178 Formulating the Mess becoming the control variable. To compete cost needs to be reduced and throughput needs to be increased. But cost and throughputs are design driven. To reduce cost by an order of magnitude, the product and the throughput process need to be redesigned. The second impact of global- izationisincreasingglobalaccesstoinformationandknowledgeandthus reverse engineering. This leads to imitation as well as proliferation of tech- nology. To cope with this duel challenge also requires redesign. Iteration of redesign and need for continuous improvement increas- ingly removes slack and redundancies from the system and makes the interdependencies among the parts more and more pronounced. This is the essence of emerging complexity, which demands a whole new form of leadership -- managing interaction and managing those you do not con- trol.Managingupwardsrequiresaparadigmshiftandunderstandingof thesocioculturalmodel,self-organization,andnonlineardynamics.This ironically leads back to learning design thinking. The aging population also has two impacts. It increases the cost of health care and retirement obligations, which puts additional pressure on cost reduction. In addition, retirees have a tendency to rely heavily on money managers to manage their savings and provide them with income foramuchlongerlifeexpectancy.Moneymanagersusuallydonotactas long-term,interestedstockholders;theyaremorelikegamblerswhowill cash out at an opportune time to bet on a more promising horse. Expectation of stock market capitalism for double-digit growth and short-term earning performance that is met by emphasis on quarterly per- formance and continuous mergers and acquisitions conflicts with the stakeholder's expectation of long-term viability and stability. To dissolve this conflict and create a win/win environment that presents both short- and long-term success requires redesign capability. 8.5 CuRRenT CRiSiS AnD FuTuRe ChALLengeS Inthesecondmodel(Figure 8.7)Ihavetriedtocaptureinterdependencies among other drivers and obstructions that have a major impact on the emerging mess and the future challenges. These concerns include: · Growthasthesolemeasureofsuccess · Behavioroffinancialsystems · Failureofpubliceducation · Outsourcingandrealitiesofglobalization · Structuralunemployment · Radicallypolarizedpopulation · Politicalsysteminaperpetualstateofre-election · CarryingcapacityofAmericanconsumers To sustain a growth paradigm, based on biological thinking, requires increasing levels of consumption. Unfortunately sustaining double-digit growth, which has become the unquestionable expectation of "stock market