Complexity Reduction

    Complexity ReductionBack

    Glossary

    Terms of the Business Code Atlas

    Complexity

    The state of a system in which the number of elements and their connections is so high that the behavior of the system is no longer linearly predictable. Complexity arises naturally through growth and must be organized.

    Mental Capacity

    The scarcest production factor of modern organization. The cognitive resource of people to process information, make decisions, and maintain focus.

    Decision Architecture

    The conscious design of where, how, and by whom decisions are made in a company. A good architecture shifts decisions to where the information originates.

    Organizational Nervous System

    The invisible network of filters, metrics, and communication channels that determines which information from reality is perceived and processed within the company.

    Business Code

    A framework that makes the invisible architecture of decisions in companies visible and shapeable.

    System Load

    The totality of cognitive and administrative efforts a system requires to maintain its operation. High system load often results from a lack of focus and unclear responsibilities.

    Standardization

    The conscious reduction of variance in recurring processes. Standardization does not restrict, but creates freedom and speed by automating recurring decisions.

    Delegation

    Not the mere handing over of tasks, but the transfer of decision-making authority to the place of best information. Delegation is a core tool of decision architecture.

    Focus

    The conscious decision against options. Focus reduces system load and protects the mental capacity of the organization from fragmentation.