posted 07-16-2001 11:23               

Learning and Leading Through the Badlands
by David Berdish

Today's global economy has become increasingly complex, making it tougher than ever for businesses to sustain the pace and level of innovation they need to survive. Large companies in particular grapple with two types of complexity: system and social. System complexity derives from the organization's infrastructure--its business model, how it organizes its functions and processes, and how it selects its products and services. Social complexity comes from the diverse outlooks and cultures of the company's workers, customers, and other stakeholders.

The greater the system and social complexity an organization has, the more daunting the challenges. For instance, a small-town mom-and-pop fruit market has relatively low system and social complexity; its problems involve things such as figuring out when to order more inventory. But a corporation such as Ford Motor Company operates in 50 countries with a total of 300,000 employees and offers a huge array of products and services. This level of system and social complexity produces what we might call a "Badlands" situation: dangerous market swings, cutthroat competition, uncertain survival--and the greatest possibility for growth.

Most leaders attempt to control complexity through short-term fixes that typically have long-term unintended consequences. For example, they'll micromanage change
initiatives, thereby limiting their staff's potential to innovate. Crossing the Badlands successfully requires a radical departure from traditional strategies. Staff at every level must understand how the organizational and social systems work, strengthen interpersonal relationships, nurture diverse perspectives, and experiment with multidimensional strategies. By transforming our perspectives on work and life, we can navigate complexity and create sustainable organizations.

Read the complete article or see The Systems Thinker(r) Vol. 12, No. 3.