Why bother with systems thinking?:: presumably because you want to understand!

Team interactionI absolutely INSIST that you read this excellent 3 part series on ‘Systems Thinking’ (ST).

I came to ST along a path from insurance risk, to complexity and resilience but it made so much sense because, well, that is the way my brain is wired! When I was younger I didn’t buy in to the conventional Business Management books because they just didn’t feel right but ST did and, although it can, as John says, make you feel like you are going crazy! However, when the message is spelt out in such a readable manner I begin to see where I (and others) have been going wrong in our efforts to communicate the need for and benefits of change.

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When it comes to being trained or gaining a hands-on understanding of business management I doubt that much thought ever went into considering the 2nd Law of Thermodynamics!? But, then again, much of what is still taught (and therefore understood) about business management requires such a radical change of mindset (&/or revisiting cybernetics/VSM) that only something akin to transformation will suffice. Because business in the Digital Age has changed…permanently!

The nature and scale of change, over the last half century, has been dramatic. The inter-connectedness and pace of change has accelerated during the last decade. Yet, we continue to take so much for granted that we have kept faith with tools and techniques that lack the requisite variety to deal with the business systems they are intended for. Furthermore, Business Management, like Risk Management, Actuarial science and Economics, were never sufficiently rigorous to be considered as remotely scientific. A point that has been illustrated time and again but, unsurprisingly, practitioners find the facts somewhat difficult to accept. Hence the business as usual mentality with the ongoing problems it creates! Read more of this post

The Death of Taxes (or the End of Life as We Know It?) – Forbes

I can relate to the “desperation”  that is apparent in the Author’s tone!

Virtually any company I have seen, with just a little coaching and prodding, can increase their bottom line by at least a full percentage point.  Since most companies only make about 5% after tax, that one point is a 20% improvement.

And still they don’t react; they don’t change; and if they do, they do too little and only do it once.  But complexity is like weeds in a garden.  It keeps coming back again and again, and needs to be monitored, controlled and repeatedly removed.

Ironically, the systems that may fail first due to excessive complexity are not corporate systems.  They are the incredibly complex systems that we call “government.”

The Death of Taxes (or the End of Life as We Know It?) – Forbes.

Particularly in tough economic times, the opportunity to build better, more profitable and resilient enterprises, and economies, makes supreme sense. Read more of this post

Even when the DNA is similar “we can’t fix today’s problems with yesterday’s tools”:: Part 2

INFORMATION – INTELLIGENCE – INNOVATION have transformed our INVENTIONS, theories and practices to such an extent that we need to be aware of the limitations of our knowledge: we MUST question what we “know”…not so much a case of familiarity breeding contempt but leading to “ignorance” and increasing risk.

The complexity of some man-made systems has so outstripped our ability to manage them that, increasingly, we need to draw upon our observations of the complex systems found in nature 

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.”

Practice without sound theory will not scale…but it WILL expose and “amplify”, wrong assumptions, errors & omissions

The irreversible complexity of man-made systems* e.g. communications, IT, transport, economic, financial, business, logistics, business, etc. have outstripped our ability to understand, maintain, manage or repair flaws without the tools and techniques that enable us to examine the relevant system components and relationships at a variety of scales [micro – macro – holistic]: Law of Requisite Variety (refer Part 1). Read more of this post