What is the guiding rule that should inspire any managerial decision? The job of Management is to work on the system and create a predictable environment; as Dr. Deming reminds us “the job of managers is to reduce variation”. Management and predictability A company is a complex system ruled by non-linear interactions that make it difficult […]
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Variation and Processes
Everything we do in an organization can be considered as a process, and, whether we realize it or not, every process is affected by variation. We need to understand and manage this phenomenon of variation if we want to achieve the best results. Let’s look at the process of sales In our last post […]
Managing Variation: Why Entropy Matters
No management effort can ignore the existence of entropy and variation. What do we need to do about them? What is variation? It is beyond the scope of any blog to teach the fundamentals of Statistical Process Control; Don Wheeler and other experts have already done that majestically. The goal here is to examine […]
Why a Software Can Never Manage a Company
A client embarking on a pattern of transformation through systemic management recently asked ‘How soon will I be able to use the software to manage the company?’ It’s tempting to think that by buying and ‘installing’ the right software, a company can magically acquire a whole new way of operating that will lead to more […]
Transforming Industry with a Systemic Approach – Dr. Domenico Lepore
Dr. Domenico Lepore From exile to freedom: splitting the Red Sea Stupidity, as Dr. Deming has reminded us, is a choice. We are not talking about a low IQ but the refusal to use the mental capacity we have. We do not lack the knowledge needed to build and operate a truly systemic company guided […]
Building A Systemic Enterprise: The Learning Center
How do we practically go about the “reinvention” of work and workers foreshadowed by a new, systemic covenant with labour? The answer is a Centre where everyone in the company can learn how to be and act in this new organization. A Centre for Learning is not a training centre, it is not a management school, […]
The Crucial Role of Synchronization in a Systems-based Approach to Management
The systemic approach to the economics and management of resources focuses on what can be achieved by combining the resources at hand. This is difficult because we are accustomed to thinking of resources as “belonging” to something, i.e. a function. In this paradigm, resources are allocated to achieve local, functional optima to the detriment of […]
Managing a Systemic Organization: The Information System
It is astonishing how software becomes more and more an artificial constraint to the development of organizations. The unsuitability of the majority of software to add any meaningful value to the work of organizations is easily explained by looking at the way companies are structured. Quality is a mindset In our last post we looked […]
Operating a Systemic Organization: The Playbook
How do we reinforce operationally Quality and Synchronization within our system? In other words, how do we operate a systemic organization? Who does what, when, where, how and why? There are 4 vital components, and the first one is the Playbook. Resource optimization and synchronization What do we mean by Quality? Quality means understanding that […]
Flawed Models – Why We Need a New Economics
What is is wrong with mainstream economic and financial models today? Continuing the series on a New Economics. Mainstream economic and financial models, the ones that currently rule the markets and determine value, have shifted their focus over the years from what is best for the society they should try to model to what is […]
