Complexity, Management and the Dynamics of Change

Our planet was not designed using command and control principles, yet they still underpin much of today's management practice. This approach is now 300 years behind the times! – Elizabeth McMillan

When I was searching for books in the theme of complexity science I stumbled upon this amazing book! As soon as I started reading it I could not stop… which is kind of rare when reading a book that is no novel or thriller.  This book is a definite recommendation. It offers a great foundation for Imagineering and other perspectives on the paradigm shift, which we have been discussing multiple times last year.

I present you:

Complexity, Management and Dynamics of Change

Challenges for practice

Author: Elizabeth McMillan

McMillan starts with a very clear introduction in which she explains the reason for writing the book and her view on the world and its organizations nowadays.

This book seeks to build a practical bridge between the world of science and the world of management. In McMillan’s opinion far too many books are based on a way of thinking that does not reflect the way the world actually works. This mindset (way of thinking) is especially unhelpful in the fast-paced globalized world of the twenty-first century. Books with those mindsets draw their materials on current best practice- and so they are only able to reflect what is already out there and happening. McMillan also states that these books have their roots in a worldview that developed over 300 years ago.

The historic timeline of organizations also provides the connecting thread throughout the book in which she explains why science became such a big deal and why control and command used to be the focus of organizations.

McMillan states ‘ So if there are few organizations out there that are truly successful when it comes to managing change, authors and managers are not left with many role models to consider and possibly emulate. Is there a danger that we may be endlessly repeating ourselves?’ You could say McMillan here states the emerging themes of Kim and Mauborgne. Blue ocean strategy for seeking new markets instead of existing, repeating markets. However, even in change, it is hard not repeating other successful companies in change.

What is in the book?

Complexity science is a new science that only emerged during the last half of the twentieth century and although it is now well accepted in the scientific community it had taken longer for it to make into the thinking and practice of other non-scientific communities, including business and management. Complexity science-derived ideas can impact upon the way you work on a daily basis and the way that organizations function and survive, and expect to function and survive.

What theme’s are in the book?

·      The outline of the historical relationship between science and organizations

·      Reviewing current perspectives on organizational change and best practice

·      Citing real-life examples of the use of complexity science ideas

·      Discussing issues, which may arise when using ideas from complexity

Keywords: Chaos theory, fractals, the butterfly effect, non-scientific, strange attractors, the edge of chaos, change models, single loop- double loop, self-organizing

Chapters:

·          The Clockwork manager

·          Complexity science

·          Change and the dynamics of change

·          Complexity in practice

·          Complexity in action: a case study of the open university

·          Self-organizing change dynamics

·          Essential principles

·          New perspectives, opportunities for innovation

The content:

McMillan is taking us to the historic Newtonian-Cartesian view of the world in which some organizations are still stuck, although they sometimes believe they are not. Too many managers and writers on management are still influenced by old ways of thinking. These ways of thinking are essentially laboratory based and while very useful for the hard sciences and the creation of new technologies, they are extremely unhelpful for dealing with the real, very volatile world of people and organizations that exists ‘outside the lab’.

Change is the underlying essence of life…

Sometimes we may thing that the world is a stable place but that is because we are not observing the implicate order, only the explicate order. The planet is, in fact, in a state of permanent change.  If we would think like Chinese and Greek philosophers then we would appreciate that nothing is fixed, nothing exist forever in a permanent state of being. Paradoxically, the only permanent thing in the universe is change.

We are human ‘becomings’ rather than human ‘beings’…

Doing things differently and introducing change, using complexity based principles. McMillan also provides the reader with a lot of extra interesting articles and books to read.  (See extra information).

Companies like Oticon, SEMCO, Sears, 3M, St. Luke’s and many other organizations are presented in the book.

How to change?

A manager considering change from a complexity standpoint will realize that it is pointless to attempt to control all the key variables in a given situation and will instead focus on what it is possible to know and understand. You will need to reflect ultimately on how they may best engage with the human dynamics of the organization and all their many complexities and nuances.

The practical side of complexity theory is also discussed in the last part of the book. Models that were used, workshops, frustrations of involved people and much more very insightful information are explained. It provides you with ideas, models and very use full information to analyze you own organization. It helps u to get to the ‘structured spontaneity’.

McMillan ends the book with very useful insights on leadership, Human Resource Management, innovation and the future of organizations.

Review: this book is very closely related to the Imagineering perspective. It covers the paradigm shift, chaos theory, leadership and self-organizing systems.

Pro: the book is an easy reader and is especially great if you need a basis for your organization to understand the dynamics of change.

Book reviewer Clint Witchalls wrote the following about this book; the problem with complexity science is that it spans a number of fields, including chaos theory, fractals, strange attractors and emergence. The mathematics is often abstruse, although, to McMillan’s credit, she gets these difficult ideas across without resorting to a single equation. But her advice to ‘practitioners’ is complexity-lite and often vague.

Con: I agree with this review of Clint and I think you should read this book to have your story complete and clear. For methods and theories that will help you further with the actual transformation within an organization or city you need to read extra books that match your situation and organization. Of course there is no holy grail on organizations and the world. Many other writers have other views and theories, which also need to be taken into account.

Remark: I was able to explain the book to my grandmother on the contrary had difficulties putting it into 1000 words. I am convinced this is partly because I am excited about the book, but mainly because Elizabeth writes to us in non-scientific words which makes it a lot easier to understand the complexity of the world and her organizations. Service-dominant logic has Vargo and Lusch, complexity theory has Elizabeth McMillan!

Speaking of the butterfly effect and self-organizing systems. http://www.youtube.com/watch?v=41QKeKQ2O3E&feature=related

Enjoy,


Carlijn

References:

•    McMillan, E. 2008. Complexity, Management and the Dynamics of Change.
•    Book review: Can science save the day? By Clint Witchalls: http://www.spectator.co.uk/books.
• Extra
•  http://www.elizabethmcmillan.co.uk/
• Article: Allen, P.M. (2001) ‘ a complex systems approach to learning in adaptive networks’.
•  Knowles, R.N. (2002) The leadership dance: Pathways to Extraordinary organizational effectiveness.
• McMillan, E. (2004) Complexity, Organizations and Change.

Business Model Generation -

Business Model Generation describes how to use a business model as a tool instead of a theory. The five main sections guide you through the business model know-how. This book is a practical book, plug and play. If you just start reading, even if you never heard before about business models, you will have some sort of understanding about business models. The build up of the sections and the use of popular examples accomplish this.

First chapter explains the Business model canvas. The canvas is used to explain all factors in the business model that makes it a success. Indeed after a good understanding you will be able to talk about business model much easier. A shared language therefore is the main goal of this chapter. The definition of a business model in this book is: A Business model describes the rationale of how an organization creates, delivers, and captures value.

Starting to read this chapter you will notice that some of the blocks and explanations are not SD-logic based, like the following definition; “The Value Propositions building blocks describes the bundle of products and services that create value for a specific customer segment” (p.22.). On the other hand they already talk about co-creation in this first chapter and that is for an Imagineer a comfortable landmark.

The first chapter is closed with an example of the business model of Apple. Off course a well-known example, in this case a good way to explain it even more.

Chapter Patterns is interesting. They describe 5 different types of business models. Now you really get a feeling about the importance of understanding and talking about business models. Unbundled models, Long tail, Multi-sided platforms, Free as a business model, and Open Business models. Especially the last three models are in the Imagineering way of thinking. It is not all new, but you will have some “aha” moments. It will be a tool to explain your principal how to earn money with an Imagineering based business model.

The design chapter can be amazing for people that never have been in touch with creative techniques. For imagineers I believe it is nothing very new and complementary. They describe Story telling, Scenarios, Visual thinking, Customer insights, and Ideation. Main principle of this chapter is that business model generation is about designing. “Business people need to become designers.” Especially in the thesis phase of our master, you need to remind yourself once in a time about this principle. You need to take in account lots of different factors. In my opinion the emotional and the “fingerspitzengefuhl” is also very important and is one of the ingredients of a designer. In the book they describe that we need some tools for making a design attitude possible. I that sense I agree that it can be useful for non-creative people and to evoke positive and creative thinking.

Strategy gives you the opportunity to place your business model into the real world and context. Now you can exam and review your business model. In this section they describe the Blue Ocean Strategy and mention the ambidextrous organization. In my opinion this section is a bit obvious material, not really in line with the rest of the book.

It becomes more logical starting with the last chapter Process. They provide you with a good described model / process to design a business model. The five phases are; Mobilize, Understand, Design, Implement, and Manage. Each phase is described and complete with the recommended techniques you can use. If you read this through you will see it is very common with the Imagineering Roadmap. Mobileze; assabeling a Mars-team, Understand is Inspiration researching the environment and understand your clients, and so on.

Conclusion

I will use this book in my application company for two reasons. One is that it gives me a sort of guide together with the Imagineering Roadmap to lead the process to a new and sustainable business model. Second reason is that it is a highly visual and nice designed book. The book is very attractive to graph and go true for the people in my application company. It will give them a feeling with business models.

On the other hand, it is for imagineers not very new and complementary. The theories are not new and even sometimes based on GD-Logic. The description of the modern business models are useful to get an extra feeling with them.

Should you read it? Not necessarily. Are you working with business models or designing one, yes you should. But the theory is not that refreshing and deep.

Should you buy it? Yes, it is a very nice book to show and read. It is well designed and a piece of art on itself. If you receive the book at home, you will have a good feeling. The feeling of the quality of the cover and the paper and the satisfying feeling that you have the book and be member of Osterwalder, the business model Guru!

http://www.businessmodelgeneration.com/

http://www.businessmodelalchemist.com/

http://alexosterwalder.com/

http://ch.linkedin.com/in/osterwalder

Book review 'Our iceberg is melting'

Our iceberg is melting

Our Iceberg Is Melting is a fable about a colony of 268 penguins facing a dilemma. At first sight it seems a simple story, the use of cartoons enhances this feeling. After reading and re-reading you’ll explore the story under the surface. This book contains within the story and characters a powerful message about the fear of change. The latter in combination with a process how to motivate people to face the future and take action.


let’s meet the key playersThe main characters are: Fred, Alice, Louis, Buddy & NoNo. Fred loves knowledge, he a strong observer. Louis is the head of the colony, Alice is member of the leadership team & specialized in communication, Buddy is one of the young inspiring penguins; he is able to built bridges between the different groups within the colony. NoNo he is a senior member of the colony and weather forecaster. His standard reaction is: NO.
Meet the virtual actors at www.ouricebergismelting.com

The story in a nutshell
Fred experienced on an adventurous trips that the iceberg, they live on, shows certain crackers. What to do with this information?
Fred is not part of the leadership team and doubts …who & how to contact. He is convinced that the habitat of his colony is in danger. Fred decides to contact Alice and tells her about his findings. Alice informs the leadership team and invites them to join Fred on a trip to check the situation themselves. The members are not interested in this; they are too busy with their daily routine.
Alice is looking for alternatives (how to address the topic) she is successful in asking Louis, to invite Fred for their next meeting.
Fred presents his findings via a new & unexpected idea: the model of the iceberg.
Fred puts the model in place at the meeting venue, the evening before. When is arriving the next day all board members are standing around the model and talking. After Fred’s presentation there is a great silence.
NoNo ‘breaks the ice’ with his first reaction: a madly of creative options to say NO. Fred is getting insecure, Alice shows him to stay calm. Alice wants to set up a general meeting, this idea scares the other team members. Fred is offering a test idea. Fred explains his plan and get’s a go.
An exploring team is created, the first expedition can begin, experiences & insights are shared afterwards. An old cultural standard has been changed in a creative way by the children. By doing so new options are available now to find solutions for a challenging future.

Set up of the book
The fable is presented in 115 pages. Kotter invites to reflect on the story and the process. An overview follows of the most remarkable changes & a more in-depth view on the role of thinking & feeling.

The roots of the bookKotter wrote the book ‘Leading Change’ (1996) and won an award for being the best selling manager’s book. Kotter designed his famous 8 steps for change. Six years later Kotter wrote ‘a new chapter’ with Dan Cohen: The heart of change. Their most important insight where:
•people are less temped to change themselves and others based on facts & analysis, they prefer inspiring experiences;
•the speed of change is getting faster and faster & 90% of the companies have a tendency to ignore the relevance of change;
•the way of handling change becomes an important competence for more people than only the top management;
•middle and lower management had hardly no knowledge about how to react on & handle with change;
•the need of urgency should be addressed more powerful.

In that time Kotter met Rathgeber, together they designed a training model based on a penguin colony.The next step was the book: Our iceberg is melting.
The aim of this book was to change behavior, based on the power of a good story.
Good narratives can inspire big groups of different people to come into action.
In my humble opinion there is an interesting parallel between step 1 (create a sense of urgency) and the policy the authors used to promote their fable...

Online support
the book is only one tool in the Kotter change management tool box. His company also offers workshops and online tools like websites: www.ouricebergismelting.com ; www.theheartofchange.com and www.johnkotter.com
Online you can meet Mr. Kotter via a selection of video clips in which he presents his books and explains his theories.
These tools are also easy to use for the more mobile living & working members of the 21st century.



Mr. John P. Kotter …
•Emeritus at the Harvard Business School
•A graduate of MIT & Harvard
•Cofounder of Kotter International www.kotterinternational.com

The connection with my application company
I used the 8 steps guideline to reflect my active knowledge and my task at the application company.
I use the content in two ways: What is happening at my application company & what is happening in the field.
o basic: more insight information about change, the need & the process
o I created a MARS team
o communicate, communicate: I’m part if the online communication group
o empower broad based action: My task is to set up a Community of Practice
o generate short term wins: I wrote a tourism vision & I’m part of the event Day of the Dike

In general
o I think it is of great value that both individuals and groups can learn from the fable.
o Even when you are not part of an obvious change management process, the content prepares you for the future.
o The Dutch edition is easy to as a starting point for a creative session about change and/or change leaders.

Book details
Our Iceberg is Melting, Kotter, John & Rathgeber, Holger, (2005) publisher St. Martins Press, New York; translationin Dutch 2007 7th edition, publisher Business Contact www.businesscontact.nl - ISBN 978-90-470-0092-1

Give yourself a break and read this book !
Wilma Lankhorst