Discovering “Discontinuous Change”

December 14, 2009 Leave a comment

I was introduced to the concept of “discontinuous change” by Dr. Manley at the Florida Institute of Technology in his Business Leadership Theory graduate course.

The term troubled me immediately. It contains an ominous connotation – Heisenberg’s Uncertainty Principle manifested in business activity.

Discovering a limit to human insight in the physical sciences can be troubling – but business activity and social structures are the affairs of men – how can there exist a state of affairs in human interaction where change can be monumental, disruptive, and unforeseeable?

The very nature of business activity – the very theoretical function of the entrepreneur – is risking capital in an attempt to meet future wants and needs.

What future does a free enterprise system have, when planning and activity is affected by discontinuous change?

My free market antennae went up immediately.

Businesses succeed. Others fail. But someone has already discovered why large numbers of business fail in a short period of time – the economists of the Austrian School.

Could it be that the phenomena of “discontinuous change” was the result of observing the deleterious effects of the fiat-based fractional reserve process in the trenches of the design and business world without realizing the drastic change had its roots in monetary policy?

The thought struck me like a bright light – the boom and bust cycle has accelerated – tech stocks, dot coms, real estate, Dubai. It made sense.

Discontinuous Change has a source. A root cause.

Discontinuous Change MUST result from the distortion of market signals.

Discontinuous Change MUST be the result of failed attempts to maintain capital consumption through the political process or through fraudulent fiat money activity distorting the flow of capital away from its most efficient use.

Discontinuous Change was simply the name business leadership and organizational behavior theory attempted to characterize the chaos caused by a corrupt monetary system.

Discontinuous Change carries the innate connotation of being mystical- unknown, unknowable, and uncontrollable.

Thanks to the heroic insights into human action by the great economists Murray Rothbard, F.A. Hayek, and Ludwig von Mises (and their modern intellectual progeny), the mystique of discontinuous change can be stripped away, and foresight can be brought back to the entrepreneurial process.

These issues – business and design activity and how they are understood in terms of true human action, are the subject of this blog.

I will explore topics important to modern business, engineering, and manufacturing: change, process flow, paradigms, barriers to design, operational efficiency, trends, monetary policy, quality, cost, schedule, tools, facilities – anything hindering or impacting the ability of humans to provide wealth and prosperity as efficiently as possible.

Join me in helping managers, planners, engineers, and entrepreneurs grapple with the technological impacts on the design process, program execution in theory and in practice, and to navigate the tumultuous sea of discontinuous change.

Bill Losapio
December 14, 2009

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