the Principles of Dynamic Systems |
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There are basically two types of systems which are created by human beings, dynamic
systems and stasist systems. Dynamic systems, whether they are countries or businesses, are systems with open boundaries where innovation and evolution occur in a
very organic fashion. Stasist systems, in contrast, are systems which value predictability and stability over change. A dynamic system could be called a
complex adaptive system, with the particpants in the system being called adaptive agents. A stasist system is an institution, a word derived from
the Indo-European sta and means stable or unmoving.
In high technology, the amount of change is intense. The velocity of change is dramatic. Companies which aim to
achieve consistent success over an extended period of time are those that are not only willing to move with these changes, but those who create those changes. In fact, it is
those who innovate and see what others do not see who experience the greatest success in our dynamic economy.
There are certain principles, which throughout the history of human action, have promoted dynamism.
• The first principle is
to allow individuals, including groups of individuals, to act on their own knowledge. This simply is an acknowledgement of the fact that knowledge is most often
distributed throughout a system and not in a central location. The requirement to maximize this knowledge utility then is to allow people to use their knowledge to their utmost ability.
• The second principle of dynamic systems is to apply simple, generic units and allow them to combine in many different ways, much like the way internet packets or moving boxes work.
• A third principle is to permit credible, understandable, enduring and enforceable commitments. The tenets of these commitments usually include some form ownership and/or contract. The fourth principle is to protect criticism,
competition and feedback or, in other words, do not create stasist rules which eradicate play and movement. In dynamic systems, competition leads to an evolution where the best rise to
the top and lesser ideas are disgarded.
• The final principle of dynamic systems is to establish a framework within which people can create nested, competing frameworks of more specific rules. In the United States,
our concept of private property and inalienable rights are this framework. Because this framework exists, people acting on their own knowledge can exchange goods and ideas and create businesses which adopt
their own competing specific rules.
Based on these principles, how dynamic is your business?
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