07.+Complexity

=07. Complexity=

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**Managing in an Age of Complexity by Jean Boulton (extract)**
We need to understand the attributes of the systems and manage accordingly.

**Mechanical Systems (Newton)**
May work well in the periods of stability. Approaches include the use of measurements, objectives, planning, standardization, efficiency and control. "We have become the prisoner of measurement." Mintzberg It destroys creativity. What if instead of measurement we use "Judgement'

Business management is lead by the desire of **certainty** that we can **predict** the future based on the past. We make decisions based on measurements of past performances. We assume that people are **cogs in a machine**, that strategies remain relevant and achievable, objectives are clear and unchanging, people are motivated and have the necessary skills and not other work would come up. We act as if things are certain. We feel more comfortable if we control everything. Reasoning and being rational is superior.


 * Determinism:** future is determined/can be predicted by its past and current
 * Reduction**: the sub-parts of the system operate independently
 * it cannot learn and evolve, parts and interactions cannot change
 * does not interact with outside world
 * does not allow diversity, parts are identical within the same class

**Complex System (Ilya Prigogine)**
in times of unstable conditions, fast paces changing world, better to design complex systems

systems constantly changing and interacting with the environment self-organize into new structures and forms predictability is not the norm To learn, change and develop, an organization must look at This system is: unpredictable diversity interconnected self-organizing emerging
 * interconnections
 * networks
 * crossfunctional processes
 * informality
 * relationships


 * Do these:**
 * use judgement
 * empower others
 * collaborate
 * adopt to changing conditions
 * scan and envision
 * handle complexity

To be able to plan and manage systems properly, businesses need to understand the characteristics of the systems they are handling. **Mechanical system:** Certainty is the driving force for businesses. The **future is predictable by measuring the past**. "We have become the prisoner of measurement." (Mintzberg) It can be viewed as a machine and people act like cogs in a machine. The system does not interact with the outside world. Its parts are identical in the same class and cannot change. It cannot learn and evolve. Approaches include the use of measurements, objectives, planning, standardization, efficiency and control. They work well under stable conditions. **Complex system:**
 * **Uncertainty: **unpredictability is the norm.
 * **Emergence:** The systems and their sub-systems interact in a random way. From this interaction patterns emerge. Feedback informs the behavior of the agent and system.
 * **Self-organizing/adaptive: **System agents are part of the environment, so as the environment changes, they change, then they make the environment change, then the environment makes the agents change again.
 * **Sub-optimal:** they do not have to be perfect, just slightly better than the competition. Better than that is wasted energy.
 * **Diversity:** the greater the variety is the stronger the system.
 * **Connectivity:** The relationship is more important than the agents.
 * **Simple rules:** The systems are governed by simple rules.
 * **Iteration:** Small initial change may have significant impact on the system after several "emergence-feedback" loops. Snowball.
 * **Edge of Chaos:** Line between the equilibrium and chaos. A system in equilibrium dies, a system in chaos stops functioning.
 * <span style="background-color: #ffffff; color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 13px; text-align: -webkit-auto;">**Nested systems:** a system is part of another system, which is part another system.

<span style="background-color: #ffffff; color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 13px; text-align: -webkit-auto;">Approaches include the use of judgement, envisioning, empowering others, collaborating, being able to adopt to change and to handle complexity.

<span style="background-color: #ffffff; color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 13px; text-align: -webkit-auto;">Extracted from the article at: <span style="background-color: #ffffff; color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 13px; text-align: -webkit-auto;">@http://www.embracingcomplexity.co.uk/Admin/uploadFiles/ManaginginanAgeofComplexity.pdf media type="custom" key="12883018"