{"id":4084,"date":"1964-10-01T01:00:00","date_gmt":"1964-10-01T01:00:00","guid":{"rendered":"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/october-1964-vol-45-no-10-chance-versus-informed-planning\/"},"modified":"2022-11-28T01:27:43","modified_gmt":"2022-11-28T01:27:43","slug":"october-1964-vol-45-no-10-chance-versus-informed-planning","status":"publish","type":"rbc_letter","link":"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/october-1964-vol-45-no-10-chance-versus-informed-planning\/","title":{"rendered":"October 1964 &#8211; Vol. 45, No. 10 &#8211; Chance versus Informed Planning"},"content":{"rendered":"<div id=\"layout-column-main\">\n<p class=\"boldtext\">Making a living involves taking                     a chance, but those who conduct their business with the minimum                     of worry are people who minimize the possibility of adverse                     chance by planning ahead.<\/p>\n<p> In business, and in living generally, there are some people                     who stake their capital, their talent and their time on the                     turn of circumstance; others use their talent to direct their                     capital and their time in an ordered way so as to gain the                     greatest chance of success.<\/p>\n<p>The occasions when a man trips over a gold nugget while                     strolling with his head in a cloud of wishful thinking are                     few and far between. Indeed, making a living demands more                     and more that a man watch not only where he is stepping at                     this moment, but what is coming up a half mile or a mile ahead,                     next year or ten years hence.<\/p>\n<p>It has been said that history turns on small hinges, and                     so do people&#8217;s lives. We are constantly making small decisions,                     some of them apparently trivial. The total of these decisions                     finally determines the success or failure of our lives.<\/p>\n<p>That is why it is worth while to look ahead, to set a course,                     and so to be at least partly ready when the moment of decision                     comes. By anticipating events we avoid muddle-headedness.<\/p>\n<p>Informed planning is based upon the fact that phenomena                     do not occur singly. Every one comes preceded by many others,                     accompanied by many, and followed by many. The cause-and-effect                     relationship of things is the most important natural law that                     we have.<\/p>\n<p>When we look behind the happening to find the cause, we                     lose that absurd air which so many people have of being shocked                     and pained by the curiousness of life. We see that the events                     which appear to be freaks of chance are only the latest steps                     in long lines of causation.<\/p>\n<p>We know very little about real causes, but we do know that                     under certain conditions certain things have always happened.                     What we need to do is to judge apparent causes by three questions:                     (1) Does the causal relationship really exist? (2) Is it the                     only one that exists; (3) Does it exist with the inevitability                     we believe? These tests are necessary because sometimes events                     merely follow each other in successive points of time without                     tending toward an end; sometimes apparently related events                     may move together because a third influence bears on both;                     the causes of similar phenomena may not be identical.<\/p>\n<h3>Chance in history<\/h3>\n<p>John Buchan, later Lord Tweedsmuir, Governor General of                     Canada, gave an interesting lecture under the title &#8220;The Causal                     and the Casual in History&#8221;, published by Cambridge University                     Press in 1929. He provided a number of illustrations of trilling                     occurrences being followed by great consequences.<\/p>\n<p>It is futile, but nevertheless interesting, to speculate                     on what might have happened if such and such had been done.                     For example, the Roman Empire existed by virtue of the grandest                     application of technology that the world had seen: its roads,                     bridges, aqueducts, tunnels, sewers, vast buildings, metallurgy                     and agriculture. Why did not the Roman engineers invent the                     steam engine? They might have done so at any time. Alfred                     North Whitehead suggests in <em>The Aims of Education <\/em>(Mentor                     1929): &#8220;I ascribe it to the fact that they lived in a warm                     climate and had not introduced tea and coffee. In the eighteenth                     century, when steam was put to use, thousands of men sat by                     fires and watched their kettles boil.&#8221;<\/p>\n<p>Here is another illustration from the story of steam. Napoleon&#8217;s                     determination to invade England has been derided, but what                     if Robert Fulton&#8217;s offer to outfit a steam-driven fleet                     had not become buried in committee? Fulton wrote to Napoleon:                     &#8220;I can remove the obstacles ( wind and storm ( which protect                     your enemies, and, notwithstanding his fleet, transport your                     armies to his territory at any time and within a few hours.&#8221;                     Napoleon sent the proposal to his Minister of the Interior                     for instant examination by a special committee, with a covering                     letter in which he said the project &#8220;may change the whole                     face of the world.&#8221; Nothing happened.<\/p>\n<p>As an example in another area, consider the delay in opening                     up Canada to settlement. Thomas B. Costain wrote in <em>The                     White and the Gold <\/em>(Doubleday Canada Ltd. 1954): &#8220;the                     grant of ten pounds by a parsimonious king (Henry VII of England)                     to the man who had found a continent (John Cabot) may have                     put a damper on individual enterprise in following up his                     exploit and so resulted in the temporary loss of this great                     land which later would be called Canada.&#8221;<\/p>\n<p>There has been an infinity of little things turning the                     course of history. Menelaus might have taken the sensible                     view that he was lucky to be deprived of such a flirtatious                     wife as Helen: then there would have been no launching of                     a thousand ships, no Trojan war, no <em>Iliad<\/em>, no <em>Odyssey<\/em>.                     Napoleon might not have had an itchy face on that day in November                     1790 when his fate rested in the hands of the French legislators:                     then he would not have scratched it, drawing blood which led                     the mob to believe he had been attacked: then the mob would                     not have invaded the assembly hall and forced the appointment                     of Napoleon as Consul of France.<\/p>\n<p>Goering confessed during the trial of Nazi war criminals                     at Nuremberg that a pretty blonde diverted him when he was                     on his way to join the Freemasons: if he hadn&#8217;t met that blonde,                     he said, he would have become a Freemason; it would then have                     been impossible for him to get into the Nazi party and he                     could not have become the powerful collaborator in Hitler&#8217;s                     evil-doing. Charles Dickens wanted to go on the stage                     but was turned down because of his husky voice due to a head                     cold, so he became an author instead of an actor. Citizen                     Drouet was a modest man who dragged a cart across a gateway                     near the bridge at Varennes during the French Revolution,                     frustrating the attempt of Louis XVI and Marie Antoinette                     to flee the guillotine.<\/p>\n<p>In lighter vein, consider the effect of Cleopatra&#8217;s way                     with men. Pascal says in his <em>Pens\u00e9es<\/em>: &#8220;Cleopatra&#8217;s                     nose; had it been shorter, the whole aspect of the world would                     have been altered.&#8221; But perhaps Pompey, Caesar and Anthony                     would have found her undoubted intelligence, her personality                     and her appeal irresistible no matter what length her nose.                     And Egypt, as the granary of the Roman world, was a trump                     card for ambition to seize; its importance did not depend                     upon the profile of its queen.<\/p>\n<p>Some of these were chance events, but we must not attribute                     to chance things which have an explicable cause, nor should                     we allow confidence in chance to prevent our doing what common                     sense and logic tell us we can do to bring about the end we                     desire.<\/p>\n<h3>About luck<\/h3>\n<p>Belief in magic has played a large part in human history.                     The essence of all hocus-pocus is the delusion that desired                     results can be obtained without rational co-operation                     of human powers and physical conditions. The business man                     cannot approach his job efficiently if he does so in the mood                     of primitive men. Yet there are still people who carry good                     luck pieces, or have them on their desks, and there are still                     gamblers who turn their coats for luck as men did in Victor                     Hugo&#8217;s <em>Laughing Man<\/em>.<\/p>\n<p>The &#8220;lucky&#8221; man is usually the man who knows how much to                     leave to chance, who knows that it is a mathematical certainty                     that chance is no respecter of persons but is absolutely impartial.                     The universe is governed by the law of cause and effect: if                     he ignores this law, a man may make excuse for his failure                     by blaming chance or luck.<\/p>\n<p>The man who has planned his course, and is going in the                     right direction, sets up a group of circumstances contributing                     to his success. Then he is in position to turn every incident                     into something for his good. As a wise philosopher once said:                     &#8220;The numbers are indifferent, the dice are indifferent. How                     can I tell what may be thrown? But carefully and skilfully                     to make use of what is thrown, that is where my proper business                     begins.&#8221;<\/p>\n<p>People have various ideas about the source of inventions                     and discoveries. One is the flash-of-inspiration                     theory, as when the apple fell on Newton&#8217;s head and suddenly                     he knew all about gravitation; a second is that invention                     comes by putting trained teams of professional people to work                     along strictly defined lines from nine to five daily. In fact,                     most great inventions and discoveries have come from a flash                     of creative genius based on a long period of planned and painstaking                     research. A man needs originality, knowledge of his subject,                     freedom from prejudice, discipline to work hard, and a plan                     to follow.<\/p>\n<p>Unless there is planning based on information and preparation,                     the chances of success are diminished and you find yourself                     helpless before the impact of an unexpected problem or twist                     of events. When you provide for known eventualities you are                     left free to deal with the unknown.<\/p>\n<p>Well-informed planning enables you to proceed without                     hesitation. You study data on the needs, you imitate and improve,                     you make good deficiencies, you evaluate substitutes, and                     you do all these as you go along, based on the information                     you have gathered and your increasing experience.<\/p>\n<p>The mere act of recording on paper the why, what, where,                     when, who and how of any job will, of itself, generate ideas                     of how the work can be done efficiently. That is constructiveness                     at its best.<\/p>\n<p>No one can deny these virtues: planning helps to avoid overlooking                     details which should be considered before action is taken;                     planning co-ordinates and schedules actions so that efforts                     are placed where there is most room for improvement and chance                     for success. A plan should be detailed for the length of time                     that the future is reasonably predictable. It should contain                     specific target dates for accomplishment.<\/p>\n<p>There are two sorts of detailed planning: the nervous, fussy                     and pestering kind, and the planning that, with a definite                     end in view, takes the necessary pains to attain it. Sinclair                     Lewis illustrated the first in his book <em>Babbitt <\/em>where                     &#8220;Babbitt&#8217;s preparations for leaving the office to its feeble                     self during the hour and a half of his lunch period were somewhat                     less elaborate than the plans for a general European war.&#8221;                     The biographer Vasari illustrates the second: the Pope commissioned                     Leonardo da Vinci to paint a picture. On learning that Leonardo                     had started by experimenting on the varnish he proposed to                     use, seeking a product that would be long-lasting, the                     Pope exclaimed: &#8220;Alas, this man will never get anything done,                     for he is thinking about the end before he begins.&#8221;<\/p>\n<p>There is a bonus value in planning: it avoids worry. The                     wise man, though he will not sit down under preventable misfortunes,                     will not waste time and emotion upon such as he can avoid                     by careful forethought. To plan is to take positive action                     against worry. You escape being perpetually irritated by the                     unexpected and by the demands of things left undone.<\/p>\n<p>It is good planning, in private as in business life, to                     make a list of things that need to be done. Number them in                     order of their importance. Then start with number one and                     work through the list. Making the list will consume five minutes,                     and it will save hours.<\/p>\n<p>All this having been said, however, there is no shirking                     the plain truth that chance does play a part in our lives.                     This was well illustrated by the historical incidents. We                     are compelled to follow circumstances imposed upon us by our                     environment. As in a game of chess, we are made to modify                     our tactics to meet those of our opponent. But there is no                     excuse for starting off without a plan that looks ahead as                     far as we can see.<\/p>\n<h3>The scientific method<\/h3>\n<p>Scientists are the best exponents we have of people who                     work with system and order. The scientific method does not                     mean the designing of new devices or techniques, but a way                     of thinking.<\/p>\n<p>Science means getting at facts and trying to understand                     them. What the scientific approach does is give one a specific                     and detailed line of endeavour which has a probability of                     bringing about the desired result. This is not confined to                     chemistry or physics or biology, but may be seen in the procedure                     of a successful business man solving a practical problem,                     a lawyer sifting evidence, a statesman framing a new piece                     of legislation, a householder planning renovation of his home.<\/p>\n<p>The rules of the scientific method are: to frame the question                     in clear terms, to take nothing for granted, to accept facts                     no matter how unpalatable, to collect evidence or data from                     experience and observation, and to draw preliminary conclusions                     called hypotheses. The next step is to test the hypotheses                     to find out what one best fits the observed facts and the                     ideas deduced and the purpose to be sought. Then draw conclusions                     and go to work.<\/p>\n<p>This scientific approach leads not only to better work but                     to better policy decisions. It uncovers the truth, discovers                     what things are, and reveals how to manipulate them.<\/p>\n<p>Some people dismiss the scientific method from consideration                     in business and everyday life by saying that it is intolerably                     cautious, hedging and stuck in the mud. On the contrary, the                     method speeds things up by making sure from the beginning                     that the result will be what we want, that the means we use                     will be efficient, that cause and effect have been considered,                     that whatever of chance enters into the picture can be handled                     because of the environmental preparedness.<\/p>\n<p>A scientist, C. H. Waddington, defines science as &#8220;the organized                     attempt of mankind to discover how things work as causal systems.&#8221;                     Could there be any better aim for business executives with                     regard to economic environment and productive capacity?<\/p>\n<h3>Information<\/h3>\n<p>The fuel behind all verbal reasoning is information. Having                     information is the basic reality by which you can predict                     events and control developments. Everything great is based                     on knowledge, and nothing original that is worth while can                     be done by a man who lacks the instinct of the truth-seeker.                     The man who built the first cave house, and the man who designed                     Place Ville Marie, won success by piercing the mist and obscurity                     of the unknown. Information is not wisdom, but knowledge used                     for thinking. By keeping informed of probable trends, a company&#8217;s                     executives are able to direct their sales effort into green                     pastures before the old pastures begin visibly to shrivel                     and dry up.<\/p>\n<p>A man needs to resurrect within himself the boy&#8217;s passion                     for finding out. Young children are interested in almost everything                     that they see and hear. They are always engaged with ardour                     in the pursuit of knowledge. Men who have achieved greatly                     are of that temperament throughout their lives. They see and                     observe, they note and analyse, more than others.<\/p>\n<p>It is a big step toward success when a man is able to notice                     that there are some things he does not know, and takes action                     to fill the gap. To know, to get into the truth of something,                     is one of life&#8217;s mystic delights.<\/p>\n<p>Knowledge makes a difference not only to the judgments we                     utter but to our integrity in matters of true or false: When                     we have reliable information relating to some matter in which                     we are interested we have firm ground to stand on as we make                     our plans and predictions.<\/p>\n<p>We have to do some research. Newton did not doubt that the                     heavens &#8220;declare the glory of God,&#8221; but he was concerned to                     find out, by looking through a telescope and doing a sum in                     mathematics, precisely how they managed it.<\/p>\n<h3>Analyse and test<\/h3>\n<p>Analysis is the foe of vagueness and ambiguity, those arch-enemies                     of sensible problem solving. It sorts out the essential factors                     in a situation or a plan and perceives how they are related                     to one another. It takes a large view, using the breadth of                     mental vision which sees things in their true perspective.                     It discriminates with regard to one fact and another in its                     significance for our purpose.<\/p>\n<p>Facts to be analysed usually fall into four classes: form,                     material, purpose, duration. The philosopher-emperor                     Marcus Aurelius put this into a beautiful paragraph: &#8220;Make                     for thyself a definition or description of the thing which                     is presented to thee, so as to see distinctly what kind of                     a thing it is in its substance, in its nudity, in its complete                     entirety, and tell thyself its proper name, and the names                     of the things of which it has been compounded, and into which                     it will be resolved.&#8221;<\/p>\n<p>Having broken down the problem, situation or plan and examined                     it in its parts, and pushed aside the inconsequentials, what                     we have left is the significant fraction that needs attention.                     We must interpret, as well as chronicle and tabulate.<\/p>\n<p>Executives who are fond of mottoes or slogans might write                     in their diaries for checking once a month: &#8220;WIGO&#8221;, standing                     for &#8220;What is going on?&#8221; It will prompt them to tear their                     minds away from routine to take a look around and within themselves.                     Answers to the question &#8220;WIGO?&#8221; can be fascinating, sometimes                     exasperating, but nearly always tremendous fun.<\/p>\n<p>There are two simple actions essential before a problem                     can be considered solved or a plan thought of as being complete:                     tidy up and check. In no matter what convulsive scene you                     may be living, you need to assign proportions and priorities                     as far as possible so that no loose ends are left dangling.                     An imbalance in one activity may upset a grand plan.<\/p>\n<p>Decisions must be tested. A business man has to cultivate                     his sense of discrimination. Examine the bases of plans, and                     test every step of progress in carrying them out. It saves                     time and money to show up falseness wherever it exists.<\/p>\n<h3>Having alternatives<\/h3>\n<p>Decisions should take note of alternatives. A plan need                     not be absolutely cut and dried, perfect to the last crossed                     &#8220;t&#8221; and dotted &#8220;i&#8221;. It must make intelligent provision for                     the unforeseen.<\/p>\n<p>There is no complete catalogue of the mistakes people make                     in business and in personal life. An examination might show                     the most common to be these: failure to see alternatives,                     the limitation of alternatives to an over-simplified                     either\/or; false estimates of the relative merits of alternatives.                     When you come to a fork in the road your plan may not fit                     &#8220;as is&#8221;, but if you have looked ahead discerningly you are                     in position to choose the better path with advantage.<\/p>\n<p>Whatever happens, it is always profitable to have thought                     things out. Science has its &#8220;back-room boys&#8221; who have                     their eyes glued to microscopes and their minds always a step                     ahead of what is known. Business men, too, need a place of                     retreat to which those responsible for policy and planning                     may retire to scrutinize closely and think broadly. The words                     &#8220;ivory tower&#8221; are often used disparagingly. But to withdraw                     into a place where one can assimilate facts and get ideas                     about them, think calmly and plan constructively: that is                     common sense. It is the glory of the executive type mind that                     it takes knowledge, experience and wisdom and draws them into                     focus through planning.<\/p>\n<p>Then follows responsible action. A working balance must                     be reached between desirable ends and the price to be paid.                     Lesser men flee from this responsible decision-making,                     but successful leaders know that a business will starve on                     a diet of suspended judgment alone.<\/p>\n<p>Planning is barren without organization and action. In an                     age whose symptomatic drug is the tranquillizer, there is                     room and need for individuals with the zest to face life boldly.                     They will get the structure off the drawing-boards on                     to the foundations. We recall the little Dutch boy who saved                     his town by plugging a hole in a dyke with his finger. Besides                     the boy, his finger, and the lucky chance of his passing by,                     there were needed realization of the situation, initiative                     and quick action.<\/p>\n<p>This involves courage, too. Having done our planning, we                     must risk our convictions in an act. We have chosen, and choice                     involves precarious possibilities. If we have done our homework                     intelligently we can face this challenge with calmness. In                     fact, if we have prepared well we may take as our motto that                     engraved on a famous battle-axe: &#8220;I either find a way                     or make one.&#8221;<\/p>\n<h3>Change is certain<\/h3>\n<p>No planning, of whatever skill, can protect us from having                     to conform to the great changes that are inevitable in our                     lives, our business, our country and the world. In an older                     society people moved on rails from birth to death, according                     to indisputable laws. Now we are aware of many question marks,                     and other people&#8217;s answers affect our most intimate lives.<\/p>\n<p>This means that our plans are subject to review and amendment                     to meet new conditions. We need to move our mental furniture                     around, to throw out whatever does not belong in the new environment                     to make room for better pieces.<\/p>\n<p>Look again at science. The discoveries of Aristotle were                     replaced by the discoveries of Newton, which were replaced                     by the discoveries of Einstein.<\/p>\n<p>The essence of all this is that planning cannot be put off                     or ignored without damage and danger, no matter how optimistic                     of good luck you may be, and that planning must take account                     of chance. Indeed, to travel without plans imposes this added                     element of chance: you may unconsciously follow plans made                     by others for their personal benefit.<\/p>\n<p>A life or a business without planning is like a lump of                     modelling clay in a kindergarten, which every day assumes                     a different shape according to the personality of the child                     who tries to express himself through it.<\/p>\n<p>Vital personalities prepare and plan their future. They                     take all the measures necessary to influence and insure the                     fulfilment of their aims. They don&#8217;t travel bumper to bumper,                     but keep their eyes on the road far enough ahead to avoid                     trouble.<\/p>\n<\/div>\n","protected":false},"author":79,"featured_media":0,"template":"","categories":[1],"rbc_letter_theme":[],"rbc_letter_year":[44],"class_list":["post-4084","rbc_letter","type-rbc_letter","status-publish","hentry","category-uncategorized","rbc_letter_year-44"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>October 1964 - Vol. 45, No. 10 - Chance versus Informed Planning - RBC<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rbc.com\/en\/about-us\/history\/letter\/october-1964-vol-45-no-10-chance-versus-informed-planning\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"October 1964 - Vol. 45, No. 10 - Chance versus Informed Planning - RBC\" \/>\n<meta property=\"og:description\" content=\"Making a living involves taking a chance, but those who conduct their business with the minimum of worry are people who minimize the possibility of adverse chance by planning ahead. 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