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Katz–Kahn Open Systems View

Organisations survive only by continuous exchange with their environment, so a closed model of them cannot explain what they do.

Katz and Kahn's 1966 book brought open-systems thinking from biology into organisational theory. The consequence is that boundary-spanning roles matter more than the org chart suggests.

In practice

  • A hospital that optimises internally while ignoring its referral network, its labour market and its funder cannot explain its own waiting list.
  • A retailer that perfects its store operations and ignores its suppliers' consolidation finds its cost base set elsewhere.
Subject
Organizations & Bureaucracy
Essay
Why organisations learn, harden and decline

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