The Top 10 Issues to Consider when Functioning in a Complex Adaptive System (CAS)

Originally Submitted on 9/13/97.

One of the most difficult aspects of managing an organization is in dealing with complexity and uncertainty. As the market ecosystem becomes even more complex and stratified, the organizational leader needs to understand non-linear system dynamics in a complex adaptive system. These issues are central to that understanding and are keys to functioning in ambiguous circumstances under conditions of market uncertainty.

1. We need to assess our current status and situational reality through our assumptions.

Take some time to create a current reality map and understand what assumptions the organization is functioning under in the present moment, not what it should be doing, but what it is doing!

2. We must view the future along a continuum of possible scenarios and implications.

From where we are to where we need to be--tomorrow. Use scenario planning techniques to discover possible futures and the assumptions required to operate in those scenarios. Forget about trying to predict the future; rather try to discover what core capabilities you will need to operationalize in order to function under these scenarios.

3. We need to understand the different effects of our actions on an organization as a CAS.

A complex adaptive system (CAS) is a different kind of cat. "When we flush a toilet, it goes somewhere..." Bucky Fuller. Examine the organization in terms of a system and then apply action and examine where in the organization that action is likely to affect the entire system of systems.

4. We need structural knowledge about how the relationships among variables influence one another.

Within the system, there will be certain types of structures. Some will be positive loops and others will be balancing, some will be negative. These structures are inherent in any system. When you turn on the water faucet, does the water come out right away, or do you have to wait awhile? If someone doesn't understand the structure they will constantly be fiddling with the water and they are likely to "burn" someone!

5. We need a reality model where the complex linkages among variables exist in a holistic system.

In discovering the reality model or cognitive maps of the organization, we often do so in isolation. Deconstructing the parts is an easy way for a human to understand and "work on" a system. However, this leads to separateness and what we need to understand is that everything is connected and not always in ways that we can observe. Our reality model of the organization needs to be whole and consider all the interrelationships that are possible rather than those that just exist in the present.

6. We must make allowances for unfinished and incorrect information and signals.

This is where you earn your money. In a complex system, not all signals are thorough. Since much of the system is transparent to most people, it is easy for problem and feedback signals to be inadequate. This can cause enormous inefficiencies and stifle innovation. The organization must have a finely tuned ear for these faint, weak and inadequate signals arising from incoherence in the system.

7. We need to track and measure effects of these complex interactions among variables.

Often, we measure processes effectively but not much of the organization is intertwined with regards to measurements until it gets to the division, or functional level. This is where the danger lies. A measurement to accounting may mean something entirely different to the production line. Throughput (contribution margin) in accounting is much different than throughput in production (physical flows per time period). It is extremely important to integrate these measures in terms of how they interrelate so the enterprise is not driven from a single perspective.

8. We need to infer or deduce developmental tendencies among the outcomes of interactions.

When we begin to use the more advanced metrics and tools such as scenario planning and balanced scorecards that integrate action, reaction, learning and adaption, we need to understand that certain tendencies will occur that provide clues to system function. In order to optimize a complex adaptive system, wewill need to understand these tendencies and interactions so that we don't get caught optimizing locally and suboptimizing totally.

9. We need to decide what we want to achieve and how we intend to go about it.

Remember that these issues are not in a hierarchy. They must all be intertwined and developed simultaneously. In other words PARALLEL LEADERSHIP. Often we will get caught up in system dynamics and forget why we came to the party! We need to have an underlying form or identity that all decisions are filtered through so that we stay on course with our identity and develop those core capabilities that will need to arise out of the functioning system. Metaphorically, we need to build a house while we are living in it, so we best have a architect around to quiz when things get a little fuzzy.

10. We need to evaluate success and feedback results to all points in the CAS.

The most obvious but most neglected. Folks, we are talking open systems here. In open systems, the job of leadership is to get the information to the right folks--in real-time. We can't "control" information and expect people to make high-quality decisions under uncertainty! Information and knowledge must be distributed in real-time and all feedback needs to be automatic so that process owners not only see their own systems but those on either side of them, as well as those that are supra-ordinate! GOOD LUCK!

---

About the Submitter

This content may be forwarded in full, with copyright, contact, and creation information intact, without specific permission, when used only in a not-for-profit context. For other uses, permission in writing from CoachVille is required. Questions: email topten@coachville.com

Please use your browser controls to close this page & return to the selection page, or click to return to Top 10 home page.