1. Organizations Are Adaptive Systems

Organizations are complex systems that adapt to their environment in its totality.

2. Organizations Are Subject To The First Law Of Thermodynamics

Every system has a finite amount of energy. Incremental energy is derived from the system’s environment, defined in business terms as: financial capital, talented employees, partnerships, market clout, etc. When a business properly aligns its capabilities with the surrounding opportunities, incremental energy is created.

3. Organizations Are Also Subject To The Second Law Of Thermodynamics

Entropy is the process by which everything deteriorates over time. The higher an organization’s entropy, the more energy it requires to simply survive.

4. Organizations Respond To Their Environment As A Whole

The author identifies four primary forces which are present within all healthy organizations: Production, Stabilization, Innovation and Unification. Understanding how these forces interact within your organization will provide you with insights as to the changes required to make your organization more effective.

5. Organizations Are Subject To Environmental Conditions - Adapters Survive

Evolution dictates that it is not the strongest organisms that survive. Rather, it is the most adaptive creatures which stand the test of time

6. Organizations Are Subject To The Laws Of Motion - Inertia, Acceleration and Reactions matter

An organization will tend to behave in a particular way, unless an external force causes it to change. The manner in which an organization manages its mass will determine how quickly it can execute.

? = Integration / Entropy