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 An 'Environment'? (Systems)
An Environment is the structure in which a system operates.
When the Environment changes, the system must do it too to keep continue operating.
Always consider the Environment and adapt your system to it.
Josh Kaufman Explains 'Environment'
No system stands alone: every system is inevitably affected by all of the other systems around it.
An Environment is the structure in which a system operates.
The environment primarily influences or impacts the system's Flows or processes, changing the output of the system.
Think of how your body responds when it's either too hot or too cold. Too much or too little heat can be deadly: your body must respond to the change in its environment to keep operating, either by sweating to shed excess heat or sheltering to preserve it.
When the Environment changes, the system must change with it to continue operating. According to most leading theories, the dinosaurs became extinct due to changes in the environment, either due to an Ice Age or a meteorite impact that kicked up enough dust to blot out the sun. Colder temperatures and little sunlight resulted in major food shortages, resulting in mass extinction.
The conditions present in the environment affect the operation of the system in that environment. In 2005, oil prices skyrocketed, and many businesses that relied on oil to manufacture plastics or transport goods suddenly ran into trouble. The increase in variable costs made many businesses less profitable than they were before, and many businesses that couldn't absorb the increase in costs closed.
If you don't want to go the way of the dinosaur, you must always consider how conditions in the Environment affect your system.
Questions About 'Environment'
- What environment is your system operating in?
- What changes in the environment could influence the operation of your system?
"Reality is that which, when you stop believing in it, doesn't go away."
Philip K. Dick, science fiction novelist and short story writer
Understanding Systems
https://personalmba.com/environment/
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.
More about Josh Kaufman →