Managing in Complexity
Course Overview
The aim of this course is to confront students with the complexity of a number of managerial situations
and to give insight in the underlying processes. The course invites students to develop a critical
attitude towards “scientific” managerial techniques. It aims to give insight into what is going on in
science (non-linear dynamic behaviour of systems) and what the relevance is of these theories for
business. As such, it deals with cutting edge theory and the ideas of leading scholars in the field are
discussed.
However, this is only relevant for managers if it has immediate implications for management. In that
case, managers should be able to identify this kind of situations and they should be able to deal with
them. Based on theoretical concepts in complexity theory, knowledge, learning and network behaviour
is introduced. A brief introduction in Complex Adaptive Systems is provided (neural networks, genetic
algorithms, and agency).
Furthermore, the course concentrates very much on the skills which a manager should develop in
order to pilot a company through situations of chaos and complexity: a strategy for sustainable
development.
The last part of the course trains the students to reflect this cutting edge scientific discussion on day to
day management problems, particularly, but not exclusively, in respect to knowledge management.
This part of the course aims to develop the skill of lateral and creative thinking. It introduces the
students to a fascinating new development in management today, which is knowledge management
and knowledge sharing in a dynamic environment.
This course is a challenging confrontation of the students with emergent insights in human behaviour
in networks, the brain-metaphor and the way people think, and the role of the manager as a leader. It
illustrates the latest developments in Complex Adaptive Systems (learning machines), that is
becoming rapidly part of business intelligence today. It is an eye-opener on managerial development.
Intellectual depth, critical evaluation and the ability to apply new theoretical concepts in a real life
situation are only some of the competencies that are addressed by this elective. An entirely new
scientific development is not only discussed, but needs to be applied. Relevance of scientific rigour for
managerial practice is key to this course.
Course Layout
This course is delivered via the e-learning platform, the Innovation School. It has 4 online assignments
to be completed and online lectures to be watched. Face-to-face sessions with the professor and
follow up with a tutor are also provided.
Innovation School Assignments
1: Review of strategic choice theory
2: Complex adaptive systems
3: Autonomous individuals and organisations as complex responsive systems
4: Self organisation
Innovation School Lectures
Introduction: Complexity Theory
1: Mathmatical Complexity, Butterfly effect (Lorenz) and Fractals (Mandelbrot)
2: Constructivism (and Gödel) The biology of business (Varela and Sheldrake) Brian Arthur’s theory of
increasing returns
3: Artificial life and artificial intelligence (Holland and Langdon)
4: A quantum interpretation of business
Course Assessment
The assessment is continuous via the Innovation School (students must complete 4 assignments in
their groups) and a final test (based on the lectures and the face-to-face sessions with the professor).
All assignments and final test are compulsory.
Course Objectives
Cognitive objectives
Philosophy of science and the main schools of thought
Complexity theory
Complex Adaptive Systems
Definitions of knowledge and learning
The networked economy
Skill objectives
Critical evaluation
Translate new concepts in real life situations
Lateral thinking
Design and built knowledge and learning approaches
Behavioural objectives
Understand diversity
Understand the choices made and its consequences
Assume the role of manager as a choice making agents
Learn how to operate in networks
Professional objectives
General manager of a networked company
Any managerial position in knowledge based companies
Knowledge and learning officer
Course Bibliography
Literature (Cyberlibris)
Walter Baets, Organizational Learning and Knowledge Technologies in a Dynamic Environment,
Kluwer Academic Publishers, 1998, Paperback version
Robert Axelrod: The Complexity of Cooperation
Jose Fonseca: Complexity & Innovation in Organizations
Ralph D. Stacey: Complexity and Management: Fad or Radical Challenge to Systems Thinking?
(Complexity and Emergence in Organizations)
Robert Axelrod: Harnessing Complexity: Organizational Implications of a Scientific Frontier
John H. Holland: Emergence: From Chaos to Order (Helix Books)
Mitchell M. Waldrop: COMPLEXITY: THE EMERGING SCIENCE AT THE EDGE OF ORDER AND
CHAOS
T. Irene Sanders: Strategic Thinking and the New Science : Planning in the Midst of Chaos Complexity
and Change
Blog: On the blog of Walter Baets (http://euromed.blogs.com/baets/) you can find links to
videos, interviews and texts linked to this subject. See the “reading” section
(http://euromed.blogs.com/readings/) as well as his comments of on the subject.
Interview: Noetic
Resource)
Sciences Teleseminar sound-file (Walter BAETS Complexity
Chapter 1: Strategic choice: uncertainty and conflict
1. Concepts
1. Duncan’s approach
2. The perrow model
3. Grenier’s model
2. Questions
1. Compare and contrast Duncan’s approach, Perrow and Grenier’s models.
2. How does Grenier describe the resolution of each crisis in terms of more and
more elaborate cybernetic systems?
3. Making a decision in a rational manner is only a possibility in the most
restrictive of conditions. It will not be possible in conditions of disagreement,
ambiguity and uncertainty. But what does rational mean?
3. Report
A number of different theories of motivation have been put forward in the
management literature on how to secure consensus, cooperation and commitment.
For example Hertberg`s extrinsic and intrinsic motivators, Maslow`s hierarchy of
needs, Peters & Waterman`s the power of shared ideology as a driver of behavior,
Pascale & Athos`s the importance of organizational culture as a motivator and
Schein`s & Etzioni`s framework for categorizing motivation. Give your opinion on any
two of the above either positively or negatively.
Chapter 2: Complex adaptive systems
1. Concepts
1. Complexity / Complex System
2. Rupert Sheldrake
3. Christopher Langton
2. Questions
1. Explain the parallel between evolving organisms (emergence i.e. result of
adaptation and interaction) as explained by Sheldrake and the need of an
organization to adapt to its complex environment.
2. Effective organizations are self-regulating. Comment.
3. What information systems (applications of IT) are in place or under
development to support the global strategy of the business?
4. Explain Rupert Sheldrake’s idea of a morphogenetic field. How does this
play a role when people share their knowledge?
3. Report
Why is this knowledge management necessary, according to you, for an organization
in a complex environment?
Chapter 3: Autonomous individual and organisation as
complex responsive systems
1. Concepts
1.
2.
3.
4.
Murray Gell-Man
John. L. Holland
Stuart Kauffman
Brian Goodwin
2. Questions
1. There are four important matters on which those working in the field of
complexity take different positions. Those four matters are:
a. The significance of self-organisation.
b. The nature of emergence.
c. The importance of unpredictability.
d. The implications for the scientific method.
Illustrate how views on these matters differ, according to you.
2. There are many different theories that seek to explain how organizations
change, or fail to change, but none of them are universally accepted. Why?
3. Report
What are the personal strengths and weaknesses of your group members? How do
you develop a comprehensive strategic career plan for yourselves? How do you deal
with complexity?
Chapter 4: Self organisation
1. Concepts
1. Self organisation
2. Culture-Change Programmes
3. Social constructionism
2. Questions
1. What is your idea of a well organized organization? Give an example of such
an organization that you know and what factors made you to feel that it is a
well organized organization?
2. Who are your role models in business? Explain.
3. Explain the role of complexity in international strategy.
4. New knowledge can emerge in ordinary, everyday talk. Comment.
3. Report
Complexity is not complex. Do you agree or disagree with this statement? Illustrate
your answer with examples.
Lecture Videos and Resources
1 Complexity Lecture Introduction
An introduction to the understanding of Complexity; looking from the past to modern
day comprehension of the philosophy of science.
Please watch the videos and review the slides
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VIDEOS SEANCE 1a and 1b
LECTURE INTRO SLIDES 1a Updated!
LECTURE INTRO SLIDES 1b Updated!
2 Complexity Theory in Mathematics
Lorenz, Poincaré, Fractals and Mandelbrot.
Please review the in depth slides and then watch the videos that are refered to in
them to illustrate the examples mentioned. (The videos take a little time to open,
please be patient)
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LECTURE SLIDES
POINCARE & LORENZ VIDEO
COMPUTER SIMULATION VIDEO
BUTTERFLY EFFECT VIDEO
FRACTALS VIDEO
Dynamic systems illustration NEW! In this audio slideshow, we look at the art of
mathematics
3 Complexity Theory in Biology
Varela, Sheldrake and Brian Arthur's theory of increasing returns
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VIDEO SEANCE 3
LECTURE SLIDES Updated!
4 Complexity Theory and Artificial Life and Artificial intelligence
Holland and Langton
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VIDEO SEANCE 4
LECTURE SLIDES Updated!
5 A Quantum Interpretation of Business
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VIDEO SEANCE 5
LECTURE SLIDES Updated!
INTERVIEW (sound file)
LINK TO DOUBLE SLIT EXPERIMENT this is a video available on YouTube
which expalins the Double Slit experiment, Dr Quantum - Double Slit Experiment
from the film "What the Bleep do we know?!".
Interactive Compleixty Map http://www.art-sciencefactory.com/complexitymap_feb09.html
External link to all videos, slides and interview: http://videos.euromedmanagement.com/Baets/