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55 pages 1 hour read

Superforecasting: The Art and Science of Prediction

Nonfiction | Book | Adult | Published in 2015

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Chapters 10-11Chapter Summaries & Analyses

Chapter 10 Summary: “The Leader’s Dilemma”

The decisiveness and confidence required of leaders would initially seem to be at odds with the humility and deliberation of superforecasters. Therefore, there is the question of whether superforecasters truly are useful models for leaders who must foster a presence and act swiftly to achieve their goals in the face of opposition. However, Tetlock and Gardner suggest that, without superforecaster traits, leaders will make arrogant, hasty decisions and fail, and without leaders, superforecasters might lose their way. This chapter looks at how to reconcile these opposing traits and how elements of superforecasting enhance leadership.

This leader-superforecaster dynamic is nowhere more evident than in the 19th-century Prussian army, where Helmuth von Moltke gained victory over Denmark, Austria, and France by embracing uncertainty and doubt. Moltke knew that the best laid plans would change in battle and that this meant even the humblest foot soldier had to show initiative. Thus, junior members of the Prussian army were invited to come up with their own solutions and present those solutions to their superiors. In the long term, the need for decisive action was counterbalanced with elements that allowed for independent thinking.

While this principle of independence seems the opposite of the image of the Nazis’ lockstep war machine commanded by Adolf Hitler, the Nazis inherited it during World War II. For a time, the ability for every man to think for himself and capitalize on uncertainty helped the German war effort. However, Hitler’s lack of humility and his direct control of the military were factors in the downturn of the Nazis’ campaign. The authors seem aware that a reader may question their choice to spotlight one of recorded history’s most debased organizations as a paradigm of good leadership. However, they argue that superforecasters must be aware of the cunning and effective strategies of opposing forces so that they can learn from others’ critical thinking skills.

It was as late as the 1980s before American generals adopted the German’s Wehrmacht policies and decentralized. The empowerment of ground commanders was key to American success in Iraq in 2003. General David Petraeus echoed Moltke when he said that flexible thinking was essential, especially where uncertainty was a given. Petraeus was also leery of the dichotomy between doers (like leaders) and thinkers (like superforecasters) because “leaders must be both” as they seek to execute the right move while avoiding the wrong one (224). Moltke’s ideology can also be found in modern businesses where leaders are clear about what they want their employees to achieve but don’t micromanage employees’ processes.

Like superforecasters, leaders must counterbalance their projection of confidence with intellectual humility, whereby they are honest about the distinction between what they know and don’t know. This balancing act entails the recognition that “reality is profoundly complex, that seeing things clearly is a constant struggle, when it can be done at all, and that human judgment must therefore be riddled with mistakes” (228). While this doubt helpfully inspires the reflection needed for good judgment, self-confidence allows taking the requisite action.

Chapter 11 Summary: “Are They Really So Super?”

Tetlock’s theories about superforecasters have run into opposition from several quarters.

Daniel Kahneman, theorist of System 1 and System 2 thinking, asked Tetlock whether he thought that superforecasters had markedly different characters than the average person or if they merely applied different thought processes. Tetlock replied that both are true. Kahneman thinks that all it will take is committing a System-2-style cognitive slipup for a superforecaster to lose their status. Tetlock, on the other hand, thinks that superforecasters can take steps to guard against cognitive errors: They can be aware of the fragility of their success and learn from previous errors, and this will maintain their status as superforecasters over time. This is important because it would mean that there is a group of people (superforecasters) who can be trained to resist biases and can therefore be an asset to organizations.

Another detractor is Nassim Taleb, a former Wall Street trader who made his fame with the theory of the black swan, “an event so far outside experience we can’t even imagine it until it happens” (237); a black swan event, in the context of Wall Street, could obliterate a person’s investments. Taleb’s philosophy makes him doubt both superforecasters’ ability and the value of forecasting in general. The authors, who respectfully disagree with Taleb, seek to question the nature of a black swan and even posit that “many events dubbed black swans are actually gray” (238) given Taleb’s paradoxical ability to conceive the inconceivable. Rather than expecting failure in unknown quarters and wildly diversifying one’s investments as a form of protection, another strategy is to forecast more accurately than others. No conclusive evidence exists that superforecasters can predict events such as 9/11, but there is evidence that they can forecast the smaller, more particular, preceding events. This means that forecasting an event such as 9/11 is within the realm of possibility.

Still, the authors agree with Taleb and Kahneman that forecasting world events too far into the future is futile and that planning for surprise is always a good idea. Looking back at history, it is possible to calculate how the course of events could have been radically different with the change of one or two variables. This means we must be humble about human abilities to predict the future. Nevertheless, the authors assert that human foresight matters when living on a human scale.

Chapters 10-11 Analysis

These chapters examine how forecasting fares outside the laboratory-style arena of the GJP when put to the test in the real world.

First, the authors investigate superforecaster methods’ utility to leaders, who might not have the luxury of long periods of deliberation or the time to offer the public nuanced messages about the current state of affairs. (As discussed in earlier chapters, the American public tends to prefer catchy, simple messages over detailed statements that reflect contradictory realities.) Confidence and decisiveness, two states associated with the single-mindedness of the hedgehog, are often what make leaders appealing, and these traits are inimical to Forecasting and the Crucial Ingredient of Doubt. Even so, the authors insist that leaders must make use of good forecasting techniques if they are to be successful guardians of a country’s present and future. Like superforecasters, they must make space for uncertainty and their own ignorance. Ironically, the organization most reputed for authoritarianism, the 20th-century German army, was one place where strong leadership and a healthy respect for uncertainty went hand in hand. Tactics such as allowing individual commanders to make decisions proved essential. Conversely, in the Second World War, when Adolf Hitler took overall command of the German army, his blustering overconfidence in how events would pan out led to the Germans’ defeat by the Allies. Taking the military as an example, the authors propose that governments and business employ the services of GJP superforecasters, who are used to contemplating uncertain futures to bolster their strategies. Although this will introduce ambiguity in the short term, in the long term, it will foster a stronger, more grounded military.

Whereas Chapter 10 deals with the need to respect uncertainty, Chapter 11 addresses the critiques of those who think that both the world and the capacities of individuals are too uncertain to make forecasting a worthwhile endeavor. The authors defend against these claims by developing the theme of Forecasting: Between Science and Art and showing how some individuals have a proven record of being able to accurately predict the future on repeated occasions. Although these superforecasters are far from infallible, their commitment to improving by scientific metrics makes their skills an asset. Here, the authors assert that while perfection in forecasting will never be achieved, improving upon the science can benefit the global community politically, economically, and environmentally.

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