Is your system systematic?

A company can be viewed as a complex system consisting of different components that interact with each other to achieve a common goal. This goal is usually the satisfaction of a particular need, which results in making a profit. The company has various divisions and components that form its organizational structure, as well as management subsystems such as finance, marketing, and production.

However, what makes a system a system is its purpose. The purpose for which the system exists is what gives it coherence and structure. Thus, if a company fails to achieve its main goal, it can be seen as losing its system. This failure to achieve the primary objective is the primary symptom that the system is failing.

An incorrect time-telling clock or a car without an engine is not a system because they do not serve their intended purpose. Similarly, a company that cannot achieve its primary goal is not a system, but merely a group of people working together without a common purpose.

When it comes to enterprises, several symptoms may indicate underlying problems. These include:

Low productivity: A company that experiences a decline in productivity may be struggling to optimize its processes or coordinate work on projects and tasks effectively.

Instability: If a company is unable to maintain stable operations, it may be a sign that its management system is unclear or not functioning correctly.

Lack of transparency: Insufficient transparency in a company's decision-making and processes can lead to dissatisfaction among employees and negatively impact interactions with customers and partners.

For a more detailed look at these symptoms and how they can affect your enterprise, please visit our website.

Let's delve into the processes of diagnosing and correcting the issues related to the anti-systemicity of companies. While the algorithms involved in this process are much more intricate, we aim to provide a basic understanding of how our technology identifies and resolves these issues.

We believe that all symptoms related to the "disease" of anti-systemicity, including the means of diagnosis and solutions, can be illustrated through the following scheme. Please note that this is not an exhaustive depiction, but rather a simplified representation of the process.

The entire control system of a company can be compared to a gear of interconnected elements that revolve around the axis of the leader, either in a positive or negative direction. The reason why the manager plays such a crucial role is that they are the main driving force behind the company's development, as well as the main obstacle to it. They are responsible for making critical decisions, determining the general direction and strategy of the organization, stimulating growth, increasing profitability, and ensuring the company fulfills its obligations.

However, the manager, often being the owner of the company, can also become the main hindrance to development. They may fall into the so-called "founder's trap," where most of the responsibilities are centered around them, and they struggle to transfer power, duties, and competencies to others.

All actions aimed at improving the management system begin with the manager's conscious desire to support certain changes. The scheme is based on a process approach, similar to the well-known PDCA cycle. The clockwise rotation of the process of improving the management system symbolizes the organic and normal development of the company, while a counterclockwise rotation indicates the need to identify weak points and diagnose elements where changes must be implemented.

The figure below illustrates the implementation schemes for two different projects, with the numbers and colors of the elements corresponding to the "gear" control scheme. On the left side, we see the main processes involved in implementing a project aimed at opening a new direction for the enterprise's activity. The diagram depicts a "normal" sequential implementation, where changes in one block generate corresponding changes in the next.

Now, let's consider a slightly different situation where a business owner approaches with an idea to implement an automated budgeting system and asks for help. Since this aspect relates to block #6 "Management tools and automation," the project begins with this element. We begin to move in the reverse direction, searching for elements that need changes for the successful implementation of this project, which have a lower serial number. This approach is like identifying what organizational changes must be made so that the project is successful, rather than just a project for the sake of having a project.

Regardless of the direction the movement begins, it ultimately leads back to the field of company management. This is where a new business model development cycle may be initiated, or a new bottleneck in the company's management system may be identified.

This scheme can be utilized to identify areas where organizational pre-project changes are necessary or to pinpoint bottlenecks. It also helps to view the organization as a system and illustrate the systematic development of the consultant to the client. It can be used for classifying consulting services, development projects, and more. Most importantly, it highlights that the process of improving a company's management system is endless.

Let's take the Next Step together and continue improving your company's management system.