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The world is made up of systems
Saturday, 30 September 2006
Everywhere you look in the universe, you see systems. There's solar systems, atomic systems and energy systems. On Earth, we have evolution, the climate, and food chains. And humans have superimposed on top of these natural systems such things as legal systems, political systems and financial systems. Everywhere you look - systems, systems, systems - overlapping and interlocking with on another.
But what is a system exactly? It's simply a series of rules, methods, processes and procedures - usually, although not always, aiming towards some goal.
The legal system is a series of rules aimed at increasing the amount of justice and order in our society by making clear what's expected of each citizen. The financial system aims to smooth the flow of human commerce. Computer systems aim to improve information management and communications.
And in almost any field you care to look at, the person who best understands how the relevant systems work is the one who will be most effective. A doctor who understand the respiratory system can help you better with your breathing problems than one who doesn't. An investor with an intimate understanding of the financial system stands a much better chance of making lots of money. The effectiveness of a computer programmer is closely related to how closely he understands the underlying systems.
Clearly how systems work is worth studying. And the more detail you understand them in, the more you can take advantage of them. Warren Buffett, the world's second richest man, for example, has allowed his deep understanding of the financial system to turn $100,000 into tens of billions of dollars.
A key way to aim at success is to become more knowledgeable than others about the systems that rule your world. Doing so allows you to leverage them and exploit opportunities that others miss.
Even better, once you understand a system well, you can improve it for increased success. The founders of Google saw a way of improving the systems behind internet search, which allowed them to build a world-beating company in only a few years. Henry Ford did the same with the system of assembling cars almost a century earlier.
The British turned a superior military, political and legal system into the largest empire the world has ever seen. They key weapon the USA used to beat the Soviet Union was their superior economic system. Humanity's systems of language and thought have allowed us to become king of the beasts.
And of course these concepts work in our day-to-day lives as well. A better weight-loss and exercise system can greatly improve health. A better household budget improves financial outcomes. And a better career-management method improves job-prospects.
Clearly, knowledge of how systems work and how they can be improved is one of the greatest assets any person can possess. A large amount of study toward understanding them is almost certainly a very wise investment.
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