Michael Lissack
Chapter 1 invites us to examine the new complexity landscape that de- fines modern business. Here, we distinguish between the complicated— systems with many intricate parts that can be folded together (from the Latin "plic" meaning "fold")—and the complex—systems composed of elements woven together (from the Latin "plex" meaning "weave"). This distinction proves crucial for understanding why approaches that worked in complicated environments often fail in complex ones. Through exam- ples ranging from digital platforms to global supply chains, we see how the digital transformation hasn't simply made our systems more complicated but has fundamentally altered how they're woven together, creating expo- nential rather than linear growth in complexity. In Chapter 2, we introduce coherence as the cornerstone capability for navigating complexity. Coherence—that alignment of context, viewpoint, purpose, and action that enables further purposive action—provides the navigational framework that allows organizations to maintain direction amid unpredictability. Unlike traditional management approaches that attempt to eliminate complexity through control, coherence provides a way to maintain purposeful action within complexity. Through examples like Microsoft's transformation under Satya Nadella, we explore how co- herence manifests in organizational reality and why it proves so valuable during periods of rapid change and disruption. Chapter 3 delves into the critical role of mental models in shaping how we perceive and respond to complexity. These internal frameworks— simplified representations we form of how things work—both enable and constrain our ability to navigate complex environments. We examine how different mental models lead to different interpretations of the same information, how expert and novice mental models differ in their pattern recognition capabilities, and how organizations can develop more diverse and adaptive mental models. Through stories of both success and failure, we see how mental models can either illuminate new possibilities or blind us to emerging realities. Together, these foundational chapters establish why traditional management approaches increasingly fall short in today's interconnected
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