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Capitalizing on Complexity

Statistics show that 94% of all results are systemic; i.e. how the system is designed, built, implemented, maintained and managed. 

Studies show that 75% – 96% of all business failures involve human error. Be that as it may, human error is not the cause of failure but the symptom of a failing system.

A Global Chief Executive Officer study revealed a commonly held belief that a rapid escalation of “complexity” is the biggest challenge confronting businesses today, who are inadequately equipped to cope effectively with this present and growing challenge.

Creativity has been identified as the solution of choice to increase system-level innovation and dexterity.

Of all desirable leadership qualities identified in the study, ranging from “Creativity” to “Fairness”, none identified understanding Business Systems!?

Multi-year studies show that:

  • CEO-Tenure has dropped from 8.1 years to 6.3 years.
  • Early CEO dismissal for under-performance is up.
  • Frequency and success rate of shareholder derivative suits aimed at replacing executives is up.

Do you thing that there is correlation or even causality between:

  • Knowledge of business systems?
  • Being challenged by complexity?
  • Shorter tenure at the top?

How do you rank the probability of executives being successful with creativity on a system level when being confounded by the complexity of their own business system?

One Comment

  1. Mike
    Posted May 2, 2013 at 09:00 | Permalink

    Very intriguing concepts, Hans. Why is CEO tenure down and dismissal for poor performance on the rise? Those are great questions, and provide a very interesting possibility to help executives become more effective.

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