Quantitative Complexity Management: A simple 5 step process


There are plenty of self-anointed subject matter experts happy to pontificate upon complexity. Sources, causes and their own approach to solutions but what they all (except Ontonix) lack is the means to establish a sound (verifiable) quantitative basis from which to commence the process of ‘complexity management’, monitoring and maintenance.

Check it out, for FREE, on-line!:

cid_part6_04050208_01010701ontonix.gifThe following five-step process forms the backbone of all our service engagements. It reflects our extensive experience in Quantitative Complexity Management in a multitude of applications spanning a wide variety of industrial sectors. It also illustrates the typical structure and workflow in a business simplification and ‘robustification’ project.

via Ontonix – Complex Systems Management, Business Risk Management.

Innovation:: managing complexity & reducing risk [Design News]


I was first aware of the author courtesy of this quote…that alarmingly few business ‘leaders’ appear to, either, believe or understand…

“In a complex system, learning how all the pieces—constant and variable—interact gives a depth of understanding that averts catastrophe. That is what we mean by human-centred design—understanding the interfaces among technology, people, communities, governments, and nature. This is what makes complexity manageable”.

If you are in the business of making money based upon the ability of another party to avoid financial loss, then your own ability to identify the properties that distinguish ‘good risk from bad’ is, SURELY, fundamental!? So the message that there is a means to gain “…understanding that averts catastrophe“, through “understanding the interfaces among technology, people, communities, governments, and nature” must surely be greeted with wide-eyed enthusiasm. Read more of this post

Complexity, risk, uncertainty and change


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Business management, particularly for those intent upon ‘change’ or responsible for managing exposures, needs a rigorous, objective, measurement of the endogenous properties (complexity) that enables the functionality from which (through interactions with exogenous parties) the business generates the revenues that sustain it in changing and turbulent economic times.

“Complexity increases cost and decreases flexibility — often in unforeseen ways — and also tends to decrease stability,”….

Peter Leukert, CIO of Commerzbank

It is the number, nature and integrity of dynamic, multi-scalar, interactions that are the sources of strength (enabling performance greater than the sum of the parts). The ability to distinguish and respond to ‘signals’, that maintain the variety, effectiveness and agility of the complex system, from the ‘noise’ of flawed metrics, self-serving culture, hierarchical structure (silos), skewed incentives – of an unsustainable, failed or failing, model (reliant upon  assumption, reflexive, subjective, statistical analysis and prediction) that has its foundation in flawed (linear) economic thinking.

We won’t get different or better answers while we keep on asking the same questions.

For meaningful change to occur and to be sustained requires a rigorous justification, sufficient to counter financial projections that satisfy the goals of C-level short-termism that are detrimental to the stability and long term health of the business.

Read more of this post

The 7 Element OEM System: Breaking the Vicious Complexity Cycle


CxU=FOrganizations often use different names in different areas for what are essentially the same controls addressing the same Causes of Failure. For instance, processes such as Process Hazard Analysis (PHA), Hazard and Operability Study (HAZOP), Process Failure Modes and Effect Analysis (PFMEA), Equipment Criticality Ranking, risk registers, risk “bow-ties”, and other similar tools are all designed to address the same common Cause of Failure – failure to identify and assess risk. Implementing multiple variations of the same tool in response to poor performance or incidents drives organizational and process complexity.

http://www.wilsonperumal.com/blog/the-7-element-operational-excellence-management-system-breaking-the-viscious-complexity-cycle-2/

Good thinking, sound advice but the wrong starting point! Read more of this post

Need to build [or restore] customer trust?:: Corporations must join the Collaborative Economy


JO has nicely summarised what I have (unknowingly, in the beginning) been mapping-out in my mind as a viable alternative to the unsustainable model(s) adopted by the insurance industry and wider Financial Services industry. All I need now is to identify the ‘risk leaders’ of tomorrow. If that sounds like you, please get in touch.Adopt the Collaborative Economy Value Chain

Right now, customers are sharing media and ideas on social technologies, in the near future, they’ll use similar technologies to share products and services, which will cause a ripple of impacts far more disruptive than what we’ve seen before.

[The Collaborative Economy is an economic model where ownership and access are shared between people, startups, and corporations]

Report: Corporations must join the Collaborative Economy | Web Strategy by Jeremiah Owyang | Social Media, Web Marketing.