Tuesday, June 14, 2016

Complex Adaptive Systems

            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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