Discussion of how chaos and complexity theories are useful in business.

1. Chaos and Complexity Applied to Business Kathryn Alexander Strategic Leadership Ethical Impact, LLC

10. © Kathryn Alexander. 2008 What is a System?? - Ecologies and Organizations A collection of interrelated parts that come together for a purpose, acting in responsive relationship with one another, which then form a whole. These relationships become more complex over time which allows for the emergence of new behavior and capacities.

11. © Kathryn Alexander. 2008 Living Systems All living systems perform the following: Choice = decision process Pattern = many similar decisions Structure = consistently replicated patterns This is a description of self-organization

12. © Kathryn Alexander. 2008 A System always has an aim or purpose The role of leadership is to manage the various purposes by aligning the actions/behavior of the organization with its purpose (strategy) to meet the needs of ALL participants.

15. © Kathryn Alexander. 2008 Relationship Means: A shift from focusing on structure to focusing on process. Form follows process. Structures need to change as the organism adapts.

17. A Process for Changing Beliefs: © Kathryn Alexander. 2008 Understanding of Variation Knowledge of a System P R O F O U N D KNOW LEDGE DR. DEMING'S PHILOSOPHY Psychology Theory of Knowledge