Register now or log in to join your professional community.
Excellent Question !!
The complexity of business environments is making business operations more difficult. Complexity has increased as more and more systems have become interconnected and interdependent mostly due to the information technology revolution.
A complex system has the following 3 properties:
· Multiplicity: the number of potentially interacting parts.
· Interdependence: the connectedness of the parts.
· Diversity: the degree of heterogeneity.
Air traffic control is an example of a complex system. It is difficult to predict the outcomes of a complex system. Therefore, managers of complex systems have to be prepared to handle the two challenges that complex systems pose:
· Unintended consequences, and
· Difficulty of making sense of a situation.
The second challenge of complex systems is the challenge of making sense of a situation. This results because of the following:
1. Vantage point problem. This is a decision maker’s inability to see all the interactions of a complex system.
2. Cognitive limits. A decision maker will have a limited understanding of the consequences of all the actions of a complex system’s various participants.
3. Focusing on one thing can prevent us from seeing others. Those who have done the “invisible gorilla” test appreciate how focusing on the basketball passes prevents most people from seeing the person in the gorilla costume.
4. Rare events. When decision makers fail to consider the “black swan” scenario, they may become overwhelmed and unable to manage the complex system.
As an example have an example of forecasting:
To improve forecasting methods, managers can:
1. Drop certain forecasting tools. The article suggests that managers need to drop certain tools that have assumptions that apply to complicated systems and not to complex systems. Tools that assume that features in the system are independent and those that assume that outliers are rare are not very applicable in complex systems.
2. Simulate the behavior of a system. Models that base their design on how a complex system works and models that consider “low-probability but high-impact extremes” are better than those that focus on medians.
3. Use the three types of predictive information. Dividing data into the following buckets makes it easier for managers who find it difficult to forecast outcomes of a complex system. a.Lagging: this includes financial metrics and key performance indicators. b.Current: data of your current situation and performance. c.Leading: data of possible outcomes of the complex system.
Complex systems require better risk mitigation that goes beyond traditional methods of risk mitigation. Decision makers should consider the following when improving risk mitigation in a complex system.
1. Limit or even eliminate the need for accurate predictions. By nature, complex systems are unpredictable. Therefore, investing in predictions can be fruitless.
2. Separate elements of a complex system from each other to avoid the risk of each affecting one another during an adverse event. Also, redundancies allow better adaptability.
3. Draw on storytelling and counterfactuals. Consider asking the “what if” questions to evaluate the system’s readiness for catastrophic events.
4. Attack a problem from multiple angles using different techniques and assumptions.
yes ofcourse
control by negotiation and give what u didn't need or not require to get other u need
To get rid of Complexity and To be successful,in business or in life we must set priorities and prioritize their focus.
Any growing business has resource constraints: limited people, time, and capital. It is critical that the entrepreneur spend his or her time on the most important areas that can drive success.
To set priorities, entrepreneurs must have concrete and useful data about their business, communicate the priorities to their personnel, and implement processes to ensure that these priorities are carried out.
Successful business builders institutionalize "firehouse time," that is, time that they get away from the daily fighting of fires to think about "working on" the business instead of working in the business. They use this time to think strategically and tactically about growth, processes, controls, and building their infrastructure.
Successful business builders strategically focus the business in an area where it can excel and they focus themselves daily on the areas where they are most needed to have positive impact. Quality, customers, and cash flow dominate.
Conduct daily "huddles" with managers that cascade to include all employees. Ultimately, as the company grows, your managers are critical for teaching and setting daily priorities and objectives.
I fully agree with Mr.Khalid Ghaffar answer, I don't think I have anything more to add.
Thanks
Fully agree with the answer given by Mr. Khalid Ghafar
I agree with specialties answers, thanks for the invitation.
Complexity are not to get rid of. Rather these are means of various options available out of which one has to opt for the best to reach to the desired results after logical and scientific analysis of each.
These are means for more learning therefore always allow space for its consideration.
Excellent topic to discuss.
Very good views and insights on complexity.
According to me nothing should be get ridden off and we should not expect it too. We can look to master it, but my point is whenever you are in succeeding from complex or normal problems, always keep a record of those work which will keeps us in good stead and always act as guides in solving the same kind of assignments in future
The Camelot Complexity Diamond has three dimensions and each dimension consists of five facets – managing complexity in an holistic way. Managing complexity successfully needs to consider all those facets and the corresponding interdependencies. Depending on the industry, the company and the current situation the relevance of one or the other facet will change.
Internal Complexity
Often, complexity is either historically grown or ‘home-made’. The internal complexity facets are the ones, companies have the most control about. This complexity dimension compiles processes, systems & data, supply chain & logistics, manufacturing and organization. Managing complexity means considering all internal facets.
Go-to-Market Complexity
Go-to-market complexity covers all facets that determine how to approach the market, how to fulfill the market requirements. The single facets are products, brands & marketing, services, sales channels as well as price & trade terms. They need to be carefully steered when managing complexity.
External Complexity
Several external frame conditions might be complexity drivers. Customers and end consumers demands often drive complexity. External complexity exists in terms of customers, end consumers, suppliers, regulations and geographies. Some of the external facets can be influenced, others can’t and need to be managed.
by trying it with determination to succeed you can become master as getting rid of it is out of the option. thanks.
nice answer from mr. khalid,
Thank you
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.