Saturday, March 3, 2018

A633.3.3.RB - Complex Adaptive Systems

According to Obolensky (2014), a complex adaptive system is an organizational construct with a flat hierarchy, dynamic process and policies focused on team members, effective communication, transparency, and a flexible strategy development process. For this task, I was asked to find a company that reflects Morning Star and St Luke’s image of a Complex Adaptive System (CAS) and reflect on how it applies to my organization. In order to fulfill the requirements of this assignment, lets first take a look of what a Complex Adaptive System is, and how it is employed at Morning Star and St Luke.

Traditional companies are structured based on specialty (function) and hierarchy (rank). However, we have seen an evolution from functional silos or departments within a hierarchical organization functioning independently of each other to a cross-functional matrix (Obolensky, 2014). In the CAS system, traditional management levels have been removed, flattening the organization’s hierarchy. Employees, at all levels, now have increased responsibility and greater control over how they perform their job.

Employee's at Morning Star contribute personal mission statements to the company rather than following the traditional top down constructed mission. Additionally, "Morning Star has no centrally defined roles, so employees get the opportunity to take on bigger responsibilities as they develop their skills and gain experience" (Hamel, 2011). Self-managing professionals at Morning Star use internal motivation and competition to develop their skills. There is no hierarchy, titles or promotions; colleagues are recognized by competency.

Another company that uses the CAS model is St. Luke communications. Like Morning Star, St. Luke's goal is to revolutionize the way business is done. The advertising agency pushes people to their limits and "encourage creativity by literally destabilizing the workplace" (Coutu, 2000). Rather than empowerment, St Luke's focus is on ownership. Everyone receives the same amount of shares at the end of the year, there are no titles or assigned desks, and there is no hierarchy.

The non-traditional structure seen in St Luke's and Morning Star is also seen at W.L. Gore, a successful manufacturing enterprise. Instead of the traditional ideas of bosses and employees, Gore has leaders, diverse teams that work together, and depend on personal commitments that each Associate makes -to help the enterprise grow (Working at Gore, n.d.). Similar to Morning Star's personal mission statement, Associates at W.L. Gore focus on "core commitments". However, the structure in not necessarily flat, it is considered a "lattice structure". The different approach to strategy, based on interconnection among Associates where direct communication, is seen as critical to Gore's success (Working at Gore, n.d.).

Martin Reeves (2014) discusses how companies need to have great strategies now more than ever before when considering the rapidly changing and complex markets. He describes strategy as getting a job done and winning competitively in a particular situation (TED, 2014). Reeves goes on to say there is no such thing as the best strategy but the approach to strategy needs to match the situation. According to Reeves' presentation, my organization might be considered an adaptive environment.

The United States Air Force, although driven by a turbulent technology industry, follows the extreme hierarchical structure. The military is still structured by function and rank. The 'CAS' type organization would not work in the Air Force or military. We are in the business of defending our Nation’s interests around the world; thus, the environment in which we operate, while complex, is dealt with through standardization and doctrine.

The government could, however, learn from this evolving strategy. As things become more complex, strategy formulation needs to evolve and embrace not only the traditional approach but also the more dynamic approach (Obolensky, 2014, p. 33). Furthermore, the military has expanded their focus on feedback and need to continue to do so.  It has moved towards a more fluid and inclusive 360-degree approach rather than the traditional top down type feedback.

Organizations are evolving from the traditional hierarchical types to more flexible, flat hierarchies. Complex adaptive systems are emerging. Morning Star and St. Luke's exemplify how informal structures are successful. W.L. Gore is a prominent model for CAS although they use a "lattice" structure. All three organizations rely heavily on personal responsibility and commitments while not concerned about titles or promotions. The Air Force is organized by function and rank. Due to the inherent nature of the military, the non-hierarchical type of structure would not work though certain ideas such as flexibility and feedback could be beneficial.

Coutu, D. L. (2000). Creating the Most Frightening Company on Earth. Harvard Business Review, 78(5), 142-150.
Hamel, G. (2011). First, Let's Fire all the Managers (cover story). Harvard Business Review, 89(12), 48-60.
Obolensky, N. (2014). Complex Adaptive Leadership. Ashgate Publishing Ltd.
TED Institute. (2014, December 22). Martin Reeves: Your strategy needs a strategy. Retrieved January 28, 2017, from https://www.youtube.com/watch?v=YE_ETgaFVo8&feature=youtu.be
Working at Gore. (n.d.). Retrieved March 03, 2018, from https://www.gore.com/about/working-at-gore

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