Uncontrolled decisions giving rise to higher business assets or activity volumes may generate shortages in available resources, in spite of increasing revenues. Decision-makers often do not take into account the evolving structure of relationships between different functional areas inside the firm, and between the company and its relevant environment. Most managers never discuss the future. They are too much focused on reducing the complexity of managing today. The implicit vision of the future they create in their mind tends to be set and unchanging.
Human beings are subject to biases and imperfect reasoning about uncertainty.
They tend to misperceive events that are quite unlikely and to ignore or stress other possible unpleasant outcomes. Today, business complexity has proved to be a primary cause of failure. Understanding complexity is not a matter of reducing it. It is, rather, important to deal with management complexity and unpredictability, and to foster organisational learning. Understanding business systems does not imply the need to draw up detailed and long term plans.