Organization as Flux and Transformation - …magwebber.mobi/flux_project/Organization as Flux... · Organization as Flux and Transformation file: ... The ultimate aim of such systems

Organization as Flux and Transformation

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FLUX TERMS

The Organization as Flux and Transformation

Introduction

In the beginning of his chapter on "The Unfolding Logics of Change," Morgan has usimagine a whirlpool in a river. The whirlpool appears to have its own form separatefrom the river around it, but in reality the whirlpool takes its form from thetransformative power of the flowing river. Without the flow of water in the river, thewhirlpool doesn't exist. This analogy is used to start a discussion in which Morgan offers four metaphoricalframes "for explaining how the explicit reality of organizational life is formed andtransformed by underlying processes that have an order or logic of their own." (p.242) Please use the links across the top of this page to explore the four logics of change,as well as our assessment of the impact of these concepts on needs analysispractices.

4 logics of change

AutopoiesisChaos and ComplexityMutual CausalityDialectical Change

The universe is in a constant stateof flux, embodying characteristicsof both permanence and change.

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Implicate vs. Explicate order

Autopoiesis

Egocentric organizations

Chaos theory

Attractor

Dialectical principle

Mutual causality

In a theory proposed by physicist DavidBohm, the explicate order of "our ordinarynotions of space and time, along with thoseof separately existent material particles, areabstracted as forms derived from the deeper[implicate] order." ("Implicate and ExplicateOrder according to David Bohm", Wikipedia)Bohm "views process, flux and change asfundamental," while the explicate order"realizes and expresses potentialities existingwithin the [implicate order]." (Morgan, p.242)

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Autopoiesis

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Conclusion

Autopoiesis

Autopoiesis Theory

The theory of autopoiesis was developed by two Chilean scientists, Humberto Maturana and Francisco Varela. The main principlesproposed by the theory are as follows:

All living systems are organizationally closed, autonomous systems of interaction that make reference only to themselves.They are characterized by three principle features autonomy, circularity, and self-reference which lend them the abilityto self-renew.The ultimate aim of such systems is to produce themselves; their own organization and identity is their most importantproduct.A system's interaction with its "environment" is really a reflection and part of its own organization. It interacts with itsenvironment in a way that facilitates its own self-production; its environment is really a part of itself.The boundaries of these systems are not easily defined because they are closed loops of interaction with no beginning andno end.Changes in systems do not arise as a result of external influences. They are produced by variations within the overall systemthat modify the basic mode of organization.

Autopoiesis Applied to Organizations

Autopoietic organizations tend to behave in narcissistic, egocentric ways. They are constantly trying to reinvent themselves in theirown image. The graphs and charts that an organization produces on market trends, competetive position, sales forecasts, rawmaterial availability, and so forth are really projections of the organization's own sense of identity, interests and concerns. Theyreflect its understanding of itself. Many of these organizations have a hard time dealing with the outside world because they do not recognize that they are connectedto their environment. They see themselves as discrete entities faced with the problem of surviving against the vagaries of theoutside world, which is often constructed as a domain of threat or opportunity.

Autopoiesis Example The Financial Meltdown

Many of the banks and financial institutions that failed during the subprime mortgage crisis could be said to have enacted theirenvironments as extensions of themselves. These organizations felt that they could control their environment in the same way thatthey set their own strategies and objectives. They overemphasized their own importance while underplaying the significance of thewider financial system in which they existed. They tried to sustain unrealistic identities or produce identities that ultimately destroyedimportant elements of the contexts of which they were a part.

Organizations interact withprojections of themselves.

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The Logic of Chaos and Complexity

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DialecticalChange


Conclusion

Chaos and Complexity

The Theories: Chaos and Complexity

Chaos and complexity theories can be distilled down to thefollowing statements:

Complex nonlinear systems like organizations arecharacterized by multiple systems of interaction that areboth ordered and chaotic.Because of this internal complexity, random disturbancescan produce unpredictable events and relationships thatreverberate throughout a system, creating novel patterns ofchange.Despite all of this unpredictability, coherent order alwaysemerges out of the randomness and surface chaos.If a system has a sufficient degree of internal complexity,randomness and diversity and instability become resourcesfor change. New order is a natural outcome.

The Theories Applied to Organizations

There are two primary implications of chaos and complexity theories for organizations.

1. Small, incremental changes can sometimes lead to quantum leaps of change due to the unpredictable effects of smallchanges on a complex system. This is the "butterfly effect" in action.

2. "Bifurcation points" often present themselves in "edge of chaos" situations. These "forks in the road" represent two differentpossible futures for the organization. The direction the organization takes will be influenced by "attractors", which are forcesthat either reinforce the status quo, or pull the organization into a new trajectory.

Change and Complexity Example Adoption of a Social Media Marketing Strategy

Many organizations are currently weighing their options with regard to social media, and its inclusion in their sales and marketingstrategy. Some organizations have forces at work that are slowing or preventing this adoption, while others vacillated for some timeand finally took the plunge, never to look back. Still others were "early adopters", and are now reaping the rewards of the socialmedia tidal wave that caught them up.

Coherent order always emergesout of randomness and surfacechaos.


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The Logic of Mutual Causality

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DialecticalChange


Conclusion

Mutual Causality

Mutual Causality

Managers need to think about change in terms of loops rather than lines. We need to replace the idea of mechanicalcausality - for example that A causes B - with the idea of mutual causality - the idea that A and B may mergetogether to reveal a pattern of relations that create and sustain a problem. Theoreticians have developedmethodologies for studying mutual causality and the resultant theory that many organizations engage in their owntransformation. Margorah Maruyama is one notable theoretician who focused on positive and negative feedback in shaping systemdynamics. He developed a loop analysis showing how positive feedback accounts for differentation of of complexsystems. For example, a small crack in a rock collects water which freezes and makes the crack larger, permittingmore water to collect and the crack to get bigger. This allows small organizisms to collect, a seed to grow and therock to be transformed. Maruayama argues that this explains the evolution of nature and society - they areprocesses of positive feedgack that produce changes that are out of proportion with the intital incident thatactivated them. In other words - small changes can produce large effects. On the other hand, it needs to be recognized that because the theory of mutual causality indicates that no singlefactor causes a problem, it is not possible to exert consistent control over sets of variables. Interventions need toachieve system transformation by modifying key subsystems. Maruyama's work helps to understand the dynamics ofdifferent kinds of organizational problems from a Flux point of view.

Mutual Causality Example - Price Inflation

When analyzing the causes of price inflation, linear thinking leads to linear solutions. Using Flux thinking, onewould look for a pattern of relations that create and sustain inflation. This directs attention to understandinghow the network of loops that amplify price rises can be stabilized, such as union power, interest rates,employment levels, etc, etc.

Small changes can produce largeeffects.

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The Logic of Dialectical Change

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DialecticalChange


Conclusion

Dialectical Change

Dialectical Change

Dialectical change is the study of opposites. The theory of dialectical change shows that a phenomenon implies andgenerates its opposite; for example: day and night; life and death and positive and negative. One would not existwithout the other. The dialectical view within the Flux paradigm suggests that organizations change themselves bymanifesting opposite tendencies. Potential new futures always create oppositions with the status quo. TheDialectical Principle shows examples of forms that it can take from Innovate-Avoid mistakes to Low costs-Highquality. Managers who want to enact change need to be skilled in managing the tensions that may occur due to the struggleof opposites. They need to prioritize and find ways to reframe changes so that new patterns of development unfold.An organization wishing to sustain a competitive advantage must recognize how their successess may becomeweaknesses. They must be prepared to innovate in ways that may even undermine their current success in order fornew innovations to emerge.

Dialectical Change Example - Intel's Pentium Chip

Intels' Pentium chip: Intel has become a dominant force in the microchip business because it is determined toproduce innovations that can beat its own best innovations. It tries to find ways to change the rules of itsindustry by shifting business frontiers into domains that other competitors find difficult to reach. In 1992alone, Intel produced nearly thirty new variations on its 486 chip, as well as introduced the Pentium as afoundation for the next generation of chips.

DIALECTICAL PRINCIPLE

Innovate---------------Avoid mistakes

Think long term-----Deliver results now

Cut costs-------------Increase morale

Reduce staff---------Improve teamwork

Be flexible------------Respect the rules

Collaborate----------Compete

Decentralize---------Retain control

Specialize-------------Be opportunistic

Low costs------------High quality

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Flux and Needs Analysis

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DialecticalChange


Conclusion

Flux and Needs Analysis

Flux Paradigm and Needs Analysis Concerns

The lack of specific mechanical causes for problems in a Flux-based organization may create an unwillingnessfor it to evaluate itself.The big picture is so large in a Flux organization that it may be difficult to formulate a realistic, actionableneeds assessment.Needs Analysts need to be concerned about time management because there may be a tendency for Fluxorganizations to study many causes and not make decisions on which ones to address.Because there may be a lack of clear-cut management levels, it could be difficult for an NA analyst todetermine who the decision-makers are.NA's need to nudge a Flux organization into their desired improvements by making small changes that aregeared toward final improvements.Since the Flux paradigm goes against the traditional organizational theory and structure, NA's need to tailortheir communication plan to accommodate the specific culture of the Flux organization.Flux organizations believe strongly in rules and patterns, even if they are through attractor patterns, feedbackloops, dialectical patterns or mutual causalities. The problem is that historical patterns are only 20/20 inhindsight. The Needs Analyst should help them find rules that can predict the emergence of a pattern beforeit becomes reality. This can be a daunting task!

No single factor is the cause ofthe problem.


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Conclusion

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DialecticalChange


Conclusion

Flux Conclusion

Conclusion

Change is a given in organizations as it is in life. With that in mind the Flux paradigm:

Believes change is an emergent phenomenon.Proposes that an organization should seek to find the nature and source of change to better understand itslogicAttempts to influence events that prompt change instead of just reacting to themProvides 4 explanations of relationship between implicate and explicate order of reality that share similarviews that change self-organizes and cannot be predetermined or controlled

REFERENCESImages of Organizations - Morgan

The Shackled Organization - Goldstein

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Local DiskOrganization as Flux and TransformationAutopoiesisThe Logic of Chaos and ComplexityThe Logic of Mutual CausalityThe Logic of Dialectical ChangeFlux and Needs AnalysisConclusion