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A Systemic Approach to Improving Corporate Performance

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William F. Roth   PhD                                              The concept that needs to be introduced at this point is “systemic thinking,” a concept very much in vogue twenty-five years ago that eventually fell out of favor, overshadowed, unfortunately, by more quantitative approaches. The systemic approach to management is built on two pillars. The first is the belief that “a whole is more than the sum of its parts.” This means, basically that the interactions between the parts of an organization are just as important as the parts themselves in terms of the organization meeting its objectives. The second pillar of the systemic approach is the “Development Ethic.” It says that employees should be encouraged to develop and utilize their positive potential to the fullest possible extent in order to improve their quality of work life and of life in general and to improve the fortunes of the company.   Organizations that have become “systemic” in nature possess fou