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The Technical System vs. The Human System

 

For many years now, we have been advising our clients that more attention needs to be paid to the Human System, and in particular the extended Human System that includes stakeholders and, when appropriate, family members.

Far too often, we see major efforts put forth in financial and estate planning (and other technical or transactional efforts) while leaving out or focusing to a lesser degree on the Human System.  Organizational science is about developing the Human System and having its members work effectively together.  This can be seen even more so than business strategy in organizations that thrive or fail.

Mary Ceynowa captured this more explicitly in the following formula:

T (Technical System) X H (Human System) = Results
T  X 0 = 0
0  X H = 0

Thus, investments need to be made in both systems for the enterprise to reach its maximum potential.  What is most often left to chance is the development of family members so that each member is thriving.

 




F
ar too often, we see major efforts put forth in financial and estate planning while leaving out or to a lesser degree the human system.


 

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