In an article about strategy and execution, Roger Martin, in 2017 named the world’s #1 management thinker by Thinkers50, wrote in the Harvard Business Review: “To fix our problem with strategy failure, we need to stop thinking in terms of the brain-to-body metaphor. Instead, we should conceive of the corporation as a white-water river in which choices cascade […]
From Silos to System: How to Build an Organization Fit for Complexity
Why are organizations still plagued with all the drawbacks of silos? Because they still adopt a worldview that is out of synch with our times. In order to navigate complexity, organizations must shift from the obsolete, Newtonian worldview of individual, separate and hierarchical parts. What is the direction they need to adopt? Working towards a […]
3 Major Symptoms that Your Organization Has Silo Sickness
It’s time to cure the vast array of symptoms of silo sickness in organizations. These symptoms creep up and spread, before people realize where they are coming from. The reason the symptoms spread is because an organization is a living organism, a system. Dividing an organization up artificially into silos not only creates the disease of […]
The Silo Peril and Breaking Down Barriers
“For those languishing at the bottom of a silo, there may be no way out.” This was the chilling conclusion of The Economist’s review of the book ‘The Silo Effect: The Peril of Expertise and the Promise of Breaking Down Barriers’ by Gillian Tett. There is little doubt in our minds that silos and silo mentality are among the […]
Systemic Tools against Bias for Good Decisions about Risk
Our brains really struggle to be rational. This is a big problem when it comes to management and making decisions, especially decisions about risk. What can we do about it? The improbability of probability The human mind is unable to process probability. It’s a scientific fact proved over the last 20 years in a slew of publications (and […]
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 […]
Understanding Uncertainty and Systemic Risk in Organizations
If we could predict the outcome of everything we do with mathematical certainty, then our lives would be much simpler. In reality, we exist within a complex web of interdependencies and such certainty is not possible. Hence, we live with uncertainty and its inevitable companion: risk. We perceive a risk any time we feel that […]
Managing Risk and Fear
No one can deny that risk exists. It’s the potential to lose something of value. It would be irresponsible to ignore it. The question becomes, what kind of decisional practice and behaviors are operationally and economically effective when it comes to risk in organizations? Operating from fear An article in Mashable about Google+ is a […]
Design and Manage Your Organization as a Whole System or Underperform
When things get complicated in organizations, we can be tempted to “break them up” to try and simplify. Divide and conquer. That just makes matters worse. Why? Because an organization is in fact a whole system. Everything inside is interconnected and interdependent, so when we try and manage them any differently we inevitably underperform. By not […]
