In the Chaos Theory video led by Obolensky, a large group of
people are asked to randomly select two other people in the room, but not
indicate which two people they chose. Then, they are instructed to place their
own bodies an equal distance away from the two people they chose by walking around
and reorganizing their place in the room. Again, this activity had to take
place without anyone in the group revealing who they’d picked. Upon hearing
their task, the individuals in the room snickered, quietly predicting the chaos
that was about to ensue. When the instructor gave them the “ok,” to go, individuals
began to slowly move in all different directions. Everyone knew what they
needed to accomplish, but their movement appeared to be confused and
unpredictable. As the chaos began, I couldn’t help but wonder how long they’d
wander around before finally giving up. And then, suddenly, 75% of the people
stopped moving, followed closely by 90%. Within less than one minute, everyone
was settled, and the experiment appeared to be successfully over. Obolensky
looked a bit surprised for a moment and I couldn’t help but think “uh oh, this
went way better than expected and Obolensky is unable to prove his point about
how difficult it is for people to find their way when they don’t have clear
direction!” Instead, Obolensky said “now, what would of happened if I’d put one
of you in charge?” The crowd laughed and the point of the exercise was
instantly clear. Sometimes, instead of helping team members cut through the
complexity of organizational issues, the involvement of leaders can actually make
things worse.
Obolensky’s (2014) chaos theory says that, “chaos has an
underlying order and patterns which can be used to good effect” (Obolensky,
2014). Chaotic business situations might include inside disruptors like intense
competitive pressures, forced layoffs, unbalanced age and/or gender dynamics.
They might also include outside disruptors like political, environmental, or economic
disarray. Yet, through all of that chaos and confusion, “complex systems seem
to organize themselves” in a way that actually makes sense (Berreby,
1996). The point in Obolensky’s video is clear. Sometimes leaders play an
integral role in this process, but many other times they hinder it.
Managers and leaders are often trained to believe that their
main objective is to eliminate chaos and complexity from the organization by
providing strong direction to their individual teams. Obolensky (2014) argued,
however, that “the more complex things are, the less traditional leadership one
needs” (p. 101). Instead, organizational problems can be solved by leaders who
provide clear individual objectives, simple rules, continuous feedback, and the
freedom to act, and then stand back and let the team figure things out on their
own (Obolesnsky, 2014). When combined, these actions help foster teams that have
both the freedom and the will to act in the best interest of the organization.
The truth is that traditional leaders are fading from the
business landscape as today’s economy becomes more dynamic. Traditional leaders
withhold information, conduct annual performance reviews, and generally believe
that authority gives them power (Jartese, 2013). Complex adaptive leaders, on
the other hand, openly share knowledge, provide continuous feedback, and believe
that power is generated as a result of teamwork (Jartese, 2013). Traditional
leaders are fading, but complex adaptive leaders are rapidly filling their
vacancies.
All of this change on leadership theory has a significant impact
on strategy because it is changing the way strategies are developed. Historically,
it has been the leaders of the company who were responsible for generating and
communicating the organizational strategy. “The traditional view is that those
at the top formulate strategy and direct those below – the top propose, the
bottom dispose” (Obolensky, 2014, p. 29). With a shift towards complex adaptive
leadership however, development of strategy has become much more of a team
sport. According to Obolensky, “As the organization moves from a fixed
functional/hierarchic model to a more fluid and organic one, so too will
strategy evolve in a different way” (p. 29). Complex adaptive leaders engage people
throughout all levels of the organization in order to secure an organizational
strategy that is poised to deliver the best chances of long-term success.
Strategies are also becoming more emergent as complexity
increases. Mintzberg’s emergent strategy is “on the upswing” because it
includes a view that generation of strategy is not a deliberate action, but something
that naturally emerges over time as people and businesses adapt to changing
realities (Moore, 2011). Porter’s five forces and his deliberate view on
strategy has been dominate for many years, but emergent strategy is gaining popularity
because it takes into account the fact that our strategies may sometimes fail
as a result of this unpredictable world we live in (Moore, 2011). Obolensky’s exercise
was the perfect example of what can happen when leaders step back from the
chaos, create a perimeter of support, and then watch as the organization overcomes
its greatest complexities.
Resources
Berreby, D. (1996). Between Chaos and Order: What Complexity
Theory Can Teach Business. Strategy + Business. Retrieved from https://www.strategy-business.com/article/15099?gko=73fbc
Chaos Theory [Video file]. Retrieved from
https://www.youtube.com/watch?v=JnlkKdDXk-I
Jartese. (2013). 8
Differences Between Traditional and Collaborative Leaders. Innocentive. Retrieved from https://blog.innocentive.com/2013/11/21/8-differences-between-traditional-and-collaborative-leaders
Moore,
K. (2011, March 28). Porter or Mintzberg: Whose View of Strategy Is the
Most Relevant Today? Forbes. Retrieved
from http://www.forbes.com/sites/karlmoore/2011/03/28/porter-or-mintzberg-whose-view-of-strategy-is-the-most-relevant-today/ (Links
to an external site.)
Obolensky, N. (2014). Complex
Adaptive Leadership: Embracing Paradox and Uncertainty (2nd ed.). New York,
New York: Gower Publishing.
Obolensky,
N. (2008, April 12). Who needs leaders?
[Video File]. Retrieved from https://www.youtube.com/watch?v=41QKeKQ2O3E&feature=youtu.be
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