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Organizational Entropy

Meaning ● Organizational entropy, within the context of SMB operations, represents the degree of disorder or decay in processes, systems, and overall organizational effectiveness. This is manifested by inefficiencies, duplicated effort, communication breakdowns, and resistance to change, which hinder sustainable SMB growth. Implementation of automation strategies can be derailed when entropy is high, requiring intentional countermeasures. The higher the entropy, the more difficult and costly implementing new technologies, or improving workflows becomes. Successful implementation often requires proactively addressing existing inefficiencies. ● Diminished productivity and profitability are significant consequences for SMBs.