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Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management Description of system and its behavior: 1. based on details 2. based on dynamics

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Page 1: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Organization as a System

systems are created by elements and different types of feedback

organization is a social system

two models of social system management

Description of system and its behavior:

1. based on details

2. based on dynamics

Page 2: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Examples

Social programme – USA (dynamics of urban systems)

- improving the depressed nature of cities- construction of low cost housing- to attract people to individual parts of towns

-What happened?

JFK

Page 3: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

System ThinkingTraditional Thinking Systems Thinking

The connection between problems and

their causes is obvious and easy to trace.

The relationship between problems and

their causes is indirect and not obvious.

Others (either within or outside our

organisation) are to blame for our

problems, and must be the ones to

change.

We unwittingly create our own problems

and have significant control or influence in

solving them by changing our behaviour.

A policy designed to achieve short-term

success will also assure long-term

success.

Most quick fixes either make no long-term

difference or actually make matters worse

in the long run.

In order to optimise the whole, we must

optimise the parts.

Focus on policies that optimise the whole

rather than each of the parts.

Aggressively tackle many independent

initiatives simultaneously.

Target and orchestrate a few key changes

over time.

Page 4: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

System Thinking

Never use system thinking or system dynamics to

Impress people or win an argument Validate prior views Hide uncertaintiesBlame individualsManipulate others Make other people feel guilty, etc.

Page 5: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Prisoners of the System, or Prisoners of our Own Thinking

• structure influences our behaviour

• structure of human systems is subtle

Learn to understand the structure of the system

• redefine your scope of influence, define, who is in your chain

• your influence is always bigger than you think

• if you want to succeed, others have to succeed to

• wait for the system to respond - take two aspirins and wait do not panic

Complication: ethics

Page 6: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

1.Today’s problems come from yesterday’s solutions.

2. The harder you push, the harder the system pushes back

3. Behaviour grows better before it grows worse

4. The easy way out usually leads back in.

5. The cure can be worse than the disease.

The Laws of System Thinking

Page 7: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

The Laws of System Thinking

6. Faster is slower.

7. Cause and effect are not closely related in time and space.

8. Small changes can produce big results - but the areas of highest leverage are often the least obvious.

9. You can have your cake and eat it too but not at once.

10. Dividing an elephant in half does not produce two small elephants.

11. There is no blame

Page 8: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

System Feedback

Less visible than elements

any intervention to the system - initiates it’s responce, different feedback

1. reinforcing feedback (positive feedback) 2. balancing feedback (negative feedback)

Page 9: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Reinforcing Feedback

- responsible for growth and decline of systems- explains why small impulse can cause big response

Mistake

Punishment

Lowerself-confidence

+

+

+

R

‘Pygmalion effect’

Pygmalion effect

Page 10: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Satisfied Customer

Interest in productgrows

Sales

Customer speakshighly about product

Satisfied customer

R

‘Satisfied customer’

+

+

+

+

Page 11: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Balancing Feedback

Helps the system to gain the balance after intervention

- resistance is nearly always symptom of balancing feedback

Conflict with traditional

thinking

Resistance

New methodof work

B

‘New metod of work’

+

+-

Page 12: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Balancing Feedback

Mistake - aggressive intervention

- find out why the system resists - so called limiting factor and remove it

- systems respond slowly and it seems that they do not respond at all

- typical example of balancing feedback is limit to growth

Page 13: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Limits to Growth

Growingaction

Limitingcondition

Condition Slowingaction

We usually respond to decline of growth by increasing the pressure on what the growth cause (bigger pressure on people , working to late hours).

Limiting factors can be different - little fault in product design, old technology, staff lacking necessary skills, …

Page 14: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Limits to Growth

Conflict with traditional

thinking

Resistance

New methodof work

B

‘New metod of work’

+

+-

Lack of motivationLack of knowledgeFear

Page 15: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Archetypes

structure of a system determines the behaviour of its parts

learning to see the structures - freeing ourselves from unseen forces - possibility to work with them

certain patterns reoccur repeatedly

archetypes

simple sentences that help to change our perception to see structures

Page 16: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Archetype Shifting the Burden

Symptomatic‘solution’

Problemsymptom

Fundamentalsolution

Delay

SideeffectR

B

B

Description: A short-term solution is used to correct the problem. It is successful, and more similar short- term solutions are used. Fundamental long-term solutions are used less and less. The capability for a fundamental solution gets worse.

Page 17: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Archetype Shifting the BurdenSymptomatic‘solution’

Problemsymptom

Fundamentalsolution

Delay

SideeffectR

B

B

Warning symptoms: ‘Look here; this solution has worked so far. It will work in the future as well.’

Management principle: Focus on the fundamental solution. Use the symptomatic solution to gain time while working on the fundamental solution.

Page 18: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Archetype Shifting the BurdenSymptomatic‘solution’

Problemsymptom

Fundamentalsolution

Delay

SideeffectR

B

B

Examples:

Managers do not know how to address the problem and they hire consultants. Consultants prove to be very capable and are given more and more work. Managers slowly loose the ability to solve problemsthemselves.

Paying bills by borrowing, using alcohol to relieve stress.

Page 19: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Archetype Escalation

Results of Arelative to B

BB

Activityby A

A’s resultsB’s results

Activityby B

Description: Two people or organisations each see their welfare as depending on a relative advantage over the other. Whenever one side gets ahead, the other is more threatened and tries to re-establish its advantage and this circle leads to aggressiveness on both sides, each side is acting ‘in defence’.

Page 20: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Archetype Escalation

Results of Arelative to B

BB

Activityby A

A’s resultsB’s results

Activityby B

Warning symptoms: ‘If our opponent would only slow down, we wouldstop fighting this battle and do something more valuable.’

Management principle: Look for a way for both sides to ‘win’, or toachieve their objectives. It is possible to interrupt this circle by‘peaceful’ action or question - the other side will feel less threatened and will also respond more peacefully.

Page 21: Organization as a System systems are created by elements and different types of feedback organization is a social system two models of social system management

Archetype Escalation

Results of Arelative to B

BB

Activityby A

A’s resultsB’s results

Activityby B

Examples: Price wars.Advertising wars. Gang warfare. Break-up of a marriage. Battle for the ‘ear’ of the top manager. Cold war.