Thursday, June 9, 2016

Butterfly Effect

            Complexity science is a must for global organizations in today’s connected world.  A global firm will provide goods and/or services to peoples to different nations, cultures, religions, geographical regions, etc.  In addition, the firm’s employees, vendors, business partners will also be of different nations, cultures, religions, geographical regions, etc.  Consequently, there are exponential factors (the “x”s) that collectively affect the business strategy and the firm’s operations.  Yet, when a problem or issue (the “y”) arises, a clear connection to any one (or more) x’s may not be evident.  Thus, complexity science is the study of a complex system, such as a global firm, where the interaction of all the x’s do not clearly show a ‘cause and effect’ on an outcome (Obolensky, 2014, pp. 56-57).  The notion of ambiguity can be daunting to leaders.  Leaders generally want to reduce or mitigate risk and/or to reduce or eliminate variation.  Yet, Obolensky (2014) asserts that, “the underlying nature of things is chaotic, uncertain and hard to understand…” (Obolensky, 2014, p. 67)
            In a complex system with many parts, a single approach or focus to problem solving will not work.  Each factor, the “x”, must be considered and addressed as applicable.  I had a former mentor once tell me, “How do you eat an elephant?”  The answer was, “One bite at a time.”  Now this idea could be approached in two ways.  In an oligarchy, the tasks are actioned sequentially (i.e. step A, B, C, etc.) with a few decision makers.  While this method provides a lot of control, it takes a lot of time and is inefficient.  In contrast, in a polyarchy, the tasks are disaggregated and compartmentalized and managed by many separate decision makers.  The tasks can then be actioned concurrently.  However, with this method, “control” moves towards anarchy end of the spectrum and the actions may not be coherent in achieving the collective goal.
            An implication of complexity theory is that every “part” of the system, i.e. a global organization must understand the vision or mission statement, and each part works to collectively achieve the goal.  Another implication is that knowledge should be documented and shared e.g. a knowledge management system.  For example, in my previous organization (the U.S. Army), subordinate leaders (from any organization around the world) could submit their “lessons learned” to the Center for Army Lessons Learned (CALL).  Interestingly, many solutions to complex situations came from the bottom up.  This is one example of which “small changes yield large results” – where the input of a soldier from the field can have widespread Army effects.  The collective sharing of knowledge and experiences certainly helps in reducing ambiguity.  For instance, my unit may encounter a problem for which we have no solution but another unit may have already been through it and fixed it.  It reminds me of the adage, ‘Don’t reinvent the wheel’.  Another example of the butterfly effect in business is impact of using a Lean methodology such as 5S.  5S stands for sort, set in order, shine, standardize, and sustain (Kaizen Institute Consulting Group, n.d.).  5S methodology is meant to be used at the lowest levels (at the individual employee at his or her workspace) with benefits to the entire enterprise. 

References
                  
Kaizen Institute Consulting Group. (n.d.). Retrieved from us.kaizen.com: https://us.kaizen.com/knowledge-center/what-is-5s.html


Obolensky, N. (2014). Complex adaptive leadership - Embracing paradox and uncertainty. New York, NY: Taylor & Francis.

No comments:

Post a Comment