Learning to Live with Complexity
In just a short time, most businesses have gone from complicated to complex: They contain numerous diverse, interdependent parts. This makes managers’ jobs much more difficult.
- They can’t predict what will happen when various parts of the business interact; the same starting conditions may yield different results.
- Seemingly simple actions produce unintended consequences.
- Human beings’ cognitive limits mean that no manager can understand all aspects of the business—but many refuse to acknowledge those limits.
- Rare events can be more significant than average ones—and may occur more often than we think.
Managers can navigate these difficulties by making fundamental changes to how they approach key tasks:
- Forecasting
- Mitigating risks
- Making tradeoffs
- Ensuring diversity of thought
Read the full article online: http://hbr.org/2011/09/learning-to-live-with-complexity/ar/1
The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.