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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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Ceremonies: what the rhythm costs

A 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.

  • Working with the map
  • 5 min read

A ceremony exists to produce one of two things, a decision or a change; when it produces neither, the hours still leave the business on schedule. This lesson is about seeing what a rhythm costs at the scale that matters right now, the week when cash is tight or the year when the question is where the time goes, and about using the same map to switch between the two.

Start with something you know

Every weekday at 7:15, Dana, Léo and Priya stand at the counter for fifteen minutes before Maple Street Bakery opens. It is useful: who is in, what is ordered, what ran out yesterday. Nobody would call it expensive.

Fifteen minutes, three people, five days a week. That is three and three-quarter hours a week, about sixteen a month, roughly a hundred and ninety a year: nearly five full weeks of one person's time, spent standing at the counter before the shop opens. Still useful, possibly. But a different size of thing than it felt like at 7:15.

The Wednesday huddle, the monthly review with the bookkeeper and the two days every January add their own hours. None of them is wrong. All of them accumulate.

The idea in one line

Whatever its schedule, a ceremony accumulates. Its cost is the people in the room times the time they spend, repeated at its rhythm, plus anything you pay for the room, the food or the facilitator. It is worth seeing at two scales: the week or month, where it competes with everything else for hours and cash, and the quarter or year, where its true size shows.

A ceremony is there to decide or to change something. That is the discipline in it. A huddle that sets the day's priorities, a review that ends with a changed price or a kept promise, a planning day that produces the plan. When a gathering stops producing either, the hours keep leaving at the same rhythm, and the figure beside it becomes a question for the people in the room. The map does not answer it.

Try it: read the same four gatherings at a different horizon.

CeremonyRhythmHours per weekCost per week
Morning huddle3 people · 15 min · who is in, what is ordered, what ran outDaily3.8 h113
Wednesday order review3 people · 30 min · the special orders for the weekWeekly1.5 h45
Numbers with the bookkeeper2 people · 2 h · what last month cost and what is dueMonthly1.0 h29
January planning3 people · 16 h · the year’s prices, hours and hiresAnnual1.0 h29
All four7.2 h215
Invented figures for Maple Street Bakery, at an assumed 30 an hour for everyone, five days a week and fifty weeks a year. On a canvas the Horizon pill under the header does this to every per-period figure. Nothing here is saved, and the figure does not say which gathering to keep.

Micro and macro: the horizon

The same map answers two different questions depending on the period you read it in.

When cash is tight, the week and the month are the scale. Every hour and every dollar needs to be in the picture, because the question is whether this month closes. Read the map weekly or monthly, with every rhythm in it, including the ones that feel too small to count.

When it is not, a broader view is the one you need. Read the same map by the quarter or the year, and the small weekly habit shows as what it is: a large annual commitment that deserves a decision of its own, to keep it, change it or let it go. You will not see that at the weekly scale, where it is always a reasonable fifteen minutes.

Being able to move between the two without redrawing anything is most of the value. The figures are the same figures. Only the period changes, and with it what you can see.

Illustration to come

The same four ceremonies as four bars at two scales, side by side: in a week they are slivers beside the baking and the counter; in a year the morning huddle alone is nearly five weeks of one person's time.

In the app

  1. Make the gathering a block. Add a block, name it (“Morning huddle”), and under Presentation in its editor choose Ceremony. The card reads as a gathering and its resources tab becomes People and support.
  2. State the rhythm. In the side column, Process behavior: Periodic · recurring, Every 1, Periodicity day (or week, month, quarter, year). The card shows the chip. The rhythm is a label; the hours come next.
  3. Put the people in the room. On People and support, Add assignment for each person, with the time it takes them per period: 1.25 hours per week each for a fifteen-minute daily huddle. Their rates, stated on the Resources page, give the ceremony its calculated cost after a Parse. A room, a lunch or a facilitator goes under Costs as a direct cost contribution.
  4. Change the scale. Under the canvas header, the Horizon pill offers Daily, Weekly, Monthly, Quarterly and Annual. It is a view choice, nothing is saved: per-period amounts are projected to the period you pick, on the cards, in the right panel's Cost contributions and on the Canvases page. Read the huddle at Weekly, then at Annual.
  5. Write what it is for. In the block's description, say what the ceremony decides or changes (“sets the day's priorities and who covers the counter”). When you read the figure at the year's scale, that sentence is what you weigh it against. The map keeps the two side by side and leaves the weighing to you.

One question to take away

Pick the smallest recurring gathering in your week. Multiply it out to a year, in hours of the people in the room. What did it decide or change last month, and would you set up a gathering of that annual size to get that?

Chunking