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Seeing through Complexity
Emiliano Soldi
https://www.EmilianoSoldi.it
@AgileTriathlete #AgileTalks
February 23rd 2021
In 1941 U.S. was preparing to enter World War II
Two new
technologies
appeared to offer
crucial advantage
to the U.S. Navy
since its
entrance into
the conflict
By
USN
-
U.S.
Navy
Naval
Aviation
News
March
1946
[1],
Public
Domain,
By
George
Shuklin
-
Own
work,
CC
BY-SA
1.0,
RADAR VHF RADIO
These two new technologies had the potential to allow
senior naval officers to rapidly develop situational
awareness and adaptiveness in combat situations and
coordinate the ships with unprecedent focus and clarity
The radar gave the
remarkable ability to detect
approaching ships and
planes quite in advance
respect to the past
VHF radio (very high
frequency) allowed to
communicate between ships
in real-time and without
giving their position away
Rather than unlocking new transformational
capabilities the two technologies made things worse
• Allied forces invaded the island of Guadalcanal in August 1942.
Since from the start the new technologies illustrated flaws in their usage
• Radar signals reflected off nearby islands made it challenging
to separate enemy ships from background echoes
• Radars allowed to track potential targets closely or to continue
broader scanning; both could not be pursued contemporarily
• VHF radio added confusion: captains reported radar contacts each other.
Radio circuits became so busy that vital orders were delayed or lost
Battle fields were inundated with unprecedent
levels of un-correlated information…
• Admiral Chester W. Nimitz was appointed by president Roosvelt
as Pacific Fleet Lead
• Nimitz was recognized as one of the most inclined US Navy
leaders in fostering the initiative of his subordinates over
command and control
• He speculated that new structures were needed aboard
each ship to process information more effectively
• He did not mandate any orders.
He indeed formulated a compelling and clear vision:
“Maximum combat efficiency by any ships and task organizations, can be
attained through full utilization of available sources of combat intelligence.
In this, Radar and VHF radio shall be used to the best effectiveness.”
• While not specifying anything regarding how to do it.
Admiral
Chester
W.
Nimitz
Each ship self-organized and made several parallel experiments
✓ A co-located multi-disciplinary team of specialist was formed
✓ Each CIC maintained a master plot of all available information,
to be evaluated to quickly make sense of it
✓ That open information allowed captains to better interpret
the situation at hand, letting them confident to experiment
✓ CIC went far beyond an information system, becoming
a system of distributed cognition
Combat Information
Center (CIC)
emerged from
experimentation,
self-organization and
close collaboration
How can we
navigate
Complexity?
Complex systems are open ones; whenever
we interact with them, we become part of the
system, directly or indirectly influencing it
Complex problems are such
that when we look at them,
when we talk with them,
when we engage with them,
they change.
They change non-linearly and
sometimes even
disproportionately.
John Rendon
First, we need to understand Complex Systems
Several (not countable) interacting components
Components behave and communicate autonomously
Interactions are nonlinear: minor changes can produce
disproportionately major consequences
The system is dynamic; solutions can’t be imposed;
they arise from the circumstances
The system has a history, a memory;
past and present are integrated
Hindsight does not lead to foresight because external
conditions and related systems constantly change
E
A
B
I
D
Attactors i.e. the forces that stimulate the patterns of behavior
Boundaries that hold the context (i.e time, space, policy, rules, roles, stc,)
Identities i.e. the actors in the situation and the relationships between them
Dissonance i.e. diversity and conflict that can unleash creativity and energy
Environmental i.e. the context physical or virtual in which the issue is located
Attributes of Complex Systems
Attactors
The forces that
stimulate the
patterns of behavior
Attractors help to gain
momentum, they provide
structure and coherence
Telling a compelling vision of how to
move towards organization’s goals create
momentum and catalyze energy
(attractor) and define containing “bounds”
where people can activate (boundary)
Storytelling as a “tool” to attract energies and define boundaries
Metaphors create alignment, synthesize accepted knowledge
Being aware of usage of metaphors in an organization helps to sense
and recognize patterns, inclinations, disposition of that complex system
On Metaphors
“Reality is mediated by the language we use to describe it,
the metaphors we use shape the world, and our interactions to it”
Sonja Foss
Complex systems change continuously
They have a history, a memory, that co-determines present behavior
While complex systems are inherently unpredictable and non-causal,
they have dispositional states that predispose them towards certain behaviors
If we understand these dispositions,
it would be less difficult to influence them
The Agile Leaders Superpowers
Developing enhanced hearing
to allow Adaptive Decision Making
Leaders have to understand the context they are in…
Too often, managers rely on usual leadership approaches
that worked well in one set of circumstances,
which fall short in other ones
Human beings wrongly assume that a certain level
of predictability always exists in the world;
this leads to simplifications and assumptions
that are only useful in ordered systems
Not in complex ones
The lens of
Cynefin
framework
help us to sense
the context we are
in, accelerating
and improving
decision-making
process
Characteristics
• Repeating Patters and
consistent events
• Clear cause-and-effect
relationships evident to
everyone; right answer exists
• Known Knowns
• Fact-based Management
Leader's Job
✓ Sense, Categorize, Respond
✓ Ensure that proper processes
are in place
✓ Delegate
✓ User best practices
✓ Clear and direct communication
Loan payment processing are often
simple contexts
Cynefin Framework
Clear Domain Complicated Domain
Characteristics
• Expert diagnosis required
• Cause-and-effect relationship
discoverable but not
immediately apparent to
everyone
• More than one right answer
• Known Unknowns
• Fact-based management
Leader's Job
✓ Sense, analyze, respond
✓ Create panels of experts
✓ Listen to conflicting advice
Searching for oil or mineral deposits is a
good example of complicated domain
Characteristics
• Flux and unpredictability
• No right answers; emergent
instructive patterns
• Unknown unknowns
• Many competing ideas
• A need for creating and
innovative approaches
• Pattern-based leadership
Leader's Job
✓ Probe, sense, respond
✓ Create environments and
experiments that allow patterns
to emerge
✓ Increase interactions and
communication
✓ Facilitate ideas generation
✓ Open Up discussions, set
boundaries, encourage dissent
The rainforest is an example of complex context
Cynefin Framework
Complex Domain Shifting from Complicated to Complex
https://www.youtube.com/watch?v=egWvQuT5TCU
In the film Apollo 13 the astronauts encounter a crisis
that suddenly moves the situation into a complex domain.
A group of experts is put in a room with a mishmash
of materials—bits of plastic and odds and ends that mirror
the resources available to the astronauts in flight.
"Houston, we Have a Problem”
Characteristics
• High turbulence
• No clear cause-and-effect
relationships
• Unknowable
• Many decisions to make and no
time to think
• High tension
• Pattern-based leadership
Leader's Job
✓ Act, sense, respond
✓ Look for what works instead of
seeking right answers
✓ Take immediate action to re-
establish order (command-and-
control)
✓ Provide clear, direct
communication
Cynefin Framework
Chaotic Domain September 11th 2001 Attacks
The events of September 11 were not
immediately comprehensible; the crisis
demanded decisive action.
New York’s mayor at the time, Rudy Giuliani,
demonstrated exceptional effectiveness under
chaotic conditions by issuing directives and
taking action to reestablish order.
However, in his role as mayor—certainly one
of the most complex jobs in the world—he
was widely criticized for maintaining the same
top-down leadership style, that proved so
enormously effective during the catastrophe,
even after it was ended.
Acquire x-ray view
thanks to iterative experimenting
Probes
“Put" probes into the system
to measure and learn how the it reacts
Probles help to understand how systems are oriented and
disposed to "move" in a certain direction,
Probes are small experiments
and, moreover, safe ones
Safe means that if we fail - and
in complexity the percentage of
failure is very high - we can
afford it, without compromising
the whole development activity
SAFE-TO-FAIL EXPERIMENTS
Lean Change Management (LCM) is the Lean-
Agile way of introducing change in organizations
It is rooted on Lean Startup approach and
diversify itself from standard change
management approaches by totally embracing
agile and lean values and principles
A reliable framework for driving experimentation…
Candidate experiments
(Options) shall be assessed
against a Cost/Value matrix
✓ Prepare: First, It is necessary to clarify what piece of
learning is needed and plan the experiment accordingly
✓ Introduce: the experiment (probe) is introduced and
executed in the reference context
✓ Review: results are inspected, insights are extracted
and will feed the next outer cycle
1.
2.
…down to execution
3.
4.
Improving tactile sense
thanks to Continuous Learning
The author tells the story of a lily plant and its characteristic of doubling the number of leaves each day.
If, during summer, you passed by the side of a lake that hosts it, you would not notice that the single leaf
of the previous day is today in company of its twin; just as it would be difficult to notice the incremental
duplications during the upcoming days.
You would certainly start noticing the phenomena, with surprise, when the surface of the lake to be
occupied is a quarter of its total size, and that happened in just one night.
For many events in the business, that a-Ah moment would be too late already; in just three days the
surface of the lake would be completely invaded by the plant.
Capturing Weak Signals
Today, more than in any other
moments we lived, being able to
perceive, understand and interpret
the weak market signals, makes a
substantial difference for thriving
(and in some case surviving)
Organizations need to further
develop their external and
internal sensors, to collect and
spread timely, continuous and
punctual information
When was the last time your team talked to actual end-user?
Organizations need to create habits
for systematically collect insights
from the field. People need to meet,
share and discuss to discover
any emerging patterns, from their
first appearance
COPs
Retrospectives
Lean Coffee
World Café Open Space
Reviews
Collective intelligence process to interpret weak signals and early warnings
Weak Signal:
✓ Fragmented
✓ Uncertain reliability
✓ Unpredictable
✓ Apparently no utility
✓ Unusual, singular
✓ Submerged
Open-Adaptive Strategy to develop
hyper flexible muscles
Strategy, traditionally, was always
formulated at the top, communicated to the
whole company, then executed by employees
Top-down. Simple, linear, straightforward.
Clear boundaries between the ones who
design and those who execute. Isn't it?
Today, traditional way of defining
and executing strategy,
does not work anymore
Open Strategy means
to involve employees who
know the customer,
the business and the
belonging organization,
in strategy formulation
Open Strategy
DESIGN
THINKING
SCRUM
DESIGN
TEAM 1
TOP
LEADERSHIP
COMPANY CLIENTS & USERS
DESIGN
TEAM 2
DESIGN
TEAM 3
CANDIDATE
STRATEGIC
INITIATIVES
MIXED APPROACH
Small cross-functional
Teams use Design Thinking
and Agile approaches to
gather information, inspect,
ideate, prototype and
socialize possible solutions
Design Teams interview
customers and company
to gather information,
inspect, ideate,
prototype and socialize
possible solutions
Design Teams consolidate
tested ideas as a portfolio
of candidate initiatives to
be analyzed by the top
leadership
Top Leadership analyzes and
prioritizes initiatives according
to company strategic objectives
AGILE
TEAMS
Agile Teams
implements strategic
initiatives iteratively
and incrementally
Illustrative
Adaptive Strategy is an
approach characterized by
adaptive planning, iterative
and incremental adoption
and development
It is strongly based on
continuous improvement
and rapid and flexible
response to change
Adaptive Strategy
Agile companies depict high level strategy by decomposing it
in strategic themes, connected initiatives, expressed through OKRs
which drive execution, measurement of results and feedback
Strategic
Themes
Corporation
Theme’s
Initiatives
Agile Teams
Strategy
Backlog
OKRs
Strategy
& Objectives
Feedback
Feedback
✓ Sense the context
✓ Frame the challenge
✓ Establish the minimal enabling constraints
✓ Encourage parallel experimentation
✓ Set short and nested feedback loop
✓ Inspect the results
✓ Search for any possible patterns
✓ Exploit the best-fitting solution that emerges
Seeing through Complexity
Thank You!
Emiliano Soldi
https://www.EmilianoSoldi.it
@AgileTriathlete

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Seeing through complexity

  • 1. Seeing through Complexity Emiliano Soldi https://www.EmilianoSoldi.it @AgileTriathlete #AgileTalks February 23rd 2021
  • 2. In 1941 U.S. was preparing to enter World War II Two new technologies appeared to offer crucial advantage to the U.S. Navy since its entrance into the conflict By USN - U.S. Navy Naval Aviation News March 1946 [1], Public Domain, By George Shuklin - Own work, CC BY-SA 1.0, RADAR VHF RADIO These two new technologies had the potential to allow senior naval officers to rapidly develop situational awareness and adaptiveness in combat situations and coordinate the ships with unprecedent focus and clarity The radar gave the remarkable ability to detect approaching ships and planes quite in advance respect to the past VHF radio (very high frequency) allowed to communicate between ships in real-time and without giving their position away
  • 3. Rather than unlocking new transformational capabilities the two technologies made things worse • Allied forces invaded the island of Guadalcanal in August 1942. Since from the start the new technologies illustrated flaws in their usage • Radar signals reflected off nearby islands made it challenging to separate enemy ships from background echoes • Radars allowed to track potential targets closely or to continue broader scanning; both could not be pursued contemporarily • VHF radio added confusion: captains reported radar contacts each other. Radio circuits became so busy that vital orders were delayed or lost
  • 4. Battle fields were inundated with unprecedent levels of un-correlated information… • Admiral Chester W. Nimitz was appointed by president Roosvelt as Pacific Fleet Lead • Nimitz was recognized as one of the most inclined US Navy leaders in fostering the initiative of his subordinates over command and control • He speculated that new structures were needed aboard each ship to process information more effectively • He did not mandate any orders. He indeed formulated a compelling and clear vision: “Maximum combat efficiency by any ships and task organizations, can be attained through full utilization of available sources of combat intelligence. In this, Radar and VHF radio shall be used to the best effectiveness.” • While not specifying anything regarding how to do it. Admiral Chester W. Nimitz
  • 5. Each ship self-organized and made several parallel experiments ✓ A co-located multi-disciplinary team of specialist was formed ✓ Each CIC maintained a master plot of all available information, to be evaluated to quickly make sense of it ✓ That open information allowed captains to better interpret the situation at hand, letting them confident to experiment ✓ CIC went far beyond an information system, becoming a system of distributed cognition Combat Information Center (CIC) emerged from experimentation, self-organization and close collaboration
  • 7. Complex systems are open ones; whenever we interact with them, we become part of the system, directly or indirectly influencing it Complex problems are such that when we look at them, when we talk with them, when we engage with them, they change. They change non-linearly and sometimes even disproportionately. John Rendon
  • 8. First, we need to understand Complex Systems Several (not countable) interacting components Components behave and communicate autonomously Interactions are nonlinear: minor changes can produce disproportionately major consequences The system is dynamic; solutions can’t be imposed; they arise from the circumstances The system has a history, a memory; past and present are integrated Hindsight does not lead to foresight because external conditions and related systems constantly change
  • 9. E A B I D Attactors i.e. the forces that stimulate the patterns of behavior Boundaries that hold the context (i.e time, space, policy, rules, roles, stc,) Identities i.e. the actors in the situation and the relationships between them Dissonance i.e. diversity and conflict that can unleash creativity and energy Environmental i.e. the context physical or virtual in which the issue is located Attributes of Complex Systems
  • 10. Attactors The forces that stimulate the patterns of behavior Attractors help to gain momentum, they provide structure and coherence
  • 11. Telling a compelling vision of how to move towards organization’s goals create momentum and catalyze energy (attractor) and define containing “bounds” where people can activate (boundary) Storytelling as a “tool” to attract energies and define boundaries
  • 12. Metaphors create alignment, synthesize accepted knowledge Being aware of usage of metaphors in an organization helps to sense and recognize patterns, inclinations, disposition of that complex system On Metaphors “Reality is mediated by the language we use to describe it, the metaphors we use shape the world, and our interactions to it” Sonja Foss
  • 13. Complex systems change continuously They have a history, a memory, that co-determines present behavior While complex systems are inherently unpredictable and non-causal, they have dispositional states that predispose them towards certain behaviors If we understand these dispositions, it would be less difficult to influence them
  • 14. The Agile Leaders Superpowers
  • 15. Developing enhanced hearing to allow Adaptive Decision Making
  • 16. Leaders have to understand the context they are in… Too often, managers rely on usual leadership approaches that worked well in one set of circumstances, which fall short in other ones Human beings wrongly assume that a certain level of predictability always exists in the world; this leads to simplifications and assumptions that are only useful in ordered systems Not in complex ones
  • 17. The lens of Cynefin framework help us to sense the context we are in, accelerating and improving decision-making process
  • 18. Characteristics • Repeating Patters and consistent events • Clear cause-and-effect relationships evident to everyone; right answer exists • Known Knowns • Fact-based Management Leader's Job ✓ Sense, Categorize, Respond ✓ Ensure that proper processes are in place ✓ Delegate ✓ User best practices ✓ Clear and direct communication Loan payment processing are often simple contexts Cynefin Framework Clear Domain Complicated Domain Characteristics • Expert diagnosis required • Cause-and-effect relationship discoverable but not immediately apparent to everyone • More than one right answer • Known Unknowns • Fact-based management Leader's Job ✓ Sense, analyze, respond ✓ Create panels of experts ✓ Listen to conflicting advice Searching for oil or mineral deposits is a good example of complicated domain
  • 19. Characteristics • Flux and unpredictability • No right answers; emergent instructive patterns • Unknown unknowns • Many competing ideas • A need for creating and innovative approaches • Pattern-based leadership Leader's Job ✓ Probe, sense, respond ✓ Create environments and experiments that allow patterns to emerge ✓ Increase interactions and communication ✓ Facilitate ideas generation ✓ Open Up discussions, set boundaries, encourage dissent The rainforest is an example of complex context Cynefin Framework Complex Domain Shifting from Complicated to Complex https://www.youtube.com/watch?v=egWvQuT5TCU In the film Apollo 13 the astronauts encounter a crisis that suddenly moves the situation into a complex domain. A group of experts is put in a room with a mishmash of materials—bits of plastic and odds and ends that mirror the resources available to the astronauts in flight. "Houston, we Have a Problem”
  • 20. Characteristics • High turbulence • No clear cause-and-effect relationships • Unknowable • Many decisions to make and no time to think • High tension • Pattern-based leadership Leader's Job ✓ Act, sense, respond ✓ Look for what works instead of seeking right answers ✓ Take immediate action to re- establish order (command-and- control) ✓ Provide clear, direct communication Cynefin Framework Chaotic Domain September 11th 2001 Attacks The events of September 11 were not immediately comprehensible; the crisis demanded decisive action. New York’s mayor at the time, Rudy Giuliani, demonstrated exceptional effectiveness under chaotic conditions by issuing directives and taking action to reestablish order. However, in his role as mayor—certainly one of the most complex jobs in the world—he was widely criticized for maintaining the same top-down leadership style, that proved so enormously effective during the catastrophe, even after it was ended.
  • 21. Acquire x-ray view thanks to iterative experimenting
  • 22. Probes “Put" probes into the system to measure and learn how the it reacts Probles help to understand how systems are oriented and disposed to "move" in a certain direction, Probes are small experiments and, moreover, safe ones Safe means that if we fail - and in complexity the percentage of failure is very high - we can afford it, without compromising the whole development activity
  • 24. Lean Change Management (LCM) is the Lean- Agile way of introducing change in organizations It is rooted on Lean Startup approach and diversify itself from standard change management approaches by totally embracing agile and lean values and principles A reliable framework for driving experimentation…
  • 25. Candidate experiments (Options) shall be assessed against a Cost/Value matrix ✓ Prepare: First, It is necessary to clarify what piece of learning is needed and plan the experiment accordingly ✓ Introduce: the experiment (probe) is introduced and executed in the reference context ✓ Review: results are inspected, insights are extracted and will feed the next outer cycle 1. 2. …down to execution 3. 4.
  • 26. Improving tactile sense thanks to Continuous Learning
  • 27. The author tells the story of a lily plant and its characteristic of doubling the number of leaves each day. If, during summer, you passed by the side of a lake that hosts it, you would not notice that the single leaf of the previous day is today in company of its twin; just as it would be difficult to notice the incremental duplications during the upcoming days. You would certainly start noticing the phenomena, with surprise, when the surface of the lake to be occupied is a quarter of its total size, and that happened in just one night. For many events in the business, that a-Ah moment would be too late already; in just three days the surface of the lake would be completely invaded by the plant. Capturing Weak Signals
  • 28. Today, more than in any other moments we lived, being able to perceive, understand and interpret the weak market signals, makes a substantial difference for thriving (and in some case surviving) Organizations need to further develop their external and internal sensors, to collect and spread timely, continuous and punctual information
  • 29. When was the last time your team talked to actual end-user?
  • 30. Organizations need to create habits for systematically collect insights from the field. People need to meet, share and discuss to discover any emerging patterns, from their first appearance COPs Retrospectives Lean Coffee World Café Open Space Reviews Collective intelligence process to interpret weak signals and early warnings Weak Signal: ✓ Fragmented ✓ Uncertain reliability ✓ Unpredictable ✓ Apparently no utility ✓ Unusual, singular ✓ Submerged
  • 31. Open-Adaptive Strategy to develop hyper flexible muscles
  • 32. Strategy, traditionally, was always formulated at the top, communicated to the whole company, then executed by employees Top-down. Simple, linear, straightforward. Clear boundaries between the ones who design and those who execute. Isn't it? Today, traditional way of defining and executing strategy, does not work anymore
  • 33. Open Strategy means to involve employees who know the customer, the business and the belonging organization, in strategy formulation Open Strategy DESIGN THINKING SCRUM DESIGN TEAM 1 TOP LEADERSHIP COMPANY CLIENTS & USERS DESIGN TEAM 2 DESIGN TEAM 3 CANDIDATE STRATEGIC INITIATIVES MIXED APPROACH Small cross-functional Teams use Design Thinking and Agile approaches to gather information, inspect, ideate, prototype and socialize possible solutions Design Teams interview customers and company to gather information, inspect, ideate, prototype and socialize possible solutions Design Teams consolidate tested ideas as a portfolio of candidate initiatives to be analyzed by the top leadership Top Leadership analyzes and prioritizes initiatives according to company strategic objectives AGILE TEAMS Agile Teams implements strategic initiatives iteratively and incrementally Illustrative
  • 34. Adaptive Strategy is an approach characterized by adaptive planning, iterative and incremental adoption and development It is strongly based on continuous improvement and rapid and flexible response to change Adaptive Strategy Agile companies depict high level strategy by decomposing it in strategic themes, connected initiatives, expressed through OKRs which drive execution, measurement of results and feedback Strategic Themes Corporation Theme’s Initiatives Agile Teams Strategy Backlog OKRs Strategy & Objectives Feedback Feedback
  • 35. ✓ Sense the context ✓ Frame the challenge ✓ Establish the minimal enabling constraints ✓ Encourage parallel experimentation ✓ Set short and nested feedback loop ✓ Inspect the results ✓ Search for any possible patterns ✓ Exploit the best-fitting solution that emerges Seeing through Complexity