Building Robust Systems

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Building Robust Systems
Marcel Wiedenbrugge, Member
Taleb also frequently mentions to build robust systems. So what should a robust system based on?
- Transparency
- Strong company culture (open, honest, fair)
- Solid bookkeeping (accountability, compliance)
- Consistent practical procedures
- Short and simple
- Flexibility (ability to adapt quickly to changing circumstances)
- Logical structure (understanding where cost and - future - revenues come from, understanding of your business processes / supply chains, understanding of people).
The problem however is, that such systems and practices need to be widespread (as a default way of thinking). The only predictability about human behavior is that we act unpredictable. There simply are too many variables that interact with each other.

Building a Robust Strategic Framework
John Moses, Member
The opinion of Taleb in building a robust system by the way needs to be emphasized more. At the strategic management level in an organization, there is need to have a policy thrust that is transparent, consistent, unambiguous but logical and flexible to give room for adjustment when the need arises.
Managers should not be trapped with being over optimistic and should not in anyway be drowned by pessimism.
In any case, whatever decision they embark upon, they should try as much as possible to create sufficient margin of safety to take care of the impending risk that may evolve.



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