Improving Performance: How to Manage the White Space on the Organization Chart

2.3. The Organization as an Adaptive System

Our framework is based on the premise that organizations behave as adaptive systems. As Figure 2.4—often called a "super-system map"—shows, an organization is a processing system (1) that converts various resource inputs (2) into product and service outputs (3), which it provides to receiving systems, or markets (4). It also provides financial value, in the form of equity and dividends, to its shareholders (5). The organization is guided by its own internal criteria and feedback (6) but is ultimately driven by the feedback from its market (7). The competition (8) is also drawing on those resources and providing its products and services to the market. This entire business scenario is played out in ...