This powerful and practical book (Pascale, Milleman and Gioja) draws parallels between the natural world and the ecosystem of market economies and business.
Both of these ecosystems face constant challenges of inertia, adaptation, survival of the fittest and the constant battles between the forces of tradition, and the forces of transformation.
The text distinguishes adaptive from operational leadership and provides a contrast into the idea of an efficient operation being born out of a stable environment. Operational Leadership is therefore built on three assumptions: -
Intelligence is located in top management.
The pathways toward change follow predictable patterns and can be controlled.
The authors argue these assumptions no longer hold. They are the old rules and the scientific research on complex adaptive systems has revealed a new set of principles, which they summarise.
Equilibrium is a precursor to death. When a living system is in a state of equilibrium, it is less responsive to the changes that are occurring around it. This places it at maximum risk. - Organizations may ride the success of previous change efforts such that they are tempted by the lure of equilibrium through strong values, close-knit social systems, and refined operational procedures. This same stability makes them less capable of responding effectively to changes in the environment. They may respond to the changes with what worked before, but usually with ever-diminishing returns. They become victims of their own success.
In the face of threat, or when galvanized by a compelling opportunity, living things move toward the edge of chaos. This condition evokes higher levels of mutation and experimentation, and fresh mutations are more likely to be found.
When living things move closer to the edge of chaos, the components of living systems self-organize, and new forms and repertoires emerge from the turmoil. This property of life, called “self-organization and emergence,” is a major source of innovation, creativity, and evolution.
Living systems cannot be directed along a linear path. Unforeseen circumstances are inevitable. The challenge is to disturb them in a manner that approximates the desired outcome. They describe this as the place top-down strategies completely break down.
And so it goes that organisations must continually harness their collective energy to be adaptive. The environment is constantly changing and only those organisations who can imitate the evolutionary forces of the natural world will survive in the business world.
Crucially, this disruption must not come at all cost, and to the terminal detriment of the organism/organisation. As in nature, pure chaos cannot rage or the ecosystem will collapse – the most adaptive businesses, therefore, find a balance of disruption from within that ideally continues to “Surf the Edge of Chaos”.
I have re-visited this book recently as the world has been gripped by a once in a generation natural disaster. It is impossible not to reflect, as a business owner and as a person, on how we interact with one another and the foundations of a truly sustainable business.
The principles of living systems produce a bottom-line impact and sustainable transformational change in organisations. The living world exists in a constant fight for survival, become complacent and fail to act, and you will die.
Equilibrium is a dangerous place. Where is your organisation at?
About the Author
Stuart Nielsen
Stu has been transforming financial services business for over 2 decades with his unique style of people leadership and problem-solving acumen. Never afraid to tackle the complex problems in any facet of an organisation, Stu will bring a sense of reality to any problem and leverage the combined energy of your people to create a high performing business.
Capable of working at the strategic end right through to delivery and knowledge transfer, Stu's strength in communication is an asset to any organisation trying to make sense of its self and drive change towards a common purpose.
"Data is great, feedback is awesome, however, nothing is real until it is observed"
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