Author Archives: Kevin L

Mandates vs voluntary action

We all want to make the world a better place. And in Singapore, we’ve somewhat cultivated the idea that we need to force people to take the right action or they won’t. Often it is because they will point to others who have not done it and say ‘why don’t you ask them?’

The people who failed to bring their trays back to the shelves at the hawker centres before NEA’s mandate had excuses – they were busy, the cleaners had to have something to do, they forgot, and so on. But it was never clear enough that they ‘had to’ do it. Once the mandate and the penalties came, it was clear. As clear as day. So, mandates make requirements clear to a large extent. It makes people sit up and recognise they had to take some action. More so than the consequences of dirty hawker centers, or when you have to take over a messy table.

What can we learn from this that we can apply to climate change?

If we don’t feel hit by the experience of a messy, unclean hawker centre, it is even harder to feel like we need to take any particular course of action just because we have a few more hot days. After all, one could turn up the air-conditioning (which worsens the problem at the system level). So mandates are needed to help with the coordination. The direct consequences alone are insufficient because of externalities, so the government should step in to ‘make them feel the pain’.

Significance of work

What does a job mean for you? What is work to you?

It used to be just tasks or collection of tasks that had to be done. The tasks were easily connected to the end goals.

Then things got complex and the tasks were clear but it felt more distant from the ultimate outcomes that the whole lot of people were trying to achieve.

Finally we did away with task-based identification of the work and changed parts of the work to be based on creating some kind of outcomes. In trying to connect the outcomes to the person, we lost the clarity on the specific tasks required. That can lead to undisciplined exhaustion of energies and burn out.

On the other hand, for all the jobs where tasks can be clearly specified, technology has been used to displace human workers. Leaving humans to only supervise or check through the results. In fact, at some point even the quality checks can be automated.

Where does that leave us? What does that mean about the future of work?

The future of work can be meaningful if we resume our human role of caring for who the outcome of work is for, and the manner in which the work is done. We carve out that higher role for ourselves by being capable of continuous improvement that focuses on the final objective of the work itself – the satisfaction of the user.

Promoting into oblivion

One of the big struggles of corporate is that when you have clearly defined roles where there are job titles, managers, and the ‘managed’, there is this false sense that you get promoted because you’ve proven yourself. Now, you start being required to work with entirely new skills, and you no longer have to use that much of what you were good at.

The tricky bit often in management is that the corporates are not sufficiently focused on training and bringing you up to the level required because mass training is easier to justify than just training a handful of people. Moreover, in many organisations, being in management has a lot more to do with handling internal politics and jostling for resources than to do with getting the real work done. Politics is of course important because that enables the delivery team to be able to deliver but if you just got promoted from being the best performer in the delivery team, you’re almost completely oblivious to what this new management role really is about! Not to mention growing the skills overnight to be able to do the new job well.

Some organisations, like the military that operate based on the old British aristocratic style tries to overcome this problem by having two classes within the service. The commissioned officer and the non-comissioned officer tracks are ways in which you focus one group on the ‘leadership’ (really, it is more management) skills. In contrast, the other group are more focused on ‘operations’ (or what is deemed more as ‘follower’ type) tasks. Of course, reality is a lot more complex than that but this form of organisation, while crude, aligns expectations and allows the specialists to focus on the frontline nitty gritty and have the ‘leaders’ focus on the big picture elements. Over time, though the commissioned officers have ever been trained in the basics, they lose their ability to really keep up with the changes on the ground to be able to command at high level.

Yet that form of organisation is probably not ideal as it can be a bit elitist and does not incentivise people to perform in ways that allows them to utilise their potential well. It boxes people into neat categories that serves the organisation more than the individual, and at some point, a lot of people would give up on the system as they find themselves uninterested in being thumbed down as second-class citizens, or being forced only to do the big ‘leading’ kind of stuff.

The market presents a new way of organising people, and as our markets develop, I’d expect a lot more small tiny firms to exists and serve large swathe of people when technology enables them to.

Addicted to speed

I’ve taken to riding the bicycle more frequently and in the beginning, I’ve often sought to ride really quickly and reduce the time spent between points as far as possible. I basically wanted the bike to be almost my teleportation device. And the reason I preferred it over public transport was not just because it was cheaper, but that I could control where I wanted to go, and when – up to a certain extent at least.

But what is interesting is that I observed even if I was going at very high speeds, my commuting time hardly changed all that much. A couple of seconds, handful of minutes sometimes, but it requires you to maintain a high speed over long segments of the journey which may not be easy to achieve because of terrain changes, and need to navigate traffic.

And I thought about the formula that we learnt in Primary school:

Distance = Speed x Time

And if you rearrange it, then you get

Time = Distance/Speed

So, assuming the distance is fixed for every journey, the only way to reduce the time spent is to increase your speed. But because it is the denominator, if your speed is already relatively high, the amount of time you can reduce by increasing it by a little is really minuscule and perhaps often not worth it. And as a rider on a bike, you could probably calculate how much energy you need to exert to achieve a particular speed over flat ground, and work out the optimal trade-off between energy and speed that will provide a suitable time for your journey.

If you substitute distance for anything else; such as work to be accomplished, or widgets to be produced, and so forth, you recognise that the principle that applies to speed remains the same. There is only this much the rushing would help you reduce the time spent. The excess energy put into rushing will have diminishing marginal returns and it would probably be squandered, and you find yourself drained significantly just to reduce the time when perhaps that amount of speed is not necessary.

For a Singaporean like me who tends to be impatient and wants things to be fast or rushed, grasping this principle is quite precious because it forces you to recognise the limits of using your energies to rush things and compress time. There is a natural limit to it, and we probably ought not to try too hard to challenge that limit. Even if you encounter someone unreasonable who tries to compress it further, you would do well not too be too caught up with their attempts at squandering excess energy to pressure you. Allow this insight, this understanding to dissipate their pressure and negative energies on you.

Solving the right problems

One of the greatest challenges confronting our modern world is the sense that when there is a solution for something, the idea that we didn’t apply it indicates a lack of responsibility or some kind of mistake on the part of a human. The fact a surgeon could have healed someone but failed to puts the blame on the surgeon even when the chance of success is probabilistic. Of course, some things require a lot of resources to achieve even when they are feasible, so that doesn’t mean that the feasibility of a solution isn’t the only parameter to determine whether it should be applied or not.

Yet somehow at the back of our minds, if we didn’t apply it, that seem to imply we did not try hard enough or do our best. The issue is that with limited resources, you probably can’t ‘do your best’ in everything. There’s only this much you can give. This applies even to the government, whether it is taken from the budget perspective or the use of manpower.

And for a small country with a lean government like Singapore, solving for the ‘which problem’ to tackle is perhaps increasingly important as there will always be some fringe issues that you can deal with to make yourself look as though you’re doing your job when you’re not making any progress. The recent cigar dish case seems like one of those situation where it is probably not significant enough to escalate to higher (or more mature) decision-makers while seeming to have that easy solution of ‘order them to remove it’. We have a limited attention span available for our public servants, especially those handling frontline issues.

Learning to struggle

If there’s one big thing we need in society that the education system is not properly teaching us, that is the need to struggle. There’s this sentiment in the education system that struggling suggests something is wrong, that is a state to transit away from, and to be avoided if possible. But what if struggling through difficulties, challenges is actually an important aspect of life? What if it takes struggling in order to truly learn something? Not just to acquire head knowledge but also to have a practical sense of how to use that knowledge?

How do we teach people to be resilient otherwise? How do we cultivate a generation of people who can actually deal with those problematic issues confronting mankind (eg. climate change, sharp inequalities, cracks in market capitalism, etc)?

AI Roadmap

Everything that has become a norm in our lives went through some hype cycle. So in essence people may overblow its usefulness and think these things are going to change the world but then it doesn’t change the world overnight so things comes crashing down for a while before it goes on to slowly change the world. The internet is probably the best example. In the 90s people were sure that the internet was going to change everything, and so it went through a bit of a hype. So did computers in the 80s. But after the hype, things crashed, and then life went on except it got changed bit by bit, steadily and surely.

Generative AI is itself going through a bit of that; we are all sure things are going to turn out great. Of course, some doomsayers will be warning the world of the problems and calamity it would bring – just as Socrates thought writing was a poor form of communication and would also bring about the decline in memory of men. I think it is probably necessary to create more safeguards for AI and allow the governance to evolve with its development.

I think Gen AI will be helping to augment the capabilities of human workers for a really long time before they come to ‘replace’ workers so to speak. Yes of course you could use some kind of AI technology to help you even have a conversation at the call center, but it’s not going to be able to handle 100% of the queries, you will eventually still have a human in place. Consultants for example, who might have been spending time copy-pasting or doing data entry type of work might lose their jobs but then there will still be someone senior who needs to intervene.

The real economic challenge for us is how are we going to let Gen AI do the so-called low-level jobs while maintaining a pathway for us to train more junior workers into capable senior workers. Sure there is the grunt work that has to be done but traditionally, the juniors learn the ropes by doing those work. If they are going to be performed by Gen AI, then how on earth are they going to be able to get the chance to learn?

There is still substantial job opportunities which are slightly underpaid but cannot be replaced by Gen AI. These work are underpaid either because of systematic biases in the economic systems or as a function of labour market rigidities. They include the care-giving, pastoral guidance type of roles, as well as all of the cases where it is important to have a human example who can model moral character and other crucial human attributes. No kid is going to see the politeness of a Gen AI figure or speech bot and say he or she wants to be courteous because they are a role model for the kid.

To me, those problems will need to be gradually resolved before we would allow AI to play a bigger part in the lives of people. Part of the way some of these problems are resolved is actually through mutual cancellation with the demographic transition challenge. Economies that are mature and have severely ageing population will need to rely on AI for many things. Improving labour mobility globally should slow down the need for that but it is inevitable for these markets who have the resources to play the early adopters’ role.

Non-profit organisations

We can organise our economy in very different ways, and even as the free market and the idea of capitalism reign, there can be different extents to which goods and services are produced and supplied to the end consumers. The non-profit organisation can serve as a way to coordinate activity that delivers real economic results in the form of goods and services.

I think we have overlooked the ability of such a form of economic organisation to do more for the world. The advantage of a non-profit that it explicitly pursues resources specifically for a cause. It doesn’t mean it will squander resources inefficiently, but the stated purpose of it, is to generate the impact or advance towards the mission. Ironically, some of the more profitable companies in the world can tend to make claims that are similar to non-profit in terms of the contribution it brings to society.

And since non-profits often have to deliver results in exchange for funding, or to unlock pre-committed funding, they will learn to optimise their budget and utilise resources optimised to deliver some of the results or at least provide inputs to the causes they are trying to champion. The funding portion of non-profits may be different but the way it should be ran operationally is probably not so different from a typical company, with the exception it may not be able to use the usual incentives for its staff (in those circles, they sometimes call it a passion tax).

Yet perhaps more forms of organisations should be acting as non-profits. For example, banks should potentially operate without profits, with the key objective of optimising risks in the system while providing access to credit for organisations and people. In fact, I think that all financial institutions, even those providing payment solutions probably should have limitations placed on their profits because ultimately, it is the real economy that they are trying to drive and allowing them to extract too much from the real economy can hinder the more fundamental process of capital allocation – which is what we are already seeing. Everyone needs to contribute to the real economy and finance in particular, has become the tail wagging the dog, in name of the pursuit of profit. That is a shame.

Geopolitics-driven transition

There is increasing acknowledgement of China’s leadership in a huge range of technologies around the energy transition and yet the struggle is that a lot of narratives in the Anglo-saxon world seem to be rather negative about this whenever the conversation on economics of equipment starts talking about using Chinese products.

I’m not sure if trying to re-invent the Chinese leadership in the technologies should be a key priority. Isn’t it the typical ‘western’ idea of trade that every country can develop their comparative advantage and should stick to it? One of the huge comparative advantage that the west has lies in taking seriously very preliminary, immature and ill-formed ideas and persistently exploring, improving, refining them until they are good enough for the market. At that point, the Asian economies with its ability to scale up further and drive costs down takes over those hardware aspects and this allows for prosperity and mutual gains.

The innovations in business model, technology and regulations that are needed probably will proceed the same way. Geopolitics can seem to drive the climate transition at times (such as putting a price on carbon, regulating flow of goods based on carbon content, enforcing carbon disclosures for companies, etc.), but they could also drive things in another way. When America or Europe puts tariffs on China batteries and other technologies, it can set back more advanced technologies that their local ecosystems are trying to build on top of solar, or batteries.

The truth is, more developed markets with more firms in the ‘traditional’ industrial sectors will definitely have to deal with some can of stasis introduced by incumbents lobbying, the inertia from having to restructure the economy, whereas the newer and up-and-coming markets have less to lose, or less industries to cannibalise when they are trying to develop their own industries. China’s advantage of leapfrogging some of the fossil fuels and moving straight from coal to renewables is simply something more fundamental.

The question as a global society is how we can lean on the strengths of different countries to deal with this global climate problem. Geopolitics and global competition can sometimes help. But not when competition turn towards having to re-invent the wheel.

Character development in sports

Continuing my series of musings about the nexus of sports and life. Something more important than winning in the sports arena is that your character is being built. How do you measure the extent of character development? What am I thinking about exactly? And why does it matter?

You can’t measure character. It doesn’t mean it is not important but you just cannot measure it. In the film Les Choristes, the Maths teacher, Mr Mattieu, formed a choir believing it would help reform the badly behaving boys. And it did! But how do you measure it? What changed? Maybe the school grades, maybe the noisyness of the classroom, perhaps even their sense of aspirations. In sports, the players’ performance can be seen in their behaviour on the pitch or courts, as well as their scores, but perhaps also in their lives, the way they treat the people around the sport, and so on. Even how they treat their competitors and how they talk about them. Max Maeder, the Singaporean kite-foiling Olympic medalist, impressed everyone by giving kudos to his competitors after finishing third in his final race when asked to comment on the race.

So that’s what I’m thinking about. There’s something unmeasurable that we can achieve in sports and sporting culture. Are we going to invest into that as a nation? Do we care enough about our people’s lives and their mental fortitude, resilience in face of struggles, competition, and need to perform? Those are precisely what sports offers us an opportunity to train and build up. And so investing in sports is not just about shiny stadiums, sport science degree programmes but also providing athletes with sport psychologists, equipping athletes with the science involved in training, practice, self-care and so on.

An excerpt from Roger Federer’s commencement speech for the graduating class of 2024 at Darthmouth this summer:

In tennis, perfection is impossible… In the 1,526 singles matches I played in my career, I won almost 80% of those matches… Now, I have a question for all of you… what percentage of the POINTS do you think I won in those matches?

Only 54%.

In other words, even top-ranked tennis players win barely more than half of the points they play.

When you lose every second point, on average, you learn not to dwell on every shot.

He could be considered perhaps the most long-running, persistently successful individual athlete of our times, and the lessons he can draw from his experience are timeless. If we could have more of such models and examples to train, motivate, and encourage our next generation of Singaporeans – for their lives not just in sports but other aspects, won’t it be great?