Business Success: Leveraging Chaos in Organizations Part I

This will be a two part blog series about leveraging chaos in organizations.  As mentioned earlier, the key to leveraging chaos within an organization is to allow the vision to drive the change. Chaos manifests within organizations as an inability to find and deal with information in a useful way. If the chaos is contained within specific boundaries, and if the members of the organization can tolerate the tension, order will eventually emerge. Crisis, however, is the failure of coping mechanisms, resulting in a loss of a framework that leads to stagnation or death. In other words, the system is unable to tolerate the tension.

Vision-driven energy can create change that does not result from crisis, although chaos will still occur. Dissatisfaction with the status quo drives a vision, not crisis. Dissatisfaction is the result of examining the status quo with an open mind in relation to the environment and deciding that change is necessary. The vision provides a way of getting members of the organization focused on the future. A vision should inspire and motivate. It should entice members to move out of the current state and move toward the new state while honoring the values of the organization and its members.

Structure within Chaoschaos

For organizations to foster adaptability, it is important to provide a structure or boundaries to guide it through the chaos. However, there is a delicate balance between providing structure and controlling the process. Recall that new patterns emerge only when the system is far from equilibrium. Providing structure in this case means utilizing the system, getting people together and providing them with ways of interacting, and sharing information. This process provides the tension that results in people feeling the need to change. In a healthy system, they would eventually create a plan together. “No one system dictates conditions to another. All participate together in creating the conditions of their interdependence.”

When an organization is in chaos, leaders typically decide they know the answers and take it upon themselves to establish the necessary structures, processes, and rules without any input from the rest of the organization. While this approach is generally easier and faster, it is antithetical to systems thinking and may impede adaptability. It actually prevents the system from rising to a higher level by way of self-organization. Systems thinking requires that the all parts of the system be involved in any major decision-making process.

When chaos is overwhelming the system, it is necessary to provide boundaries or simple rules to contain the chaos. Doing so entails helping people stay focused on the core purpose of the organization and values. By allowing employees to experience the underlying strength of the organization, everyone in it is able to understand and internalize the core purpose. However, it is critical to create dialogue opportunities that encourage tough questions regarding the purpose and its impact. It is common to assume that everyone understands the purpose; thus, often this step is skipped. Understanding the core purpose is crucial in self-organizing systems; this purpose provides the goals around which self-organization occurs. Dialoguing regarding purpose aligns individuals and helps them to claim the purpose as their own.

Values are guiding principles for how to act. They define members’ behavior in reaching their goals. An example of a value is: “We will continue to learn and evolve by examining what we do and how we do it on an individual, group, and system level.” Values act as the strange attractor that pulls the system into order during times of turbulence. They provide guidelines for how to interact with one another, particularly during chaos. Without clear standards for how to work and interact, change can be too risky.

It is futile to have values that mean nothing and do not define how people actually behave. If people hear one value and see behavior that contradicts it, they will not feel safe. For example, if an organization values self-examination and criticism to aid learning and then uses blame and punishment when something goes wrong, the self-examination will cease. In addition to consistency around behavior, it is important for leaders to model the desired organizational behavior.

Tolerance for Discomfort

Systems change when they are far from equilibrium. For this reason, it is important to resist complacency in times of success. Many organizations fail as a result of complacency. Organizations that continue to look for indicators of new shifts will maintain a competitive edge.
It is helpful to develop a tolerance for the discomfort associated with the change process. Doing so allows natural connections to develop. But when discomfort reaches high levels, some organizations hurry the process by forcing connections, coming to premature solutions, and controlling outcomes. This control impedes the formation of natural connections. Newly formed groups, which are particularly susceptible to this urge, cope with it by jumping to solutions prematurely. During times of change, the urge to bring closure to issues and to know the answers increases. This urge needs to be managed with forethought and care by developing a tolerance for ambiguity and lack of control.

Natural Connections and Flexibility

Order rises naturally from chaos, and connections form naturally to make sense of the inherent and emerging information. Organizational structures and processes should be formed as a result of natural connections, and they should be adapted when necessary to ensure that the vision is achieved in the most productive and efficient manner. Jan Carlzon, chief executive of Scandinavian Airline System, made the organization legendary by (among other things) simplifying its rules. He burned thousands of pages of manuals and handbooks to demonstrate how overrun the organization was with rules. If rules and processes are rigid and inflexible, the organization will not be able to shift at the appropriate time. Six guidelines for staying flexible include:
1. Be patient when allowing connections to form.
2. Avoid becoming rigid with or overrun by structures, rules, and processes.
3. Make sure the rules and processes that are in place are relevant and necessary.
4. Solicit regular feedback.
5. Stay open to new ways of doing things.
6. Make sure suggestions and ideas are fully understood before discarding them.

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