In
the opinion of Andy Law, chair and co-founder of St. Luke’s Communication, the
company found success because of its “determination to continuously reinvent
itself” (Coutu, 2000, p. 144) . The ‘reinvention’ Law spoke of is the
employees evaluating themselves and their peers (e.g. work performance) (p.
144). Yet, the evaluations had less to
do with the traditional work performance metrics (i.e. efficiency, quality of
work, etc.) and more to do with one’s vision, creativity, adaptability, and the
like (p. 155). Moreover, the employees
are evaluated on their willingness to embrace and/or take risks. The organization’s structure is a polyarchy –
there are no bosses (p. 155). Rather
than being ‘run’ by management, the employees run themselves. In addition, the employees share in the
ownership of the company (p. 147). Therefore,
each employee has am equal and significant stake in the success or failure of
the company. For someone like myself,
who spent a career in a very hierarchal work setting (e.g. the Army), this
would seem like anarchy. I would also
assume that this type of organizational structure is risky because it is
assumed that the employees intuitively know what to do. Yet, in the case of St. Luke’s, this type of
complex adaptive system (CAS) works well.
Obolensky (2014) writes that a CAS hierarchy is, “…rather flat, dynamic
and more to do with meeting the needs and expectations of external stakeholders
than actually ‘running’ the organization” (Obolensky, 2014, p. 27) . This statement is a seemingly perfect
illustration of St. Luke’s business.
A company that is similar to St.
Luke’s image of a CAS is Zappos. This is
a company I have recently become more familiar with (because of this
course). Zappos, the shoe and clothing
company, is often recognized for its uniquely successful culture (Patel, 2015) . It is a culture that thrives on creativity
and a bit of anarchy (the good kind), where simplicity comes out of chaos. This is illustrated in physical form by the
layout of the Zappos headquarters – everyone works in an open layout with the
boss right in the middle! Several of
Zappos ‘family core values’ align with the concept of a CAS. These core values are: embrace and drive change;
be adventurous, creative, and open-minded; and pursue growth and learning (Zappos, n.d.) . Much like St. Luke’s organizational
structure, Zappos is polyarchy. To reiterate a previous point, Obolensky
(2014) writes that a CAS hierarchy is, “…rather flat, dynamic and more to do
with meeting the needs and expectations of external stakeholders than actually
‘running’ the organization” (Obolensky, 2014, p. 27). Consider this statement by Zappos CEO Tony
Hsieh, “Zappos is a customer service company that just happens to sell shoes” (Zappos, n.d.) . Zappos embodies the CAS organization – where
communication and interaction goes from the ‘top’ e.g. boss to the bottom and back,
as well as to other stakeholders and customer ( (Obolensky,
2014, pp. 29-31) .
As a leader in an organization
facing today’s (and future) complexities, I must focus on certain actions to
move my organization forward. First, I
must acknowledge that change will occur.
Most likely, the impetus for change will be driven by external forces
e.g. the customer, a rival, the economy, the natural environment, etc. Secondly, I must build a diverse and
cross-functional team that can meet a variety of challenges. A diverse and cross-functional team benefits
from the different perspectives and backgrounds of various employees. This is necessary as complexity crisscrosses
the barriers of knowledge, skill, and function.
References
Coutu, D. (2000). Creating the most frightening
company on earth. Harvard Business Review, 142-150.
Obolensky, N. (2014). Complex adaptive leadership -
Embracing paradox and uncertainty. New York, NY: Taylor & Francis.
Patel, S. (2015, August 6). Retrieved from
www.entrepreneur.com: https://www.entrepreneur.com/article/249174
Zappos. (n.d.). Retrieved from www.zappos.com:
http://www.zappos.com/core-values
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