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
On the importance of the Tweet
February 12, 2010

Eli Whitney invented the cotton gin to replace the laborious hand cleaning of cotton in 1794. James Watt invented the steam engine in 1769 to solve the problem of pumping water out of British coal mines. Most inventions however, are not responses to voiced needs. In many cases the work of the inventors produce a solution that needs to seek a problem.This is still the case today. Inventions in search of a use are the norm when it comes to most technological breakthroughs. When Thomas Edison built his first phonograph in 1877, he suggested ten uses to which his invention would be suited. At the top of the list were preserving the last words of dying people and announcing the time of the day.
Music was not on his first list of uses. As historians write, It took twenty years for Edison to reluctantly admit that the main use of his phonograph was to record and play music.
It is almost impossible to know beforehand where the primary use for an invention is going to be in the long run. The inventor has in many cases, been totally wrong in his early assessments of where the best combination of a solution to a problem might be. Although James Watt had originally put his steam engine to work in the coalmines, the true revolution of steam power began only after steam had started to be used to propel trains and ships, which he never thought of.
James Watt did not see the future but he saw the past. Researchers claim that Watt actually got the idea for his version of the steam engine while repairing an engine designed by Thomas Newcomen, who had invented it almost sixty years earlier. Over one hundred of these had already been manufactured. Newcomen’s engine was based in turn on the patent awarded to Thomas Savary in 1689. The chain of discovery of the steam engine goes back further to Denis Papin in France, Christian Huygens in Holland and others. Similar histories can be seen in all modern inventions that are well documented.
There are very few isolated geniuses. But there are many bright people who have continued and improved the work of others. There is a need for a new vocabulary for the creative era: all capable people have capable predecessors, who should get the credit they deserve. The key concept in the knowledge-based future is acknowledgment, giving credit, beyond what we have been used to. In a sense, creative people are more remixers of other peoples’ ideas, than inventors. Technology and development are not isolated acts by great independent thinkers, but a complex storyline, where the storytellers, the developers and remixers, are more important than the heroic inventors, if there ever were any. We never know how the story develops, but it cannot develop unless it continues. The new challenge for the creative economy is to understand the importance of attribution and giving credit. The first thing is to acknowledge the vital role of the curator/messenger and the huge importance of the tweet and the retweet.
Thank you @euan @oscarberg @venessamiemis @Lessig and Jared Diamond
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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