Presentation for Anglia Ruskin University 3rd year undergraduates, on the slightly left field concept of complexity theory, and concepts like the 'edge of chaos' and 'emergence' to management thought. October, 2010 - Cambridge, UK Blog: www.olympicresearcher.wordpress.com Academic profile: http://www.anglia.ac.uk/ruskin/en/home/faculties/aibs/staff_profiles/all_staff/michael_duignan.html

1. By Michael Duignan, Anglia Ruskin University
Cambridge, UK
October, 2010

2. Aim of today‟s seminar:
Ensure everyone understands some of the key
concepts of complexity brings to the management
Understand how it relates to business organisations

3. Today‟s Seminar
1st Half of the seminar:
Quick Overview of yesterday’s lecture
Run through some of the key concepts of complexity
Introduce the ‘edge of chaos’ to innovation
2nd half of the seminar:
Debate Time: For and Against Complexity
Reflection:
What can everyone take from the lecture and seminar

4. - Discussed pre-19th Century Management
- The effects of the ‘Industrial Revolution’ on business
- Post-19th Century Management
- The change of management paradigms - Scientific  Behavioral
Quick overview – Yesterday’s Lecture

5. - The need for innovation in the 21st Century
- The role of ‘complexity’ to management
- Chaos Theory and the power of ‘Emergence’
- ‘Skunk works’ and ‘Intrapreneurs’ in the hybrid organisation
Quick overview – Yesterday’s Lecture

6. • Chaos Theory – small things have BIG effects
• Emergence – Collaboration of people creates magic
• „Skunk works‟ and „Intrapreneurs‟ – the benefits they bring
• The „Hybrid Organisation‟ – Relationship of Structure and
Innovation

7. - Complexity believes that all organisations are living systems
- All organisations ‘learn’ and adapt to their environment
** Survival of the fittest **
** Natural Selection **
- If they don‟t adapt…they risk extinction
- and business failure -

8. Life is caught on the tension of „order‟ and „chaos‟
Too much „order‟ – companies become:
- Institutionlised with rules and regulations
- Unable to quickly respond to the changing environment
- Unable to innovate and be creative
(M+S Sign) – Explain how a stagnant culture developed in M+S

9. Life is caught on the tension of „order‟ and „chaos‟
Too much „chaos‟ – companies become:
- The organisation runs around like a headless chicken
- No idea’s last long enough to be effective
- Lack stable relationships and social patterns of interaction
Find an example of a company ‘chaotic’

10. Between ‘order’ and ‘chaos’ lies the – „edge of chaos‟
- The point where there is enough chaos for ‘novelty’
- BUT also enough order for consistency and patterns to emerge
- When confronted with unpredictable and volatile external
pressures find themselves on the ‘edge of chaos’

11. Many do not realise that „the edge of chaos‟ is where the greatest
potential for success and innovation lies
***CREDIT CRUNCH***
“An economic event that shook business worldwide”
– CEO Vodafone, Vitorrio Colaso
-A skin or swim business scenario
- Many firms were on the „edge of chaos‟ – innovating their way
through the Crunch
- Companies prospered, many didn‟t – „Survival of the fittest‟

12. Through much research (Stacey et al) success on the edge of chaos
is down to the culture / structure of an organisation:
- Introducing simple rules promote „Spontaneous emergence‟
-„Softer‟, emotionally intelligent management/leadership style
(For example: McGregor's Theory Y Manager)
-Allow for the a „hybrid organisation‟
-– „Skunk works‟ working harmoniously with structured support

13. Are we approaching the „new era‟ of management?
Do you still feel confident of using Drucker management etc
for today‟s business?
How far can we say managers need to more adept in a
changing global environment?
Is there a set way managers can manage in the 21st Century?
Is our environment more stable than complexity suggests?