Chapter 6 Exercise

1. List 5 facts of the case

- The complication that Ford and other major businesses are dealing with is
divided into two varieties: system complexity and social complexity.
- Badlands is a very extreme complexity that takes a lot of time, patience, and a
great deal of empathy on the part of everyone involved to come up with a
solution to resolve these.
- All of these difficulties derive from a single misconception: the idea that humans
can control a complicated, living system such as a large corporation.
- Systems thinking offers some powerful methods for identifying the structures in
which we live and work, as well as expressing our understanding of those
systems to others who use them.
- We end up "micromanaging the metrics" as a cost of trying to control system
complexity to solve matters because initially we want to maximize gains, mostly
because it's the only thing we can do.

2. List 5 issues of the case

- Companies are finding it more difficult than before to develop and retain their
competitive positioning, as well as to maintain the pace and amount of innovation
required to survive.
- The issue is that planning simple strategies and having it verified by people has
lost its purpose. The world has become a far more complicated place than it was
previously; the more we evolve, the more difficult the complexity can be.
- Micromanaging indicators can potentially lead to a "Tragedy of the Commons"
situation, in which all participants in a system aim to maximize their own gains at
the expense of everyone else.
- Social fixes technically show “shifting the burden” where instead they look at the
long term solutions, all they are doing is just making up the short term solutions.
In this case this will delay or not solve the issue/problem firsthand.
- There are also organizations who does sheep dip approach in order to make a
standard to follow, this is an issue because this reduce the fluidity of their
employees to work efficient with their capabilities

3. List 5 solutions you propose to the issues. Justify in 1 to 2 sentences

- One of the things the companies can do to maintain their competitive positioning
is learning how to adapt and always look over the possible things they might
encounter in the future to prepare for it
- As the world evolves, it is possible that they should be making strategies in the
standard of evolution, in this case, strategies will be able to overlap the
complexity and will not lose its usefulness.
- One of the solutions that can fix the “tragedy of the commons” is that people in
the company should always look two ways, they should learn how to put
themselves into the shoes of others to know how it can benefit or gain in both
ways.
- Organizations should always think about looking into the root of the problem.
They should focus on getting rid of the source of the problem, not just to fix the
effect of the problem. In this way, they will be able to hasten on fixing the issue in
long term aspects.
- Organizations could work on making standards but can still be up for making
their employees feel that they are allowed to go beyond what they are told to do
(as long as it helps the company) at this rate, it will greatly improve the
organization and its system.