Wednesday, July 29, 2020

Harness Systems Perspectives to Drive Digital Paradigm Shift

From a system perspective, the most basic principle is that every system is a construct of the mind.

The contemporary companies today are the ever-evolving digital dynamism that consists in being able to break away from being static, and becoming proactive to changes. It’s not so effective to use linear logic to understand highly complex, nonlinear cause-effect relationships and interdependent business functions and structures. 

Fundamentally, running a business is an iterative problem-solving continuum. Therefore, business management needs to understand why and how confounding problems persist in complex business systems and what can be done to effectively alleviate them, or proactively diagnose and fix them, and this is accomplished by modeling the digital business system to:

Understand how the structure manifests as the function or behavior of interest: Organizations are dynamic business systems that have structure, defined by components and their composition. They also have behavior, which involves inputs, processing, outputs of material, energy, data, or information. The reality in most organizations though is the process that is forcibly jammed within an existing organizational design. In addition, silo or misalignment are common issues that create gaps and decelerate business performance. System thinking and methodology can practically and quantifiably represent the business systems and give you the means to understand the interrelationship between parts and the whole, structure, and behavior; learn the lessons from the past and predict & push the future in the direction you want, strongly and reliably.

In specific, the organizational structure carries inherent business capabilities as to what can be achieved within its frame. A misaligned structure or disconnect functions reinforce a non-innovation friendly climate and create bottlenecks and stifle business changes. To develop a highly responsive and high-performance organization, it’s important to understand how the structure manifests as the function or behavior of interest, integrate organizational design into process design, and re-engineering to improve business adaptability. In an ideal digital workplace, establishing an enabling a hybrid structure (formal and social) which is solid enough to keep people or things in order, but fluid enough to keep information flow, and in line with your ambition and desired direction.

Experiment with policies and practices that create a favorable and sustainable outcome: Business Management discipline is composed of a set of principles, processes, and practices. From a system perspective, the most basic principle is that every system is a construct of the mind. That means it’s the mindset behind the scenes that influences attitude and drives behavior. Typically, it’s the leadership mentality that shapes the organizational management styles and practices. From a change management perspective, constructive and continuous disruption is a healthy cycle as the rule should be updated to encourage progressive change. Forward-thinking leaders today believe that tomorrow will be better or at least as good as today, they can envision and drive the digital paradigm shift determinedly.

People come and go. Therefore if a system is not in place, the policy is not set right, the roles are not defined, people don't understand the purpose of their roles, it will be very hard to run the business effectively and achieve expected business outcomes. By experimenting, making and following a set of well-defined policies, not overly rigid rules, the business life cycle could be viewed as resulting in emergent means of reorganizing, refocusing, rebalancing resources, and redirecting. From a problem-solving perspective, data does not give you the full insight and understanding of the true nature of a problem; understanding human dynamics, systems and relationships does. So business leaders should focus on creating the culture and climate that enables those closest to the problems to see and connect what needs connecting to unblock issues, and move things forward, and achieve sustainable outcomes.

Handle an emergence-vs-design-paradox smoothly across the business ecosystem complexities: Emergence is a characteristic of complex business systems and subsystems which are not always predictable, and could not be fully explained in terms of their components. The concept of nonlinear behavior is representative of what we term emergent properties. “Emergence” results from the fact that resources are embedded in the company influencing and being influenced by the broader context of the organization such as business culture, leadership style, paradigms, proprietary technology, etc. The better you understand the interrelationships and interactions of the different parts of the whole, the better you can evolve “emergence,” deliberately design and run a successful business.

The digital world is dynamic, nonlinear, uncertain, and volatile, emergence becomes apparent, for adapting to changes, organizations today need to build dynamic business capabilities that are the organizational and strategic routines by which firms achieve new resource configurations as markets emerge, collide, split, evolve, etc. To accelerate performance and unlock business potentiality, focus on the emergence and emergent property which means a property that emerges after a system change to create business synergy. For that emergent theory to be birthed, the old command and control of work production in the systems thinking process is being redirected toward holistic digital management practices and handles an emergence-vs-design-paradox smoothly.

To survive and thrive around the multi-faceted business world, it's important to apply a Systems perspective to decode complexity and make things simple but purposeful. Keep in mind that it is the policies, procedures, rewards, and retributions that drive and groom an advanced mind, good behavior, sustainable balance, enforce cognitive ecological values currently arising in the breakdowns of the traditional industrial era we are encountering and make the digital paradigm shift seamlessly.


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