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A Systems Approach to Navigating Process Complexity
A system, at its most basic, is the interaction of various discrete components or parts. It’s easy enough to visualize and consider each of these parts in isolation; however, business leaders almost always underestimate the difficulty in predicting the outcomes and behavior of the system during the design stage. While the engineering and business fields have developed several methods (including root-cause analysis, scenario planning, etc.) to try to understand and address these issues, they still rely heavily on teams calculating or forecasting outcomes of systems. However, even systems with few elements create outcomes that cannot be calculated or predicted. Modern finance teams have found that leveraging existing technology solutions can increase process visibility and reduce risk. When considering how to approach different problems, key systems-thinking concepts need to be applied – considering that the impact of internal and external factors and changes can help address a challenge more comprehensively and in a timely manner. This approach also allows businesses to become increasingly agile in meting ever-changing customer demand.
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