Author: Esko Kilpi
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Posted: March 27, 2012 1155 views

The mainstream ways of thinking about management are based on the sciences of certainty. The whole system of strategic choice, goal setting and choosing actions to reach the given goals in a controlled way depends on predictability. The problem is that this familiar causal foundation cannot explain the reality we face. Almost daily, we experience the inability of people to choose what happens in their organizations – or in their countries. We live in a complex world. Things may appear orderly over time, but are inherently unpredictable.

Complexity refers to a pattern, a movement in time that is at the same time predictable and unpredictable, knowable and unknowable.  Healthy, ordinary, everyday life is always complex, no matter what the situation is.  There is absolutely no linearity in the world of human beings.

Human patterns that lose this complexity become repetitive and rapidly inappropriate for dealing with life. Unlike mechanical systems, human systems thrive on variety and diversity. An exact replication of behavior in nature would be disastrous and seen as neurotic in social life. For example, a failing heart is typically characterized by increasing loss of complexity.

A pattern is something that emerges through the complex interactions between elements in a system. Although there is apparent order, there is never exact repetition if the system is viable. This is why human interaction cannot be understood as processes in the way they were used in manufacturing, but as patterns.

Patterns that are more repetitive are normally called routines or habits. This conclusion is important for us. Novelty emerges in a radically unpredictable way. Creativity is seldom the end result of a repetitive process.

The Internet changes the patterns of connectivity, transforms our understanding what “local” is, and makes possible wide participation and new enriching variety in interaction. By relying on the interactions of millions of people instead of a few experts/managers to classify content on the net, Google democratized scientific citation indexing. To be able to manage the increasingly complex organizations of today, the same kind of democratization needs to take place in the corporate world. Companies are transforming themselves from industrial mass production to creating value in networks of mass communication.

Transparency of tasks is the corporate equivalent of publishing academic articles. Responsive linking, rather than predictive linking such as in corporate hierarchies and process charts, acts as a measure of relevance, control and value. This has served the academic community well. It made Sergey Brin and Larry Page billionaires. Now is the time to do the same in the corporate world.

The Google lesson for management is, that the more work is based on responsive, democratic processes of relating and the more organizing is an ongoing process of communicative linking, the more value we can create!

It is now time for the sciences of uncertainty.

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About the author >

Esko Kilpi

Esko Kilpi is founder and principal in Esko Kilpi Oy, a leading research and consultancy firm working with the challenges of knowledge work and digital work environments. The organization is based in Helsinki, Finland. In addition to his work as an executive adviser Kilpi takes part in academic research and lectures on the topics of organizational learning, knowledge based view of the firm and interaction technologies as key enablers for knowledge based value creation in Nordic countries, Europe, Middle-East, Far-East and USA. He has published various articles on these subjects and is the co-author of a book on teams and process management (1996) and books on management challenges of the information age (2001, 2006). His teaching and research interests are about organizational contexts, where creative learning takes place and organizational dynamics for emergence of coherence and novelty. A large part of his work has concentrated on principles of organizational viability based on what can be learned from complexity sciences and theories of complex adaptive systems. At the moment Kilpi's work has focused on open source principles and social software implementations in organizational contexts. Kilpi has been a member of the advisory board of the World Bank on Knowledge Management. He has also been a member of the expert think tank on Knowledge Management for the European Union.

more information Weblog: http://eskokilpi.blogging.fi/

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