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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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The limits of intuition

Gut feel is a real skill, built from years of paying attention, and an owner with none would not still be in business. But it has two limits that matter more as a team grows.

  • The case for a map
  • 11 min read

First, it has blind spots: it cannot see what is piled up out of sight, it is thrown off by effects that arrive late, and it remembers the dramatic episode better than the ordinary ones. Second, and more important, you cannot share it. Your team cannot read your hunches, and you cannot hand them over. What you can share is something written or drawn that everyone can look at. That is common ground, and it helps you and your team plan for success, not just react.

What intuition is good at, and where it stops

Let's start with the compliment, because it is a sincere one.

If you have run a shop, a kitchen or a crew for ten years, you can walk in and feel that something is off before anyone says a word. The room is too quiet. A supplier's tone changed on the phone. A customer's order looks slightly too easy. That is pattern recognition, and it comes from thousands of small observations you never wrote down.

Intuition works best when three things are true. The situation is one you have seen many times. The feedback arrives quickly. And what matters is close at hand. A baker who sees the bread come out of the oven learns fast.

Intuition has no warning light. A wrong hunch feels the same as a good one. And it has a second limit that is easy to miss: it lives in you.

You cannot share it

When you say "we're about right" or "this week feels tight", your team hears the words, not the years of observation behind them. They cannot check your feeling, add to it or disagree with it, because they cannot see what it is made of. They can only trust it or doubt it.

That has everyday costs. People do what they think you want and are sometimes wrong. Two people on the team carry two different pictures of "busy" or "late" or "good", and neither knows it. You end up explaining the same judgment again and again, and each time it comes out a little different.

It also costs the people closest to the work. When the load is heavy, they cannot point at anything to say why. All they can say is "I feel busy", which is easy to hear as a complaint. The burden is real, but there is nothing in common to look at.

None of this is a fault in you or in them. A feeling is a poor thing to hand to another person. A picture of the work, with figures on it, is a better one.

Three blind spots

The stock you cannot see

Part 2 described a stock as something that accumulates: orders waiting, parts on the shelf, questions in an inbox. Some stocks sit in front of you, and a full bench is hard to ignore. Others are out of sight: a queue of quote requests in one person's email, half-finished jobs wrapped in plastic at the back of the shop, promises made at the counter and not yet written anywhere. You do not notice these growing, because nothing in the room changes while they grow.

A well-known idea from queueing, Little's Law, says in plain words: in a stable flow, over the same period, the average amount of work in the system equals the average rate at which work gets through multiplied by the average time each piece spends in the system. "Stable" means the pile is not steadily growing or shrinking. You do not need the maths, only the consequence: if jobs take longer to get through, more work is sitting around, even if nobody is working any slower and nobody sees the pile.

Illustration to come

Sticky notes, a voicemail and a text message converging on one list that reads "about 10 orders open", next to a thought bubble that says "4 or 5?".

Effects that arrive late

Many things you do today show their effect weeks later. You take on more orders now; the strain appears when those orders reach the finishing stage. A gut feeling is built from cause and effect that follow each other closely. When the effect is late, the link is easy to miss, or to pin on the wrong event. If you change something on Monday and the result shows up in three weeks, you will probably have changed something else by then.

Illustration to come

A timeline from September to October: extra bookings taken in a quiet September, a three-week gap, then the decorating bench filling up in October.

Memory, and the vantage point

Memory is generous to the dramatic. The week the big client left is vivid; the forty quiet weeks around it are not. When you think "we always run late on custom jobs", you may be counting the three that hurt, not the twelve that went smoothly. Memory also tidies stories and fills gaps, which is part of why two people who lived through the same month describe it so differently. And your position matters: from the counter you see the customers, from the oven you see the baking, and neither shows how a special order moves between them.

This is not a flaw in you. It is how human memory and experience work, and a good reason to put some things where more than one person can look at them.

Common ground: plan for success

If intuition cannot be shared, the answer is not to ignore it. It is to turn part of it into something visible: a map the team can read, point at and correct, with figures on it for the things that matter.

Common ground changes the conversation in a few ways.

Your instinct becomes a hypothesis. "I think special orders are the tight spot" becomes something the team can look at and check. You may be right, and now they know why.

Everyone can contribute what only they see. The person at the bench knows how long decorating really takes. The person at the counter knows how many calls never reach your notes. Their knowledge goes onto the page, and yours gets corrected by theirs.

The team can see their own load. Planned hours sit beside the hours people have. If the plan is heavier than the week, the figure is there for everyone to see, and nobody has to argue from a feeling.

You can plan before you react. With the picture in common, you can look ahead together: what is coming, what it will take, who carries it, where work will wait, and what you are aiming for. You can lay two ways of doing it side by side and talk them through before the busy week arrives. Planning for success is mostly this: choosing on purpose, early, with the same page in front of everyone.

The map does not decide for you or for them. It makes the discussion shorter, more specific and more even.

A worked example (illustrative)

Maple Street Bakery is invented, to show the ideas. The numbers are made up and carry no meaning beyond the example.

Dana runs Maple Street Bakery, a neighbourhood shop with a counter, two ovens and a small team: Léo at the counter and Priya baking. She has been baking for twelve years, and her sense of the shop is rarely wrong.

One October she says, with conviction, "We're about right. Maybe a little behind on special orders, but fine." Léo nods. Priya says nothing. A few days later Priya mentions to Léo that she has been staying late most nights. Dana never heard it, because "about right" was a feeling, and Priya had no way to put hers beside it.

So they draw the shop together: counter, baking, special orders, decorating, delivery run. Each person writes a sentence in their own words and a rough figure for how long their step takes and how long work waits before the next one. Three things show up, and each of them gets to read them:

  • A stock nobody had counted. Special orders come in on sticky notes, voicemails and the occasional text. Dana says about five a week, and a cake is usually picked up about two weeks after it is ordered. If the shop has been keeping up, five a week each sitting for two weeks means roughly ten orders open at any time. Dana had pictured four or five. Nothing in the shop looked different while the list grew, so her gut had no way to feel it. Léo adds that some calls never reach the sticky notes at all.
  • An effect that arrived late. In September, Dana took more special orders because the month felt quiet. The decorating bench only felt the strain three weeks later, when those cakes reached it. Priya says decorating one special cake takes about three hours of hands-on time. Together they might read the busy October as a result of the September bookings, with the wait hiding the link. That is a reading for the three of them to test, not something the map asserts.
  • A memory that needs another look. Dana had been sure the delivery run was the slow part, because of one February morning when snow turned a 45-minute run into two hours. The usual figure is 45 minutes. One bad morning had been standing in for the year.

Dana was not wrong about her bakery. Her sense that special orders were the tight spot was close. What changed is that Priya and Léo can now see it, add to it and disagree with it. The next question is practical: Priya's late nights show up as planned hours beside the hours she has. Before the holiday rush, the three of them can look at what is coming and decide together what they want to say yes to. Flour on the shelf and money in the till are stocks Dana already watches by eye, so those stayed out of the picture.

On the map

On the map

Ursa Major does not replace the feeling you have. It gives you a place to put part of it where other people can see it, and it keeps the decision with you.

  • Blocks and connections let you draw the steps as you understand them, and let others redraw them as they understand them. A block with only a name and a sentence is valid; add detail where it helps.
  • Duration and Delay on a block are separate figures. Duration records elapsed execution time; Delay records elapsed waiting. Each can be entered in minutes, hours, days or weeks. Planned working hours come from the people and machines you assign to a block, not from Duration.
  • Planned hours beside available hours make the load on a person visible as a figure to review. It is not a verdict on the person or the work.
  • Nested child canvases let a broad block, such as "special orders", open into its own map for a closer look.
  • Notes are separate blocks you place beside the map. A teammate can write what they see or suspect, and you can write what you remember, including how many orders you think are open.
  • Objectives are targets you set in Advanced metric settings; the panel shows each beside its figure, marked as a target and not an observation, so the team can see what you are aiming for next to what is planned. The map does not track whether it was reached.

The figures are your estimates and your team's. They show what you have said; they are directional, and they do not judge whether anything is working well.

Reflect

Questions to sit with

  1. What do you know about your business that your team cannot see? What would they ask you if they could?
  2. Where does one person's idea of "busy", "late" or "good" differ from another's on your team, and how would you find out?
  3. If you and your team looked together at what is coming in the next quarter, what would you want to decide in advance?
A business is a system