Nilza I. Cruz Ruiz
939-644-7683"It can scarcely be denied that the supreme goal of all theory is to make the irreducible basic elements as simple and as few as possible without having to surrender the adequate representation of a single datum of experience"
- Albert Einstein - 1933
Part of Puerto Rico's Fiscal Plan relates to "right-sizing" as one of the measures for obtaining fiscal stability. But if we look closely, we have a plan referring to this tactic defined as "right-sizing" or "re-engineering" geared towards serving as a temporary fix in order to comply with a fiscal target of an $X dollar amount.
But what happens with the Real World in Puerto Rico? The Real World is the set of existing organizations (e.g.: agencies, corporations, etc.) within the government Macro - Structure that serve as base for emerging unsustainable output; in this case, data which leads us to define "Real World Financial Unsustainable Results".
The Fiscal Plan is then proposing right-sizing efforts within the existing underlying structures which serve as base for producing adverse results in terms of services, operations, and financials. We may then conceptualize the Plan is proposing "right-sizing" components (which are not duly defined or communicated within the "plan") within an existing Real World that itself needs to be re-structured. Right-sizing requires investment expecting greater returns after the corresponding plan is implemented as a function of time: T and of course, other factors or variables. But, realistic return projections would be accurate if and only if the efforts are performed over a solid, re-conceptualized structural base. This is not the case for Puerto Rico.
Inspired by this dichotomy consisting of "investing" over the existing "Real World deteriorating Structure"; and not focusing on tackling its structure changes, I decided this was today's topic! Again, this has been repeated many times. For example, we need to begin to think differently and strategically about Complexity and it's application to the organizations we are within. This, in addition to our active roles as complexity thinkers!
Before talking about the "Real World" within organizations, and need to take a small step back and briefly talk about Complex Systems, Emergence and Feedbacks.
Complex Systems are composed of many interacting parts (hereinafter agents) in which the Emergent Outcome of the System = product of the interactions between the agents and the feedbacks between that emergent outcome and the individual decisions of the agents.
MODEL I : Complex Systems, Emergence and Feedback
Emergence is the idea that the action of the whole is more than the sum of the parts (John Holland, 2014). In other words, what emergence of a complex system does is not "linearly" sum the outputs of the individual agents; but represents a global pattern which evolves considering individual agent interactions within themselves and the environment. Agents follow sets of rules and/or policies under defined structures which include governance and internal politics as critical components embedded within the system.
Emergent Phenomena provides Feedback that then affects future decisions of other agents within the System.
An example is Market Share. My individual decision of buying brand A; [one of two similar products, ( one brand A and the other brand B )] is a decision on my own. It then contributes to the market share of product brand A vs the market share of product brand B. That market share then contributes to my decision or future decisions of other people as to whether buy the product of brand A or brand B. This is repeated for other brands and is repeated so forth.
II. The "Real World Assessment" within Organizations
So let's just take some time to think about defining the "Real World" in the organizational context. It may apply to organizations within the private or government sector. For this presentation's purposes, It is the comprehensive assessment of the Existing - Actual representation of the organization which includes:
b. Agent Properties
c. Agent Behaviors
d. Rules, Regulation and policies they (agents) follow
e Internal Politics
f. Existing Landscape - Structure
g.Governance
h.Environment (Mission, Vision, Values, Strategic Objectives)
i. Type of Organization (for example : Path dependent)
j. Economic Resources - Operation Financing Model, State Funds? Federal Funds?
k Infrastructure Resources
l. Human Capital Resources and Skills
m. Information Technology Structure and Resources
n. Output - Fiscal Results, Intelligence Results (data mining and anaylsis) *
o. Macro Ecosystem rules and regulations
* It is critical to identify and obtain critical data for at least the past ten (10) years or 80% of the organizational lifespan (if not 100%) which serves as input within the organizations global and operational core business processes. This data should be validated and commensurate with our organization's output data (i.e., costs, financial, compliance, service levels, etc.). This critical data will represent the Macro Overall Operational and Financial results which will constitute the Real World Baseline Assessment Results.
In other words, if we were to "map" a representation of our organization's real world, what would it look like, who are the agents? and what are the results (output), based on what data (input), and macro conditions ?
Of course, this is not as simple as exposed. We would have to conduct a "Real World" Assessment, including the above referenced factors. Assessment results would then serve as baseline and input to define the pathways to design and construct one (1) or various Alternate Models that what comply with our "Re-structuring or Re-engineering" objectives. This pathway is illustrated as follows:
MODEL II : The Roadmap to Organizational Re-Structuring or Engineering
Validation is the process of making sure the Alternate Implemented Model is commensurate with the Alternate Conceptual Modeling planning process and design.
Verification is the process of making sure the Alternate Conceptual Model matches the Alternate Implemented Model (i.e.; after the Alternate Conceptual Model is implemented, it will be our Real World).
These processes require extensive communication amongst the stakeholders which are part of the existing structure (Real World) or will be impacted by the Alternate Model Implementation in some way.
During meeting or other encounters of agents within the Alternate Model Planning Phase, it is expected each stakeholder will think about their individual interests. This predicts fighting and non-conclusive meetings. But this should behavior occurs naturally because of the setting of having different thinkers with different interests in one same room (for example). It is highly predictable behavior given the conditions.
But as a general tactic, the 1st topic in this type of encounter should consist of presenting all stakeholders (by means of using a visual tool in which all audience is focused) the Real World and Alternate Model Story : explaining a Visual Map of the Real World and its results. In addition, a second Visual Map and comparative explanation of the Alternate Model, its results, and critical projected changes in terms of services, operation efficiency, and economic sustainability.
Second, explain to all stakeholders that each of these Complex structures produce Emerging Results which are a result of the interrelations of all the interests they represent.
III. Conclusion
Therefore, if the Emerging Results arise as a consequence of their (agent/stakeholder) interactions, then the solution for changing the existing emerging results would then require the interactions of the same subsets of agents/stakeholders : THEMSELVES. This includes internal politics and governance as factors underlying agent interactions; amongst other components.
Therefore, if the Emerging Results arise as a consequence of their (agent/stakeholder) interactions, then the solution for changing the existing emerging results would then require the interactions of the same subsets of agents/stakeholders : THEMSELVES. This includes internal politics and governance as factors underlying agent interactions; amongst other components.
This strategy would then promote the awareness that emerging outcomes are the results of interactions or interrelations, promoting then continuous communication and feedback between critical agents/stakeholders. This directly addresses strategies and tactics to be used as part of changing the way we think, and obtain different (better) results by means of interrelations. An operational and functional representation of how systems produce emergent results as outcome! This is no different, but above all, we need to be strategic.
Next week we'll continue with Agent-Based-Modeling and a Real World Example
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