FEAR (fîr)

revised 3-7-09

The one thing that can infiltrate and poison a healthy business is fear. Fear in and of itself is based in the thought of loss. Fear is negative. When you are in fear, you are focused on scarcity. You are afraid of losing something, afraid of being hurt or experiencing pain. Decisions made solely to avoid loss or pain are rarely made with a clear head. Being afraid, often results in the concealment of the truth and when the truth of any situation is hidden, good decisions are hard to come up with.

On the other hand, fear is good. It is an early detection system. A warning of an imbalance in the situation at hand. Fear is a great indicator of potential problems, but is not a foundation or basis for business decisions.

Most businesses that experience fear also have the ability to experience growth. In the US, businesses operate within an economy that is essentially based on Capitalism. Capitalism is exemplified as being a competitive “free” market that contains the mechanism to create growth. Growth in an economy is generally considered good, though in essence it is change, and is neither inherently good or bad. When economies are in a growth cycle, it is usually built on trust. It is built on a collective conscience that believes good things are happening. When participants in growth begin to violate this trust, it is most often the result of greed. This violation inevitably causes trust to be lost and fear is introduced. It is when fear materializes that the system goes astray.

If fear is an indicator of imbalance, and if fear can be overcome, and if we understand how fear appears, then it is important to know when fear will present itself.

Within business, fear doesn’t start during decline, it first appears when all seems well. It startes in a small area and spreads like poison and infiltrates parts of a buisiness that have no reason to be afraid. One way fear shows up is in the form of paying more for goods and services (including real estate) than the real value of the product or property. This fear grows and causes an acceleration of growth that is not supported by reality. This shift in product value can cause economic acceleration and is an early signal that fear is in the air.
What causes goods and services to be purchased at a price that is more than the real value? Scarcity. Scarcity is fear in the form of not being able to obtain an object or item desired. Fear and scarcity breeds greed. This greed fuels scarcity by spreading fear and benefits those that are inciting fear. Do we really value fear?

The downturn in the economy has given us a great opportunity to reflect. It is an opportunity to discover where we have failed and to change our past actions into a new way of doing business. Ultimately the failure has been in our value system. The solution to this problem is to create a new foundation based on values that not only "do no harm", but are also "intended to do good". This change allows a course to be set to "do good" and is the foundation for the Progression.

SHARE (shâr)

My first job in the world of corporate architecture was at HOK Sport in Kansas City. It was a new office specializing in the design of sports facilities and was also a new addition to the Hellmuth Obata and Kassabaum group of architectural offices across the world. The tools of the trade at the time were, a drafting table and associated drafting equipment, a telephone (that I shared with another employee named Craig), a fax machine, a photocopier, a library full of material supplier information, a blueprint machine and a computer terminal connected to a main frame computer in Saint Louis (the mothership of HOK). There were only a few terminals and it required a significant amount of training to be invested in the employee to understand this new way of drafting.

Today all of the original tools are still available (yes I still draw by hand too), but the terminal is now a desktop computer. The software we use on our computer has changed from drafting to building modeling and the quality of the other software available is vastly improved, but it is not the software that has changed the way we do business. Essentially all the computer did for architects was change the tool they were using to draft with. We became more efficient, maybe more accurate, but it didn't change our business model. It is what the computer is connected to that has created the greatest change in our practice. The internet.

We now use online software (often referred to as web 2.0 or cloud computing) for the majority of our business tools. We use online time tracking and project management, online accounting, online contract administration, and are currently evaluating online office software for word processing and spreadsheet tools. In addition, we use the internet for email communication, online chat communication, electronic fax, and telephone through VOIP. Still yet, this is only a change in the conduit of the same tools. The largest change has come from the ability to access information. The internet has become our library, our source of information. A tool that has replaced an entire room full or sources that we had previously researched and reviewed. We now have access to more information through the internet and we no longer need to act as librarian.

Suppliers of materials and systems used in the construction of buildings have found a great form of communication with architects and builders. They are sharing information about their products, systems and services through the use of websites, emails and advertising on the internet. Not only can an architect find product descriptions, but can also download specifications, computer drawings and even some computer models of these products. This has become an incredibly valuable tool to architects, because the internet makes it extremely easy to share this valuable information.

We as architects (and I suspect other businesses) are relearning the lessons that were so hard to comprehend in Kindergarten. How to share. We have worked hard to learn and gain knowledge. We have competed with each other. We have become more efficient. We worked hard to protect our information and reduce our liabilities. But the reality is that we have only shared our knowledge in an effort to convert our knowledge into cash. After all, that is what a professional, an expert in the field of anything does. But as the world changes and our values change, so changes our practice. The structure of the internet is the inspiration. We are learning to share our knowledge with those that share our values in an effort to improve our world and in the process we are all benefiting. This is an integral part of The Progression.

ETHICS (ěth'ĭks)

On January 27, 2009, Governor of Utah, Jon M. Huntsman, Jr. stated in the state of the state address :
"... as we have moved into the digital age, I am concerned that some of our time-tested values have been left behind. In the past year, we've seen our nation's financial pillars crumble, and not because we have a deficit of talented people.
I would suggest there is one common thread: a deficit of ethics.
There is a complete disconnect with our nation's best and brightest. They have been taught to be brilliant on Wall Street without concern for their impact on Main Street. Whether in business, politics or community affairs, correcting this deficit of ethics is just as important as overcoming our economic struggles."

This is a profound statement for a governor of any state to make. This statement required insight and foresight and begins to define the problem so that a solution can be created.
Why would an architect be concerned about Wall Street ethics? Besides the curiosity of solving problems, a sizeable portion of large projects designed by architects in the recent past have been financed through means that are not traditional banking. And, most architects have experienced this phenomenon described as a deficit of ethics in the course of day to day business. The reality is that this problem is not only relegated to Wall Street, but is pervasive throughout our culture.

To really get to the heart of the matter, understanding the value of ethics is important.
WordNet® 3.0, © 2006 by Princeton University, defines ethics as:
1. motivation based on ideas of right and wrong [syn: ethical motive]
2. the philosophical study of moral values and rules

The above two definitions of the word ethics are very interesting. The first description is based in motivation and the second is based in philosophy. Both deal with right and wrong, and moral values, but the two definitions set up a potential inherent conflict. Is motivation more important than moral values? Ethics merge our values with our motivations to work as an instrument of checks and balances. Ethics is similar to a conscience for business.

Architects hold a unique position in the design and construction world as representative of the owner, creator of the project, and arbiter of the construction process. This position allows an architect to see many sides of the business world. There are good people in every aspect of business and most follow good ethical practices. In the past few years, by far the largest representation of a deficit of ethics in my business has come from the financial community.

Usually, found hidden within a large contract from a financial institution is a benign clause that asks the architect or contractor to accept responsibility, risk and liability that belongs with the owner or the financier. The intention of this benign clause is to either project fear or sniff out ignorance and allow the financial institution to reduce the risk that is theirs to carry. These types of clauses show up in all kinds of contracts.

Some would say that there is no harm in asking for someone to take on these liabilities. They would say that the architect or general contractor has the right to refuse. The problem is that this approach is just wrong and even the people asking the questions know that it is wrong. Can you ask someone to accept something that you know they should not accept, to accept something that may cause undue harm? This type of question is not much different than extortion and it is common practice in financial and contractual spheres. It is also an indicator of an ethical failure. There is no reason that a person's business ethics should be different than their personal ethics.

The fact that a governor is willing to address this issue as a point in a speech as important as the state of the state, gives me hope. It provides a glimpse into the future. A future where those that have gained great knowledge don't use their knowledge to gain advantage by hurting others, but by helping others. This is the way knowledge will be used through the Progression. The use of knowledge will evolve, as a result of our changing values. The change will occur in the same values that are the basis of our ethics.

PHOTOVOLTAIC (fō'tō-vŏl-tā'ĭk)

Amazing what you can do with the power to run 35, 100 watt incandescent light bulbs. Remember the easy bake oven? 35 cakes in 15 minutes. The heat generated to create the light is the wasted energy. That waste heat can actually be used to cook with. New technology has been developed and is currently being developed that greatly improves the efficiency of a light bulb. For example: A 22 watt Compact Fluorescent (CFL) is the approximate equivalent of a 100 watt incandescent lightbulb. Before CFL's, 25% of the average home energy budget was used just for lighting. New technologies now exist and are improving rapidly. Light Emitting Diode (LED) lights are already available and the pricing is trending downward rapidly. The power requirements of an LED is approximately 4 watts to match a 100 watt incandescent bulb and last 100 times longer.
What does this have to do with anything? Well if you are building a house today, it is possible that you are considering installing a photovoltaic (PV) system. A 3.5 kW PV system will generate enough power roughly equivalent to the power consumption of 35, 100 watt bulbs. How many LED fixtures will it operate? What can you do with the left over power?
As an architect, I am frequently presented with the opportunity to provide advice about building options that are value judgements. Each client has their own set of values, and as an architect, it is not our responsibility to judge, but to provide objective information to subjective questions. We actually have a unique opportunity to provide insights that are commonly lost in everyday life.
So, PV panels or not? If you are making a business decision based solely on money, I can not advise anyone to install PV. The return on investment (ROI) period varies on location, installation and system, but generally it will take 7 to 12 years to pay back. That means it will take that much time until the PV panels produce enough energy to pay for the purchase and installation. Considering the potential life span of these systems, an ROI analysis may not be the right approach. Because these panels are expected to operate for longer than 20 years, a life-cycle cost analysis over the duration of the life of the system will be a more attractive comparison.
There are other reasons to install a PV system, but it requires a value system that finds merit outside of money. I believe that there is a paradigm shift occurring in how we make decisions in this country. We have run the entire course on a value system that is based solely on money and the inevitable result is a failed financial system. The reality is that money is important, but not the sole reason to make any decision.
A good example of a decision that is made using a value system that includes factors in conjunction with money is where to buy or build a house. People rarely build a house in the cheapest location and rarely in a place that is the most expensive. If money was the sole factor in making this decision, there would be only two real options. Why is it not appropriate to consider making the same judgment when deciding whether to install an alternative energy system?
If you want to talk about the financial positives, the PV panels will produce a large chunk of electricity when a house is unoccupied. That production will help to offset the operational costs. The PV system will add another layer of protection to the operations of the house. If the house is lived in more frequently, the operational costs will be reduced. Also, I'll bet that carbon generated energy will be taxed within the next ten years. A carbon tax will ultimately level the playing field on the costs of coal produced electricity and increase consumer costs in many parts of the country, thus making PV more competitive.
Whether or not to install PV panels is not an easy decision to make. It requires reflection. I see it as an opportunity to refine a value system. Our power system in the United States has been controlled by a very few companies. The future will be in distributed power systems. It's much more democratic and certainly plays to the independent nature of the people in this country. This is The Progression.

(R)EVOLUTION ((r)ěv'ə-lōō'shən)

In a recent conversation I had with a friend, he stated that he was surprised that the United States hadn’t experienced a revolution. With the war in Iraq, global warming and other domestic issues, he was surprised that the younger generations had not revolted. I understood where he was coming from, but this isn’t the sixties and the younger generation is only one small aspect of the change that is happening. This change is multi-generational and is more widely accepted than previous changes in our society. Our revolution is more evolution.
We no longer believe that government creates change. We know that people do. All across this nation, people have lost hope in our government being capable of taking care of our people and planet. With the recent presidential election some believe that it is possible again. The reality is that it probably doesn't really matter. People haven't lost hope, instead, they are taking action. Spending money differently. Some are buying products that will not damage the climate, some are buying organic food and healthcare products, and some are buying carbon credits through their utility company programs. This is happening even when those products are more expensive than a comparable traditional product. This represents a different value system.
This evolution is not so different than the revolution of our forefathers. It wasn’t the system that created change, it was the people with a common vision. It required first an intellectual change, born by a recognition of a different value system. Political will followed the transition in values. In this instance the system is irrelevant. The representation in our system of government will be a reflection of the will of the people, the government does not create the will of the people.
The people are collectively making the intellectual change. Their financial actions will lead the way and the government will follow. This is The Progression.

WHY (wī)

After decades of expansion, growth, increase in wealth and being bombarded with “cool stuff”, “exciting activities”, being “overloaded with entertainment”, and “focusing on distractions”, our culture is waking up. We are demanding a deeper meaning to every day life. This demand for meaning is driven by our desire to understand the world around us and to have purpose in our lives. We humans are driven by our brains and our souls, both of which require meaning in order to be happy.
The change is happening in the collective conscience of our culture. It is happening in every part of our every day lives and it is seeping into our global economy. The change is good. It is based on the principle of doing good. Doing good with our every day decisions in how to use money in a selfless way. The change is found in the underlying motivation of our decision making process. It will create a change in our financial systems and it is changing the economy from the inside already.
Individuals are changing their financial habits and are thus changing the economy without the help of our governments, banks or large corporations. Our culture is growing up and the economy is reflecting this growth. The change is not based in fear. It is not based on having more than your neighbor. Day by day, week by week, month by month and year by year the economy is changing. It is changing from a desirous selfish consumption based system to a system that is based on doing good.
What does this mean? It means that an individual’s decision making process reflects the values of the individual. These values collectively create our cultural values and our values are changing. With this change, our decisions, actions, activities and reasons behind our financial decisions are changing in synchronicity. As we change from an era based in self gratification to a time where we learn to be happy without the need to possess massive amounts of material things, so changes the economy. This is The Progression.

CHANGE (chānj)

As a practicing architect, I have frequently experienced resistance to my life’s work by a wide range of people. Included have been government officials, clients, neighbors, concerned citizens and even professional peers. What I have learned is that their concerns are rarely based on whether I had completed my task competently or whether I had created an object of beauty, or even whether the proposed project was of benefit to the community. In actuality those that objected to the work presented were expressing their fear of change. If change is feared, what is change?
The Random House Dictionary defines change as:
1. to make the form, nature, content, future course, etc., of (something) different from what it is or from what it would be if left alone.
As architects, we are trained to solve problems, to synthesize art, science and business into a new form. The result of our work changes an environment. The result definitely creates something different than what would be if left alone. People understand what exists, but struggle with understanding what will exist in the future.
Change is completely misunderstood. This lack of understanding can be scary to those that find comfort in the regimen of the day to day. Change is also powerful. Change requires the mind to grasp the possibilities of what could be. Change requires awareness. Change is natural. In fact, I believe that Change is the only constant.
As a physics equation, it would look like this: k=Δ (where k=constant and Δ=change)
If change is in fact constant, why should we be afraid of it? We are afraid of change because we believe that we have control over things that we don't. In other words, we value control. Control prevents surprise. Control keeps us safe. If we can't control something, it must be bad. Well change isn't always good, but it isn't always bad either. Sometimes, it just is.
The Progression will require change.

PROGRESSION (prə-grěsh'ən)

Have you ever been asked by someone who looks up to you to answer a question that is not easily answered? A question about a subject that you barely comprehend. I was recently asked one of those questions. What is all of this economy, recession, and bailout stuff all about? The question came from my kids who happen to be in junior high. I have a tremendous amount of respect for my kids and generally, I want to speak to them intelligently and not talk down to them, particularly when I sense a hint of fear. So, I went through a cliff’s notes version of mortgages, investments, derivatives, swaps and housing construction. How good ideas were exploited and greed created a profit frenzy that was not sustainable.

Their response was: "None of the money that was made, was real." They got it.

In retrospect, my answer could have done more to describe the real causes. What I described seemed to be the symptoms of a sickness more than the underlying cause of the problems. I've had time to think about the causes and reflect. After looking deeper into the issues and removing the fear associated with a lack of comprehension, I am beginning to see a greater opportunity. Progression.

A Progression in our values. It has been our underlying values that have caused the recent financial collapse. Sure we have a struggling economy and people are losing work at an astronomical rate, but it's ultimately not all bad. We hear over and over each day about a recession and a potential depression. The reality is that we have a great opportunity to change the way we think and act. An opportunity to create new values that raise us out of the hole created by our past value system. We have the opportunity to progress in many ways. What if this change were to become known as "The Progression"?

Random House Dictionary defines progression as:
1. the act of progressing; forward or onward movement.

Isn't that what is really happening? Are we not actually moving forward? Aren't we in reality experiencing the end of greed and fear as the primary engine of our economy? We inherrently know that real value is created with ideas and actions that make things better for others, not through the manipulation of numbers with monetary symbols. We are experiencing the shift in human perception that will re-create the way people think, live and do business. We are experiencing The Progression.