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Main Drivers That Complexity in Business Network:: Interact To Produce

The document discusses the main drivers that create complexity in business networks: diversity among stakeholders with conflicting demands, global interdependence where local events can have global effects, ambiguity from an overload of information with conflicting data that makes decision making difficult, and constant flux and rapid change. It argues that organizations should deal with this complexity by understanding foundational structures, designing learning organizations that can improvise, building expertise and communication, and distributing leadership.

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Lee Kally
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52 views1 page

Main Drivers That Complexity in Business Network:: Interact To Produce

The document discusses the main drivers that create complexity in business networks: diversity among stakeholders with conflicting demands, global interdependence where local events can have global effects, ambiguity from an overload of information with conflicting data that makes decision making difficult, and constant flux and rapid change. It argues that organizations should deal with this complexity by understanding foundational structures, designing learning organizations that can improvise, building expertise and communication, and distributing leadership.

Uploaded by

Lee Kally
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Main drivers that interact to produce.

complexity in
business network:
Diversity: From diversity in business models, management systems, and employees to diversity in customers,
suppliers, and socio-political systems, leaders must respond to an ever-increasing variety of often-conflicting
demands from multiple stakeholders.
Investors may demand higher profits while communities demand more corporate social responsibility, just as
customers demand lower prices while regulators demand more safety.
Interdependence: Globalizations deep web of connections has resulted in small world effects, shortening the
standard six degrees of separation to one or two local events can easily have global effects through longhops.
Ambiguity: An overload of information, often with numerous, conflicting data points, makes it hard for business
executives to glean insights that can be applied to decision-making judiciously.
Coupled with increasing uncertainties and unknowns, causal relationships are difficult to pin down, making it
even more problematic to assess the validity of a course of action. The 2003 Columbia space shuttle tragedy is
a case in point.
Flux: The unrelenting pace of change that envelops companies, industries, and nations only adds fuel to the
fire of complexity. Circumstances that are taken for granted today may become irrelevant tomorrow, often with
no advance warning.

Dealing with complexity through organizational learning and improvisation

1. Understand the minimal structures on which you innovate.


2.Design a learning organization that can improvise.
3. Build expertise and real-time communication
4. Distribute leadership

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