Structure

Image Source: Dmitry Krendelev, Creative Commons:

In my last post, we began to talk about the need for viewing our teams and companies as systems, as described in The Fifth Discipline. In Peter Senge’s book by that title, he said that cause and effect are not closely related in time and space and therefore hides from us the fact that our individual actions have systemic effects across our teams and companies. That’s one of the reasons why I like business simulations.

One of the business simulations I run is Paper Planes created by Chris Musselwhite of Discovery Learning.

In this simulation each person is assigned a work station for one element in the making of a paper plane (cutting, folding, gluing, stenciling, etc.). Each person is well trained and fully equipped to perform their job as the plane progresses down the assembly line. We then start up the system to produce as many planes as possible. While each station of one or more people work feverishly to maximize the productivity and through-put of their station, the first run of the exercise always fails to produce the desired outcome. Through successive rounds of debriefing, reengineering and re-running the simulations, teams get better by orders of magnitude. What they all discover in the end is that optimizing their piece of the work does not optimize the whole. We need to look at the entire system as a whole and optimize the system, even if that means sub-optimizing some of the work stations.

Another simulation I enjoy running is The Beer Game. This sounds like a fun (and maybe dangerous) game to run at an executive off-site. The Beer Game was invented at MIT, referred to in Senge’s book and is still given to MBA students at MIT twenty years later. It is similar in nature to Paper Planes except that it’s designed to simulate a logistics system with a brewer (manufacturer), a wholesaler, distributor, retailer and customers. Again, the games helps teams experience in close time and space what plays out in a real logistic system over hundreds of miles and many weeks of time. All of a sudden, it becomes clear to the participants that optimizing the individual pieces of the system does not optimize the whole. The problems need to be figured out at a systemic level.

What’s going on with your team or company? Are you working at maximum effort and efficiency only to see your department or team fail at their overall mission and assignment? Are you working your tail off in your team but some other department must not be carrying their load because you’re not getting the corporate results that you should? Are you looking for blame? Must there be someone else at fault for your corporate failures? Maybe you’re not looking at it systemically to understand how your actions and approach affect the whole. The Fifth Discipline.