Monday, May 12, 2008

Organize with Chaos. Introduction p.12

This Post contains selections from Rowley & Roevens, Organize with Chaos, 4th edition, ISBN 1-85252-297-6. As we are always updating our work, we appreciate your comments.

Introduction:

In science, as well as in business, the days of predictability and certainty are over. It can come as a shock for many executives to realise just how far, even a ' hard' science like Physics, has moved away from the static engineering view of reality, which most of us learned at school and which still governs so much managerial thinking. At a ' new-science' executive seminar in Brussels, many of the managers and consultants present were taken aback, especially when scientist and Nobel laureate Ilya Prigogine, remarked that in his view of Physics today "...material and physical reality (the very stuff of which we are made) is just one aspect of probability"!

Probability, irreversible luck and random accident has entered the equations of science. In conventional management and organization, we do not welcome such random chaotic factors, because they cannot be determined or controlled, and can wreck our carefully designed strategic plans. However in recent years, for most of us, the experience of business reality itself has totally and fundamentally changed. Our root assumptions about the nature of this reality must also change, if we are to be able to deal with it effectively. Things are no longer static today, nor is change incremental, it is all too often discontinuous and quite unexpected. Adaptive flexibility must somehow be incorporated into modern organization ' design'. The question for any business person today is how can you set up and run an efficient profitable organization and also simultaneously manage to change, to cope with today's uncertainty?

Our research tells us that a lot depends on how you see things, or how you frame such a paradoxical situation. Conventional thinking puts you in an either/or dilemma. It insists, for example, that you either reduce costs, or, you invest for growth; you either organize for tighter efficiency, or you loosen up for creativity and innovation., but not both. New scientific business thinking however is either/and’; it admits paradox. It’s about being able to do both efficiency and innovation simultaneously, and to execute both superbly well. Those kinds of assumptions are rooted in the model of science that guides the way that you were taught to think. Basically, if you think that something is impossible, you are right. For you it is impossible. That’s the trouble with conventional linear organizational thinking, it limits you. In business, there is in fact only one valid either/or scenario. It is simply stated, either you make money, or you will eventually go bust.

1 comment:

Liquidox said...

Comment:

"Nothing is as constant as changes"

Companies who tend not too change are changing but in a "for them" negative way.

Most of these companies have already been fused or are bankrupt.

Concepting is the way of thinking behind this.
In the early days companies grew strong their credo was "out-spend the competition". This doesn't count anymore.

Nowadays companies "if they want to grow" need to take distance from this traditional thinking.

They always say, people are spoiled, but I don't think this is true.
People aren't spoiled the companies are, they have to start being innovative and creative.
This is hard for most companies.

Companies need to realise; "it's about mentalitypropositions."
A brand needs to create his own world, for example:
Ikea is not just a store which sells furniture. No! Ikea is a clear view on today's modern living.
That's how people "experience" this.

If you say "a lot depends on how you see things" this is ofcourse correct.

But a company like for example Coca Cola has a lead.
Years ago they started to focus on experiences and product identification.
Now they are world's largest "soda company".
They started early making people identify with their product. That's why they are on the lead now. Pepsi will never be able to take over coca cola's position.

So in conclusion:
Companies which carried on focusing on their traditional strategies are long gone.
As a company you have to use the power of the consumer to grow big, you are able to do this by letting consumers identify with your product.
You can't force anybody to buy your product f.e:"all biscuits are healthy",
but this biscuit fits the person who has a green hat.