According to Gill (2000), among the major breakthroughs existing in any company is the ability to understand and guide change through system theories and system thinking. However, many people do not understand the basic definitions and functions of a system. The simplest definition of the term system is an organized category of parts, each producing output at different capacities, which when put together achieve an overall goal. A more specific example and application to a company is the division in administration, finance, management among others. All this subsections work towards a common goal which is the company’s vision and mission.
Systems can be simple or complex. Complex systems can either be detail or dynamic. A detail complexity exists when the variables are many. On the other hand, detailed complexity is whereby the causes and effects of actions are not felt immediately until the effects have built up to a major problem, (Gill, 2000). Most companies do not address dynamic forecasting in their planning and forecasting. To be able to change with the rapidly growing economy, a company’s management should understand and put into consideration dynamic complexity situations and hence remain relevant, (Olson, Van Bever, & Verry, 2008) .
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The universe is naturally chaotic. Understanding this aids in designing a system that is accommodative to any kind of problem arising in the future. Focusing on the system as a whole, system thinking, on the other hand, aids in identifying and coming up with solutions to possible problems, (Scott & Davis, 2015). Planning for both dynamic and detailed complexities, therefore, helps to manage even the unobservable situations. As mentioned earlier, I would suggest more emphasis be placed on the dynamic complexities as they are often ignored by most companies.
References
Gill, T. (2000). Exploring Detail and Dynamic Complexity . Retrieved from http://www.systemdynamics.org/conferences/2000/PDFs/gill138p.pdf
Olson, M. S., Van Bever, D., & Verry, S. (2017, March). When growth stalls. Harvard business review , 86 (3), 50.
Scott, W. R., & Davis, G. F. (2015). Organizations and Organizing: Rational, natural and open systems perspectives . Routledge.
