Corporate Epistemology

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1 Corporate Eptemology Competing Philosophies of Truth in Business And How They Influence Knowledge Management A Perspective Developed by Joseph M. Firestone, Ph.D. and Mark W. McElroy In Concert With the Knowledge Management Consortium International, Inc. November, 2003 Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy

2 Introduction Performance in business nothing more than in use What passes for therefore of enormous importance outcomes depend on its quality Knowledge can be seen as beliefs or claims that we regard as true Different approaches, or philosophies, for determining truth can be found in business Knowledge Management practices vary accordingly What we need, then, a view of the competing philosophies of truth in use i.e., the competing corporate eptemologies Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy

3 Competing Eptemologies Truth Empiricm Foundationalm Coherentm Idealm Religious Managerial Rationalm Justificationm (Floating Foundationalm) Expert-Based Paradigmatic Communitarian Managerial Fallibilm Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy Coherentm Instrumentalm Pragmatm Individualt Solidart Criticalm Cultural Paradigmatic Communitarian Htorical Critical Rationalm Critical Scientific

4 Glossary Coherentm: The view that a true belief or statement one that coheres maximally with pre-exting true beliefs or statements. Communitarianm: A form of Justificationm which makes an appeal to a consensus or communityheld view as a bas for justifying as either true and certain, or at least probable. Criticalm: A view of inquiry which holds that all human fallible and should be regarded as such (see Fallibilm), and that we are rational only to the extent that we hold our beliefs and our claims open to criticm and testing in order to eliminate the errors in them. Criticalm stands in opposition to Foundationalm and Justificationm in that it holds that there are no true and certain beliefs or formulations, and that no beliefs or claims can be or need be justified, but only subjected to error elimination through criticm. Critical Rationalm: The orientation of Karl R. Popper which holds that all human fallible and should be regarded as such (see Fallibilm), and that we are rational only to the extent that we hold our beliefs and our claims open to criticm and testing in order to eliminate the errors in them. It based on the idea that "all life problem-solving" and that problem solving a process of creating trials (between competing claims) and engaging in error elimination (criticm of these competing claims relying on the use of deductive reasoning and empirical testing where possible). Critical rationalm stands in opposition to foundationalm and justificationm, and broader than falsificationm, which relates to empirical testing of claims only. Critical Scientific : A point of view that subscribes to eptemological realm, fallibilm, criticalm, and the importance of measuring "truthlikeness", while continuing to assert the role of some forms of inductive inference in science. Cultural : The view that relative to the world-view embodied in the knower s culture. Empiricm: An eptemology that asserts that all our derived from the foundation of our experience, and justified true belief. Idealm: The view that truth maximal coherence with fundamental truths given by the mind. Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy

5 Glossary (2) : The view that a true theory corresponds to the facts. Expert-Based Justificationm: The idea that in organizations justifiable by expert authority Fallibilm: A viewpoint that sees all human as irreparably fallible and incapable of being proven or shown to be certain or justified. Floating Foundationalm: A form of Foundationalm that seeks to ground upon a subjective commitment to a belief, theory, paradigm, or type of group solidarity which, themselves, are not justified, but which are regarded by their subscribers as though they are (Notturno, 2000). Foundationalm: A justificationt form of eptemology which claims that we can justify our and show it to be certain by appealing to some underlying, bedrock set of truths or authority (e.g., Cartesian Rationalm and Brith Empiricm). Htorical : The view that truth relative to the worldview charactertic of a htorical period Individualt : The view that truth relative to an individual s belief. Instrumentalm: The doctrine that theories have no truth value but are merely tools for prediction and application. Justificationm: The view that justified true belief, and that we can and should attempt to justify our as infallibly true by demonstrating that it. The widespread acceptance of fallibilm has recently watered down th idea of justificationm, so that those who hold to it now believe that need only be justified as highly probable rather than infallibly true. Th comproming of the idea of justification has given re to Floating Foundationalm (see above). Managerial Justificationm: The idea that in organizations fallible but may be justified by managerial authority. Managerial : The idea that in organizations corresponds to the facts and justified by managerial authority. Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy

6 Glossary (3) Paradigmatic Justificationm: The idea that in organizations justified by its conformance to the criteria of evaluation given by the organization s dominant paradigm of inquiry. Paradigmatic : The idea that truth relative to the results of evaluations conforming to the criteria of evaluation given by the organization s dominant paradigm of inquiry. Pragmatm: The view that truth a function of the utility of a belief or claim, and that all of our beliefs and claims are both fallible and based on presuppositions. Rationalm: An eptemology characterized by both justificationm and foundationalm, expounded most notably by Rene Descartes, which held that could be justified by reason or intellect alone, and not by sensory perception or experience. : A form of justificationm (see Justificationm) that regards all truth and certainty as personal, local, and relative to an individual or a collective i.e., anti-foundationalt, but not antijustificationt. Religious : An eptemology characterized by both justificationm and foundationalm, which holds that can be justified by religious faith alone and not by reason or intellect, or by sensory perception or experience. Solidart : The idea that truth relative to the consensus of one s group, community, organization, culture or other collective. Theory of Truth: A formulation that defines the term "Truth." Theory of : A normative theory that specifies how one ought to comparatively evaluate claims in relation to truth or falsity, "truthlikeness," coherence, utility, simplicity or some other -related goal. Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy

7 So What?

8 Here s What.. Most mainstream businesses and their managers are Fallibilt (i.e., they admit the fallibility of their own and avoid the view that can be had with certainty) th a good thing But within the Fallibilt thread, there are divions KM diverges accordingly: Some Fallibilts inst on adopting beliefs and claims as if they were justifiably true, even though they admit with certainty unavailable to us (these are Justificationts of the Floating Foundationalt kind) Other Fallibilts stick to their uncertainty roots and hold, instead, to a view that what we must do continuously hold our beliefs and claims open to criticm (these are Criticalts) Corporate KM KM strategies will will dramatically differ differ (and (and should), depending, in in part, part, on on whether or or not not their their eptemologies are are Floating Foundationalt or or Criticalt! Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy

9 What Do Most Organizations Do?

10 The Mainstream Management View Truth Empiricm Foundationalm Coherentm Idealm Religious Managerial Rationalm Justificationm (Floating Foundationalm) Expert-Based Paradigmatic Communitarian Managerial Fallibilm Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy Coherentm Instrumentalm Pragmatm Individualt Solidart Criticalm Cultural Paradigmatic Communitarian Htorical Critical Rationalm Critical Scientific

11 The Mainstream View Admits that our fallible, but says we must carry on as though it weren t by endowing managers (or other authorities) to create that others regard as true A form of Justificationm that requires us to suspend our dbelief in the fallibility of What Mark Notturno calls Floating Foundationalm a form of Foundationalm with ironically no foundation! Says that hatched by authorities justifiably true Leads to adoption of falsehoods more often because the beliefs and claims of authorities go untested Fraught with rk! The The corporate eptemologies of of most most firms firms are are fundamentally Justificationt! Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy

12 What We Propose

13 The New Knowledge Management (TNKM) View Truth Empiricm Foundationalm Coherentm Idealm Religious Managerial Rationalm Justificationm (Floating Foundationalm) Expert-Based Paradigmatic Communitarian Managerial Fallibilm Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy Coherentm Instrumentalm Pragmatm Individualt Solidart Criticalm Cultural Paradigmatic Communitarian Htorical Critical Rationalm Critical Scientific

14 What s the Advantage to Criticalm? Quality of higher, since assumption of justifiable truth abandoned in favor of holding continuously open to criticm and accountable for its errors A powerful form of rk management, since all actions taken in business are nothing more than in use (i.e., higher-quality leads to lower-rk actions ) Since it broadly participatory in production, it shifts responsibility for it from the few to the many a larger pool of creativity and innovation Correspondingly higher levels of transparency and inclusiveness lead to more satfied and trusting stakeholders Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy Firms Firms that that take take Criticalt positions in in their their eptemologies are are fundamentally more more adaptive because they they never never view view their their as as being being true true with with certainty!

15 The Tree Truth Foundationalm Fallibilm Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy Coherentm Coherentm Instrumentalm Pragmatm The Corporate Battleground Is Here Idealm Individualt Solidart Empiricm Religious Managerial Rationalm Justificationm (Floating Foundationalm) Which to embrace? Criticalm Cultural Paradigmatic Communitarian Htorical Expert-Based Paradigmatic Communitarian Managerial Critical Rationalm Critical Scientific

16 Knowledge Management Implications Foundationalm Fallibilm Truth Coherentm Coherentm Instrumentalm Pragmatm Idealm Individualt Solidart Empiricm Religious Managerial Rationalm Justificationm (Floating Foundationalm) Criticalm Cultural Paradigmatic Communitarian Htorical Expert-Based Paradigmatic Communitarian Managerial Critical Rationalm Critical Scientific Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy Justificationt Justificationt KM: KM: Relies Relies on on appeals appeals to to authority authority as as bas bas of of organizational organizational Business Business and and both both controlled controlled and and dominated dominated by by management management Knowledge Knowledge less less participatory participatory Knowledge Knowledge produced produced rkier rkier Criticalt Criticalt KM: KM: Sees Sees all all as as truly truly fallible fallible Business Business controlled controlled and and dominated dominated by by management; management; not not Knowledge Knowledge produced produced of of higher higher quality quality Knowledge Knowledge Claim Claim ethic ethic strong strong KM KM mostly mostly about about maintaining maintaining openness openness and and rigor rigor in in production production

17 Summary and Conclusions Most practices in KM are Justificationt in orientation While rejecting the idea of truth with certainty, they carry on as though they don t (e.g., produced by managers treated as if it were true with certainty) Justificationm introduces and intensifies rk Crticalm, by contrast, institutionalizes a Fallibilt ethic and rewards testing and evaluation of claims Criticalm lowers rk and improves quality of performance by acting as a quality control system for KM has become a powerful new form of rk management and should be positioned accordingly! Copyright 2003 by Executive Information Systems, Inc. and Mark W. McElroy

18 The End Contact Info Joe Firestone, Executive Information Systems, Inc Mark McElroy, Macroinnovation Associates, LLC

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