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What does complexity theory offer business

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Here we enter the realm of complexity theory.

Locked gates.jpgMead (1934) took Hegel further, and saw human systems arising from circular movement in which one discovers meaning through change. That movement results in emergent and dynamic whole with no pre-ordained end state, nor limitation on the parts that might be involved. This idea that the ultimate form is unknown is described as transformative teleology with the significant implication that such an explanation does not presume linear cause and effect. What can also be said is that beyond just transformative teleology – novelty at random, Darwinian evolution gives rise to the concept of Adaptive Teleology. The idea of purpose being the continuing adaptation to more effectively and efficiently operate in the environment.

In summary, complexity theory informs leadership about an acceptance of change as inevitable yet uncertain, events neither able nor requiring predefined outcomes yet.
The prospect of transformative and adaptive purpose as underlying the behaviour of a human system inspires confidence in the ability of (complex adaptive) systems to self organize in the creation of innovative solutions and to operate effectively without reliance on the ‘control’ of pre-ordained cause and effect.

Any substantial embrace of this approach is challenging. It relies on the parts of the system being fully present, authentic and delivering fully to the whole for the best outcome to emerge.

Can managers and organizations in the 21st Century benefit from Complexity Theory?

In August 2003, BOSS magazine reported on 'culture change' programs in its special edition on leadership. In discussing the National Australia Bank example, "Breakthrough", the change workshops were noted as mainly about job and process improvement even though the promotional rhetoric was adamant it is not about productivity. The article saw the "cultural change phenomenon is increasingly about a battle for the minds of employees, despite talk about empowerment and diversity”. (Fox 2003b)

As the author observed,

No matter where the framework was developed, many of the current programs are underpinned by the idea that employees can be changed to conform to the organisation's requirements.

(Fox 2003b)



 

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