Tip Of The Iceberg

308 Words2 Pages
What relationships did you find between the Tip of the Iceberg system dynamic and business situations? The relationship that I found between The Tip of the Iceberg and business situations is that many business leaders just use reinforcing processes in their companies, which for certain time can be positive (virtuous circle) but also can collapse, meaning be negative (vicious cycle). In the beginning of the story, penguins entered the positive cycle of reinforcing process, appealing more and more new comers to their iceberg. This also happens with most of the new opened companies, they just grow for some time until they reach certain limit which doesn’t let them grow any more and which is the negative cycle of the reinforcement process. Business leaders do everything possible that will lead them and the company to success. More efforts they put, more success they have. This means that the growth engine works, as it was working in the beginning for the penguins in The Tip of the Iceberg. After some time the growth looses its original speed. What most of the company leaders do? They start pushing harder to increase their success but all they get is the opposite reaction from the system. The system pushes back. The same reaction was coming from the iceberg, as more penguins and walruses were coming, less space iceberg could provide because it reached its limit and was sinking. So, when a leader wants to do some changes within his/her company, he/she should consider two processes which are: Reinforcing and Balancing. There are limits, constraints and pressures and more effort is producing fewer results. Identifying and understanding hidden balancing processes is a major key to managing change in your organization (Hutchens, 2001). Key Point: Identify the possible limits that might occur and plan on how to deal with these
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