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In: Business and Management

Submitted By rjnj
Words 1414
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Balancing Process with Delay:

Description: an organization, a group or a person, acting towards a goal, adjusts their behavior in response to delayed feedback. One has to be aware of the delay, otherwise more actions are required to correct the same problem. Sometimes - progress made cannot be seen.

Management Principle: In a sluggish system, aggressiveness produces instability. Organization, group or person has to be patience or make system more responsive.

Business Story: Real estate market: developers /builders kept building new properties without having enough buyers in sluggish market. There are plenty of properties available in the market and having enough additional properties still under construction, resulting in a glut.

Limit to growth:

Description: A process feeds on itself to produce a period of an exponential growth or expansion. Growth begins to slow and comes to a halt, and may even reverse itself and begin to collapse quickly.

The growth phase can be caused by reinforcing the feedback process(es). The slowing arises due to a balancing process that came to play as a “limit” is approached. The limit can be a resource constraint or external or internal response to growth.

Management Principle: Don’t push growth –remove the factors limiting growth.

Business Story: New Startup Company that grows rapidly until it’s reaches a size when more professional management skills and a formal organization is needed. So the company with a new product team that worked until it’s success caused it to bring in new employees with new work style, and different values than the founding members –leading it to limit the growth.

Shifting the Burden:

Shifting the Burden Systems Archetype shows how attacking symptoms, rather than identifying and fixing fundamental problems, can lead to a further dependence on symptomatic solutions. The problems…...

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