System Archetypes Growth and Underinvestment

In the model "system achetypes" (https://imodeler.info/ro?key=AWmcYVpCac1lRUJaRxmTz7Q) we have explained different system archetypes, which are describing common patterns of behavior in all kind of organizations or systems. For this, we have used simple examples - mainly based on the work of Peter Senge (Literature: Peter Senge et. al., The Fifth Discipline Fieldbook, 1994).

Peter Senge documented the most common set of patterns of behavior in organizations that have the tendency of reoccurring. These patterns almost always result in negative consequences due to mismanaging complex problems. Maybe, you will catch yourself by studying these patterns :-)

In the overview of the model you will find the most common set of system archetypes structured as clusters in a family tree (see figure above).

Here, we would like to present one of the above mentioned system archetypes. Have fun & happy modeling.
Yours CONSIDEO-Team

System Archetype Growth and Underinvestment - short description:

This archetype applies when growth approaches a limit that can be overcome if capacity investments are made. If a system is stretched beyond its limit, it will compensate by lowering performance standards, which reduces the perceived need for investment. It also leads to lower performance, which further justifies underinvestment over time. This archetype builds upon Limits to Growth by explicitly addressing a firm’s need to invest in its own resources, capabilities and core competencies. A growing action seeks to stimulate and reinforce demand while the firm’s current performance level may behave as the limit to its growth.


Results of our example:

Needed investments will be delayed (3 simulation steps) by a company (see red arrow above) ...

leading to a lower performance (demand = turnover).

This lower performance can be prevented ...

by taking investment without any delay resulting in a higher advantage in competititon

Here you will find some more system archetypes: https://imodeler.info/ro?key=AWmcYVpCac1lRUJaRxmTz7Q

Have fun & happy modeling. Yours CONSIDEO-TEAM