We have, over the centuries, devised a management structure for running things, whether firms or whole countries. This structure depends absolutely on the limitations of the human hand, eye, and brain. The discoveries of management cybernetics, coupled with the techniques of operational research and with the new technology of automation, make possible a new way of running things which is not so limited. Yet we insist on retaining the original structures and automating them. In so doing, we enshrine in steel, glass, and semiconductors those very limitations of hand, eye, and brain that the computer was invented precisely to transcend.

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The whole picture is complicated by the stockists and merchants who will try to exploit any shortages that may appear.
The result is this. The feedback information from the industry's environment consists, first and foremost, of a forward order load. Much of this "demand for steel" will be bogus.

Certain management policies-stretching of credit resources, for example-may lead to great progress in good conditions; but, like the Grand Prix car in comparison with the Land Rover, they may not be robust enough to survive when the going gets tough.

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According to the science of cybernetics, which deals with the topic of control in every kind of system (mechanical, electronic, biological, human, economic, and so on), there is a natural law that governs the capacity of a control system to work. It says that the control must be capable of generating as much "variety" as the situation to be controlled.