There are three steps that allow any organization to achieve optimal performance. Before we say what they are, let’s step back and understand one fundamental principle that affects how organizations get results. What happens when more than one person or more than one entity work together in the same direction? Is the result just the […]
Give Up Busy – Choose Productive
Being busy is considered by many to be a virtue. People may be giving their businesses 200% of effort. But in reality, being busy as you work through a shopping list of “to do” tasks can be the opposite of virtuous. How? Because it can lead to wasting time on the wrong things, unproductive multi-tasking […]
Bulldoze Business Schools? A New Systemic Curriculum for Complexity in Business and Management
Our business world is changing rapidly. Complexity dominates and old solutions no longer work. Some refer to this as the ‘Fourth Industrial Revolution’. Given all these changes, it is remarkable to see that MBAs are offering much the same program content as 20 years ago. A Professor in the UK has gone as far as […]
Exploit the Constraint, Not Your People (Are you listening, Amazon?)
An article in ‘Business Insider’ this month revisits what it’s like to work at Amazon. While there may have been some improvement since the 2015 NYT article that referred to a bruising culture and people crying at their desks, there still seems to be evidence of exploitation. There is only one kind of exploitation in organizations […]
Managing Risk through a Leverage Point (constraint) – A Systems View
In our last post Understanding Uncertainty and Systemic Risk in Organizations we explained how management must involve the management of variation. Every single process, relationship and communication in our organization, whether we are aware of it or not, is affected by variation. If we ignore variation then we are not managing, and if we are not […]
Using Constraints as a Leverage Point for Sustainable Growth
Whether you’re aware of it or not, every organization has a constraint, something that currently limits output. Correctly identifying the constraint is the key to managing the entire organization in all its complexity with greater precision and predictability. As we have said many times, every human process, from getting to work in the morning to […]
The Importance of Understanding “Constraint” for 21st Century Organizations
Today’s post looks at ways to understand what “constraint” means for an organization and why we need to identify it and manage it in 21st century organizations. This is an extract from the business novel + website, The Human Constraint. May opened the window of her apartment to let in some fresh air. The morning was […]
Resource Optimization – Don’t Make the 100% Efficiency Mistake
Do you think getting everything in your system/organization to work at 100% is the right way to create maximum efficiency? Dr. Giovanni Siepe explains how we can learn from management science (and other sources) that there is a better way. Not too long ago I was reading about “Sukkot”, a holiday celebrated at the end […]
Freedom from the Trap of Silos through a Network of Projects
Many organizations still have traditional hierarchies and silo their people into functions. But the complexity of today’s reality needs something different. With the exponential growth of interconnections and interdependencies, a traditional organizational design can undermine productivity and sustainable growth. Here we summarize the organizational design we propose, based on two decades of international work, specifically applied to […]
You Can’t Cut Through Complexity – KPMG Got It Wrong
KPMG has the tagline “Cutting through Complexity” which suggests they really don’t understand complexity at all. In order to deal with complexity, we first have to understand it, and then we can manage it. How? What does complexity actually mean? “Complexus”, the Latin word for “complex”, roughly means “twisted together”. In other words, when several elements come […]