The Paradigm Shift in Business

The science of leadership is undergoing a renaissance right now. We hear the term "paradigm shift" almost daily, but what does it mean? Where did it come from?

Thomas S. Kuhn, coined the term when he wrote the book on scientific revolutions in 1962, "The Structure of Scientific Revolutions", in which he served up a groundbreaking model of how scientific progress occurs. It challenged the traditional view of scientific progress and was backed up with many tangible examples of how revolution works. In a nutshell, Kuhn introduced the concept of "normal science," which he defined as the routine work of scientists within an established paradigm. Scientists solve problems within the framework of the prevailing paradigm, rarely questioning the validity of current thinking.

Kuhn outlined a set of attributes that help distinguish scientific revolutions from normal science and when a paradigm shift has occurred:

• The accumulation of anomalies: A scientific revolution starts when the prevailing paradigm encounters an increasing number of anomalies or unexplained phenomena that cannot be resolved within its framework. This leads to a crisis in the scientific community as faith in the existing paradigm begins to wane.
• The crisis and loss of faith: As the number of unresolved anomalies grows, scientists begin to doubt the validity of the current paradigm. This period of uncertainty and crisis is characterized by intense debate and dissatisfaction with the existing theoretical framework.
• The emergence of alternative paradigms: During the crisis, competing theories and alternative paradigms are proposed to address the anomalies. Scientists engage in "extraordinary science," which involves exploring new ideas and methods that challenge the established paradigm.
• The paradigm shift: A scientific revolution occurs when the scientific community accepts a new paradigm, resulting in a paradigm shift. This involves a radical change in the underlying assumptions, concepts, and methodologies of the scientific field. The new paradigm provides a new framework for conducting research and interpreting data. He coined this concept.
• Incommensurability: Kuhn argues that different paradigms are incommensurable, meaning they cannot be directly compared or evaluated against one another. A paradigm shift involves a fundamental change in the way scientists view the world and the standards by which they judge scientific success and truth.
• Resistance to change: Scientific revolutions often face resistance from scientists who are deeply invested in the old paradigm. This resistance can manifest as reluctance to accept new ideas, denial of the emerging paradigm's validity, or attempts to preserve the old paradigm by modifying it to account for anomalies.

One of the most important things I learned from his book is that without a paradigm, errors cannot be evident and we only learn when we can see errors. Essentially all innovation comes from the perception of error, making error much more valuable than confusion.

I believe the science of leadership is undergoing this major paradigm shift right now from a mechanical, Frederick Taylor and Milton Freidman-influenced paradigm to one that is fundamentally influenced by the science of human intrinsic motivation of people like Edward Deci, Richard M Ryan , and the thousands of social science researchers who have cracked the code on group creativity and human motivation.

It is my observation that the errors introduced by unfettered free-market capitalism purely motivated by profitability and shareholder value are profound and now obvious to most leaders. While profitability is necessary for survival and important for financial investment in the future of all organizations, neither is the goal of the modern organization.

The goal of the modern organization is to solve problems for people in unique ways that help establish long-term relationships between the organization and the people it leads (employees, customers, etc.) This requires creativity.

For business leaders, this is a paradigm shift of the highest order.

References:

The Structure of Scientific Revolutions, by Thomas S. Kuhn, Ph.D. (1962)

Principles of Scientific Management, by Frederick Winslow Taylor (1911)

Capitalism and Freedom, by Milton Freidman (1962)

The Oxford Handbook of Self-Determination Theory, edited by Richard M Ryan (2023)

More Thinking:

On North Star Metrics

On Leadership and Creativity

On Relationships and Innovation