Business Thermodynamics: 49. Money is Energy. 1985 to today
Observation:
The key observation in this story is that businesses, like physical systems, have momentum driven by the flow of money, which is analogous to energy. The story illustrates how reducing friction in business processes can increase this momentum, making the system more efficient. This is visualized through a model where gears represent the flow and velocity of money, indicating the health and efficiency of different parts of the business.
The Lesson:
Efficient management of business processes by reducing friction and optimizing systems can significantly enhance the momentum and success of a business.
How this is Helpful:
Visualization: Helps in understanding complex business dynamics.
Optimization: Guides towards improving business efficiency.
Awareness: Increases understanding of financial health and momentum in businesses.
Questions for Reflection:
What's My Momentum? How can I measure and understand the momentum in my own projects or business?
Where's the Friction? In what areas of my work or life could I reduce friction to increase efficiency?
How to Optimize? What steps can I take to optimize my activities or business processes?
