The systems approach and Why Organizations fail
When we describe things as a system, we imply that these things have interconnections.
We cannot draft a new strategy without simultaneously making changes in the organizational structure. Nor can we bring in new tools without changing our systems and sometimes our structures.
The interconnections and how the parts are interconnected, are as important, and sometimes more important than, the actual parts.
We purpose to interconnect parts to form a system in such a way as to create the capacity in the system for synergy that is for the system to give an output that is greater or more valuable than the sum of its actual parts.
This interconnection of the parts of the organization is a fascinating topic. Can the interconnections play in the end an equal or even a more important role than the actual components which they interconnect?
To search for answers, let’s look at the organization, its various parts and their possible relationships
1. The traditional way of looking at the organization
We look at the organization from outside and we see that it is composed of parts which we conventionally recognize as:
Structure that sets up the organization in terms of divisions, business units, departments, sections, subsections.
Systems and procedures that describe the processes of getting work done
Staff that do the operations and who possess various Skills
Machinery, premises and tools that are mostly associated with capital expenditure and once purchased become difficult to change
Management/Leadership levels that are responsible for creating purpose and identity, and capacity for execution. They must foresee opportunities and risks and keep the organization viable now and in the future
The Board that together with executive management/leadership provides leadership, takes responsibility for Organization identity and purpose (Vision, Mission) and the overall governance for the organization’s long-term [...]