System Archetype 10: Growth and Underinvestment

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Ignatius D, Manager, India
🔥NEW Description of Growth and Underinvestment One of the is "Growth and Underinvestment". This archetype is based upon the archetype which tells us to invest in a firm's resources and capabilities to grow. When growing action is there, it increases the demand, but the firm's performance level acts as a limit to that growth. So similar to limits to growth, if the performance level is the limiting factor, it will eventually stop to grow further. The growth and underinvestment archetype tells us how the performance standard is related to investment and investment is related to the growth of the firm. If the performance standards are low, then it may lead to a low interest in the need to invest as people may feel that if currently we are not making enough profits, then why to throw away the money instead of investing it somewhere else. Most of the time, performance standards are lowered to justify the underinvestment. Which causes people to set lower goals which lead to lower expectations. (...) Read more? Sign up for free

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More on System Dynamics & Systems Thinking
Summary
Forum
Soft, Hard and Viable Systems
Systems Thinking Schools and Approaches
System Archetypes Overview
Nonlinear Dynamical Systems
System Archetype 10: Growth and Underinvestment
System Archetype 9: Fixes that Fail
System Archetype 1: Balancing Process with Delay
System Archetype 2: Limits to Growth
System Archetype 3: Shifting the Burden
System Archetype 4: Shifting the Burden to the Intervenor
System Archetype 5: Eroding Goals
System Archetype 6: Escalation
System Archetype 7: Success to the Successful
System Archetype 8: Tragedy of the Commons
Best Practices
🥇Complexity in Systems Approach
🥈Value of System Approach
🥉Systems Thinking is Considering Issues Holistically
Strategy > SD > Performance?
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