Perhaps of all that 2020 has highlighted, nothing has forced me to think like Chaos Theory. In organisational development, chaos theory presents itself in a complex systems environment. To the witness, the systems look to be in chaos, meaning organisational development of a business system is the management of that apparent chaos.
Henri Poincare, a French mathematician of the late 19th century, extensively studied dynamic systems was the first to comment on chaos's relationship with our world, which Edward Lorenz would later study chaos theory. Poincare noted that:
"It may happen that small differences in the initial conditions produce very great ones in the final phenomena. A small error in the former will produce an enormous error in the latter. Prediction becomes impossible."
While it might be easy to get bogged down on the negatives of Poincare's comment on chaos, as the lack of predictability and disproportional reactions, we need to realise that the only answer is to embrace chaos. Chaos provides organisations with the ultimate test of adaptability and delivers a dose of reality to organisations who may believe they control their fate. It is the unstoppable force that ultimately governs the world, but only when it rears its ugly head.
Therefore, applying the chaos theory to organisational behaviour allows managers to see the bigger picture of how organisations function as integrated systems. Moreover, to manipulate an organisation's chaotic nature, we must see the organisational form from a distance. The Chaos theory would dictate us to look for patterns that lead to behaviour (the cause), instead of merely identifying sources (the effect) in the organisation that cause problems, and I tend to agree.
It is safe to assume for most organisations that the application of chaos theory would run conversely to their formal management structure, with the ideas of 'order' and 'control' often being misused with one another. There's the perpetuated notion that it is difficult to expose ourselves to a world of fundamental orderliness.
The more I read about and experience the corporate obsession with the perfect organisational structure, the more I realise that there is no 'perfect structure' because the threat of chaos is always looming. So, while some continue to create models of organisational procedures and policies, with the aspiration that this atomising produces better information on improving functionality. I side with Chaos theory, that implies bogging down might not only be superfluous but worse, destructive.
Tom Peters writer of Thriving on Chaos: Handbook for a Management Revolution, proposes that client responsiveness, fast-paced modernisation, empowering employees, and most importantly, working within an environment of change is paramount to cope with the ambiguity of competitive markets. He goes on to declare in fact "we live in a world turned upside down," therefore existence depends on embracing "revolution."
Karl Weick, a regarded organisational academic suggests the strategies to handle chaos in organisations best, should revolve around being 'just in time' and should focus on continued investment in general knowledge, large skill bases, belief in instincts, and conduct quick studies and sophistication in cutting losses.
Chaos theory has shown me that as the world continues to change rapidly and expansively, chaos is constant and perhaps that is no more evident than now. While businesses of old were once able to stand defiantly in the face of chaos modern corporations need to be able to change, adapt and restructure at the rate of the world around them. Above all, they need to be able to embrace chaos. As Poincare said, "prediction is impossible."
About the Author
Kristian Delaney
Kristian comes to NAC with a degree in Business and Commerce, majoring in Management and Leadership. He understands how critical the human experience is to a thriving business and that leadership is an essential ingredient in continuous improvement and driving human capital motivation.
Kristian has previously worked for an international advertising and media company and took part in the BHP Corporate Affairs team. His natural aptitude for forming connections, coupled with his flair for writing and communications, has seen him join the International Association of Business Communicators (QLD) as their newest Board Director. Kristian’s skills and competencies will help business leaders and stakeholders effectively, identify, nurture and drive positive change into the business transparently and communicatively.
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