Map and understand the larger system in which you operate. Businesses operate within larger economic, social, and environmental systems, which have feedback loops in both directions — businesses’ actions affect the larger systems, and vice versa. Though predicting the exact behavior of such systems is rarely feasible, leaders can improve their understanding by explicitly mapping out the most impactful forces (accelerators or inhibitors of the system’s workings) and understanding feedback loops and time constants, to identify more useful interventions. Because complex systems are often nonintuitive, conducting experiments at various levels of the system can help.
Authors: Kevin Whitaker, Martin Reeves
Source: “Boston Consulting Group (BCG)”
Subjects: Management, Strategy
Click to Add the First »