Page 222 - (DK) The Business Book
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                                                 CHAOS BRINGS UNEASINESS,

                                                BUT IT ALSO ALLOWS FOR

                                                 CREATIVITY AND GROWTH


                                         COPING WITH CHAOS










                                                he top-down, hierarchical   chaos, chaos can be managed and
          IN CONTEXT                            organization of businesses   even embraced. US politician Tom
                                         T dates back to the industrial  Barrett acknowedged the value
          FOCUS
                                         revolution, when management was   of working in an unstable world,
          Change and uncertainty
                                         all about control. Today’s companies   noting that “chaos brings
          KEY DATES                      need a radically different approach.   uneasiness, but it also allows for
          1992 M. Mitchell Waldrop          The first decade of the 21st   creativity and growth.” 
          writes Complexity, which       century saw many disruptive events
          explains the theory of the     across the world. These, combined   Managing chaos
          science of complex systems.    with accelerated technological   Scientific chaos theory, which
                                         developments, the rise of developing  investigates the patterns in complex
          1997 Researcher Shona Brown    nations, and a changing world    systems such as the weather,
          says that the edge of chaos    order, make living with uncertainty   can be related to organizations.
          has a structure that allows    a reality for business today. This   Effective leadership, clear vision,
          companies to be malleable      means that companies now need    open communication, and strong
          enough to change but not       a flatter structure, incorporating   values are necessary to deal with
          fall apart.                    flexibility instead of direct control.   such complexity. Leaders need to
                                         Rather than being overwhelmed by   set clear boundaries, then allow
          1999 In Surfing the Edge of
                                                                          individuals and teams enough space
          Chaos, Richard Pascale, Mark
                                                                          to self-organize, self-regulate, and
          Millemann, and Linda Gioja say
                                                                          make their own decisions. Creativity
          a too-rigid management system
                                                                          and growth are enabled because
          can have nothing original or
                                                                          employees have a higher level of
          innovative emerge from it.
                                                                          responsibility and accountability
          2000 The dot-com bubble                                         for their work, as well as a bigger
          bursts, causing turmoil in                                      investment in the outcome.
          financial markets.                                                  A company also has to revisit
                                                                          its strategy continually, with the
          September 2001 The 9/11
                                                                          focus on delivering increased value
          terror attacks in the US have                                   to the customer, to ensure that it
          far-reaching financial and      Chaos theory proposes that complex   remains relevant in the changing
                                         systems are highly sensitive to initial
          business impacts around                                         external environment. A more
                                         conditions. A butterfly’s flapping wings
          the world.                     in Japan might start a chain of reactions   flexible company helps to ensure
                                         that leads to a hurricane in the US.  that staff is involved and can adapt
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