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Aug 09

True Leadership Avoids Systemic Scapegoating

by Chris Billows in Spirit Speculations 0 comments tags: Corporate Corruption, Corporations Don't Think, Institutional Learning
It is almost a year ago an individual, Brian Sinclair who was both physically and medically compromised died in the Emergency Room of our largest hospital. He died because for almost three days, he did not receive easily available antibiotics for a common bladder infection. Understandably, the media, public, and opposition parties were outraged and demanded heads. It was a disgusting display of neglect and failure. Despite evidence that Brian had initially approached the triage desk to alert the employees of his need, for close to three days, nobody bothered to treat Mr. Sinclair which led to his death. The government and health officials claimed systemic failure. They did not want to accuse any individuals of misconduct or failure. In one way, this can be seen as admirable as some employers employ scapegoating as a way of deflecting attention from themselves. But when is a “systems failure” simply a cop-out? I would argue that claiming “systemic failure” is just like scapegoating but instead of blaming an individual, a faceless system is blamed, and instead of being punished, it is to be fixed. It is more palatable to do since it is emotionally draining to discipline staff. Not to mention, there […]

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May 09

The Answer to Organizational Failure: Complexity Science

by Chris Billows in Business Beller 0 comments tags: Comprehensive Analysis, Corporations Don't Think, Defining Life, Foolishness, Institutional Learning, Summarizing a Business Organization
I can’t recall how I stumbled onto this concept and websites, but a while ago I found this riveting theory which I believe explains why most modern organizations are so inadequate at times and spend far too much time chasing the wrong priorities. I have touched on parts of this in previous blogs such as Driven to Distraction and Even the Best Systems Fall Victim and A List of Guidance. The reason why this happens is they fail to embrace Complexity Science. Basically, it is because our social institutions continue to operate like machines, believing that events can be tracked in a linear fashion and have measurable inputs that neatly match known outputs. While there is no denying that some institutions do operate like machines (take most factories), the fact that humans end up doing most of the work leaves the model sorely lacking. What is more accurate is to realize that all human based organizations are non-linear and complex. It is common for these systems to exhibit the following characteristics: Small inputs can lead to dramatically large consequences. Very slight differences in initial conditions produce very different outcomes. Global properties flow from aggregate behavior of individuals. Emergence (of order) […]
Jun 08

Who is the Corporation Beholden to? To Future Shareholders/Stakeholders

by Chris Billows in Business Beller 0 comments tags: Corporations Don't Think, Summarizing a Business Organization
I attended a workshop on the risk management responsibilities of being a Director of a corporation. I asked who was the corporation ultimately responsible to: the shareholder or to the customer/stakeholder. He said neither since the corporation is responsible to itself. When I pressed further, he said that the corporation’s assets are to be used to further its goals into the future, not necessarily the goals of the immediate shareholders/stakeholders, though these two usually do align. I was fascinated. This means that as a Director of any corporation (non-profit/for-profit) my fiduciary responsibility means being loyal first to the corporation and its goals. I and the other Directors are to operate the corporation as if it was going to be around another 100 years and then govern accordingly. Our goal is to have the corporation be a service to present and future generations of shareholders and stakeholders. Even though it might be beneficial to sell all of the corporation’s assets now, thereby dissolving the corporation, and distribute them to the shareholders (meeting the shareholder’s need for a good return), this is not good for the future shareholders/stakeholders of the company who cannot be present at the table. The same principle applies […]
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