Michael Lissack
• Example: A city's transportation network
Complex Adaptive Systems (Now):
• Massively interconnected across digital and physical domains • Generate continuous data that alters the system itself • Blend human and algorithmic decision-making • Operate across multiple timescales simultaneously • Example: A ride-sharing platform's dynamic pricing algorithm This evolution matters tremendously for leadership. Managing com- plicated systems requires analytical rigor and expertise. Leading in com- plex systems requires something quite different: the ability to create con- ditions under which coherent action can emerge despite—or even because of—unpredictability. TONHEE FCOORS TT HOFE MO TI SHTEARK I N G When organizations apply complicated-system approaches to com- plex challenges, the consequences can be severe and often unexpected. This misalignment is at the heart of many organizational failures in the digital age. Consider the case of Nokia, once the world's leading mobile phone manufacturer. Nokia's leadership treated smartphone development as a complicated challenge—breaking it down into discrete technical components managed by specialized teams with detailed specifications and timelines. This approach had served them well in feature phone development, where the system was primarily complicated rather than complex. Apple, meanwhile, recognized the complex nature of the smartphone ecosystem. Rather than just focusing on device specifications, they cre- ated conditions for emergent innovation through an integrated approach
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