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Systems Thinking: Think in terms of Hierarchies

 Why the Universe Is Organized into Hierarchies—a Fable

"There once were two watchmakers, named Hora and Tempus. Both of them made fine watches, and they both had many customers. People dropped into their stores, and their phones rang constantly with new orders. Over the years, however, Hora prospered, while Tempus became poorer and poorer. That’s because Hora discovered the principle of hierarchy...

The watches made by Hora and Tempus consisted of about one thousand parts each. Tempus put his together in such a way that if he had one partly assembled and had to put it down—to answer the phone, say—it fell to pieces. When he came back to it, Tempus would have to start all over again. The more his customers phoned him, the harder it became for him to find enough uninterrupted time to finish a watch.

Hora’s watches were no less complex than those of Tempus, but he put together stable subassemblies of about ten elements each. Then he put ten of these subassemblies together into a larger assembly; and ten of those assemblies constituted the whole watch. Whenever Hora had to put down a partly completed watch to answer the phone, he lost only a small part of his work. So he made his watches much faster and more efficiently than did Tempus".

This fable is more than just a story about watchmaking—it’s a powerful lesson in systems thinking and efficiency.

From corporate strategies to project management, embracing hierarchy in design and execution can make all the difference.

1. Hierarchies Are Everywhere

Hierarchies naturally emerge in complex systems—whether in biological structures, corporate organizations, or even societal frameworks.

  • A cell is part of an organ, an organ is part of a body, and a body is part of a larger system like a community or ecosystem.

  • Similarly, in an organization, employees form teams, teams form departments, and departments contribute to the whole company.

This structure makes systems manageable, stable, and efficient.

2. Hierarchies Improve Efficiency & Stability

The watchmakers’ fable (Hora vs. Tempus) illustrates that breaking down a system into smaller, independent yet connected parts prevents collapse when disruptions occur.

  • In businesses, structured processes prevent teams from starting over due to minor setbacks.

  • In nature, subsystems (organs, ecosystems) can function semi-independently, ensuring survival despite local failures.

3. Hierarchies Reduce Information Overload

One critical benefit of hierarchies is that they control the flow of information, preventing overload at any single level.

  • In a university, faculty members interact more within their departments than across departments.

  • In biological systems, liver cells communicate more with each other than with heart cells.

By organizing relationships within subsystems to be stronger than those between subsystems, systems remain efficient and responsive.

4. Hierarchical Systems Are Decomposable

A well-designed hierarchy allows parts to function independently while still contributing to the larger system.

  • If a company is structured well, teams can work autonomously without needing constant top-down intervention.

  • When a hierarchical system breaks, it does so along natural boundaries, making it easier to analyze and fix.

Embracing Hierarchical Thinking

Rather than viewing hierarchy as bureaucratic or rigid, it should be seen as a powerful design principle that fosters:

Scalability – Breaking big problems into smaller, solvable parts.

Resilience – Minimizing failures from affecting the whole system.

Efficiency – Ensuring information flows smoothly without overwhelming any single level.

Whether in business, technology, or life, those who master hierarchy master complexity.

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