The Purpose of a System is What it Does

The great cybernetician, Stafford Beer, coined the phrase, “the purpose of a system is what it does.” What we wish it did lies in the realm of visioning and strategy formation. What a system does is expressed in terms of the recurring and onetime outputs, as well as its key processes. So, the purpose of a school, for example, is to produce both graduates and dropouts, because these are clearly outputs of the system. We may wish or prefer that the school only produce graduates, but until we gain a clear view of what a system really does, we are impotent to change it.

Here's a recent article from ABC News that says 10% of the high schools in the US are 'dropout factories.' In this article the author is defining a dropout factory as one in which no more than 60% of the students that start the school actually finish (graduate).

1 in 10 Schools Are 'Dropout Factories'
By NANCY ZUCKERBROD AP Education Writer • WASHINGTON Oct 30, 2007 (AP)
It's a nickname no principal could be proud of: "Dropout Factory," a high school where no more than 60 percent of the students who start as freshmen make it to their senior year. That dubious distinction applies to more than one in 10 high schools across America.

If anyone wants to make improvements or think about innovation in this type of system they will have to be honest with themselves and come to terms with what that system actually does.

What about industry?

What's the purpose of your organization?
A recent McKinsey survey on the approach to innovation finds that 70 percent of corporate leaders say innovation is among their top three priorities for driving growth.

If we looked closely at what these organizations actually do would we be able to see that innovation is part of the purpose of their organization?

How many of those same executives are aware of what their companies actually produce? How many of those same executives are aware of the ways their companies delight their customers? How many of them are aware of how and where they fall short of delighting and meeting the needs of their customers?

How many of those same executives are aware of the policies and procedures they have implemented that rob their own people of pride in the work they do (because they limit their ability to innovate and/or produce quality work)?

There are many things that companies do today that would be quite embarrassing when framed in the context of being 'the purpose of the organization.' When framed in this context it becomes clear there is a real need for a certain type of honesty within organizations (honesty - NOT BLAME).

When framed in this context it is possible one of the most important transformations that can and should take place in any organization is in the way people think. Changing the way people think will have a direct and immediate impact on the culture of an organization. Changing the way people think will go along way towards establishing the foundation for challenging the past, challenging the status quo, and challenging an organization's sacred cows.

In that same McKinsey survey, top managers say the most important drivers of innovation are the organization’s culture and people.

Who is responsible for the culture and the people in an organization? The leadership.

Leadership sets the tone and creates the culture in an organization. If managers are saying the main drivers of innovation are people and culture then it is their responsibility to develop the right environment and build the capabilities they are seeking.

Here are several ideas to consider for changing the thinking within an organization.

Traditional management practice suggests that competition and fear are motivators and can be used to increase performance. Research has shown (and personal experience can verify) that competition and fear may show some short term benefits but they are not good long term strategies. Competition and fear within an organization ultimately reduces productivity and removes joy from the workplace. A change in thinking would be to consider removing fear and competition from the workplace and developing the type of honesty suggested above.

In Dr. Deming's 14 points for management, point number 8 is:

8. Drive out fear, so that everyone may work effectively for the company (see Ch. 3).

This idea is complemented by points number 11 and 12 in Dr. Deming's 14 Points for Management. Here he suggests that we transform our way of thinking to remove the barriers that would enable people in the enterprise to feel pride in their work. These barriers are created by management consciously or unconsciously and can only be removed by management.

11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.
12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective (see Ch. 3).