Entropy in Business

Entropy is the loss of energy in a system to the point that it is no longer available for doing mechanical work. It is the reversion to mean; nature’s effort to return everything to stasis.

Entropy is occurring everywhere, all around us. It is a fact of our life. Companies are fighting entropy as well. Without concerted effort and capital being invested, and ensuring there is talent deployed throughout all levels of the business, the expectation is they will wither and die. People working within companies are also fighting their own entropic decline. Over time, people get bored, burnt out or generally lose interest in their job, which can lead to a decline in performance.

To fight entropy in business you need new inputs of energy. This can come from bringing new employees into the firm, who have new ideas and ways of thinking that can jolt the business and offer new opportunities. The business can find new products and markets and establish challenging goals to feed motivation and drive performance. Another option is investing in business improvement and better systems to automate work, thereby transferring the risk of entropy to machines and information technology, and away from individuals.

The laws of nature define that entropy cannot be defeated, but we as humans have become very adept at fighting it. Within companies, the fight against entropy also rages, and its the job of the board and management to set a direction and focus effort towards initiatives that will motivate the organisation to continue to battle to keep it at bay. The problem is that entropy is incessant. Companies need to continually guard against its debilitating effects, or suffer the inevitable consequence of decline.

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