Master the Art of Business
A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.
What Is 'Entropy'?
- Systems fall into disorder over time as the environment they operate within changes.
- Entropy makes maintenance an important and valuable activity.
Josh Kaufman Explains 'Entropy'
Left to their own devices, complex systems fall into disorder.
Entropy is the natural tendency for complex systems to degrade over time. Systems that remain operating over long periods of time require active maintenance and improvement.
This phenomenon has a simple explanation: the Environment the system operates within changes over time. Those Changes affect both the operation of system itself and the Selection Tests the system must pass in order to continue functioning. If the system doesn’t change in a way that enables it to continue operating, it will degrade and will eventually stop functioning or cease to exist.
Entropy is everywhere. Without adequate nutrition, movement, and oxygen, your health will suffer. Roads need to be resurfaced every few years or they’ll develop cracks, bumps, and potholes. Software needs to be updated and patched or it will stop functioning as computers are updated and connected systems change. Houses need to be repainted, refinished, and refurbished periodically to keep them in good condition.
Entropy makes maintenance a necessary and valuable activity. In most organizations, creating something new is a high Social Status activity, while maintaining existing systems is considered a lower-status activity. That’s a huge mistake: the organization is only as strong as its existing systems, which sustain its ability to function. Devoting Attention and resources to maintaining and improving those systems is not only important, it’s critical for long-term operation and preserving value over time.
"Those who will not face improvements because they are changes will face changes that are not improvements."
Charlie Munger, billionaire business partner of Warren Buffett, former CEO of Wesco Financial, and vice-chairman of Berkshire Hathaway
Understanding Systems
https://personalmba.com/entropy/
Master the Art of Business
A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.
About Josh Kaufman
Josh Kaufman is an acclaimed business, learning, and skill acquisition expert. He is the author of two international bestsellers: The Personal MBA and The First 20 Hours. Josh's research and writing have helped millions of people worldwide learn the fundamentals of modern business.
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