3. Be aware of the nature of the systems

03. Dezember 2023

More and more companies are grappling with complex external business issues such as global raw material or component shortages. Remaining in this chaotic state for too long is stressful for employees and damaging for the organization. How can you transition from chaos back to order?
I recommend studying the π‘ͺπ’šπ’π’†π’‡π’Šπ’ framework developed by Dave Snowden. For many challenges in the Integrated Business Planning (IBP) space, it may provide valuable insights on how to best run a business in different situations. You may also recognize that IBP has its limits in complex and chaotic environments. Consider exploring Integrated Business Sensing (IBSing) to fill those gaps.
✰ A strong 𝐎𝐩𝐞𝐫𝐚𝐭𝐒𝐧𝐠 𝐬𝐲𝐬𝐭𝐞𝐦 in a stable and 𝐂𝐋𝐄𝐀𝐑 context (=with straightforward cause and effect relationships) adds value by enabling best practice solutions to challenges and automating activities, driving π’π’“π’ˆπ’‚π’π’Šπ’”π’‚π’•π’Šπ’π’π’‚π’ π’†π’‡π’‡π’Šπ’„π’Šπ’†π’π’„π’š.
✰ π‚πŽπŒππ‹πˆπ‚π€π“π„πƒ business challenges with several potential good solutions require expertise. The Integrated Business Planning (𝑰𝑩𝑷) process, enabled by strong IBP system capabilities (E2E transparency, scenario planning, concurrent planning, digital twins, etc.) and investment in people competencies, facilitates appropriate decisions and responses.
✰ To avoid π‚πŽππ…π”π’πˆπŽπ, it is always critical to take a 𝐑𝐞π₯𝐒𝐜𝐨𝐩𝐭𝐞𝐫 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐒𝐯𝐞 to find out if current business activities are still aligned with today’s context. There is a huge risk of continuing „business as usual“ in the case of an emergency. Allocation by decibel, stockpiling, shortcutting quality, and compliance for the qualification of new products or suppliers could indicate a shift from the clear domain into the chaotic domain via (what is called in Cynefin) the β€œcatastrophic fold.”
✰ The twelve IBSing enablers (Self-Awareness, System-Awareness, Shared Vision, Responsibility, Accountability, Decision-Making, Team Collaboration, Conflict Resolution, Stakeholder Management, Essential Intent, Exception Management, Evolutionary Learning) require continuous practice and will prepare an organization for π‚πŽπŒππ‹π„π— business challenges.
✰ In the case of π‚π‡π€πŽπ’, it is recommended to follow the β€œAssess – Adapt – Exapt – Transcend” approach outlined in the Cynefin field guide.
𝐏π₯𝐞𝐚𝐬𝐞 𝐜𝐨𝐧𝐭𝐚𝐜𝐭 𝐦𝐞 for an informal conversation about IBP/IBSing in a more and more complex and chaotic environment. Trust me! With little investment, significant improvements in team engagement and organizational performance can be achieved.
Best wishes,

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