Enabling and incentivising self-organised productivity


Whilst I confess to knowing little about Nemetics but I know enough about Complexity to appreciate the content of this excellent blog. It isn’t terribly different to what I (and my colleagues at Ontonix) have been saying and demonstrating since 2005.

The message for Business Leaders…Before you attempt to apply the tools and techniques of Business and Risk Management or feel inclined to refer to a book on Management from the 20th Century (with the possible exception of 7 Habits… or Principle-centred Leadership) you MUST gain a deeper understanding of the business system over which you preside”.

I have previously referred to the insight that Ontonix can bring to a business owner, as structural engineering for business.

The importance of information-flow and system dynamics cannot be overstated or underestimated.

Regulation and control are the most important processes in nature. Understanding these processes is fundamental to the continuous existence of all organizations – biological, mechanical and social.

The existence of any organization directly depends on the ability to transfer and correctly process information.

All biological, mechanical and social systems transfer and process information in a similar manner. 

Prof Norbert Wiener, MIT

The author of this particular blog has developed the benefits to business beautifully.

What is needed?

a) A clear understanding of the system dynamics.

b) The maximum and minimum potential of the system

c) What would be the stability zone to operate in and how to predict when instability sets in?

d) The inherent potential for the system to improve without any additional investment

e) The limit beyond which only additional investment can improve productivity.

f) The right parameters to be selected

The Resolution

The resolution to the above issue is depicted by the conceptual model as shown below:

incentive Plan

Incentive Model

Results

This model (based on science of complexity) was applied to one relatively large Indian multi-national unit and the results were the following:

1. Productivity improved by 1.75 times within 2 months of implementation of the scheme.

2. Self organized improvements took place

3. Real time communication increased between employees

4. Quality improved and sustained.

5. The improvements were self-sustaining without any other capital investment.

One Response to Enabling and incentivising self-organised productivity

  1. In addition to the quote from Prof Weiner, I wanted to draw attention to the following:

    In physics, the Lyapunov theorem on stability of systems states that “In the vicinity of its equilibrium points, the solutions of a non-linear system are similar to the ones of the equivalent linear system”. This means that as long as your system is near its equilibrium point, you can use the techniques usually used for linear systems to get answers on the behaviour of the non-linear system. http://wp.me/p16h8c-1rB

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