
The Week's best British articles this week drew my attention to the commentary It's only a hunch, but do we put too much faith in computers? by Mary Dejevsky in last week's The Independent. She says that
more and more, the personal is being reduced to electronic data that can be stored, classified and checked on computer. If you can second-guess the computer's requirements, as those with dishonest, as well as honest, ambitions will try to do, your path to success will be clear. But be warned: the day will come when someone, fatally, mistakes that dog for a cat.She draws on examples each borne of a reliance on data, computers and resulting bureaucracy: computer models that led to false confidence that the sub-prime market was safe; neglect at Stafford General Hospital; the Baby P case.
Interesting, though, that The Week's article was entitled Our dangerous faith in numbers. So which is it; is it the computers that house and manipulate our numbers or the numbers themselves?
Isn't the actual danger that both articles are trying to get at more about the way in which we set objectives? This is something that we crossed paths with when I worked at Henley Centre HeadlightVision (now called The Futures Company) and did a project for the National Consumer Council (now called Consumer Focus). The report, the top document on this page, looked at macro, consumer and regulatory trends likely to affect the consumer advocacy landscape between now and 2020. One we picked up on there was called A more sophisticated approach to competition-based regulation.
Competition-based regulation has tended to take quite a simplistic approach, focusing on economically rational behaviours, and taking little account of the ways in which consumers actually behave. However, concerns have been raised around the effectiveness of this model in certain markets. For example, a recent report into the introduction of competition in the postal sector found that ‘there have been no significant benefits for small businesses and domestic consumers.’The report was the Hooper report, and the image above is one done by Ian McDermott who was a real-time illustrator engaged at the workshop to help facilitate discussion and expose commonalities.

Isn't the problem that The Independent article is trying to get at the issue of regulation and how this is employed to get the desired results. This is very much the issue of order and freedom discussed in my last post and is also the same problem in education that is discussed by Sir ken Robinson in his book The Element (which I'll come back to in another post).
Why? Because there's a tension between the numbers-based regulation that seeks to set quantifiable targets and on the other end the purely hands-off competition-based regulation that treats human agents as Econs (cf. Nudge) that will ensure only the best providers survive. Over-reliance on the first explains the Stafford General Hospital problem and over-reliance on the second the banking crisis that allowed reliance on unsound models and the short-termism. I don't have an answer (on a postcard, please), but presumably it has to lie somewhere near an outcomes-based regulation in which freedom and order come together to empower and allow scope for responsible people to achieve good outcomes. Maybe that's naivety...




A couple of illuminative examples were given of this. To cite just one, not long ago there were 13 regional commercial TV stations, each of which made a sufficient profit and served the needs of the local community. However, the idea of 'shareholder value' led to their agglomeration into one station, ITV, which is now struggling to make a profit and which is less well placed to serve regional communities.