QUERY Why don't organizations function better? (SD6540)

[SDMAIL Schuette, Wade]

Posted by  "Schuette, Wade" <wschuett at jhsph.edu>

Bill Braun asked why organizations don't function well. 
That seems worthy of a thread.

I'll suggest that two requirements of a thriving organism or organization 
are that it be in touch with itself, and it be in touch with reality.  
These are systems effects and feedback loops.

In system terms, there should be a closed feedback loop connecting people 
who are aware of reality (usually on the bottom) to those making decisions 
(usually on the top), where those on the top take into consideration the 
news that the working model is wrong from those on the bottom.  

And, there should be a feedback loop connecting actual outcomes of 
customers to product or service creation activities within the 
organization. In Toyota / Lean terms - there should be customer pull.   
Steering by process measures, or internal outcomes (also known as short-
term "in-come") is not adequate to remain responsive and adaptive. 

I suppose a third requirement is not falling into pitfalls, particularly 
ones with feedback, such as sacrificing tomorrow for today's "progress",  
making tomorrow harder, leading to even more sacrificing the next day to 
"progress', etc. in a death spiral. 

We could go on about asking "why" five more times for each of those, but 
I think the list is long enough as it is, and sufficient to model the 
majority of corporate disasters and failures to thrive. 

Wade Schuette
Ann Arbor,MI
Posted by  "Schuette, Wade" <wschuett at jhsph.edu>
posting date  Thu, 30 Aug 2007 08:48:09 -0400