🚦 Managing Complexity in Systems: Judgment vs. Rules

When systems become complex, organizations typically choose between two paths:

#1 Empower people to apply judgment effectively.
#2 Rely on rules and controls, believing that if everyone follows them, the system will run like a well-oiled machine.

The problem? Most companies choose #2. They don't hire people for their ability to apply judgment or train them in it. Yet, leaders often say, "Do the right thing." But here's the catch: How can someone choose to do the right thing if the system doesn't allow them to apply judgment and make choices? Let me share a real-world example that you are your people have done for years.

🔧 Bug Management System Gone Wrong
Imagine a company with these SLAs:
P3 bugs must be fixed within 30 days.
P2 bugs must be fixed within 7 days.
Now, picture a developer with three overdue P3 bugs (OOSLA) and a newly assigned P2 bug.

❓ Which bug do they fix first?
Most people say, "Obviously, the P2 bug." But that's rarely what happens. Developers often prioritize the P3 bugs.

Why?

Because the system punishes them if they don't. Every week, the CTO sends emails listing all OOSLA bugs, holding teams accountable. This email trickles down the hierarchy, with managers, directors, and VPs demanding explanations for OOSLA bugs.
No one wants explanations—they want OOSLA bugs gone.
So, even though the developer knows the right thing is to fix the P2 bug, they focus on the P3 bugs. Often, their goal isn't to fix the bugs properly but to get OOSLA bugs off their plate.

Did the developer do anything wrong? Absolutely not. This behavior isn't about individual morals or values—it's the system driving it. A system built on rules and controls can crush even the best intentions.

🔍 The Bigger Lesson
In complex systems, rules based controls will drive bad behavior, stifle creativity, productivity and list goes on. If you've ever wondered why so many bad behaviors emerge in bug management systems, this is why. It's not the people—it's the techno-social system at play.

Fixing this isn't easy, especially in rule-driven organizations. But if you want to start how CDLC (Code Development Lifecycle System), Software Development Life Cycle Systems or PDLC Product Development Life Cycle Systems works and want ot observe good/bad social behavior bug management system is the best place to start. What's your take? Have you seen this in action? Let's discuss in the comments!

These are very fixable problem, but it requires Systems Change and Systems Transformation. DM me to explore this problem further and join SystemsWay https://lnkd.in/gckbeuhd where we are building community to learn how to make systems work the we want want to, because it's doable if we understand the ways of the systems.

Wrote this Linkedin Post after inspired by talking to a developer. We will someday discuss how to create organization where judgement calls are supreme. In our 5 day workshop that we plan to conduct in future, we cover this in the context of Netflix Organization Design which is No Rules Rules