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Thinking in systems

A business is a systemA business is easier to read when you stop listing its tasks and start watching what builds up, what moves, and how long things take to move. This part introduces five plain ideas from systems thinking: stocks (what accumulates), flows (the rates that fill or drain them), delay (the gap between a cause and what you see), feedback loops (results that circle back and change what happens next) and cadence (the rhythm at which recurring work happens).Seeing what holds you backMost of what slows a business down is not visible on a normal day. Work waits between steps.Systems dynamics applied to businessA business changes through a few patterns: things that feed on themselves, things that push back, waits that make both overshoot, and limits that stop growth. This part applies stocks, flows, delay and feedback to two small businesses: referrals and the morning rush at a bakery, and rework, steel lead time and a bottleneck at a fabrication shop.

Working with the map

Two clocks: work and waitingEvery job in your business runs on two clocks: the hours someone works on it, and the time it takes from start to finish. The gap between them is waiting, and waiting is what customers feel and task lists hide.Ceremonies: what the rhythm costsA ceremony is a gathering that comes back on a rhythm: the morning huddle, the Wednesday order review, the month-end look at the numbers, the yearly planning day. Each one is small on the day it happens and large over a year, because the rhythm accumulates.ChunkingA chunk is a group of things you treat as one thing, so you can think about the group instead of every piece. Chess players, climbers and everyone planning a week do it all the time.Discipline and disciplined processA process written on a wall is a hope. A process that is repeated, on a rhythm, by the same people, in roughly the same way, is something you can look at, discuss and change.Adding up: cost, working hours and elapsed timeWhen you map a process you end up with figures on many blocks: hours of work, costs, durations, waits. It is natural to add them all up, but they do not all add the same way.

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See the business more clearly.

There’s a limit to what you can keep in your head. Explore work, time and money through familiar business situations, then use a canvas to discuss what you see with your team.