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 Peril of Silos (and what we can do about it)
“For those languishing at the bottom of a silo, there may be no way out.” This is the chilling conclusion of The Economist’s review of a new 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 […]
How Much Truth in ‘House of Lies’?
House of Lies, a riveting award-winning TV series, is a scathing indictment of the world of management consulting. When you strip away the hyper-real excess of lust, luxury, greed and vengeance, what truth, if any, can we find? Beyond the entertainment value, there seems little that is real in the world of management consultant star […]
Perception and 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 (sorry, Mr Amazon)
The recent articles and surrounding debate about how tough it is to work at Amazon relate to exploitation. There is only one kind of exploitation in organizations that is permissible and useful. And it doesn’t involve crying in the bathroom. Setting the goal Hearing about the bruising behaviour at Amazon, where people allegedly often cry at their […]
Managing Risk through Constraints – Part 3 of a Deming-Goldratt take on Risk Management
Risk and Constraints In our last post 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 managing then “risk […]
Uncertainty and Understanding Risk
A Deming-Goldratt take on Risk Management 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: The Crippling Cost of 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 A recent article in Mashable about Google+ is […]
Thinking of Your Organization as a Whole Will Improve Performance
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 organizations are in fact whole systems. Everything inside is interconnected and interdependent, so when we try and manage them any differently we inevitably underperform. By not seeing […]
Losing Control: Why We Must Transform Organizations Today
Our world has changed. Especially since the global financial crisis. Our reality is complex, that means it’s dense with interconnections and interdependencies that we cannot ignore. We can’t just think about what goes on inside our organizations (complicated enough) but how they interact with and impact stakeholders and entire supply chains. It’s hardly surprising so many managers feel […]
