#Master of two worlds series#

Question: Which individual is ultimately responsible for Business Governance? Answer: S/he who has ultimate authority to change Business Governance―the Chief Executive Officer! That means that only six percent of all results are directly attributable to individual or groups of people! And so―contrary to popular doctrine―time, money, and effort is spent more effectively and efficiently when improving Business Governance rather than micro-managing employee behavior. Statistics show that ninety-four percent of all results are systemic in nature. The idea that the same system producing intended and wanted results is also producing unintended and unwanted results is just incomprehensible to them. Leaders find it hard to deal with systemic problems the fact that mistakes, errors, and the resultant under-performance is caused by, what I call, Business Governance TM―the system’s design, organization/structure, implementation, maintenance, and management.

#Master of two worlds series#

In my experience, the root cause(s) of a systemic problem is nearly always a series of small errors that were either latent―dormant―within the system or active, triggered by an event from inside or outside the business system.

The challenge posed by complexity and tight coupling is the fact that cause and effect relationships are not immediately obvious―it requires a serious effort to determine the root cause(s) of a systemic problem.

The subsequent tight coupling of resources has increased system complexity even further. In order to justify the ever increasing cost of operating ever more advanced means of production―such as computerized platforms―demands they are shared among multiple business functions and organizational departments. The premise of The Root Cause is that failure to understand business system complexity and the disruptive nature of events undermine CEO Effectiveness TM.Ĭomplexity refers to the fact that these networks of business functions, –processes, interfaces, and technological tools―are intricately interconnected and dependent upon each other.