Business Complexity & the Global Leader Conference, Oct. 2010

Emergence and sustainability in a decentralized organization

Tomas Backström, ProfessorSchool for Innovation, Design and Engineering

Mälardalen University, Eskilstuna, Sweden

Complex systems theoryComplex systems consists of actors who are at the

same time independent and dependent.

Independent:• The actor has its own

identity, rhythm and pattern of behavior.

• Has freedom to act in accordance with own judgment,

• and competence to do so.

Autonomous

Dependent:• The actor is dependent

of a bigger wholeness, a meta-actor.

• Accept to be member of the meta-actor,

• and thus to follow its schemata (sub-culture, habits and relationics).

Integrated

Given freedom of action

Allowed by supervisor

May,Possibility

Know,Competence

Want,Motive

Knowledge, Experiences

Maturity

Expected freedom of action

Social support

Loyal to group

Rewarding

Autonomy

Loyal to company

Cooperation,Shared responsibility

Conflict management

Reasons/occasions to communicate

Bases for communication

Possibility of affiliation

Access to information Feedback,

Customer focus

Meetings

Knowledge of wholeness

Heedfulness of wholeness

Core values, Culture

Integration

Communicated vision of company

Task for the manager

• Autonomy and integration – one of several energizing dualities.

• Dynamical balance between – stabilization through communication and

integration– instability through variations and autonomy.

• Rein control: two mechanisms with antagonistic function.

Autonomy and Integration in 24 companies of different kinds

Moore autonomy than integration 9

- High individual autonomy and low integration 4

- High group autonomy and low organizational integration 5

Balance 6

- Balance between high autonomy and high integration 3

- Balance between low autonomy and low integration 3

More integration than autonomy 9

- Low autonomy and medium integration 2

- Low autonomy and high group integration 3

- Low autonomy and high organizational integration 4

Emergence of schemata

Schemata

Complex processes with a lot of interactingindependent actors

Changes are based on earlier stages, thus identity is preserved.

AutonomyContinuous creation

and re-creation ofthe schemata

IntegrationThe schemata

govern the processes

Circular causality

InsideSub-culture

Common thinkingE.g. goals of the unit.

OutsideBehavioral habits,

Institutionalizations

RelationicsPattern of relations,

Morphology of communication

Emerging schemata

ManagerFormal morphology of Pharmacy area X:

Pharmacy A Pharmacy C

Pharmacy B Pharmacy D

Pharmacy E

Pharmacy F Pharmacy H

Pharmacy G

Formal goals of of Pharmacy area X: Customer focus and customer satisfaction.

A

B

C

E

Emergent morphology of Pharmacy area X

A B C E Total

Description of goals

Business 3 (18%) 2 (13%) 2 (25%) 6 (50%) 13 (25%)

Customer 11 (64%) 6 (40%) 5 (62%) 5 (42%) 27 (52%)

Personel 3 (18%) 7 (47%) 1 (13%) 1 (8%) 12 (23%)

Total17 (100%)

15 (100%)

8(100%)

12 (100%)

52 (100%)

Goals close to central vision

Locally emerging goals

Emergent goals of Pharmacy area X: