WHAT ON EARTH IS ORGANISATIONAL ENTROPY?

And why does it matter?

With a little help from the field of Thermodynamics, we use the term Organisational Entropy to refer to the time and energy that is lost or dissipated unproductively within organisations. The ultimate result of entropy is decay and disorder.

In every organisation, unless we pay conscious attention, it is natural for order to break down or for energy to be dissipated in unproductive activities. Preventing breakdown requires the injection of energy and time: energy and time that cease to be available for productive work. 

Consider, for example, how much time and energy people spend protecting themselves from getting into trouble, what they invest in projects that don't land and how much thought and emotion goes into resolving disagreements. All of these are examples of entropy.

Entropy matters because it costs your organisation. 

 

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