While Organizational SCRAP refers to the problematic structures, cultures, rules, assumptions, and processes that limit an organization’s success, Systemic SCRAP arises when many organizations’ SCRAPs interact in reinforcing ways — creating self-sustaining dysfunction across an entire industry, market, or ecosystem. Systemic SCRAP is beyond the scope of the first work, but it will be mentioned.
Here is an example:
A bank with a mission to help its clients succeed financially begins creating multiple accounts and policies for people that they didn’t ask for. This obivously fraudulent practice by thousands of banking professionals and managers goes on for over 5 years without being questioned seriously by multiple levels of managers. How did SCRAP contribute to this?