Dysfunctional systems

Many technological innovations are based on the assumption that repetitive processes can be replaced by rigid digital workflows, only much faster. When new software was introduced, the current process was always documented and thus reviewed. AI-supported systems adapt flexibly to complex environments. The intermediate verification step is therefore no longer essential during the introduction and can supposedly be dispensed with - thus eliminating it as a control instance. As a result, dysfunctional organisational structures are emerging that are becoming increasingly difficult to control and are otherwise only known from public administrations. Companies now run the risk of losing their ability to scale. A cost trap that limits the resilience of companies.

In business operations, the major value creation target is broken down into many sub-targets and organisational units. The target value to be achieved is regularly defined as an absolute target value with verifiable key figures. If the target is missed, the process or the target value must be adjusted to reality. Investment, personnel and location decisions are also made according to this scheme.

Many people are familiar with dysfunctional systems from the current educational situation, either from their own experience or when accompanying their children. The tasks set in rehearsals deviate so far from the teaching outcome that pupils from primary school onwards have to use tutoring to an overwhelming extent. A gigantic business for YouTubers, apps and tutoring organisations on an unprecedented scale. At secondary school, hardly any pupils manage without tutoring. A look at the bigger picture shows that this phenomenon cannot be limited to individual teachers, schools, school systems or federal states: It is a cultural conflagration. The poor coordination may be due to the federal system of the Federal Republic of Germany or the fact that the ministers of education are usually appointed by the smaller coalition partner.

School is a good prime example because many people can understand the operational processes. For a concise illustration, we will briefly switch to the generic masculine, although the example is unlikely to reveal any gender-specific differences. A good student gets good grades. Many students get good grades from a good teacher because he or she is able to convey the material well and is able to adapt to different personalities in a diversified way. Accordingly, a good average, i.e. the average of an exam for an entire class, is a good first indicator of whether teaching and the examination task set are working well.

If the operational goal - defined in the curriculum, for example - is considered realistic, the average in a well-functioning teaching programme (school or university) should probably be between good and satisfactory. If the average is predominantly in the failing range, i.e. below sufficient, this learning section has obviously not worked: Either the goal was too ambitious (i.e. the exam was too difficult, perhaps also poorly set as a sub-process, i.e. the exam was inadequately delivered) or the teaching was poor.

With classic project management and average management quality, which of course also records corresponding key figures via quality management, this system would be at the top level in two to three years at the latest thanks to the constant repetition of material. But this is exactly what is not happening and all those responsible have been repeating for five decades that the education system really needs to improve now. Why is this not happening? Are bad headmasters, bad teachers or bad education policy to blame?

Germany is worse than other comparable countries, but within Germany the problem affects all regions to almost the same extent. A typical example of systemic dysfunctionality. It cannot be easily remedied through familiarisation and priming, a lack of feedback and evaluation culture, barely established quality management cycles (plan-do-check-act), uncertain responsibilities and demotivating responsibility management (good performance is not rewarded, poor performance is reprimanded), there is no quick solution.

Back in the corporate world, the challenge when introducing particularly adaptable, smart digital solutions is to maintain objectivity when evaluating processes and sub-goals. The perception of unusual solution approaches should catch the eye.

In the school example, this is the striking feature of the widespread need for tutoring, which only occurred occasionally in previous generations. In the corporate environment, these are often widespread IT solutions, so-called shadow IT, which replace missing or poorly functioning structures (WhatsApp, private software or web solutions).

Another indicator is high error rates, rework or high staff turnover and absences. Internal project groups are therefore hardly in a position to replace any missing or poorly functioning structures because there is no comparison with market competitors and innovative solutions can rarely be adopted from other sectors. Although large consulting firms utilise their market power, they are often characterised by self-important arrogance.

Similar to any film project, the focus should therefore be on the relatively favourable project development. An interdisciplinary team of external consultants with methodological as well as industry and process expertise helps to avoid this vicious circle.

By the way: Your service companies work for differently organised and structured customers. Productive experience can be obtained most favourably there.