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Sunday, September 29, 2019

Diseases of organizations

Over the last hundred thousand years, humans have been successful in the diagnosis, management, treatment and even the cure of physical diseases emanating from external sources and entities. However, they seem to have largely failed to understand diseases of an endemic origin or those affecting the Central Nervous System (CNS). The latter, underdiagnosed and overtreated, is likely responsible for significant loss of life and mind. As an example, humans lose 1 out of 10,000 to suicide every year. The problem is increasingly better understood in the medical profession but with few identifiable solutions. Life sciences companies, in a rush toward economics, have not put enough focus on broad solutions.

More importantly, we have to also recognize that organizations - countries, companies, religions, and institutions - also suffer from both physical and mental diseases. Physical diseases of organizations, largely understood by executives, consultants, and bankers, are well treated. But diseases of the mind and psyche of organizations are not something that is diagnosed or treated. This is likely more detrimental to the success of the firm for strategies and tactics focused on shareholder value, albeit necessary, are not sufficient. The meager attempt at defining such heuristics as culture has not had any measurable effects.

Early diagnosis of mental diseases is critical for the success of organizations (1). Lack of diversity is an early symptom in this regard. This is driven by a simple internal heuristic that maximizes replication. Driven to the extreme, an organization could seek a sterilized structure, devoid of new ideas. Recent developments in the executive branch of the US are symptomatic of a loss of perspective in a closed system. This can only lead to bad decision-making or worse. An organization without a moral and ethical construct is something that may have entered an advanced mental disease state.  Unlike humans, who could be intervened with chemicals, organizations cannot be pulled back, once there.

Leaders of large and complex systems may have to spend more time on the mental health of their organizations. History tells us that mental health is likely more important than the strategies and tactics leaders mostly focus on.


(1) https://www.amazon.com/Flexibility-Flexible-Companies-Uncertain-World-ebook/dp/B008KZ6T6Q/ref=sr_1_1?keywords=gill+eapen&qid=1569810218&sr=8-1

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