Ethics by Design: Strategic Thinking and Planning for Exemplary Performance, Responsible Results, and Societal Accountability

Preface

Prior to 2008, most especially the summer and fall economic

fallouts, the case made in this book might have been a bit

harder sell. While there is plenty of evidence behind the models

and arguments put forward in this book, by and large most

folks—especially the leadership of the U.S.—were content to

roll along according to the old model and old mind-sets.

Now we see that the old model failed us—in a large, inter-

connected manner.

As one of the few to step forward and take responsibility for

the failings, Alan Greenspan captured this succinctly:

“Yes, I found a flaw in the model that I perceived is the

critical functioning structure that defines how the world

works …”

1

Indeed, we all together found the flaw, or rather, are

experiencing the consequences of the flaw. But when the facts

change, so should your mind change.

But the flaw doesn’t reside with a single individual or a

single firm or organization, although the decisions and actions

of individuals and organizations led to the widespread failures.

“The crash of the stock market and the crash of Bernie

Madoff together are really emblematic that the system

is the culprit.” – Alexandra Penney

2

Yes—the system is the culprit, or rather, one’s view of “the

system” and how that system is designed is the culprit.

Greenspan’s “system” design had limitations—limitations that

are addressed when we adopt a more robust definition of

“system” and plan or design for desired results in the larger

system.

In this book I provide the concepts, ideas, and tools to keep

you and others from designing and delivering a disaster plan.

And it all centers on ethics.

Probably no topic is quite so slippery to get our arms

around as ethics, and yet there are few other topics that more

pervade all our lives, that we all think about in some form.

x Ethics by Design

Although a philosopher will quickly think of Kierkegaard or

Sartre or Plato, others who have never read those pieces will

have equally strong opinions and ideas on ethics as well.

Often, when I bring up ethics in conversation, others jump to

talking about individuals and ethics—what this person or that

person did in the office, or what some company did that costs

thousands their pensions. While individuals play an obvious

role in ethical decisions, the focus here is really on system

ethics and what that implies for effective strategic planning,

accountability, and performance design. The design of the

system greatly influences decisions, behaviors, performance

and results. We have discovered that more of human behavior

is influenced by the eco-system around people.

3

We design

flaws and frailties into our systems—into laws, policies,

incentives, unintentional disincentives, physical infrastructures,

educational practices, technologies, information. Whether we

are conscious of it or not, we create gaps, and we individually

and organizationally pay the price for these flaws to continue to

exist. Conversely, we can design our strengths and our insights

into these systems—if we so choose. This book is for those of

you who choose to design a different system—a future you

want your children to inhabit, that you wish you could live long

enough to experience.

“Ethics by design” is the notion that we are participants in a

larger whole—the larger system of society; it is an acknowl-

edgment that decisions have results and that we accomplish

those desired results through a deliberate effort to plan and

design towards desirable results. Desirable is defined at the

societal level—not the individual or the organizational. And this

isn’t utilitarianism. It’s not about the greatest good for the

greatest number. Majority or minority have no place here.

Instead, it is total and holistic—system ethics—everything is

inter-related. A product here or a service there or a new tech-

nology has ripple effects. “Unintended consequences” is no

longer an acceptable argument—for in many cases, we’ve

passed a tipping point for the collective “unintended conse-

quences” of many organizations and entities, all adding up to