23 December 2016

Strategic Management: Cause & Effect (Quotes)

"All effects follow not with like certainty from their supposed causes." (David Hume, "An Enquiry Concerning Human Understanding", 1748)

"The first obligation of Simplicity is that of using the simplest means to secure the fullest effect. But although the mind instinctively rejects all needless complexity, we shall greatly err if we fail to recognise the fact, that what the mind recoils from is not the complexity, but the needlessness." (George H Lewes, "The Principles of Success in Literature", 1865)

"In complex systems cause and effect are often not closely related in either time or space. The structure of a complex system is not a simple feedback loop where one system state dominates the behavior. The complex system has a multiplicity of interacting feedback loops. Its internal rates of flow are controlled by nonlinear relationships. The complex system is of high order, meaning that there are many system states (or levels). It usually contains positive-feedback loops describing growth processes as well as negative, goal-seeking loops. In the complex system the cause of a difficulty may lie far back in time from the symptoms, or in a completely different and remote part of the system. In fact, causes are usually found, not in prior events, but in the structure and policies of the system." (Jay W Forrester, "Urban dynamics", 1969)

"[…] fitting lines to relationships between variables is often a useful and powerful method of summarizing a set of data. Regression analysis fits naturally with the development of causal explanations, simply because the research worker must, at a minimum, know what he or she is seeking to explain." (Edward R Tufte, "Data Analysis for Politics and Policy", 1974)

"The language of association and prediction is probably most often used because the evidence seems insufficient to justify a direct causal statement. A better practice is to state the causal hypothesis and then to present the evidence along with an assessment with respect to the causal hypothesis - instead of letting the quality of the data determine the language of the explanation." (Edward R Tufte, "Data Analysis for Politics and Policy", 1974)

"A system is a set of two or more elements that satisfies the following three conditions. (1) The behavior of each element has an effect on the behavior of the whole. (2) The behavior of the elements and their effects on the whole are interdependent. the way each element behaves and the way it affects the whole depends on how at least one other element behaves. (3) However subgroups of the elements are formed, each has an effect on the behavior of the whole and none has an independent effect on it." (Russell L Ackoff, "Creating the Corporate Future", 1981) 

"The complexities of cause and effect defy analysis." (Douglas Adams, "Dirk Gently's Holistic Detective Agency", 1987)

"Chaos demonstrates that deterministic causes can have random effects […] There's a similar surprise regarding symmetry: symmetric causes can have asymmetric effects. […] This paradox, that symmetry can get lost between cause and effect, is called symmetry-breaking. […] From the smallest scales to the largest, many of nature's patterns are a result of broken symmetry; […]" (Ian Stewart & Martin Golubitsky, "Fearful Symmetry: Is God a Geometer?", 1992)

"The multiplier effect is a major feature of networks and flows. It arises regardless of the particular nature of the resource, be it goods, money, or messages." (John H Holland, "Hidden Order - How Adaptation Builds Complexity", 1995) 

"Delay time, the time between causes and their impacts, can highly influence systems. Yet the concept of delayed effect is often missed in our impatient society, and when it is recognized, it’s almost always underestimated. Such oversight and devaluation can lead to poor decision making as well as poor problem solving, for decisions often have consequences that don’t show up until years later. Fortunately, mind mapping, fishbone diagrams, and creativity/brainstorming tools can be quite useful here." (Stephen G Haines, "The Managers Pocket Guide to Systems Thinking & Learning", 1998)

"Our simplistic cause-effect analyses, especially when coupled with the desire for quick fixes, usually lead to far more problems than they solve - impatience and knee-jerk reactions included. If we stop for a moment and take a good look our world and its seven levels of complex and interdependent systems, we begin to understand that multiple causes with multiple effects are the true reality, as are circles of causality-effects." (Stephen G Haines, "The Managers Pocket Guide to Systems Thinking & Learning", 1998)

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