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Sensemaking

11 min

The Power of the Humanities in the Age of the Algorithm

Introduction

Narrator: A senior executive at a global healthcare technology company stands before a whiteboard, frustrated. For the third time this year, his department has missed its sales targets for a key diabetes care product. Millions were spent on market research, surveying thousands of patients. The data is clear: 43% of patients are noncompliant with their medication, and 84% of them say they simply forget. The numbers are precise, the percentages are known, but the executive is no closer to a solution. The data tells him what is happening, but it offers no insight into why or how to change human behavior. This scenario, where vast quantities of data lead to a dead end, is the central puzzle explored in Christian Madsbjerg’s book, Sensemaking: The Power of the Humanities in the Age of the Algorithm. It argues that our modern obsession with big data, algorithms, and STEM-based thinking has led to a dangerous erosion of our most powerful tool: human intelligence.

The Algorithm's Blind Spot: Why Big Data Fails to Capture Human Reality

Key Insight 1

Narrator: Madsbjerg begins by diagnosing a critical flaw in modern decision-making: an over-reliance on what he calls "thin data"—isolated facts, statistics, and metrics stripped of their context. This mindset, which prioritizes quantitative analysis over qualitative understanding, is leading businesses, governments, and institutions to make catastrophic errors.

He illustrates this with three potent examples. First is the healthcare company that knows patients "forget" their medication but can't grasp the complex lived experience of managing a chronic illness. Second is a Senate candidate, leading in all the polls, who loses an election because her data-driven strategy failed to account for the emotional connection her opponent forged with voters through powerful oratory and metaphor. Third is a solar power startup with superior technology that loses clients to a more expensive, technically inferior competitor. The startup's engineers focused on the product's efficiency, completely missing the cultural and political dynamics driving their clients' sustainability initiatives.

In each case, the leaders had all the data they thought they needed. Yet, they failed because numbers and models are merely representations of the world, not the world itself. As physicist Neil deGrasse Tyson noted, "In science, when human behavior enters the equation, things go nonlinear. That’s why physics is easy and sociology is hard." The algorithm's blind spot is its inability to grasp the nonlinear, messy, and deeply human context behind the numbers.

Sensemaking: Reclaiming Human Wisdom Through Culture and Context

Key Insight 2

Narrator: The antidote to this data-driven myopia is "sensemaking," a method of practical wisdom grounded in the humanities. Madsbjerg defines it as a rigorous, sustained engagement with culture to cultivate a deep understanding of how people experience the world. It is the opposite of algorithmic thinking; it is entirely situated in the concrete, human world.

The first principle of sensemaking is to focus on Culture, Not Individuals. To understand why people act the way they do, one must understand their social world—the unspoken rules, shared meanings, and cultural contexts that shape their reality. This is powerfully demonstrated by Ford Motor Company's struggle to revive its Lincoln brand. Ford’s engineers, operating from a culture that valued technical features, were disconnected from the world of modern luxury consumers.

Through ethnographic research, Ford discovered that for these consumers, luxury wasn't about horsepower or gadgets. It was about experiences like self-expression, bonding, and productivity. A car was a social space. By understanding the world of their customers, not just their individual preferences, Ford was able to shift its focus from engineering to experience, a transformation that saved the brand.

Thick Data, Not Just Thin Data: The Power of Narrative and Empathy

Key Insight 3

Narrator: The second principle of sensemaking is to prioritize Thick Data, Not Just Thin Data. While thin data captures facts, thick data captures the context and meaning behind those facts. It is the world of stories, emotions, and cultural nuances.

No one exemplifies the power of thick data better than the investor George Soros. In 1992, he made a billion-dollar bet against the British pound. He didn't rely on complex financial models alone. Instead, his team immersed themselves in the "thick data" of the situation: the political tension between Germany's central banker and Britain's finance minister, the cultural mood on the streets of London, and the historical context of European monetary policy. They analyzed newspaper articles, conversations, and the egos of the key players. This narrative data, which could never be captured on a spreadsheet, gave them a killer market hunch that proved spectacularly correct on "Black Wednesday," when the pound was devalued. This illustrates that a deep, qualitative understanding of a situation is often more valuable than a purely quantitative one.

The Savannah, Not the Zoo: Studying Humanity in its Natural Habitat

Key Insight 4

Narrator: The third principle, The Savannah, Not the Zoo, argues that to truly understand human behavior, we must observe it in its natural, complex environment, not in the artificial confines of a lab, survey, or focus group.

Madsbjerg details the work of a Scandinavian life insurance company that was losing 10% of its older customers annually. The company's internal data saw these customers as "Personal Security Numbers" and assumed the problem was branding. However, a sensemaking study reframed the problem as "What is it like to age?" Researchers spent days with people around age 55, observing their lives and listening to their stories.

They discovered a profound truth: at that age, many people experience an existential crisis, a sudden feeling of being "old" and a loss of control. This emotional reality, not a desire for a new logo, was prompting them to reorganize their finances. By understanding this deep human experience—by studying them on the "savannah" of their real lives—the company was able to shift its strategy to address these existential concerns. They reduced customer attrition by 80% not by improving their product, but by understanding their people.

Creativity as Grace, Not Manufacturing

Key Insight 5

Narrator: The fourth principle, Creativity, Not Manufacturing, challenges the Silicon Valley notion that innovation is a mechanical process that can be willed into existence through frameworks like "design thinking." Madsbjerg argues that true creativity is a state of "grace"—a receptive process where insights emerge from deep immersion in the world.

He contrasts two figures. First is "Martin," a fictional composite of a star consultant who enters a strategy session full of buzzwords like "data lakes" and "disruption" but offers no real insight. He represents the "will" approach—the belief that creativity can be manufactured. In contrast, Madsbjerg presents historical figures like T.S. Eliot and Henry Ford. They didn't manufacture their breakthroughs. Eliot attuned himself to the anxious, fragmented mood of the early 20th century to write "The Love Song of J. Alfred Prufrock." Ford sensed the societal shift towards mobility and leisure, leading to the Model T. Their creativity came not from them, but through them, as a result of their profound sensitivity to the world.

What Are People For? The Enduring Power of Human Care

Key Insight 6

Narrator: The book culminates by asking a fundamental question posed by the writer Wendell Berry: "What are people for?" In an age where algorithms can optimize supply chains, trade stocks, and even write articles, this question is more urgent than ever.

Madsbjerg finds the answer in a California assisted living facility, in the story of Randall, an 87-year-old resident with dementia. Every day at 3 p.m., the commotion of the shift change triggers Randall's agitation. A standardized, efficiency-driven approach would be to sedate him. But his caregivers, through sensemaking, learned his history. Randall was a former teacher, and the 3 p.m. noise reminded him of school letting out.

Knowing this, a caregiver can calm him with a simple, artful phrase: "That noise must be the sound of your students in the hallway, Mr. Johnson." This small, personalized act of care is something no algorithm could ever devise. It requires empathy, historical knowledge, and human connection. This, Madsbjerg concludes, is what people are for. Algorithms can do many things, but they can never truly care. People are for making meaning, for interpreting culture, and for caring for one another.

Conclusion

Narrator: The single most important takeaway from Sensemaking is that our society's relentless drive for quantification has created a dangerous imbalance. In our worship of data, we have begun to devalue the most sophisticated and nuanced analytical engine ever created: the human mind. The book is not a rejection of technology, but a powerful call to restore the humanities—philosophy, history, literature, and art—to their rightful place as essential tools for understanding our world.

It challenges us to move beyond the illusion of algorithmic certainty and to cultivate the courage to navigate the world with a "North Star" of cultural understanding rather than a GPS of isolated data points. The final question it leaves is a practical one: In our own work and lives, are we brave enough to trust in the messy, complex, but ultimately more profound insights that come from genuine human understanding?

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