Change is an EVENT in the relationship between the desired state and the current state of a business. Events are characterized by a distinct relationship between a CAUSE and an EFFECT.
Causes occur either by accident or by choice. Effects are the telltale of the occurrence of an event; effects are the only phenomena we observe or experience, while the ROOT CAUSE(S) remain hidden and unknown.
Hence, decision makers tend to focus on addressing the effect, which is not effective.
The consequence or degree by which the relationship between the desired- and the current state is changed is called the PROBLEM, which is quantifiable.
Problems can only be identified and quantified when all responsible decision makers are in agreement regarding the desired state, and when the current state is known.
Unfortunately, most decision makers are uncertain about at least one of the states.
MISALIGNMENT between the business’ desired- and its current state is experienced in the form of FRICTION and CONFLICT.
Friction and conflict decrease operational efficiency and -effectiveness, which increase cost, erodes profit margins, and thus reduces net profits.
The DIAGNOSTIC CHALLENGE of identifying the problem, the root cause(s), and creating a successful solution is threefold:
- Obtaining consensus regarding the desired state or purpose of the business system.
- Understanding how the business functions as a singular, unique, integrated, and open system.
- Identifying the problem-owner—the one person with sufficient authority to approve conducting changes to the business system.
I can explain change to you, but I cannot understand it for you. Nevertheless, I guarantee that once you understand, you will know how to solve problems, change strategic direction, and be more creative, innovative, and disruptive to your industry.
I’m here to help. #CEOadventure
To read more, go to: https://ceoadventurebook.com/solving-systemic-problems-with-authentic-solutions/