Chaos Complexity Eillc

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


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


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


Emergence

Different characteristics arise out of different levels of complexity

Cognition is emergent out of complexity


Emergence & Cognition

Life creates the conditions of its own existence

Primordial soup

Living is the process of cognition

Autoposis/self-making• Boundaries• Identity


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


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)


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)


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.


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


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.


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


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?


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.


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


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


• 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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Chaos Complexity Eillc