Optimization Cycle We So Badly Need

By | November 3, 2017

I can’t think of any large organization that wouldn’t aim at optimizing business outcomes; all of them have such intent. But boy, those improvement initiatives fail almost every time. I was always very curious as to why that happens. And then, upon examining a number of optimization initiatives I had access to, I found one common underlying cause: wrong mental model of reality. Moreover, it is highly divergent across the board: engineers think the problem is in one place, middle management sees the root cause elsewhere, their bosses, in turn, see it in a whole different way… No wonder positive change does not happen because it’s a divergence fest.

Therefore, our general concept of continuously optimizing the outcomes (namely, the simple “Optimize – Repeat” process) needs to change. The fundamental process extends to the following three steps: 1) Refine shared mental model, 2) Optimize, 3) Repeat.

Step 1 is tough, however, and it doesn’t happen on its own in organizations that lack effective information flows across different layers (which should read as: most organizations). But as soon as some facilitation is being done around step 1, bit by bit the organization acquires a better picture of reality and step 2 stops being a constant miss.