Managing in Complexity

Managing in Complexity

Course Overview
The aim of this course is to confront students with the complexity of a number of managerial situations and to give insight in the underlying processes. The course invites students to develop a critical attitude towards “scientific” managerial techniques. It aims to give insight into what is going on in science (non-linear dynamic behaviour of systems) and what the relevance is of these theories for business. As such, it deals with cutting edge theory and the ideas of leading scholars in the field are discussed.

However, this is only relevant for managers if it has immediate implications for management. In that case, managers should be able to identify this kind of situations and they should be able to deal with them. Based on theoretical concepts in complexity theory, knowledge, learning and network behaviour is introduced. A brief introduction in Complex Adaptive Systems is provided (neural networks, genetic algorithms, and agency).

Furthermore, the course concentrates very much on the skills which a manager should develop in order to pilot a company through situations of chaos and complexity: a strategy for sustainable development.

The last part of the course trains the students to reflect this cutting edge scientific discussion on day to day management problems, particularly, but not exclusively, in respect to knowledge management. This part of the course aims to develop the skill of lateral and creative thinking. It introduces the students to a fascinating new development in management today, which is knowledge management and knowledge sharing in a dynamic environment.

This course is a challenging confrontation of the students with emergent insights in human behaviour in networks, the brain-metaphor and the way people think, and the role of the manager as a leader. It illustrates the latest developments in Complex Adaptive Systems (learning machines), that is becoming rapidly part of business intelligence today. It is an eye-opener on managerial development.

Intellectual depth, critical evaluation and the ability to apply new theoretical concepts in a real life situation are only some of the competencies that are addressed by this elective. An entirely new scientific development is not only discussed, but needs to be applied. Relevance of scientific rigour for managerial practice is key to this course.

Course Layout

This course is delivered via the e-learning platform, the Innovation School. It has 4 online assignments to be completed and online lectures to be watched. Face-to-face sessions with the professor and follow up with a tutor are also provided.

Innovation School Assignments

1: Review of strategic choice theory

2: Complex adaptive systems

3: Autonomous individuals and organisations as complex responsive systems

4: Self organisation

Innovation School Lectures

Introduction: Complexity Theory

1: Mathmatical Complexity, Butterfly effect (Lorenz) and Fractals (Mandelbrot)

2: Constructivism (and Gödel) The biology of business (Varela and Sheldrake) Brian Arthur’s theory of increasing returns

3: Artificial life and artificial intelligence (Holland and Langdon)

4: A quantum interpretation of business

Course Assessment

The assessment is continuous via the Innovation School (students must complete 4 assignments in their groups) and a final test (based on the lectures and the face-to-face sessions with the professor). All assignments and final test are compulsory.

Course Objectives
Cognitive objectives
Philosophy of science and the main schools of thought
Complexity theory
Complex Adaptive Systems
Definitions of knowledge and learning
The networked economy

Skill objectives
Critical evaluation
Translate new concepts in real life situations
Lateral thinking
Design and built knowledge and learning approaches

Behavioural objectives
Understand diversity
Understand the choices made and its consequences
Assume the role of manager as a choice making agents
Learn how to operate in networks

Professional objectives
General manager of a networked company
Any managerial position in knowledge based companies
Knowledge and learning officer

Course Bibliography
Literature (Cyberlibris)

Walter Baets, Organizational Learning and Knowledge Technologies in a Dynamic Environment, Kluwer Academic Publishers, 1998, Paperback version

Robert Axelrod: The Complexity of Cooperation

Jose Fonseca: Complexity & Innovation in Organizations

Ralph D. Stacey: Complexity and Management: Fad or Radical Challenge to Systems Thinking? (Complexity and Emergence in Organizations)

Robert Axelrod: Harnessing Complexity: Organizational Implications of a Scientific Frontier

John H. Holland: Emergence: From Chaos to Order (Helix Books)

Mitchell M. Waldrop: COMPLEXITY: THE EMERGING SCIENCE AT THE EDGE OF ORDER AND CHAOS

T. Irene Sanders: Strategic Thinking and the New Science : Planning in the Midst of Chaos Complexity and Change

Blog: On the blog of Walter Baets (http://euromed.blogs.com/baets/) you can find links to videos, interviews and texts linked to this subject. See the “reading” section (http://euromed.blogs.com/readings/) as well as his comments of on the subject.

Interview: Noetic Sciences Teleseminar sound-file (Walter BAETS Complexity Resource)

Chapter 1: Strategic choice: uncertainty and conflict

1. Concepts

1. Duncan’s approach

2. The perrow model

3. Grenier’s model

2. Questions

1. Compare and contrast Duncan’s approach, Perrow and Grenier’s models.

2. How does Grenier describe the resolution of each crisis in terms of more and more elaborate cybernetic systems?

3. Making a decision in a rational manner is only a possibility in the most restrictive of conditions. It will not be possible in conditions of disagreement, ambiguity and uncertainty. But what does rational mean?

3. Report

A number of different theories of motivation have been put forward in the management literature on how to secure consensus, cooperation and commitment. For example Hertberg`s extrinsic and intrinsic motivators, Maslow`s hierarchy of needs, Peters & Waterman`s the power of shared ideology as a driver of behavior, Pascale & Athos`s the importance of organizational culture as a motivator and Schein`s & Etzioni`s framework for categorizing motivation. Give your opinion on any two of the above either positively or negatively.

Chapter 2: Complex adaptive systems

1. Concepts

1. Complexity / Complex System

2. Rupert Sheldrake

3. Christopher Langton

2. Questions

1. Explain the parallel between evolving organisms (emergence i.e. result of adaptation and interaction) as explained by Sheldrake and the need of an organization to adapt to its complex environment.

2. Effective organizations are self-regulating. Comment.

3. What information systems (applications of IT) are in place or under development to support the global strategy of the business?

4. Explain Rupert Sheldrake’s idea of a morphogenetic field. How does this play a role when people share their knowledge?

3. Report

Why is this knowledge management necessary, according to you, for an organization in a complex environment?

in the Resource Center
in Wikipedia

Chapter 3: Autonomous individual and organisation as complex responsive systems

1. Concepts

1. Murray Gell-Man

2. John. L. Holland

3. Stuart Kauffman

4. Brian Goodwin

2. Questions

1. There are four important matters on which those working in the field of complexity take different positions. Those four matters are:
a. The significance of self-organisation.
b. The nature of emergence.
c. The importance of unpredictability.
d. The implications for the scientific method.

Illustrate how views on these matters differ, according to you.

2. There are many different theories that seek to explain how organizations change, or fail to change, but none of them are universally accepted. Why?

3. Report

What are the personal strengths and weaknesses of your group members? How do you develop a comprehensive strategic career plan for yourselves? How do you deal with complexity?

in the Resource Center
in Wikipedia

Chapter 4: Self organisation

1. Concepts

1. Self organisation

2. Culture-Change Programmes

3. Social constructionism

2. Questions

1. What is your idea of a well organized organization? Give an example of such an organization that you know and what factors made you to feel that it is a well organized organization?

2. Who are your role models in business? Explain.

3. Explain the role of complexity in international strategy.

4. New knowledge can emerge in ordinary, everyday talk. Comment.

3. Report

Complexity is not complex. Do you agree or disagree with this statement? Illustrate your answer with examples.

in the Resource Center
in Wikipedia

Lecture Videos and Resources

1 Complexity Lecture Introduction

An introduction to the understanding of Complexity; looking from the past to modern day comprehension of the philosophy of science.

Please watch the videos and review the slides

· VIDEOS SEANCE 1a and 1b

· LECTURE INTRO SLIDES 1a Updated!

· LECTURE INTRO SLIDES 1b Updated!

2 Complexity Theory in Mathematics

Lorenz, Poincaré, Fractals and Mandelbrot.

Please review the in depth slides and then watch the videos that are refered to in them to illustrate the examples mentioned. (The videos take a little time to open, please be patient)

· LECTURE SLIDES

· POINCARE & LORENZ VIDEO

· COMPUTER SIMULATION VIDEO

· BUTTERFLY EFFECT VIDEO

· FRACTALS VIDEO

· Dynamic systems illustration NEW! In this audio slideshow, we look at the art of mathematics

3 Complexity Theory in Biology

Varela, Sheldrake and Brian Arthur's theory of increasing returns

· VIDEO SEANCE 3

· LECTURE SLIDES Updated!

4 Complexity Theory and Artificial Life and Artificial intelligence

Holland and Langton

· VIDEO SEANCE 4

· LECTURE SLIDES Updated!

5 A Quantum Interpretation of Business

· VIDEO SEANCE 5

· LECTURE SLIDES Updated!

· INTERVIEW (sound file)

· LINK TO DOUBLE SLIT EXPERIMENT this is a video available on YouTube which expalins the Double Slit experiment, Dr Quantum - Double Slit Experiment from the film "What the Bleep do we know?!".

Interactive Compleixty Map http://www.art-sciencefactory.com/complexity-map_feb09.html

External link to all videos, slides and interview: http://videos.euromed-management.com/Baets/