2 august 2022

Business and the butterfly effect

2 august 2022

One day Edward Lorenz wanted to automate weather forecasts, entered the data - and got two completely different forecasts. He was calculating and recalculating and could not understand: if the data were the same, why were the forecasts so different? Until he noticed that in one case the figures were rounded up, and in the other they were entered with all the fractions. Roughly like that: 0.83947839277829857362563786888. And so with all the figures! Naturally, anyone would want to round up to 0.8. But as it turned out, it depended on every little fraction whether there would be calm weather or a storm somewhere.

This is how the "butterfly effect" was discovered: small differences in initial conditions lead to huge differences in the resulting phenomenon. A butterfly flapping its wings in Iowa causes a wet season in Indonesia. Lorenz became one of the founders of chaos theory.

Chaos is something that businesses are always struggling with. And they don't always win. An example of this is the confusion that has arisen in the world market today. People are perplexed: we live in India/Vietnam/Latin America - what do the events happening hundreds of thousands of kilometers away have to do with us? But the butterfly effect works all the time in business. None of the predictions made for 2022 have proven to be true.

Therefore, the business has long understood that analytics and forecasts are not enough. And employees need to be taught not just expertise, but scenario planning. It is impossible to predict exactly how events will develop in this or that area, but it is possible to prepare for different scenarios.

This is what modern corporate training revolves around. And this is one of the reasons why, as a rule, for the development of training courses and workshops, companies attract experts and methodologists from within, rather than outsource them and certainly don't buy ready-made courses from a provider. You can question this approach, but at the moment most companies prefer to develop their own in-house training and raise their own methodologists and experts. This approach has even been called the "syndrome of rejecting other people's development". An internal expert is a carrier of knowledge within the company. If you raise this person to be a good methodologist, he or she will create a perfect training course.

So let's imagine that our business is on the right track in the fight against chaos and the butterfly effect, takes into account the current trends, educates employees and partners about scenario planning, and has nurtured its own methodologist. And how do you teach employees and partners when there are thousands of them, living in different countries and dealing with very different people? It is impossible to prepare the same scenarios for everyone. But it is possible to give them a method! The method by which they will prepare their own scenarios.

SOLARGROUP experts and methodologists have already done this for their partners. They have developed the "Partner Work Methodology" 
- a universal training material that reveals the secrets of doing partner business! This "Methodology" is written in such easy language that a person of any level will think: But I've already known it all. You can take "Partner Work Methodology" - and improve your performance as if you've been in the partner business all your life.

These are the tools businesses have today to fight chaos. We at SOLARGROUP know that together we will not be stopped by any butterfly effect.

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