In the world of business, change is constant. But understanding how to manage change effectively can be a game-changer.
The Taylor Bathtub or the Bathtub Curve is a graphical representation of the life cycle of a product or technology.
In Taylor’s view, the new type of organizational science is nothing less than a “revolution” that would end the productivity constraints of the industrial age. An organizational system established by Taylor gave wings to the industrial age’s quest for efficiency.
During the twentieth century, Taylor’s scientific management was the basis for management.
Niels Pflaeging talking about the Taylor Bathtub argues, however, that over time, the simplicity of this model in organizations compensated for the social gaps with hierarchical divisions, the functional gaps with fragmented responsibilities, and the time gaps between thinkers and nonthinkers.
The industrial age brought with it a brief period of fast-growing, spacious mass markets with relatively little competition. Monopolies or oligopolies dominated, markets were dull, or sluggish.
High-dynamic value creation re-emerged around the 70s, due to the rise of global, high-competition markets and the return of more individualized demand that made customization paramount and enabled “mass-customization.”
High-dynamic value creation, in turn, calls for an increase in the human part of problem-solving processes.
The traditional company model has become a roadblock.
Many companies have made the shift to become more decentralized. Many more were born that way and have reasonably maintained radical decentralization as they grew, resisting the tendency to turn themselves into pyramids
The Taylor Bathtub and Applicability
It symbolizes the market’s dynamism between the 19th, 20th, and 21st centuries.
Following a century of inventive strength put to the service of mass, standardized production, with large markets being explored among few competitors, until the beginning of the twenty-first century, when a globalized market, open and accessible technology, and customer-centred approaches were introduced.
Classical management, however, was forever changed by one factor. That one factor is complexity. This where the Taylor bathtub connects with management changes over time.
Those days are gone. High-dynamic value creation re-emerged around the 70s, due to the rise of global, high-competition markets and the return of more individualized demand that made customization paramount and enabled mass customization. High-dynamic value creation, in turn, calls for an increase in the human part of problem-solving processes
Older company models become roadblocks. A significant level of transformation is required for organizations to enable the current dynamic to be absorbed.
The decision-making process must be drastically decentralized. Essentially, they need to learn how to be agile. That’s why “Taylor Bathtub” idea brings back old management practices.
In the realm of systems theory, it is recognized that there are distinctions between complicated and complex systems, each with unique characteristics and behaviours.
Complicated systems are characterized by their predictable and standardized operations. Within such systems, efforts are made to minimize imprecision and uncertainty through clearly defined cause-and-effect chains.
Examples of complicated systems include high-precision machinery like watches, where precision is paramount, and outcomes are objective and reliable.
Conversely, complex systems, often found in organizations and ecosystems, defy such predictability. They involve the presence of living entities and exhibit behaviours that are not easily reducible to simple cause-and-effect relationships.
Unlike complicated systems, complex systems cannot be fully controlled or externally managed. Instead, they are subject to continuous change and may produce unexpected outcomes or “surprises.”
The inherent unpredictability of complex systems results in higher levels of error, uncertainty, and ambiguity compared to complicated systems.
While elements within a complex system may exhibit standardized behaviours individually, their interactions are characterized by constant flux and discontinuity.
In summary, while complicated systems adhere to standardized processes to minimize error and uncertainty, complex systems embrace variability and unpredictability, making them fundamentally different in nature and challenging to manage using traditional control mechanisms.
In conclusion, understanding the Taylor Bathtub curve is not only crucial for product and technology development, but also for organizational development and leadership.
By predicting and planning for the future of a product, organizations can improve the reliability and longevity of their products, and ultimately improve their bottom line.
As Niels Pflaeging puts in the same book where he shares about the Taylor Bathtub: “it’s not about avoiding failure, but about managing and leading it.”
Further reading:
- Competition, Complexity, and Why Traditional Management is Dead
- Presentation Niels Pflaeging – The Taylor Bathtub
- Organize for Complexity, book by Niels Pflaeging (Taylor Bathtub explanation)
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