Principle in Brief
The 2nd Law of Thermodynamics states that entropy (disorder or uselessness) always increases in a closed system because there are far more ways in which matter can be arranged that are disordered and useless than are ordered and useful. Otherwise known as the Law of Entropy, it is considered by many scientists to be the most fundamental law of nature.
Disorder increases spontaneously with time. Our challenge is to overcome entropy by continually striving for an open and beneficial order, which can only be created through the application of energy and knowledge.
Ever-increasing entropy afflicts human affairs just as it does the physical world. For individuals, organizations and society, there are always untold more ways for things to go wrong than for them to go right: “Whatever can go wrong will go wrong.”
At Koch, our approach to overcoming entropy is to create and deploy energy and knowledge through our principle-based framework. This requires energizing all employees to apply these principles, continually transforming themselves and their organizations. We seek to create and maintain a culture in which everyone is open to learning and recognizes that no matter how well we are doing, we can always do better. We learn what is possible and work to achieve it. This is our way of creating an order that is beneficial to us and others.
In organizations, the most common manifestation of entropy is bureaucracy. Bureaucracy results from fixed, detailed rules and procedures, rigid hierarchies and perverse incentives. These bring about loss of the knowledge, ideas and motivation of employees throughout the organization. The effect is entitlement, unaccountability, cynicism, form over substance, slow and poor decision making, risk aversion, resistance to change, short-term focus and lack of openness, knowledge sharing and innovation.
To avoid this tendency toward stagnation and decline, driven by entropy/bureaucracy, we strive to continually transform ourselves and our organizations. By daily renewing our dedication to understanding and applying principles of human progress, we give ourselves and others the opportunity to realize our potential and live lives of meaning.
Ways to Overcome Entropy and Bureaucracy
We can avoid the tendency toward stagnation and decline by understanding and applying principles of human progress to our work—such as being open and applying new energy and knowledge to all we do.
| You are more likely to avoid or overcome entropy when you: | You are less likely to avoid or overcome entropy when you: |
|---|---|
Continually search for new and better ways to do things | Defend of the status quo |
Are diligent about cultivating relationships with core constituencies | Take relationships for granted |
Continually evaluate the value of your activities and quickly stop doing things that are no longer productive or useful | Do things out of habit or assume current activities are productive or useful |
Have a “no matter how well we’re doing, we can always do better” attitude | Have a “if it isn’t broken, don’t fix it” attitude |
Examples
The following examples illustrate how easy it is for entropy and bureaucracy to occur.
- Entropy
- Bureaucracy
- A team creates a project tracking spreadsheet, but no one updates it. Jackson makes a poor decision based on its outdated information.
- A process implemented four years ago has no owner and hasn’t been reviewed or updated for some time. Several steps are now unnecessary, but the team keeps doing them anyway.
- We’ve not contacted Customer Z for months. They tell us they’re switching to our competitor who offers real-time updates to inventory. Customer Z is shocked to learn that we also offer that, but it’s too late—they’ve already signed a contract.
- A facility uses a daily form designed to track a particular environmental measurement. Years later a new technology measures and tracks the data in real time, but shift leaders still fill out the daily form.
- When a new workgroup is established, the leader requires all expenditures above $5,000 be approved by her. The team matures but the leader never adjusts spending authorities. Decisions often get delayed while waiting for her to approve them in the system.
- A team begins meeting weekly because there are many changes happening in their business. As months go by, the weekly team meetings become repetitive and wasteful, but they occur anyway.
Give it a try
The power of these principles happens through application. There’s no substitute for learning as you apply.
- Identify where you/your team hasn’t been achieving the desired results. Is there anything being neglected? Is there anything you should stop doing?
- Talk to your supervisor about one idea you have for injecting new energy into your work or the work of your team.
- When have you seen or experienced entropy in a work setting?
- What actions can our team take right now to overcome the natural tendency toward stagnation and decline?
- What processes, procedures, rules, templates or forms do employees complain about? What can we do to eliminate them (if they are unnecessary) or improve their effectiveness?