Reflecting on the State of Not So Modern Corporations: Navigating Complexity in the Modern Business World

Lately, I have been thinking about the state of modern corporations, particularly the difficulty many face in effectively managing the complex challenges of today's world. As evidenced by their performance, it's apparent that the traditional structures, institutions, and decision-making processes in many companies are becoming increasingly obsolete, struggling to navigate the headwinds of change.

Take, for instance, the weekly senior manager meetings. This comes through loud and clear when I attend conferences, as attendees often claim these meetings too often resemble a sort of ritual, replaying previous discussions, arguments, and decisions in an effort to tackle increasing complexity. However, these complexities never seem to get resolved. As a result, they are left analyzing symptoms and fitting curves to data that are just a degree away from an actual solution. Unfortunately, this pattern seems more about performing a role than making genuine progress. It's akin to a theater of decision-making, where real systemic issues are glossed over in favor of preserving the status quo and catering to a singular perspective based on narrative. This is done under the misguided belief that simplicity is the key to solving complexity.

In their book "The Friction Project," Robert Sutton and Huggy Rao describe how the corporate lexicon has become tinged with cynicism. Terms such as 'leadersxxt', 'waterboarding by PowerPoint', and 'jargon monoxide' are used humorously, but they point to a deeper malaise. Phrases like 'death by meeting', 'malicious compliance', and 'roach moteling' are also common – all indicative of constructions and practices that hinder rather than help.

However, the mindset shift needed isn't just about thinking independently; it's about collaborative problem-solving in the face of complex, 'wicked' problems. The goal shouldn't be efficiency through fad-chasing but intellectual honesty about the problems we face, our roles in them, and the role of technology.

This brings us to a critical question: with the changing demographics and the consequent loss of knowledge, why do we spend so much time crafting narratives for executives and in task force meetings, rather than focusing on the actual jobs to be done? It appears that technologies, designed to aid communication, all too often end up enabling managers to inundate the organization with complex, sometimes lengthy messages under the misguided use of transparency.

Moreover, the trend of 'self-service' in the workplace often seems more self-centered than service-oriented, frequently due to poor user experiences. This leaves many questioning how managers and corporate systems might be weaponizing technology for their convenience, complicating tasks for others, and saving money in one area while sacrificing efficiency and effectiveness in another. As the demand for data from the frontline to feed ERPs and their deployments grows exponentially, one wonders how much additional transactional burden (weaponization) will be imposed in the future.

This pattern has a high potential to exacerbate productivity issues. It highlights a lack of systems thinking and an overreliance on outdated financial models designed for a simpler time, which fail to recognize the interconnectedness of system components. While we appear to have resolved the simpler, symptom-based problems, we are now confronted with the complexity of system-wide issues.

So, how then can we improve at solving these complex problems, which are inherently challenging for humans? This is crucial if we are to prevent our valued assets from slipping into the hands of others, potentially sooner than we anticipate. The key might lie in shifting from doing things 'To' and 'For' others to being an organization that works 'With' and 'Through' others.

In conclusion, as we navigate these challenging times, embracing a mindset of intellectual honesty and systems thinking is essential. We need to question our institutions and traditional practices and be open to rapidly evolving our companies. This evolution should focus on new approaches in leadership and decision-making. Only then can we hope to thrive in the complex, interconnected world in which we find ourselves.

Shelley Nandkeolyar Ron Norris Subrata Sen Harirajan Padmanabhan Arthur Kordon Rajib Saha John B. Vicente Jr. PhD Sarath Chandershaker parabole.ai

Herb Dowdy Dr. Joshua Thomason, CPA, MBA

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