New Science: Systems Thinking, Chaos

& Complexity

The Newtonian Universe

"Each of us lives and works / has dealings with

organisations designed from Newtonian images of the

universe. But the science has changed. We need to ground
our work in the science of our times. We need to stop
seeking after the universe of the Seventeenth Century and
begin to explore what became known to us in the Twentieth
Century. Wheatley
Newton says that all the bodies of the universe are
analogous to "tinker toy" creations suspended in an
otherwise empty universe. The new science, the science of
the quantum, says otherwise.

The Newtonian Universe 2

Newtonian laws of physics are completely
deterministic: they assume that, at least
theoretically, precise measurements are
possible, and that more precise
measurement of any condition will yield
more precise predictions about past or
future conditions.
Reductionism

General Systems Theory 1

Ludwig Von Bertalanffys

definition of a system: 'a

set of units with
relationships among them.'
set" implies that the units
or elements contain
similar characteristics and
that each unit or element
is controlled, influenced,
or dependent upon the
state of other units.

Open systems exchange

matter or information with

the environment.
Closed systems have clear
boundaries prohibiting
exchange of energy or
information - isolated
from their environment.
The essential nature of
matter lies not in objects,
but in interconnections

General Systems Theory 2

A system is a set of units that connect to

form a whole
The whole system functions because of
interdependence of its parts
Systems have input, output, control, and
feedback processes
Living systems are more complex than
mechanical systems

General Systems Theory 3

Every living organism is essentially an open
system. It maintains itself in a continuous
inflow and outflow, a building up and
breaking down of components
This is the very essence of that fundamental
phenomenon of life, which is called
metabolism, the chemical processes within
living cells.

General Systems Theory 4

It is useful then, to

A system comprises

think of people,
interrelated
corporations,
components related by
organisations, groups,
flows of energy,
families, interpersonal
material, or
relationships and
information.
computer-based
information systems as Cooling system,
Information System,
all being open, living
systems.
Immune System etc..

General Systems Theory 5

Heirarchies (systems

within systems)
Boundaries (define
system by drawing
boundaries)
Dynamic (Change over
time and internal
relationships change as
well)
Synergistic (the whole >
sum of parts)

Feedback & Control

(homeostasis)
Autopoesis (self
regulating)
Equifinality (same goal
achieved via different
paths)
Entropy (measure of
disorder)

Life
Life: a property of
improbable
complexity possessed
by an entity that works
to keep itself out of
equilibrium with its
environment.
R. Dawkins (1986)

Characteristics of Life 1
All Living things
are organized
work together to

create increasingly
higher levels of
complexity
metabolize
maintain internal
environment

grow
respond
reproduce
evolve

Characteristics of Life 2
Process

Form

Structure

Characteristics of life 3

Living systems learn constantly (are adaptive)

Living systems are self-organizing
Life is systems-thinking
Living systems are webbed with feedback
(reciprocal modification)
Living systems are interconnected
Living systems are self-referential
Living systems are autopoetic (self regulating)

Laws of Thermodynamics
First Law: Total

energy in the universe

is constant. (Energy
can neither be created
nor destroyed.)

You cant win: You

can only break even.

Second Law: Total

entropy (randomness)
in the universe is
increasing.

You cant even break

even.

Organisms vs. Machines

Open versus closed

Dynamic versus static
Fluid versus bounded
Adaptive versus rigid
Complex versus
simple
Quantum versus
Newtonian

Non-linear versus
linear
Organic versus
mechanistic
Interrelationships
versus objects
Chaotic pendulum
versus clock

Question
How can you hold a hundred tons of water
in the air with no visible means of support?

You build a cloud

Chaos Theory 1
A name given to recent wide-ranging attempts to uncover
the statistical regularity hidden in processes that otherwise
appear random, such as turbulence in fluids, weather
patterns, predator-prey cycles, the spread of disease, and
even the onset of war. Systems described as "chaotic" are
extremely susceptible to changes in initial conditions. As a
result, small uncertainties in measurement are magnified
over time, making chaotic systems predictable in principle
but unpredictable in practice.
The butterfly effect

Chaos Theory 2
Chaos refers to an apparent lack of order in
a system that nevertheless obeys particular
laws or rules
Systems - no matter how complex - rely
upon an underlying order, and that very
simple or small systems and events can
cause very complex behaviors or events

Chaos & Complexity

Human organizations operate from several

core beliefs:
The universe is living, creative, and continually
experimenting. Lifes natural tendency is to
organize. Life is self-organizing. Life is always
an act of creating an identity. People are
intelligent, creative, adaptive, self-organizing,
and meaning-seeking. Organizations are living
systems, with these same attributes.

Systems & Chaos Theory

Emphasise the interconnectedness of
everything
Connectedness generates order from
disorder

Quantum Universe 1.
Quantum theory at its essence says that our make-up is of
a more connected nature.
There are fields of energy flooding the entire universe.
These fields, as Wheatley says, are responsible for "actionat-a-distance." Scientists now believe that these fields of
energy contain all the information that has ever existed,
exists now, or will ever exist in the future.
This data is available and influences our lives daily. We are
virtually "always online" to God, nature, and the universe.

Quantum Universe 2
At the sub-atomic level of the universe, and, therefore, at

the very core of human make-up, the physical nature of the

universe is a dance of energy.
We are made up of the same light and energy as the
electro-magnetic fields that permeate space and all of
creation. Therefore, it stands to reason that, as a part of this
celestial dance, we can have access to nature's wealth of
information, and we can be influenced by it.
If we can be influenced by this vast database of energy and
knowledge, can we tap into this cosmic database and
perhaps even influence it as well?

The Vision of Leadership

What does nature, the
cosmos and the
untapped capabilities
of people mean to
organizational vision?
We must include some
of these doctrines:

Equilibrium is death to the

quantum organization.
Think about it: if human
interaction and dialogue
are critical fuel to the new
organization, a little
creative chaos will
continue to drive human
creativity.

Doctrines 1
The whole really is greater than the sum of the
parts.
Human dialogue is critical to creativity. When
two ideas come together that never met before,
they lead to or create a new third idea.
As we are all connected to the "cosmic
database," it stands to reason that we must
organize in a fashion that allows us to tap into
this vast array of data.

Doctrines 2
Complex systems are best managed from the

bottom up. Today's top-down command and

control management styles are complicated,
inefficient, and problematic.
We must manage to recognize the tremendous
individual human potential in the workplace.
There must be a place at the corporate table for
all employees, regardless of physical
characteristics or role or position in the
corporate hierarchy.

The Vision
Our leadership mission is to create a setting
in which human beings can flourish and are
valued and recognized as the key to
success. We will view employees as holistic
versatile partners in the creation of
enterprise.

Characteristics of Successful
Organisations

Self-organizing or self-renewing
Adaptive
Flexible to internal and external change
Feedback loops
reflection, self-awareness, information

Globally stable with local fluctuations

Open system
Self-referential

Learning Organisations

Respond to environmental changes

Tolerate stress
Compete effectively
Exploit new niches
Take risks
Develop symbiotic relationships
Evolve or perish?

Organisational Change
When system is far from equilibrium,
creative individual can have a huge impact
amplification of feedback loop
presence of lone fluctuation gets
amplified

Organisations = Self Organising

Systems 1

Portfolio of skills--not portfolio of business units

Many levels of autonomy
Need strong competency, identity, and vision
Strong frame of reference (Self-referent)
Capacity for spontaneously emerging structures
that best fit present need
Strong relationship to environment - as matures,
more efficient, more adaptive

Organisations = Self Organising

Systems 2
Co-evolution with environment: establishes basic

structure facilitates insulation that protects system

from constant, reactive changes
Chaos forces organization to seek new points of
view
Organizations and their environments are evolving
simultaneously toward better fitness for each
other.
Flexible response to changes

Transformational Leadership

Organizational beliefs (genetic code)

Feedback loop: reciprocal modification
Guiding principles, shared vision
Straddle both continuity and discontinuity
Adaptable
Aware of environment
Reflective
Self-transcendent
Adhocracy

Transformational Leadership 2
Entreprenurial
Visionary
Build sustainable niche in emergent

economic / political systems

The Leaders task is to communicate shared

values and guiding principles, keep them in the

forefront, and allow individuals in the system
random, chaotic-looking meanderings.
(Wheatley, p. 133)

Conclusion - Interconnectedness
...Whatever befalls the earth,
befalls the sons and daughters of the earth.
Man did not weave the web of life;
he is merely a strand in it.
Whatever he does to the web,
he does to himself

F. Capra, The Web of Life, 1996.