This great story demonstrates a fundamental emergence in our lives. The old ways of thinking and managing simply wouldn't work any longer.
The 'science' and practice' of management as we know of it today were originally invented to solve two very important problems, which were:
a) How do we get ordinary folks do complicated and repetitive tasks to achieve a standard of efficiency and standardization to optimize profits?
b) How do we make our way through a complex web of processes to deliver goods and services to our clients? The complexity arose from scaling up of operations meant to generate ever increasing volume of goods and services that could provide more profits and subdue competitors.
In order to do that we created lot many logical rules and regulations. The number of rules increased with the degree of operational complexity. Then we trained and made people follow those rules to achieve the magic numbers that could produce more profits that are constantly under squeeze.
With our present thinking we understand that such management thinking does not work well beyond a certain degree of complexity. Why is that?
So far we focused on objects that played any role within business cycles of production and consumption. Sometimes we focused on machines while at other times we focused on people or customers. And yet on some other occasion we forced our attention onto suppliers and quality or we looked at increasing inventory levels. We never quite saw the whole in one breath. What we clearly missed out was to observe the relationships between objects in a given context. What we chose to do instead was to focus wholeheartedly on objects and their functions and properties without taking into consideration the context in which they operated. We failed to realize the importance of interdependent relationships between all things that simultanteously arise and abate in the system in a "wholistic" manner.
What happens when we fail to see relationships?
Let us take two objects that are related to each other. Then the possible relationships that can exist between them are four [2 to the power 2 gives us 4]. As we keep increasing the number of related objects it keeps following the same power law [2 to the power of n, where n = the number of related objects].
It is then easy to imagine the exponential rise in the number of possible relationships as the system becomes more and more complex. How can such exponential behavior be controlled and regulated by a set of linear rules and regulations? Since that is clearly not possible to do so it exposes the unscientific nature of our so called 'scientific' management thinking.
This flaw is clearly depicted in the video. As the number of cars increased along with the rise in the number of pedestrians and cyclists the system soon reached a critical point of complexity beyond which it was not possible to regulate the traffic flow, reduce the number of traffic jams and keep accidents in check. Even the logic of operating traffic lights represents a part of the growing rules and regulations to contain the menace of slowing traffic, snarling jams and terrible accidents without much success ofcourse.
So, what did the new management thinking do? They drastically reduced the number of rules and regulations to one simple rule - "give way to pedestrians and cyclists first". The result of such a brilliant move is amply demonstrated in the video.
What lessons management can learn from this? Probably these:
1. As the system becomes more and more complex reduce the complexity of the jobs ordinary folks are called on to do in all possible ways. One of the simplest way to do that is to reduce the number of irrelevant rules and regulations that bind and blind people from performing better. Forcing people to keep their eyes on so many rules is enough to make anyone crazy and make mistakes. For example, by simply enabling drivers not to pay any attention to the traffic signals and policemen but to keep in mind one simple rule greatly simplified their job of driving safely. This then left the drivers free to focus on their goals without getting distracted by a host of unrelated issues. Ease of traffic flow, reduction of jams and elimination of accidents are few of the by-products of making jobs easier and free of unnecessary clutter.
2. Redesign the system so as to reduce the number of relationships one has to negotiate in order to achieve the desired results. This was done by redesigning the roads at critical traffic intersections. By reducing the total number of relationships within a system we can easily convert complex processes to much simpler ones.
3. Managers are then left to keep healthy communications going within the system and focus their attention to fine tune the existing relationships and also think of simplifying the processes further through redesign.
Aren't these three universal management lessons simple enough?
Let me know what you think.
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