chaos complexity eillc
DESCRIPTION
Discussion of how chaos and complexity theories are useful in business.TRANSCRIPT
Chaos and Complexity Applied to Business
Kathryn AlexanderStrategic LeadershipEthical Impact, LLC
© Kathryn Alexander. 2008
Applying TheoryApplying Theory
Reality is more than it seemsSeeing patterns, rhythms and cyclesSimiles and metaphorsIncreasing complexity requires better understanding
© Kathryn Alexander. 2008
Scientific ConceptsWholes
Composed of partsCan be taken apart
• Lose their essential nature
EmergenceDifferent characteristics at different levels of complexity
CognitionProcess-pattern-structureSelf-Organization
Co-CreationOpen and closed boundariesResponsive relationship
© Kathryn Alexander. 2008
In the Beginning
John Bells idea 1964Shifting the spin of a paired particle
Other shifted instantaneouslyTested in 1972Alain Aspect 1982
Non-locality, reality-as-it-isThe background/container for everything
Particle &WaveLight through a slit
• Particle OR wave• Viewer made the “decision”• Both/and = reality
© Kathryn Alexander. 2008
Emergence
Different characteristics arise out of different levels of complexity
Cognition is emergent out of complexity
© Kathryn Alexander. 2008
Emergence & Cognition
Life creates the conditions of its own existence
Primordial soup
Living is the process of cognition
Autoposis/self-making• Boundaries• Identity
© Kathryn Alexander. 2008
Self-OrganizationOpen systems
InformationResponsive relationship
• Tit for Tat = cooperation
Bringing forth the worldAutopoiesis - self-making
• Sensitivity to initial conditions
Fluid & shifting structuresForm follows functionSize - limited by information flow and structureRelationship allows for co-creation
Change/evolutionIncremental- slow, small, constant
Unnoticeable
Break-through/discontinuousDramatic and untested
© Kathryn Alexander. 2008
Co-CreationProcess-pattern-structure
People and organizationsFractals - self-similarity(cauliflower)
• Self-reference/reflection
Complexity & stability is created by:Open systems to allow forCo-Creation which existsFar from equilibrium by using
• Thin range between order and chaos (life)
Information & structure• Feedback loops create stability• Bifurcation - natural tendency to split• Dissipative structures = self-
organization (individuals, groups, ecologies)
Period doubling - exponential factor (Lily pond is 1/2 full and the next period is completely full)
© Kathryn Alexander. 2008
Creating Dynamic Wholes
Responsiveness/communication, creates collaboration
Tit for Tat
Sensitivity to initial conditions = very different results, depending upon the beginning responsesSelf organization = increasing complexity = emergence (revealing implicate order)
© Kathryn Alexander. 2008
What is a System?? - Ecologies and OrganizationsWhat is a System?? - Ecologies and Organizations
A collection of interrelated parts that come together for
a purpose, acting in responsive relationship with
one another, which then form a whole.
These relationships become more complex over time
which allows for the emergence of new behavior
and capacities.
© Kathryn Alexander. 2008
Living SystemsLiving Systems
All living systems perform the following:Choice = decision processPattern = many similar decisionsStructure = consistently replicated patterns
This is a description of self-organization
© Kathryn Alexander. 2008
A System always has an aim or purposeA System always has an aim or purpose
The role of leadership is to manage the various purposes by aligning the actions/behavior of the organization with its purpose (strategy) to meet the needs of ALL participants.
© Kathryn Alexander. 2008
Important Characteristics of Living SystemsImportant Characteristics of Living Systems
•There is always an aim or purpose
•All systems are composed of interrelated parts/processes
•The parts are composed of interrelated parts/processes
•All parts effect the whole system BUT, not independently and not all the time
•Sub-optimization; the effectiveness of a few parts are gained, but the effectiveness of the whole is sacrificed
© Kathryn Alexander. 2008
Important Characteristics of Living SystemsImportant Characteristics of Living Systems
•All living systems have boundaries
•All living systems self-organize
•Stability = “far from equilibrium” and is achieved through feedback loops
•All living systems have input(s) and out put(s), processes have a beginning and an end
•All living systems are nested (i.e they fit inside of a larger system) What is the largest system?
© Kathryn Alexander. 2008
Relationship Means:Relationship Means:
A shift from focusing on structure to focusing on process.
Form follows process.
Structures need to change as the organism adapts.
© Kathryn Alexander. 2008
Paradigm ShiftsParadigm Shifts
Changes in “reality” or understanding (discontinuous change) generate one of three responses
Discount the data Distort the data Don’t see, hear, or
remember the data
© Kathryn Alexander. 2008
A Process for Changing Beliefs:A Process for Changing Beliefs:
Understanding ofVariation
Knowledge of
a System
PROFOUND
KNOW LEDGE
DR. DEMING'SPHILOSOPHY
Psychology
Theory ofKnowledge
Systems Thinking
© Kathryn Alexander. 2008
• Has important lessons and tools for business• Reveals hidden dynamics• Is strategically relevant• Is a key leadership skill• Makes invisible connections visible
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