Based on the book “the origin of wealth” I believe that are three conditions a business need to fulfill to show economic value and be successful.
Irreversibility, a business must put energy to transform any input to any output. The result of this effort must be irreversible. If it is reversible, no value created over time.
Entropy, the business should decrease entropy internally with increased order while increase global entropy, preferably within his competitors and market.
Fitness, the energy organization invest should create a product or a service that are fit for human purpose.

Those three conditions can be seen in each one of today’s successful company, while one or two are missing in a less successful company. Entropy is the one that distinguishes leading companies. Their ability to reduce internal entropy while pushing it to competitors is what makes them so successful.

Management systems that are based on self-management, self-organization, no-silos and profit sharing help organizations to fulfill those three conditions from two points of views.

First and foremost non-deterministic management systems are not just creating an irreversible business value that is a fit for humans, they are creating irreversible social value to humans by creating a better working environment and more happy people. Having strong business value coupling with social value is a competitive advantage that organizations might want to consider.

Secondly, to be able to operate non-deterministic organization a big emphasis should be on defining what everyone is managing, what is his responsibilities and who he needs to communicate/collaborate with. Non-deterministic managements are usually supported by software that turned manual management and HR processes into automatic processes, requesting people to deal with exceptions. Those activities are increasing order and reducing entropy in a height scale than organization running based on deterministic management systems.


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