Sublime

“Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.”

Now pick a key variable and start building the loop by asking what affects that variable. (“Our investment in training…

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as you add links, to test them also as “loops.” Identify each new loop as “balancing” (moving toward stability) or “reinforcing” (pushing growth or decline) based only on its behavior: regardless of the number of factors or elements it contains, or its position in the diagram.

Achievement-Orange Organizations ratcheted this up another level, achieving results on entirely new orders of magnitude, thanks to three additional breakthroughs: innovation, accountability, and meritocracy.

As Ed worked throughout the eighties, he continually refined his ideas and teachings around Profound Knowledge. Those six management principles he originally taught at Nashua soon morphed into his now-famous “14 Points for Management,” which he outlines in Out of the Crisis.

A closer look shows that the hierarchies are constructed on a “building block” principle: subsystems at each level of the hierarchy are constructed by combinations of small numbers of subsystems from the next lower level.

A second root involves the study of the modern organization, work that seriously took off in the 1930s and 1940s. Peter Drucker's The Concept of the Corporation was the most visible early example. Some very informative projects in this tradition have come in the past decade.