VIEWING THE ORGANIZATION AS A COMPLEX ADAPTIVE SYSTEM:
AN APPROACH TO ENHANCING AGILITY
Sunil MundraPrincipal Consultant
2
“We Did Not Do
Anything Wrong,
But Somehow,
We Lost.”
“We Did
Not Do
Anything
Wrong,
But
Somehow,
We Lost.”Stephen Elop,
Ex-CEO, Nokia
SURVIVAL IS UNDER THREAT
EROSION OF VALUE & REPUTATION
UNPRECEDENTED CIRCUMSTANCES
ENVIRONMENTAL IMPACT
ERA OF COMPLEXITY
COMPLEXITY IS ALL AROUND US
COMPLEX
ADAPTIVE
SYSTEMS
(CAS)
THEY CAN BE CATEGORISED AS..
A CAS is
• A collection of relatively similar and
partially connected micro-structures
• Formed in order to adapt to the
changing environment
• To increase its survivability as a
macro-structure.
CAS DEFINITION
They are Complex in that
• They are dynamic network of
interactions
• Their relationships are not
aggregations of the individual static
entities
CAS DEFINITION
They are Adaptive in that
• The individual and collective
behaviors mutate
• They self-organize according to
change initiating events
CAS DEFINITION
• Largely Autonomous Agents
• Agents’ Interactions Influence
System Behavior
• Coherence Around Purpose
• Emergence
• Evolution
CAS CHARACTERISTICS
DO CAS HAVE AGILITY?
AGILITY IS..
Sense
Adapt
Respond
Beta Approach
ORG. IMPLICATIONS
Selective Destruction
ORG. IMPLICATIONS
Responsive
Structure
ORG. IMPLICATIONS
Inclusive Purpose
ORG. IMPLICATIONS
Diversity
ORG. IMPLICATIONS
‘Just Enough’
Information
ORG. IMPLICATIONS
Patterns
ORG. IMPLICATIONS
Lever Points
ORG. IMPLICATIONS
Paradoxes
ORG. IMPLICATIONS
Few and Simple
Rules
ORG. IMPLICATIONS
IDEATION ACTIVITY
VUCA
Over
Predictability & Stability
LEADERSHIP IMPLICATIONS
Sense Making
Over
Directing
LEADERSHIP IMPLICATIONS
Effectiveness
Over
Efficiency
LEADERSHIP IMPLICATIONS
Tech. Awareness
Over
Tech. Indifference
LEADERSHIP IMPLICATIONS
Leverage Risk
Over
Avoid Risk
LEADERSHIP IMPLICATIONS
Customers First
Over
Shareholders First
LEADERSHIP IMPLICATIONS
Systems Thinking
Over
Reductionism
LEADERSHIP IMPLICATIONS
Emergence
Over
Upfront Detailed Planning
LEADERSHIP IMPLICATIONS
Vulnerability
Over
Control
LEADERSHIP IMPLICATIONS
Engage
Over
Exploit
LEADERSHIP IMPLICATIONS
CAS MODEL CRITICAL FOR AGILITY
ORGANIZATIONS ≠ MACHINES
ORGANIZATIONS HAVE LIFE
“Living systems
have integrity.
Their character
depends on the
whole. The same
is true for
organizations.”Peter Senge
The Fifth Discipline