Saturday, June 6, 2009

Root cause for complexity

Cause and effect are separated by time and space. Strategy execution is all about getting the desired effect. Understanding and controlling causes are a means to an end.

In some cases the time:space gap between cause and effect is small. For example, if a discount is offered and sales go up, then the cause and effect are clear and very close to each other in time and space.

In other cases the time:space gap is large. 'Complexity' can be defined as the lack of understanding of this time:space gap:
  • How big is it?
  • Why does it exist?
  • What can we do to control it?
  • What will it cost to understand and control it?
  • What are the business benefits of doing so?
  • Are there any side effects of changes to the cause-effect relationship?
Organizations devote a lot of resources to understanding cause and effect relationships. The biggest benefit is to be able to predict and control the outcomes, not the increased revenue or reduced costs of doing business.

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