What the Second Law of Thermodynamics teaches us about isolated systems in business

In isolated systems, things gradually fall apart. So says physics since Sadi Carnot first articulated the Second Law of Thermodynamics in 1824. Over time, a system that is not taking in energy gradually becomes less organized and less effective.

How many organizations are closed systems, inwardly focused, rigid, and monotonous? No wonder they gradually deteriorate, not because of any bad intentions or external catastrophes, but because of the entropy, the disorder, that is bound to happen. And what’s so sad it that often human systems are closed because the members are trying to preserve order.

I see this over and over again in some of my clients.  They tend to hire people who are just like their current staff. It’s understandable — it creates a comfort zone to work with people who have the same life experiences as you, speak the same language, laugh at the same jokes. But over time entropy starts to set in. The leaders miss signals that change is in the wind. They make bad decisions based on outdated facts and theories.

You can also see closed systems at play in the way leaders seek out information. Most business leaders have their preferred sources — certain websites, conferences, publications, or opinion leaders they turn to again and again. Nothing wrong with that — except a crucial piece of information may be hiding somewhere they’re not looking. Perhaps the most striking recent example of that is the 2017 presidential election, when so many leaders failed to look for the signals in the right places.

So what’s the answer? Open the system! Bring in new information and energy. Shake things up, let the winds howl through. Physics tells us that this is the only way to maintain order and continue to provide benefits.

If you’d like to talk about how to open up your system, get in touch with us at ggolden@gailgoldenconsulting.com.