Saturday, December 18, 2010

The Purpose of Laws, Regulations, Policies, and Standards

In organizations of every type, from two individuals, to entire countries, the purpose of laws, regulations, policies, and standards is to reduce the inter- and intra-organziational process friction.  Process friction reduces the effectiveness of the process while reducing the cost efficiency of the process.

Without an archtiecture of policies and standards, it is quite easy to end up with conflicting policies and standards, policies and standards instantiated with convoluted or unenforceable "business" rules and so on, which create more process friction than they reduce.

Systems Engineers use the laws, regualtions, policies, and standards as one category of design constraint requirement in implementing new and transforming old systems.  If these have defects or conflicts the system created or transformed will not operate optimally.  Additionally, it may cause the failure of the effort.

This is one reason that 90 cents of every dollar spent be the US Federal government programs and entitlements goes into overhead.

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