Order and Chaos
by Evan Wise
Managing Director of Management One®

Businessmen have always wanted to define their business as controlled, ordered and predictable. In reality, doing business involves chaos that is uncontrollable. Why does one sale work beautifully while the next is a bust? Why was production great last month but this month mechanical outages killed the totals? The truth is that as managers, we can influence the outcome but not control it. Don't ever think that you have control over the random events that add up to your business success or failure.

How does your organization deal with the chaos in business? The answer
to that question is often the difference between great profits and mediocre profits or even losses.

Business management can be thought of as a continuum. The spectrum
ranges from tight authoritarian control on the left to utter chaos on the right.

As with most approaches neither end represents the optimum. The ideal way to manage a business or any organization for optimal results is at the edge of chaos. Let's look at the differences.

control                                                                  edge of chaos                 chaos

When a change occurs, a problem is presented or an opportunity arises, the control oriented organization responds with a centrally developed plan of attack. Executives determine the tasks and directives for action that are sent to employees. Sometimes this can be the best approach when the result can be predicted. One example might be when a Winning@Retail client is found to be over stocked in a certain classification. The directive to cancel goods can be made at the top.

Too often, however, companies approach issues that are not black and
white with the same top down approach that is typical of the left of
the spectrum. Even though random events dictate the outcome, the
decisions are made and implemented like the outcome is assured if the right decision is made at the top.

When the outcome is not what the executive expected, often the people
implementing the decision are blamed. Sometimes even the decision is
blamed. The executive hopes outside change won't affect the business. Employees are left to cope as best they can and the company lacks direction and consistency. Often the real culprit is the process of decision making itself.

Winning@Business keeps a business at the edge of chaos. Executives develop the visions and values that employees need to make decisions that are internally consistent. Executives prioritize the problems and opportunities on which the company will work. Executives set the priorities for problem solving and achievement and determine how results will be measured and monitored.

These are the steps that executives and owners take to prevent the company from going too far into chaos. The executives recognize that the solutions must come from employees who are faced daily with decisions, obstacles and changes. Executives making decisions and solutions from above can't foresee all of the interactions and random events the business will face. Therefore, employees must be empowered to make decisions, solve problems, seize opportunities and take action on a day to day basis. This empowerment is what keeps the organization from moving too far toward the erroneous belief that events can be controlled.

Order in business is a myth. Business involves a series of unplanned events and
changes that result in success or failure. Chaos is when executives don't allow their employees to respond to these changes when the changes dictate. The edge of chaos is where the organization functions best. The challenges force employees and executives alike to create new directions, innovate new solutions and keep the company at the front of the pack. The executive sets the course but the organization must get there.

Winning@Business™ requires the company to be constantly solving problems and moving forward.

Since 1990, Winning@Business™ has proven to be an effective tool to help small and mid-size businesses to work together to solve problems, seize opportunity, manage change and grow a business. The simple tools
and methodology help owners approach challenges with the right approach. The process trains employees how to make the right decisions that move the company toward the strategy. The bottom line is a more profitable bottom line.