Systems thinking

Management Archetypes and Cognitive Types

In short Organizations decide much by precedent: “last time this worked”. Rakitov and co-authors call these precedents archetypes and describe how an organization, with its analysts, turns them into an explicit, organization-specific rule set they call a cognitype. They add two practical tools: reading latent information and matching analysis methods to the kind of difficulty you face.

Based on: A. I. Rakitov et al., Systems Analysis and Analytical Research: A Guide for Professional Analysts (in Russian), sections 4.5–4.7.

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Key ideas#

Archetypes: decisions by precedent#

In the authors’ sense, an archetype is a simplified description of a typical situation, built from practical experience. A case once handled well becomes the model for similar cases later, much like precedent in case law. Two limits apply. An archetype must not conflict with current law, and it simplifies by dropping variables, which is risky if a dropped variable actually matters.

The authors give two examples:

  • Problem replacement. A complex problem with many factors is replaced by a set of simpler problems; you work on the most important and consciously ignore the rest. This raises the risk of error, so the analyst should estimate that risk before accepting the simplification.
  • Improvement limit. Past a certain point, spending more to improve one parameter starts to damage another critical one. In their example, ever higher spending on treatment plants to cut environmental harm eventually undermines the price competitiveness of the product. Set the limit deliberately instead of pushing one direction forever.

Despite the similar names, these are not Senge’s archetypes. Senge’s “shifting the burden” is about symptomatic fixes that create dependence, and his “limits to growth” is about a balancing process that appears on its own. See System Archetypes and Leverage.

Cognitypes: explicit decision rules#

Archetypes often fall short: they formed in other circumstances, for other goals, and are frequently vague or unproven. Then the organization, working with professional analysts, develops a cognitype: its own conscious, formalized and well-diversified set of decision rules and principles. It is the organization’s management know-how. It may borrow and adapt others’ experience, and it is built through cognitive modelling.

Latent information#

Besides explicit content, the messages reaching an analytical team carry latent information. It is not necessarily encrypted, but it takes semantic analysis to see the meaning behind the literal message. The authors’ example: a fall in a share price may be a genuine collapse, or speculators driving the price down to buy cheaply. The right reading reverses the recommendation. Typical latent content includes competitors’ goals and plans, signs of financial trouble, deliberately distorted links between events, hidden motives, and R&D plans. The analyst needs three skills: shielding the team from information noise, telling deliberate disinformation from genuine hidden meaning, and processing contradictory data quickly.

Seven factors for choosing your tools#

Diagnose what makes the situation hard before choosing a method. The authors list seven factors:

  1. People’s satisfaction or dissatisfaction → psychological and sociological methods.
  2. Fuzzy boundaries of the problem situation → legal, economic or administrative measures.
  3. Degree of information openness → rules for information exchange.
  4. Irrationality or weak formalizability → heuristic methods such as brainstorming.
  5. Chaotic behavior of participants → methods of synergetics that look for order behind apparent chaos.
  6. Change that arrives in discrete jumps.
  7. Instability or uniqueness of the situation.

The point is to diagnose first, not to apply one standard toolkit to every problem.

How to apply it#

  1. Collect the rules of thumb people use for recurring decisions (“when X happens, we do Y”).
  2. For each, record where it came from, the conditions it assumes, and the variables it ignores.
  3. Retire or rewrite rules that conflict with law or rest on conditions that no longer hold.
  4. Write the surviving rules down as an explicit decision guide, and review it after notable outcomes.
  5. When information arrives, ask what else it could mean and who benefits from you reading it one way.
  6. Before choosing a technique, name which of the seven factors drives the difficulty.

Example#

At The Workshop, “if a part is late, phone the backup supplier” is an archetype from one successful rescue. Analysis shows it ignores price and quality, and the backup supplier’s parts have caused repeat repairs. The team writes an explicit rule set instead: wait if the delay is under two days and the customer agrees; use the backup supplier only for listed part types; escalate to the manager otherwise. That is a small cognitype. When the main supplier suddenly announces “stock reorganization”, the analyst checks other signals before reading it as routine: it might signal trouble at the supplier.

Pitfalls#

  • Applying a precedent without checking that its conditions still hold → record the assumptions behind each rule.
  • Simplifying a problem without estimating the risk → state what you dropped and why.
  • Pushing one improvement indefinitely → set an explicit limit.
  • Taking messages at face value → look for latent meaning.

Sources and further reading#

  • A. I. Rakitov, D. A. Bondyaev, I. B. Romanov, S. V. Egerev, A. Yu. Shcherbakov. Systems Analysis and Analytical Research: A Guide for Professional Analysts (in Russian). Moscow, 2009, sections 4.5–4.7.
  • P. Senge. The Fifth Discipline: The Art and Practice of the Learning Organization. Doubleday, 1990, ch. 6–7 — for comparison with the original system archetypes.