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The Problem with Symptomatic Solutions |
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In the language of Systems Thinking, Senge would describe this scenario as a Symptomatic Solution. The dynamic begins with the recognition of a problem - that profits will not meet expectations. In an attempt to address this problem, the company focuses on the symptom of low profits with an attempt to improve profits by cutting costs. This is also known as a "Band-Aid"™ solution.
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In the short-term, the symptomatic solution improves the problem of low profits. However, in the long-term (after a delay), unintended consequences come to bear when customers become unhappy with all of the corners the company has cut. They react by taking their business elsewhere, which causes profits to drop even further.
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If this company sticks to its symptomatic solution, it will eventually drive away all of its customers and collapse. Instead, what this company needs to do is to find a fundamental solution to the problem of low profits, perhaps a new quality initiative, process improvements to curb waste, or product or service innovations that bring in new customers and greater revenues.
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Senge, Peter. The Fifth Discipline: The Art and Practice of the Learning Organization. Currency- Doubleday. New York. 1990.
Easily one of the most important business books ever written, The Fifth Discipline is full of important lessons and insights which transcend the corporate context. Highly readable, very engrossing and even more comprehensive, Dr. Senge's landmark book lays the foundation for what he calls a "learning organization". He introduces readers to the five organizational learning disciplines -- systems thinking, personal mastery, mental models, shared vision, and team learning. He explains how these learning disciplines, when used together, can help organizations to renew themselves continuously, as they climb the learning curve. This book is essential reading for anyone in business -- bar none.
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