Though we’d like to believe that things will become simpler over time, they don’t. Complexity and detail grow. There is zero risk of either of them subsiding any time soon.
The amount of information we must deal with to make decisions grows annually. As the body of knowledge in every field grows, mastery becomes difficult. As a result, the jobs we perform become more specialized. We use technology not to rid ourselves of complexity, but to make complexity more manageable.
It is harder to see the big picture, how the pieces all come together, and where where our particular piece fits. All is not lost, though.
Managers can deal with increasing complexity and detail by envisioning what they do in a larger context, and using simple frameworks to make decisions.
Context = ecosystem. It’s our surroundings – particularly those which directly affect outcomes, and over which they have little influence. Economic, technological, social, regulatory and geophysical factors shape the market’s operating environment.
Framework = systematic approach. Frameworks build on well-known and accepted principles, rules and relationships that generally characterize how things work together. They are the basis by which decisions can be tested against well-understood models of how things behave.
Looked at another way:
Context = a radar screen for things that matter in the environment
Framework = viewing actions as variables that determine how things work
Jack Welch, GE’s past CEO, was fond of saying that superstars could “see around corners.” In other words, they developed effective radar screens for picking up on the things that mattered most to their undertakings. He also emphasized that execution, the ability to wrap it altogether to get measurable results, was the key skill of effective business leaders. It was his way of saying that leaders possessed uncanny skill of seeing how things work together in a system, focusing on those variables that made all the difference.
Learning to think, decide and act in terms context and frameworks makes for great managers and leaders.
In my opinion, people who are thinking of starting a forest business must consult with a professional service first. Well, I think you’re also right that economic, technological, social, regulatory, and geophysical shape is needed for the current market. It’s a good thing that you shared here the importance of a systematic approach.