterns are explained below.

 

 

Contest in the foggy woods:

 

Suppose that you and a stranger, who is your rival, are standing at the edge of a fairly big jungle. Both of you know that after crossing this jungle you arrive at a deluxe mansion. The house will belong to whoever arrives sooner. Both of you are on foot and it takes from morning to evening to cross the jungle. There is a foggy climate in this jungle such that you cannot see far away as well as your surrounding. Meanwhile both of you are told that probably you will run into four different things in this jungle.

 

  • A box full of money

  • A wolf

  • A horse

  • A hole

 

 

Questions:

 

1-  If you were offered to choose between the following two cases which one would you prefer ( To answer write A, B, or C that means you are indifferent)

 

A.  More information about the characteristics, attributes, and state of the wolf, the hole, the horse, and the box.

B.  More information about the likelihoods that you would run into the wolf, the hole, the horse and the box on your way in the jungle.

 

2-   If you were offered to choose between the following two cases which one would you prefer (To answer write A, B, or C that means you are indifferent)

 

A.  Removing the foggy weather such that everywhere is clear and observable.

B.  More information about the likelihoods that you would run into the wolf, the hole, the horse and the box on your way in the jungle.

 

 

3-   If you were offered to choose between the following two cases which one would you prefer (To answer write A, B, or C that means you are indifferent)

 

A.  More information about the characteristics, attributes, and state of the wolf, the hole, the horse, and the box.

B.  Removing the foggy weather such that everywhere is clear and observable.

 

On the basis of answers to the above questions a number of preference patterns can be inferred. For example, if an individual answers are A, B, and A then we have X>Y, Y>Z and X>Z respectively, hence the preference pattern of the individual is X>Y>Z, which fit foresight tendency as described above.

 

Answers of a simple random sample of clients indicate that more than 70% of individuals favor those preference patterns which fit forecast tendency as defined above. It seems that for the group of clients the least amount of information about the nature of future problems and opportunities is sufficient and they deem more priority for resolving the inherent uncertainties of the environment. Actually removing these kinds of uncertainties help to reduce their concerns and satisfy their needs. A number of questions cover the desire for collecting more information about the characteristics and nature of emerging problems and opportunities in the foggy woods. Some of them are listed below.

 

  • Is the hole small or big? Is it hidden and covered? Can you get out of it alone?

  • Is the wolf hungry or full? Is it wounded or healthy? Is it free or has fallen already into the hole?

  • Is the box hidden or not? Is it heavy or light? Is it locked or open? How much money is there in it?

  • Is the horse naked or ready to ride? Is it a wild horse or not? Is it sick or healthy? Is it free or has been tied to a tree?

 

We can add several other questions to the above list. Obviously any further information associated with such questions which uncover implicit assumptions will enhance knowledge of the individual about the nature of likely problems and opportunities in this foggy woods, however, this kind of information is not necessarily helpful for estimating the likelihood of encountering, say, the wolf, or to know exactly when and where it may appear. Nevertheless, it seems that better preparedness to win the contest depends more on recognizing and understanding the nature of future problems and opportunities rather than on knowing the probability estimates and the when-where issues. On the other hand, in real world situations removing the inherent uncertainties, that is to remove the fog, if not impossible, is very difficult. Indeed, in real world futuring efforts to wait for a "clear climate" and to expect to know the exact time and place of future problems and opportunities is illogical.

 

Preference patterns of futurist experts for information collection can be elicited either by the foggy woods metaphor or by referring to their published works. Since there are difficulties in reaching a representative sample of this group and considering that there are already many references in futures studies, which are provided in various forms from reports to lectures, in the next step we examine the content of such published futuring efforts.

 

Here we can use content analysis to measure the frequency of forecast and foresight statements in future-related materials. We, in particular, examine those materials that are most suitable for use by the clients such as "Outlook" which is an annual report published by "World Future Society". It is presumed that any unit of text or information item in the Outlook is already a foresight statement to some extent because it must cover at least issues germane to the nature and specifications of future problems and opportunities. Although it is desirable to have an objective scale, like preference patterns in the foggy woods metaphor, to determine if a future-related unit of text favors forecast or foresight or both, we use a number of guidelines to separate forecast and foresight statements. The following questions reflect some of these guidelines.

 

1- Does this information item discuss, explicitly or implicitly, the future of specific issues in a certain country, an organization, a company, a sector of industry, a field of science and technology, etc?

2- Does this information item point to the timing of future events in terms of an exact date, periods of time such as next quarter, next year, next decade, etc?

 

Yes answers to both questions indicate a forecast tendency and any further details in terms of characteristics, consequences, and specification of future-related issues implies a foresight tendency. Through applying such guidelines we can conclude that more that 70 per cent of future-related materials in the Outlook 2005 favor the foresight tendency. Consequently we can argue that among futurist experts a high priority is put on debating the nature of future hopes, fears, wishes, challenges, and threats, rather than on when and where they are supposed to appear. In fact, futurist experts use their resources and faculties to collect and provide information, knowledge and insight about the emerging realities for various groups of audience. Futurist consultants often desire to equip their clients with the right tools and abilities for avoiding or coping with future problems and also for benefiting from future opportunities. In doing so, they tend to reasonably conjecture about the range, nature, and consequences of emerging problems and opportunities.

 

In short, this study indicates that there is a mismatch or gap between clients' and futurists' attitude toward futuring efforts. Filling this gap may strengthen the close links between knowledge and practice of futuring. Futurists are even obliged to advocate and encourage foresight since there are a number of limitations for acquiring perfect information about the future conditions. They should not, nonetheless, overlook the natural tendency of clients, who sometimes have direct responsibility for important decisions, towards forecasting. Efforts to correct the culture of futuring in the light of requirements and realities that negate forecasting, especially in long-term periods, may be especially fruitful. When clients are convinced that knowledge and insights gained from foresight are as much valuable and helpful as forecast for better preparedness and less regret, we can begin to correct their attitude so that it will well adapt to that of futurist experts.