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Systems Thinking Case Study #9:
Systemic structures that affect living standards!
Systemic structures that affect living standards!
| HOW COME EFFORTS TO INCREASE SALARY LEVELS DO NOT LEAD TO PERCEIVED COMMENSURATE STANDARDS OF LIVINGS? [as if we are constantly running on a treadmill, the light at the end of the tunnel does not seem to appear] |
DIALOGUE NOTES: WHAT DO YOU SEE HAPPENING?
Posted: 03 May 2006 0711 hrs
Lower cost of living, lower salaries: Khaw
By Loh Chee Kong, TODAY
SINGAPORE: If Singaporeans had low salaries, the cost of living here would be lower.
But it could also be a recipe for disaster, Health Minister Khaw Boon Wan said on Tuesday in response to the Opposition's
charge that the cost of living was rising.
Speaking at a walkabout in Sembawang, Mr Khaw said: "If for the next 100 years, nobody complains about the cost of
living anymore, it means failure for Singapore, it means disaster. It means we have walked backwards."
He added: "Let's cut our salaries to one-tenth, which is probably the situation in the neighbouring countries, then you
achieve a very low cost of living. To permanently stay that way means no wage increases for everybody - that is what low
cost of living is all about. You want low cost of living means you want low wages … That means all of us - you and me -
let's all take pay cuts."
Griping about the cost of living - which the Opposition is doing - is not going to solve the problem, he said.
"What is politics all about? Politics is to improve the standard of living of people, right? To raise standard of living means to
raise their salaries. That's why we focus so much on education, skills retraining, creating opportunities. That's how you
solve cost of living problems, not just complaining."
Wages and costs should move according to the market, said Mr Khaw, as long as Singaporeans receive the best education
"so that they can get the highest possible income".
When asked about the Opposition's swipes at the ruling party for the high ministerial salaries, Mr Khaw turned the tables on
their motive for wanting to enter Parliament.
"It comes back to the same point: Do you want capable people who can earn much higher salaries outside to be leading
you? Or do you want incompetent people who cannot even earn the MP allowance? So of course they fight very hard
hoping to be MPs - that will be an improvement for them. Their income suddenly grows! Because they have less potential,
on their own, they cannot earn these kind of salaries."
Turning to the unemployment issue, which the Opposition has also raised, Mr Khaw said while there are anecdotal accounts
of people who cannot find work, Singaporeans should look at data at the "national level".
Singapore's unemployment rate dropped to a low 2.6 per cent last year.
"Those are not cooked up figures. The PAP (People's Action Party) government doesn't cook up figures … Which society
has zero unemployment? Let's look at the macro data. What is it now, compared to last year, to a few years ago?" said Mr
Khaw.
While acknowledging that the Government cannot rest on its laurels, Mr Khaw also took a swipe at the Singapore
Democratic Party (SDP).
"We cannot hope that for the rest of our lives, everything goes on smoothly. That only happens with afterlife - provided
you do good things in this life and end up the right way. If you do wrong things, tell lies, defame people, create trouble,
incite hatred … then I think you have wasted your life and I worry about your afterlife."
The man leading PAP's Sembawang GRC team also said that his team has "never bumped" into their SDP opponents
during walkabouts and house visits.
"I don't think the SDP is making any attempts whatsoever knocking on doors … They spend more time talking to
Americans than talking to Singaporeans, particularly residents of Sembawang GRC."
He said the rift within the SDP is apparent even to residents he met.
"Everyone should know what kind of political party the SDP is. Look at the news reports over the last few weeks. The
internal disputes and strife, everyone is familiar. So if you can't even be united among yourselves, can four million
Singaporeans entrust their future in such a political party? It's very dangerous." - TODAY /dt
Posted: 03 May 2006 0711 hrs
Lower cost of living, lower salaries: Khaw
By Loh Chee Kong, TODAY
SINGAPORE: If Singaporeans had low salaries, the cost of living here would be lower.
But it could also be a recipe for disaster, Health Minister Khaw Boon Wan said on Tuesday in response to the Opposition's
charge that the cost of living was rising.
Speaking at a walkabout in Sembawang, Mr Khaw said: "If for the next 100 years, nobody complains about the cost of
living anymore, it means failure for Singapore, it means disaster. It means we have walked backwards."
He added: "Let's cut our salaries to one-tenth, which is probably the situation in the neighbouring countries, then you
achieve a very low cost of living. To permanently stay that way means no wage increases for everybody - that is what low
cost of living is all about. You want low cost of living means you want low wages … That means all of us - you and me -
let's all take pay cuts."
Griping about the cost of living - which the Opposition is doing - is not going to solve the problem, he said.
"What is politics all about? Politics is to improve the standard of living of people, right? To raise standard of living means to
raise their salaries. That's why we focus so much on education, skills retraining, creating opportunities. That's how you
solve cost of living problems, not just complaining."
Wages and costs should move according to the market, said Mr Khaw, as long as Singaporeans receive the best education
"so that they can get the highest possible income".
When asked about the Opposition's swipes at the ruling party for the high ministerial salaries, Mr Khaw turned the tables on
their motive for wanting to enter Parliament.
"It comes back to the same point: Do you want capable people who can earn much higher salaries outside to be leading
you? Or do you want incompetent people who cannot even earn the MP allowance? So of course they fight very hard
hoping to be MPs - that will be an improvement for them. Their income suddenly grows! Because they have less potential,
on their own, they cannot earn these kind of salaries."
Turning to the unemployment issue, which the Opposition has also raised, Mr Khaw said while there are anecdotal accounts
of people who cannot find work, Singaporeans should look at data at the "national level".
Singapore's unemployment rate dropped to a low 2.6 per cent last year.
"Those are not cooked up figures. The PAP (People's Action Party) government doesn't cook up figures … Which society
has zero unemployment? Let's look at the macro data. What is it now, compared to last year, to a few years ago?" said Mr
Khaw.
While acknowledging that the Government cannot rest on its laurels, Mr Khaw also took a swipe at the Singapore
Democratic Party (SDP).
"We cannot hope that for the rest of our lives, everything goes on smoothly. That only happens with afterlife - provided
you do good things in this life and end up the right way. If you do wrong things, tell lies, defame people, create trouble,
incite hatred … then I think you have wasted your life and I worry about your afterlife."
The man leading PAP's Sembawang GRC team also said that his team has "never bumped" into their SDP opponents
during walkabouts and house visits.
"I don't think the SDP is making any attempts whatsoever knocking on doors … They spend more time talking to
Americans than talking to Singaporeans, particularly residents of Sembawang GRC."
He said the rift within the SDP is apparent even to residents he met.
"Everyone should know what kind of political party the SDP is. Look at the news reports over the last few weeks. The
internal disputes and strife, everyone is familiar. So if you can't even be united among yourselves, can four million
Singaporeans entrust their future in such a political party? It's very dangerous." - TODAY /dt
| MODEL A: Is this what people are saying? |
| MODEL B: Is this what Minister meant? |
| The following is the consequence of one of the above two models. Which one? If so, which one of the two models explains the reality more clearly? What is my leverage to turn the behaviour of the problem around? |
SUMMARY OF KEY INSIGHTS:
HIGH LEVERAGE STRATEGIES:
- "Faster is slower"
HIGH LEVERAGE STRATEGIES:
- You can have your cake and it too, but not at once! In complex social systems, there is an inherent
order in which things happen. When we do not respect the order, we can't have our cake, and we can't eat it
too! (The harder one tries to push (to correct the problem), the harder the system pushes back!) Without first
understanding the consequences of non-collaborative efforts at the workplace (and therefore the consequential
wastes) and disengagement of workers to the organization (or system), blaming and correcting what appears to be
need for better qualification (the sense that one has not yet arrived), often leads to greater disgruntlement and
demands that the system places on the organization - turning the vicious wheel even further and creating a mess!
- Dividing an elephant does not produce two small elephants. It creates a mess! When we address part of
the problem, we lose sight of and integrity of the whole. The abilities "to see" leverage solutions are lost in the
process (i.e. the part marked with the red dot!)
- Continuing to ignore the above two, perpetuates the myth that "Faster is Better!!!" (i.e. the need for
people to constantly, constantly review their work parts / processes and the increased sense of stress and lack of
security leads people to make greater demands for salary / standards of living that hopefully leads to less stress and
greater sense of security.
| WHAT WOULD IT LOOK LIKE IF WE LEARN TO APPLY THESE STRATEGIES? WHAT MIGHT MAKE IT DIFFICULT OR GET IN THE WAY OF MAKING THESE HAPPEN? WHAT KEEPS OUR CONVERSATIONS LIKE THESE AND IS MAKING IT DIFFICULT TO SEE THESE STRUCTURES? Click here to share your thoughts, comments and reactions |
INHERENT SYSTEMIC STRUCTURE: FIXES THAT BACKFIRE |
INHERENT SYSTEMIC STRUCTURES: BALANCING LOOP AND REINFORCING LOOP |