All about Management Cybernetics & Strategy

Bill Gates, Warren Buffett, Larry Ellison, Charles Koch, David Koch, Christy Walton, Michael Bloomberg, Tom Cruise, Sachin Tendulkar, Sharukh Khan.

Well known persons. Not necessary the best theoreticians in their respective field, but certainly among the more successful practitioners.

Look around you – your family, your place of work, your community, your friend, look at the failure, and look at the successes. Look without the jaundiced eye, look perceptively. You may notice the following, in a successful person.

  • They are not necessary born winners.
  • They do not be catapulted by impeccable family connections.
  • They do not have any special access to luck.
  • They are not necessarily the most Knowledgeable.
  • They are not necessarily the hardest working.
  • They are not necessarily having fancy qualifications.

You may also observe that:

  • They have the courage to use their common sense.
  • They concentrate, they specialize, and they exploit their unique abilities.
  • Though they employ the least techniques for improvement, growth and development, they never allow these techniques to take precedence over their intuition.
  • Their ambitions are intangible – excellence, reputation, goodwill. The tangible profit – wealth – follows automatically.

The above observation lead to the conclusion that:

a. Success depends not on the resources you have, but on the way – the STATEGY – which you use to deploy those resources.

b. Success depends on doing on what comes naturally to you, on doing ‘your own thing’.

A West German management consultant, Wolfgang Mewes was led to this conclusion by analysing cases of success and failures among German businessmen and professional. Researching into the causes of the extraordinary success, Mewes formulated – unearthed really – a growth or success strategy” – EKS (the German equivalent of cybernetic, start with the letter “K”).

The prefix “energo – cybernetic” indicates the crucial factor in the Mewes strategy. EKS is a very simple success strategy. So devastatingly simple that most of us usually miss it completely. Traditionally we spend a lot of effort overcoming our weaknesses instead of developing our strength. EKS really does is to organize your problems in the context of a unique “problem hierarchy” and cybernetic ally attack the key problem. As a consequence other related problems just solve themselves. It thus shows you how to turn negative tensions into positive power and advantage that can ease you out of a crisis situation. It teaches you to identify natural growth factors in your environment and harness and, keep succeeding, through a simple change in your strategy based on fundamental laws of nature.

Mewes realized that there were starting similarities between the way nature evolves and the way individuals and organization involve. He found that the same laws that govern nature growth and development also apply social or economic growth and development. Such natural growth relies on constant feedback from its environment. EKS describe in simple languages the feedback mechanism which nature uses to facilitate evolution. These same feedback mechanisms and they work similarly in the evolutionary tendency are called “growth automatisms’.

As a matter of fact, the successful person Mewes studied had – subconsciously or intuitively – allowed themselves to grow, to evolve, in precisely the same fashion as the universe evolved. They functioned as if their human energies were merely extensions of the natural energies of the universe. They did not DESIGN their growth. Neither did they PREVENT it; they allowed it to happen, interfering only minimally to remove the occasional obstacles, one after another.

Energo – cybernetics was born out of this particular experience of Wolfgang Mewes. Since the 1950s he has held thousands of people to improve their careers and businesses. He noticed that quite often their success was amazing. As he became more and more of an authority on individual growth, he realized that the same mechanisms which help individuals to overcome the resistance of the environment are also working in the case of companies and even countries. When scientists from diverse natural and social sciences drew his attention to the fact that his findings correlated with the latest advances in their own fields, Mewes concluded that he had arrived at the secret of how any system grows. This became the theoretical foundation for his practice oriented management school in Frankfurt, Germany.

EKS is a remarkable bridge between linear thinking – which is essentially Western – and circular thinking – which is an Eastern attitude. Linear thinking suggests that “everything is controllable”, circular thinking suggests that “events develop automatically and cannot be change”. EKS adheres to “spiral thinking” which is a system like a plant. As in spiral thinking, EKS recognizes that enterprises, like other on systems, are under an evolutionary tendency to unfold and further develop as growth automatism’s.

But several problems do block this evolutionary tendency. EKS suggests that among these is the one key problem – the bottleneck. When this bottleneck (or the crucial problem) is overcome, further development continues automatically. To put it simply, EKS says that it is wrong to waste our energies by attacking several problems at the same time. It is better to concentrate on the bottle neck, the removal of which triggers a chain reaction, which automatically solves hundreds of other peripheral problems. Thus the dramatic success of the EKS practitioner or his organization does not result from his own force but from the tremendous latent forces he unleashes by removing the bottleneck. At the same time, EKS lays great stress on a continuous monitoring of the growth process so that one is always alert to the shifting of the bottleneck from one point to another point. EKS thus offers a holistic perspective to one’s enterprises unmatched by any conventional school of management thought.

EKS deals not only with the strategies to attain an objective; it goes deer and questions the very validity of the conventional objectives. For the strategy to be successful, the objective must be in harmony with the pressing needs of the environment of the target group, so that the environment is the first beneficiary of the success. No other management theory is as sensitive as EKS is regarding the scientific approach to selecting the right kind of goal.


The following subjects will be covered and integrated into Practical model cases.


The central significance of strategy – the history of strategy – locating one’s position in society – the four laws of EKS – the system of bottlenecks – effect of EKS – specialization – the social constants – bottleneck analysis – from the adjacent, surface bottleneck to the central bottleneck – bottleneck and chain reaction – strategy of your career or business.


Fundamental behavior patterns – influence of the psyche – strategy and experience of success and psyche – motivation – intangibles like popularity, confidence, goodwill, reputation, approval: how to gain and measure these qualities for social attraction.


The socio – cybernetic processes in the brain and the environment – the crucial mistakes of the capitalistic theory of economy – the laws of diminishing and increasing return – introverted and extroverted behavior – from absorption costing via marginal cost calculation to marketing and cybernetic calculation – analysis of the business / career – disadvantages and advantages of dynamics – from the materialistic to the capitalistic, finally to energy – oriented solution.


Success starts with the product strategy – from production to demand – oriented strategy – achieving a monopoly position – being better in one area makes one more successful and secure that being as good in many areas – socio – cynernetic forces of attraction and repulsion in the market – triggering purchase avalanches – into the existing gap between the others, instead of confrontation – there is always a gap (a missing link) between target group and competitors – target group analysis, motivation analysis, market analysis.


From the static, to dynamic, finally to cybernetic financing – how to finance intangible investments – golden rules of financing – financial co – oration – risk – limiting – cash flow, capital – supply plans – budgeting and budget control – finance politics – 100 cybernetic checklist to taxation.


Static laws of tax legislation and the dynamic economy – the effect of EKS strategy on the tax load – the crucial gaps in the legislation of taxes on earning and on profits – gain intangible values (regular customers, attractiveness, copyright, image, reputation, power) – only the material and financial assets are liable to taxation.


In to the gap instead of confrontation – from decision under “uncertainty” to those absolute certainty – success and security are not based on capital or knowledge but on co – ordination with others together, successes are possible which are impossible along – towards the outside: improve integration, towards the internal: improve motivation – marginal cost co – oration, mutually complementing each other – if we cannot undertake a project alone, we should do it in co – oration with others.


Inform yourself better about your environment and your environment better about yourself – cybernetic information processes – become a focal point for information – one hour of information theory makes one more successful than 1000 hours of economic theory.


From the theory of power and might – to the dependence structure, finally to cybernetics – in the dependence structure of today lies the seed structure for the financial and material conditions of tomorrow – primacy of the power position: to him who has might flows automatically that for which others have to struggle – the cybernetic key – position of the power structure – analysis of the power structure – reduce your own dependence increases the dependence of these.


Laws of dynamics and cybernetics – cybernetic organization of place work, department or business – individual EKS vs. central planning – the cybernetic model – from old management methods (management by objectives, by exceptions, linear programming, RT, bottleneck – method, network planning techniques and others) to cybernetic management – more incentives and liberty of movement along with more exact control and feedback – instead of working yourself, let the social chain reaction work for you.


Analysis of strengths – social security – from employee to manager of the project – how to develop attractiveness – might and power analysis – career strategy is stronger than degrees and titles – information and applications mass mailing – how to overcome social resistance’s


From capital – oriented to cybernetic balance sheet and calculation – analysis, measurement and control of material, technical, economic and financial condition – analysis, measurement and control of information and psychological condition – analysis of demand, dependence structures, markets and opinion – the intangible structure of today is the seed of the tangible conditions of tomorrow.


Walter Seitz, 44, cost accountant in a plastics processing plant in Baden, lamented, “for 20 years I have tried so hard to get promoted, I have attended courses, repeatedly discussed with the management of my firm and made suggestion for improvements. I have sent out more than a hundred applications and the results have been very disappointing. According to the management I am too old to be considered for promotion. I know more than my superiors and that make them oppose me. One’s entire learning has a rather adverse effect unless one knows how to get into a position where one can actually apply ones knowledge’s and skills’.

At this point Seitz turned to EKS. When he met MEWES, he was asked, “What are you most interested in? What would you like to do most?” Seitz replied, “I was extremely impressed by the case of an employee who found a new idea for plastic products, and then developed and marketed it. In spite, I suggested several ideas for new products to the management of my firm, but most of them were rejected, and others were passed off by my superiors as their own ideas. I could push through only one suggestion of my own for which they gave me merely 500DM”.

Mewes advised Seitz to reinforce this unique creative quality of his. He suggested that instead of trying everything a little bit he should focus all his energies on only one task – how to find, develop, test and introduce new plastic products. Seitz was doubtful and asked, “What if I again do not find a position where I can use this knowledge?”

All Mewes said, “Rest assured . You will find it”.

Several months later Seitz wrote, “The more I focus on this one problem, the greater becomes my interest. My thoughts revolve around this problem almost always, ever off duty. Whatever I come across make me think of how it could be made out of plastic and how it could be sold. It is almost as if I attract more and more ideas and information”.

The more he focused on this one problem, the greater became his interest, the better functioned his memory and the more he attracted new information and ideas, Which increased his interests still further.

Mewes advised Seitz to offer his new ability to as many interested parties as possible. He made the offer as follows in brief letter addressed to 1200 plastic manufactures. “Product manager for plastic novelties”. Novelties yield maxim profit. Cost accountant specialized in development and marketing of new plastic products wants a position having scope for development”.

About 500 manufactures replied, out of whom 100 were seriously interested. Forty firms requested him to come over for an interview straight away. The reason behind this encouraging response was that Seitz had struck at a common bottleneck (key problem) of their industries. He promised a solution to one of the many emerging problems for which they needed a specialist but had none.

The atmosphere at the interviews was now radically different compared to the earlier ones. Earlier he had always been in competition with about twenty others similarly qualified application. The interviews were hurried, brief and dry. Moreover, the interviewers had always been very much, “in the driver’s seat” giving Seitz no opportunity to project himself as an individual. Now the situation was very much in the hands of Seitz as forty firms were competing to get him. With the shift of the power balance in the favour, the psychological climate automatically improved.

Whether a man or a woman comes through as being brilliant, convincing and attractive, or as being depressed, narrow – minded and unattractive is not a question of character but of the power structure in which he or she find himself or herself. Armed with the comforting through that if they did not want him he still had 39 other offers, Seitz radiated a completely new confidence in him. His interviewers on the other hand were almost in a state of panic. If they did not get him they were doubtful about getting another similarly specialized man. The realization that Seitz also had offers from their competitors caused further anxiety. Whenever one sees more opportunities placed before one, one gains confidence. On the other hand, when one sees only one opportunity one is less confident and clings desperately to it. Most of the firms were prepared to give Seitz chance despite the fact that he had no practical experience as a product manager because they had no one better qualified for this special task.

Thanks to Seitz’s improved strategy his power position and psychological condition changed favourably. Consequently his financial, professional and material condition also improved. Further, the improved psychological conditions enable him to unfold himself better, made a better impression, appear more attractive and dare higher claims. Automatically he gained a higher salary. This is a typical EKS result. Seitz enjoyed his new job, the enjoyment an automatic consequence of his improved working conditions. What was earlier a compulsion was now a joy. His job fascinated him. For the first time he tasted success and he was further encouraged and inspired. A spiral of growing success, growing interest and growing involvement began to carry him to the top.

Seitz’s growth into greater success was automatic. Earlier, his knowledge, experience, situation, interest, contracts, connections, acquaintances, friends, etc. were mixed up, random and without coherence. With the new strategy they automatically structured themselves into a kind of miraculous weapon. They geared into each other without friction, multiplied their effectiveness by supporting each other and reduced their risks mutually. Out of a chaotic bundle there developed a perfectly turned system with high output. The knowledge, effectiveness, range of influence, connections, opportunities, income manoeuvrability and independence of Seitz grew almost automatically. Out products and patents. Ultimately he set out on his own and specialized in the development of new products with readymade marketing programs and offered them on license to others.

Today, at the age of 53, Seitz resides in a health resort at Lugano, Switzerland. His specialization has become even more pointed. He makes others develop new products while he himself organizes worldwide partnership for marketing, resulting in successful and secured sales with considerably reduced risks. Seitz is at the centre of his worldwide socio – economic system. His commission from each individual item is not significant but the gains from worldwide sales add up to an astonishing amount. Seitz has changed from a pathologically depressed, isolated and restrained pessimist to an on – mined, enterprising optimist. All of this thanks to a calculated yet simple change in strategy suggested by EKS. You, too, can spiral to success as effortlessly as Seitz. The charm of EKS is in its simplicity, in the case with which elusive success becomes assured success. Rather than restricting you to drudgery, EKS releases you form it; you become more happy, and probably more healthy too.

THE EKS Management System; Highlights

The program is brought to you with permission from Wolfgang Mewes. EKS is now launched in USA, Euro and the world over. The EKS Management system will therefore be a much sought after qualification, internationally.

A scientific evaluation of the most important cybernetic management theories was done by Swiss economist Jacob Bauer within the framework of the European Management Program of the Universities of Amiens (France), Leeds (Great Britain), and Bielefeld (Germany). In his thesis “Les Modeles Cybernetique de Gestionou de Management”, Jacob Bauer analysed the theories of Beer (UK), Bonini, Forrester (MIT), Lussato, Meese, Mesarovic, Macko, Takahara, and Mewes(EKS). Only Mewes obtained the maximum possible score of 24; the next were the theories of Bonini and Melese, both securing 12.

Every student is a part of a powerful network of EKS professionals worldwide.

Since most of these are entrepreneurs, industrialists and senior professionals in industry and the utilities, there is unlimited scope for exchange of ideas and sharing of experiences.

Note: STGU – INDIA is not a University and does not provide any degrees and programs that come under the purview of UGC, AICTE, MCI, AYUSH BOARDS, LAW / BAR COUNCIL, ANY OTHER OR ALL INDIAN CENTRAL / STATE GOVERNMENT BODIES OR COUNCILS. STGU – INDIA is not regulated by the above mentioned organisations.