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You are here: Home / Archives for Decision making

Jun 02 2022

How to Make the Best Decisions for Your Company and Measure What Matters – A Systemic Approach Part 3

In the previous post we looked at interdependencies and establishing the goal of the system. In order to steer our system in the right direction we have to know how to make the right decisions. To do this it is essential that we be capable of assessing to what extent our system is achieving its […]

Written by angela montgomery · Categorized: systems view of the world, Theory of Constraints, Uncategorized · Tagged: Decision making, throughput accounting, throughput measurements

Mar 06 2021

Effective Decision-Making? Understand Your Driver Needs First

When it comes to change, we find ourselves in a fundamental conflict. On the one hand, we don’t want to change because we want to protect a deep need for “control”. On the other hand, we want to change because we want to protect a deep need connected with “vision” or growth. Both needs are […]

Written by angela montgomery · Categorized: systems view of the world, Theory of Constraints · Tagged: change conflict, change series, Decision making

Feb 03 2021

What’s Driving Profitability in Your Business and What Isn’t – How to Find Out

If you knew accurately what is actually making money in your company wouldn’t that then influence all your decisions regarding cost and investment? Well, isn’t that what accounting is for? The problem is, traditional accounting fails to give a complete and correct picture of what is happening dynamically and what is really driving profitability. Every company is […]

Written by angela montgomery · Categorized: Systems Thinking, Theory of Constraints · Tagged: constraint, Decision making, profitability, throughput accounting

Mar 22 2018

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 […]

Written by angela montgomery · Categorized: Systems Thinking, systems view of the world, Theory of Constraints · Tagged: bias, Decision making, negative branch reservation, risk, statistical process control, Thinking Process Tools

Mar 07 2018

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 […]

Written by angela montgomery · Categorized: Systems Thinking, systems view of the world, Theory of Constraints · Tagged: Decision making, risk management, systemic management, Thinking Process Tools

Jan 30 2018

Uncertainty and Choice: Quantum Mechanics for Leaders and Managers

A recent article in ‘Scientific American’ has been getting some attention called ‘Quantum Epistemology for Business’. As two of our partners are physicists we have to have our say so here’s our blog post about business and quantum mechanics, by Dr. Giovanni Siepe.  Let’s be honest with ourselves: we don’t like uncertainty and we don’t […]

Written by angela montgomery · Categorized: systems view of the world, Theory of Constraints · Tagged: conflict cloud, Decision making, probability, quantum mechanics, there of constraints, uncertainty

May 02 2017

Your Job as a Leader/Manager? Reduce Variation

They may not be teaching this in MBAs, but a company is a complex system ruled by non-linear interactions that make it difficult to make any prediction when any change is effected. That’s why any approach to improve the company has to be “holistic”, i.e. address the whole system, and consider all the interactions/interdependencies. What is […]

Written by angela montgomery · Categorized: Systems Thinking, systems view of the world · Tagged: complex system, Decision making, Deming, flowcharts, holistic, non-linear, processes, variation

Mar 16 2017

Change and the Decision Making Process

In our previous post, Change: Why Do We Find it So tough? we looked at the fundamental conflict underlying change; that conflict emerges because of our need for control on the one hand, and our need for vision on the other. The need for control and the need for vision are common to individuals as […]

Written by angela montgomery · Categorized: Systems Thinking, systems view of the world, Theory of Constraints · Tagged: change conflict, change don't change, conflict cloud, control, Decision making, theory of constraints, vision

Nov 05 2015

Uncertainty and Choice: Quantum Mechanics for Leaders and Managers

Let’s be honest with ourselves: we don’t like uncertainty and we don’t like variation in everyday life. However, we can, and we must, live with both. But we can do much more than just put up with them when we understand them better and new science helps leaders and managers do just that. Making decisions and […]

Written by angela montgomery · Categorized: Systems Thinking, systems view of the world, Theory of Constraints · Tagged: complexity, Decision making, quantum mechanics, SPC, theory of constraints, variation

Feb 10 2012

Why change? Part 2

In Part 2 we look at how cause-and-effect reasoning and acknowledging our ‘cognitive constraints’ are crucial in understanding why, when, what and how to change. Dr. W. Edwards Deming used to warn about the consequences (cause and effect) of seemingly simple actions: “if we kick a dog in the street, we are responsible for the […]

Written by angela montgomery · Categorized: Systems Thinking · Tagged: change, cognitive constraint, Decision making, Deming, education, Goldratt, human resources, innovation, intelligence, interdependencies, non-physical constraint, organization, Systems Thinking, theory of constraints, Thinking Process Tools, transformation, vision

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