Complexity. The new world between chance and choice
April 10, 2010

Nonlinear dynamics are concerned with complex, messy systems. Examples for these systems are the human brain, the evolution of life itself and the weather. There is not a single science of non-linearity, but there are different streams of research such as chaos theory or the theory of complex adaptive systems. The latter strand takes up an agent- and rules of interaction-based approach to modeling complexity. The first explains the behavior of systems that can be modeled by complex equations where the output of one calculation is taken as the input for the next. These equations are repetitive and iterative.
Chaos theory explains how the parameters in the equations cause patterns in time. These patterns are called attractors. A parameter might be the flow of information or the amount of energy in the system. At low rates the system moves forward displaying a repetitive, stuck behavior. This pattern is called a point attractor. At higher rates the pattern changes. At very high rates of, for example information flow, the system displays a totally random behavior. The pattern is highly unstable. However, there is a level between repetition/stability and randomness/instability. This level is called the edge of chaos. The pattern in time is called a strange attractor. The strange thing with a strange attractor is that the ongoing movement is never the same but always recognizable. The pattern is paradoxically stable and unstable, predictable and unpredictable at the same time. These patterns are spatially called fractals.
Chaos describes a dynamic that is not a synthesis of order and disorder. It is about orderly disorder or disorderly order. The very meaning of these words is transformed.
The weather is normally used as an example of a system that displays this pattern. The overall weather patterns can be (almost) predicted over short periods of time. Over long periods, the behavior cannot be predicted. The long-term behavior of a system like this is determined as much by the smallest changes in the smallest of parts of the system, as it is determined by the laws governing it. The conclusion is very clear. Predictability is always short-term. Long-term predictions would only be possible if absolutely all the variables in the system could be measured with absolutely infinite accuracy. But it is impossible to know all the variables and it is totally impossible to measure all the variables with the accuracy needed.
The smallest overlooked variable or the most minute change can escalate up by non-linear iterations into a major transformative change in the later life of the system. Another conclusion is that from a chaos theory perspective, movement towards equilibrium is always movement towards death. If a system is healthy, successful and alive, it is “at the edge of chaos” where the long-term cannot be seen.
Classical physics took individual entities and their movement (trajectories) as the unit of analysis. Chaos theorists such as Ilya Prigogine, claimed that these trajectories cannot be calculated because of the impossibility of measuring with the precision needed. But there was something even far more exciting going on. Henri Poincaré was the first scientist to identify two distinct kinds of energy. The first was the (kinetic) energy in the movement of the particle itself. The second was the energy arising from the interaction between particles. When this second energy is not there, the system is in a state of non-dynamism. When there is interactive energy, the system is dynamic and capable of novelty and renewal. Interaction creates resonance between the particles. Resonance is the result of coupling the frequencies of particles leading to an increase in the amplitude of motion. Resonance makes it impossible to identify individual movement in interactive environments because the individual’s trajectory depends more on the resonance with others than on the kinetic energy contained by the individual itself.
Every interaction of any particles is thus potentially meaningful and can lead to amplification of the slightest variation. Interactive systems with even the smallest variations take on a life of their own that is under continuous construction. The future form and direction of the system is not visible in the system at any given time. The future is not in the system and it cannot be chosen or planned by anyone.
The scientists at the Santa Fe Institute developed the other strand of research: the complex adaptive systems approach. A CAS consists of a large number of agents. Each agent behaves according to its own intentions and rules for local interaction. Local here means that no agent can interact with the whole population of agents at the same time. No individual agent can determine the pattern of behavior that the system as a whole displays. These adaptive systems display the same dynamics as the chaos theorists found: stable equilibrium at one end of the spectrum, random chaos at the other, and in-between the newly found complex dynamic of stability and instability, predictability and unpredictability, paradoxically at the same time: the edge of chaos.
The conclusions are important for us. Firstly, novelty always emerges in a radically unpredictable way. Secondly, the patterns of healthy behavior are not caused by competitive selection or independent choices made by independent agents. Instead, what is happening, happens in interaction, not by chance or by choice, but as a result of the interaction itself.
The Internet changes the patterns of connectivity and makes possible new enriching variety in interaction. The changed dynamics we experience every day through social media have the very characteristics of the edge of chaos.
The sciences of complexity change our perspective and thinking. Perhaps, as a result we should, especially in management, focus more attention on what we are doing than what we should be doing. Following the thinking presented by the most advanced scientific researchers, the important question to answer is not what should happen in the future, but what is happening now?
Our focus should be on the communicative interaction creating the continuously developing pattern that is our life.
Thank you Stu Kauffman and W Brian Arthur. Based on Ralph Stacey and Doug Griffin.
The Google lesson for management
February 13, 2010

Eugene Garfield founded the Institute for Scientific Information in 1960. His pioneering work was in citation indexing. This allows a researcher to identify which articles have been cited most frequently and who has cited them. Garfield’s studies demonstrated that the number of citable items, i.e. the number of papers, together with the frequency of their citation, meaning how many scientists link to the paper, is a good measure of scientific success. Nobel laureates write more papers than other scientists and these papers are more linked to than other papers. The system effectively measures quantity and quality at the same time.
Links on the Web are also citations, or votes, as the founders of Google realized. The whole Web is a densely interconnected network of references. It is no different to the age-old practice of academic publishing and citation indexing.
The observation of Larry Page and Sergey Brin that links are citations seems commonplace today, but it was a breakthrough at the time Google started on September 7, 1998.
What Google did was essentially the same as had been done in academic publishing by Eugene Garfield. At this time, relevance and importance were measured through counting the number of other sites linking to a Web site, as well as the number of sites linking to those sites. The PageRank algorithm includes other variables as well, but the measurement of links is still the core functionality of the system.
What Google has proved to managers is that people’s individual actions, if those actions are performed in a transparent way, and if those actions can be linked, are capable of managing unmanageable tasks.
Collaboration and collective work are best expressed through transparency and emergent, responsive linking. The mainstream business approach to value creation is still a predictive process designed and controlled by the expert/manager. This is based on the presuppositions that we know (1) all the linkages that are needed beforehand, and (2) what the right sequential order in linking and acting is. Neither of these beliefs is correct any more. The variables of creative work have increased beyond systemic models of process design.
It is time to learn from the Web.
By relying on the uncoordinated actions of millions of people instead of experts/managers to classify content on the net, Google democratized scientific citation indexing. To be able to manage the increasingly complex organizations of today, the same kind of democratization needs to take place in the corporate world. Companies are transforming themselves from industrial mass production to creating value in wide area networks of mass communication. The transparency of tasks is the corporate equivalent of publishing academic articles. Responsive linking, rather than predictive linking, acts as a measure of relevance and is the guarantee of quality. This has served the academic community well. It made Sergey Brin and Larry Page billionaires. Now is the time to do the same in the corporate world. Complex, creative, knowledge-based work requires new approaches. The Google lesson for management is, that the more work is based on responsive processes of relating and the more organizing is an ongoing process in time, the more value we create!
Thank you Jeff Howe and Ralph Stacey
Complexity and uncertainty
February 9, 2010

Our lives are increasingly complex, whether we consider our private lives, our families, or the organizations we relate to. It is impossible to know for sure what will happen when we make changes in our lives. Whenever we make a decision or take some action, there will be consequences. These consequences are extremely seldom under our control, although we would like to think this is not so.
One of the most common practices in management is planning. Yet organizational reality often turns out to be different from the plans that are made. Unpredictability is a property of all complex, nonlinear interaction. As this corresponds with all human interaction, organizations could well be characterized by intrinsic unpredictability that cannot be removed.
And if that is the case, then it is perfectly understandable that our plans are never materialized exactly as we thought. Traditional management science has however tried to build on certainty through a strong belief in rationality and the capability for optimization.
Empirical evidence is making it very clear that this is not so, pointing to the conclusion that we can never know anything with certainty. Nonlinear interaction always yields unpredictable change. If we wanted to create an alternative to mainstream economic theory and leadership/management, it should then be based on “bounded rationality”, uncertainty and complexity.
When encountering a problem, or developmental challenge, we often ask the question: “What should we do?” But if plans seldom produce what is planned, creating a new plan, to substitute for the one that did not produce what was planned, might not be the cleverest thing to do. One of the things that people get asked to do in management development programmes is to identify the three new behaviors that they are going to adopt on Monday morning. If we really want to change things, we should instead ask the question: “What is it that we are doing here, now?”
Thank you Ralph Stacey, Doug Griffin, Herbert Simon and Henry Mintzberg
Complexity and the importance of links
February 4, 2010

The structures of the brain and the Internet look the same. In the brain there are neurons that link as a result of being active at the same time. This firing together creates a connection, “a wiring together“, that increases the strength of their connection. On the Internet there are servers and people that are linked in temporal interaction, sometimes as a result of being inspired and interested in the same topic, “firing together”. This short-term communication sometimes leads to a relationship increasing the strength of the connection. No neuron links with all the other neurons at the same time. No server links with all the servers at the same time, and no one interacts with all the other people at the same time. So all interaction is always local, whether in the brain, in an organization, or on the Internet. However, local here does not mean spatially local. The nodes in local interaction can be physically located in different parts of the world.
We often think of individuals as independent and self-contained. The view suggested here sees individuals as nodes of the complex networks they form when interacting with others, co-creating themselves and the reality in which they participate.
A complex system consists of a large number of agents/nodes behaving according to their own principles of local, self-organizing interaction. No one agent, or, a group of agents determines how the system as a whole behaves. Self-organization here means the agents interacting locally, following their own principles, rules and intentions, without any steering from outside that interaction. All influence takes place in the local interaction. No one agent in the brain or on the Internet, or in an organization, can be in control of the whole system and how it develops, as it develops as a global pattern.
There is control and there is development, all the time. Both control and development are emergent phenomena of local interaction. The interaction itself constrains and enables the people in the interaction. People cannot just do whatever they want in a relationship. Relationships create stability just because relationships always impose constraints. Relationships that are based on diversity and difference may enable development to take place without a plan for development. There cannot be novelty if people in a relationship are alike. Consensus leads to stagnation. What happens is a complex ongoing process of people relating to each other. This places links, or relationships, at the center of understanding life in organizations. The number of nodes comes third, if even that. The second most important thing is the diversity/quality of the nodes. The most important things are the links; the process of linking: wiring together as a result of firing together, in the brain, on the Internet, or in an organization.
One of the biggest promises of Internet-based work is the way it redefines local interaction, as Doug Griffin puts it. Global participation is possible, beyond anything we have experienced before. Mass production is giving away to short-term mass participation based on mass communication.
The human brain has more than 100 billion neurons. There are around 1.8 billion Internet users at the moment. So we are still far away from the potential of the brain when it comes to possible link combinations of local firing together. But it is high time to visit our beliefs. There can be control without somebody controlling. There can be development without a development goal and a plan as to how to reach the goal on a global level. This is how the brain works. And this is how we work!
Let’s fire together!
Thanks @venessamiemis for being the inspiration for this post. Thank you Doug Griffin for thinking together with me
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Miltä liikkeenjohtaminen näyttäisi jos se keksittäisiin tänään?
December 7, 2009

Liikkeenjohdon tematiikka, leadership/management, niin kuin me sen tunnemme tänään yritysten ja organisaatioiden maailmassa, syntyi 1800-luvun lopulla ja 1900-luvun alussa. Liikkeenjohto uutena tieteenä haki olemassa ololleen validiteetin tuon ajanjakson tieteellisestä paradigmasta. Erityisesti luonnontieteissä aika oli voimakkaasti kiinni valistuksen ajan ihanteissa ja Newtonilaisessa fysiikassa. Elettiin insinööritieteiden kulta-aikaa. Todellisuus ymmärrettiin objektiiviseksi, todeksi todennettavaksi maailmaksi havaitsijan ulkopuolella. Jos käytettiin oikeita havaitsemisvälineitä ja ajattelua, tuo, joskus hyvinkin monimutkainen maailma voitiin mallintaa ja siinä voitiin havaita rationaalisia syy- seuraussuhteita, jotka antoivat mahdollisuuden löytää oikeat tavat vaikuttaa.
Johtaja on tässä maailmassa rationaalinen toimija ja päätöksentekijä, jonka tehtävänä on tietää mitkä kausaliteettien ketjut tuovat organisaatiolle sen tavoitteleman menestyksen. Samalla tavalla kuin reduktionistinen tiede toimi, organisaatiot voitiin parhaiten ymmärtää niiden osittamisen kautta. Erilliset osat muodostivat puolestaan mekanistisen, systeemisen aktiviteettien kokonaisuuden, joka toimi johdon suunnittelemalla tavalla. Huomio johtamisessa tuli tämän ajattelutavan mukaisesti kohdistaa niihin olemassa oleviin ja tarvittaviin syy – seuraussuhteisiin, jotka toteuttavat organisaation menestyksen parhaalla mahdollisella tavalla.
Yhtä tärkeää oli motivoida mukana olevat ihmiset yhteisiin, johdon luomiin tavoitteisiin, sekä prosessien säätelemään vuorovaikutukseen. Organisaatioihanne jäljitteli konetta vaihdettavine osineen. Koneen toiminta taasen perustui tehokkaisiin input – output suhteisiin, joissa resurssit muuttuivat suoritteiksi. Työtä tekevät yksilöt olivat tässä maailmassa yksi resurssi muiden resurssien joukossa.
Organisaation rakenne ja prosessit kuvattiin tässä lähestymistavassa tavallisimmin yleistyksinä. Yleistäminen tarkoittaa, että rakenteet ja (vuorovaikutus)prosessit eivät ole tilanteesta, kontekstista, riippuvaisia, vaan yleisesti päteviä aikariippumattomalla ja tilanneriippumattomalla tavalla. Kontekstilla ei ole merkitystä. Yleistävästä ajattelusta seuraa myös, että tavallisesti voidaan löytää, usein organisaation ulkopuolelta uusi, paras tapa tehdä joku asia. Tämä uusi tapa voidaan sitten siirtää tilanteesta toiseen ilman, että historiasta tai paikasta tarvitsee välittää.
Epävarmuuden maailma
Arkikokemuksissamme korostuvat yllätykset, muutokset ja kehityskulut, joita ei ole voitu ennustaa tai joita ei ole edes suunniteltu kenenkään toimesta. Epävarmuus on elimellinen osa yritystoimintaa ja osa elämää. Epävarmuus ei liity pelkästään siihen mitä tapahtuu seuraavaksi, vaan myös siihen mitä juuri nyt tapahtuu tai hyvinkin erilaisiin tulkintoihin siitä mitä on tapahtunut. Yhteisten, ”ylempää annettujen” tavoitteiden ohella yksilöiden omat tavoitteet, omat agendat, arvot, tulkinnat ja suunnitelmat ohjaavat ennakoimattomalla tavalla sitä mitä tapahtuu. Rationaalisuuden ohella tunteet ja poliittiset päämäärät ohjaavat toimintaa ja päätöksiä. Väärinymmärrykset ja väärät tulkinnat vaikuttavat yhtä paljon kuin oikeatkin. Suunnitelmat toteutuvat hyvin harvoin juuri niin kuin oli tarkoitus tai kuten oli suunniteltu.
Johtamisen taustalla olevan rationaalisen, lineaarisen kausaliteetin ihanne on hyvin kaukana siitä arkitodellisuudesta, jonka tunnistamme. Näyttäisikö liikkeenjohtaminen erilaiselta jos se ottaisi lähtökohdaksi toimimisen epävarmuudessa ja jos sen tieteellinen maailmankuva päivittyisi tämän päivän tasolle?
Johtaminen kompleksisessa ympäristössä
Yritystoiminta on aina toisiaan tarvitsevien ihmisten vuorovaikutusta. Miltä johtaminen näyttäisi, jos lähtökohta olisi, että ihmisten välisessä vuorovaikutuksessa kausaalisuhteet ovat aina ei-lineaarisia: osittain tiedämme mitä tapahtuu seuraavaksi, osittain emme. Osittain voimme ennustaa, osittain emme. Toiminnassa on aina mukana epävarmuus, jota ei voida poistaa. Johtaja voi suunnitella mitä itse tekee seuraavaksi, mutta ei voi koskaan täysin tietää mitä muut tekevät seuraavaksi. Johtajan pyrkimykset kohtaavat kaikkien muiden, aina osittain samanlaiset, osittain erilaiset pyrkimykset. Mitä tapahtuu, on seurausta kaikista näistä toisiinsa vaikuttavista erilaisista pyrkimyksistä. Se, mikä on tulema kun erilaisten ihmisten erilaiset tulkinnat, pyrkimykset ja toiminta vaikuttavat toisiinsa on aina enemmän tai vähemmän piilossa ja epävarmaa. Kukaan yksittäinen toimija ei voi kontrolloida sitä, mitä lopulta tapahtuu, vaikka siihen voikin vaikuttaa.
Tästä seuraa että emme voi enää pitää erillään, eri vaiheina suunnittelua ja tekemistä, ajattelua ja ajattelun ”jalkautusta”. Suunnittelu ja toteutus eivät ole käsitteellisesti kaksi erillistä vaihetta ajassa, vaan saman asian kaksi puolta samanaikaisesti. Suunnitelma on suunnitelma, vain siinä määrin kuin se toteutuu. Tämä johtaa tilanteeseen, jossa suunnittelu on ehdottoman tärkeää, mutta joustavuutta vähentävät suunnitelmat eivät. Paradoksaalisesti, mitä paremmin suunnittelemme, sen paremmin voimme tarvittaessa toimia ketterästi muuttuneissa tilanteissa. Mitä paremmin osaamme ja tiedämme sen paremmin voimme improvisoida.
Koska emme voi perustaa toimiamme ja päätöksiämme täydelliseen tietämiseen, pitäisikö meidän paremmin ymmärtää miten toimimme silloin kun emme tiedä? Vaikka emme voi poistaa epävarmuutta, voimme varmuudella tietää miten toimimme, kun pyrimme elämään epävarmuudessa.
Jatkuu postissa: digitaalinen työ, tietoverkot ja johtaminen


We are used to thinking that what happens in organizations is the realization of the choices of powerful people. They are supposed to know what is going on as they make those choices. However, the stories about decision making during wartime, or during the recent financial crises, make it very clear that politicians and executives are far from sure of what has been happening and they simply 







