Models & misadventures: the perfectible machine fallacy

Purpose The author argues that the model for the management of the U.S. economy and businesses – one that assumes that they can be run like machines –is producing outcomes that neither were anticipated nor are desired. Design/methodology/approach The model of a perfectible machine needs to be supplanted by a model of a complex adaptive system in order to turnaround the performance of the economy and its companies. Findings In businesses, unrestrained pursuit of efficiency has had an unexpected and unintended effect. Practical implications One important way to design for complexity is to adopt multiple internally contradictory proxies for success. Originality/value Offers a critical insight for corporate leaders: The U.S. economy is not a perfectible machine: it is a complex adaptive system. Companies are not perfectible machines: they are complex adaptive systems. To produce better outcomes, leaders need to design for each element – complexity, adaptability and systemic nature.