A633.3.3.RB_DellElceCamila

A633.3.3.RB – Complex Adaptive Systems

            Module three of this course focused on the movement of the traditional corporate hierarchy. It started with an understanding of the past (functional silos), to the present model. We now have a cross-functional matrix, to what Nick Obolensky, author of “Complex Adaptive Leadership: Embracing Paradox and Uncertainty” refers to as what future innovative companies will call a Complex Adaptive System (2010). In the CAS system, traditional management levels have been removed, flattening the organization’s hierarchy. Employees, at all levels, now have increased responsibility and greater control over how they perform their job. For this task, I was asked to find a company that reflects Morning Star and St Luke’s image of a Complex Adaptive System (CAS). St. Luke is a small British company that has adapted an aggressive CAS strategy. Some very prominent business critics have described this company as experiencing a monumental growth spurt. This little company has the determination of “the little engine that could” when it comes to its goal to reach the global market.

            My first thought process was to look at Zappos, a shoe company developed by CEO, Tony Hsieh. His company has gained the reputation of a work environment that is about people who believe in shoes and the importance of customer service, not about profit; thus blowing away the shoe industry by breaking the mold. If you research the company and its organizational core values you will see something different; the ten organizational core values never mention profit. 

            However, I soon discovered there was a company that more closely reflects Morning Star and St Luke’s image of a Complex Adaptive System (CAS). The company I am referring to is Valve Corp., a videogame maker in Bellevue, Washington. The company was founded in 1996 by former Microsoft software developers Gabe Newell and Mike Harrington. Like St Luke’s, the most astonishing aspect of life at Valve Corp is that there are no bosses. In this successful organization, there is no explicit hierarchy. Employees, at every level, are involved in hiring and firings, which can be initiated by something as simple as a conversation between employees. Here bonuses are based on peer reviews (not management or leadership) and can be as large as 10 times an employee’s base pay. Now as great as this may sound, it is important to understand that such based spontaneous enterprises rely to a large extent on individuals who actually believe in the social norms that govern their existence. 

            This system could potentially work for my current organization, the medical field for numerous reasons. Having such a system requires taking a lot of risk. The health administration department, which is ruled by the government, is a profit based organization and it operates a normal everyday business. Sometimes, success is measured by achieving set objectives; however, often times the objectives are not tangible. I do, however believe the health administration can learn from the CAS process. They could start the process by learning about and implementing better ways to understand all internal and external stakeholders. Like Zappos, they can learn how to developing a plan to achieve specific financial and budgetary goals (Glassman, 2013). Last but not least, I feel it is important the medical facilities, etc., learn the company culture is something that many corporations take for granted, not realizing how important it actually is to employee morale, work quality, and overall success.

References

Glassman, B. (2013). What Zappos Taught Us About Creating The Ultimate Client Experience. Retrieved from http://www.forbes.com/sites/advisor/2013/05/13/what-zappos-taught-us-about-creating-the-ultimate-client-experience/

Obolensky, N. (2010). Complex adaptive leadership: embracing paradox and uncertainty. Surrey, England: Gower Publishing Unlimited.

Wagreich, S. (2013). A billion dollar company with no bosses? Yes, it exists.  Retrieved from http://www.inc.com/samuel-wagreich/the-4-billion-company-with-no-bosses.html