Surface Ripples

The "Automation Paradox"

In previous articles, I’ve discussed the role that human beings play in business, along with concerns over AI and others.

I’ve recently been introduced the concept of the “automation paradox”. What this says is that the better the machines get, the more we struggle when they fail. 

Ever have your car’s satnav lose its signal at that critical point where, if you make the wrong turn, you end up miles from your destination?

Businesses all over the world have some degree of automation.  Whereas, in the “old days”, banks used to keep ledger books, everything’s now computerised. Even our statements are either emailed to us or sent via a mobile app.

But what happens when “things don’t work”?  I see articles in the press about how banks are embarrassed by their mobile apps failing at critical times (usually when salaries are paid).  We’ve also heard of “cyber-attacks” on various services, rendering an organisation’s ability to deliver products or services non-existent.

Even car engines are so computerised now that, if something goes wrong, it must be towed to the nearest service centre for the computer to be reset.

In any plan for automating services or systems, we need to be fully aware of the consequences of what might happen if the technology fails. What’s our contingency plan?  I remember a delightful occasion when, talking to a banker in Moscow about whether Y2K (remember that?) would impact them, his answer was along the lines of “We’ve only recently automated, and if things do go wrong there are still plenty of people who remember the manual processes!”

Humour aside, that gentleman had the answer.  If automation fails, are we able to implement a semi-automated or even fully manual workaround until the problem can be fixed?

As well as being judged on how they deliver their products and services, organisations are also judged on how they handle crises. As leaders, our job is to work out “what could go wrong” and find a way around it.  If we rely on an external or third-party to deliver part of that product or service, do they have a contingency in place in case things go wrong for them?

As technology advances, it usually improves our lives but when it fails, we realise how much we’ve come to rely on it and struggle when this happens.  As leaders, our job is to identify possible areas of failure, their likelihood and how we’re going to sort them out. 

I’ve spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With a wealth of international experience in international financial services around the world running different operations and lending businesses, I started my own Consultancy to provide solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email. 

Labels: Crisis Management, Customer Care, Leadership, Productivity, Risk

posted by William Martin @ 09:00