The Next Next Common Sense
Permeable Boundaries: The coherent organization maintains clear identity and purpose while allowing ideas, people, and resources to flow across boundaries. Rather than rigid demarcations between inside and outside, these organizations create semi-permeable membranes that main- tain integrity while enabling exchange with the broader ecosystem. A technology company implementing this approach redesigned its innovation process to incorporate external partners, customers, and even competitors at various stages. Rather than treating innovation as a purely internal activity, they created structured processes for external collabo- ration while maintaining clear boundaries around their core intellectual property. The result was an acceleration in both the quantity and quality of innovations. Dynamic Stability: Organizations designed for complexity achieve stability through continuous adaptation rather than rigid structure. Like a skilled cyclist maintaining balance while in motion, they create stability through ongoing adjustments rather than fixed positions. A financial services firm embraced this principle by replacing its annual strategic planning cycle with a continuous process of horizon scanning, scenario development, and strategic adjustment. Rather than treating strategy as a periodic event resulting in a fixed plan, they devel- oped capabilities for ongoing strategic evolution. This approach allowed them to respond more effectively to market shifts, regulatory changes, and emerging opportunities. Meaningful Redundancy: Efficiency-focused organizations elim- inate redundancy to reduce costs. Complexity-adapted organizations maintain strategic redundancy in critical systems to enhance resilience. This redundancy isn’t wasteful duplication but carefully designed backup capabilities that provide options during disruptions. When a pharmaceutical company implemented this principle, they restructured their supply chain to include multiple sourcing options for critical components, distributed manufacturing capabilities across re- gions, and strategically positioned inventory buffers. While this approach increased costs slightly during normal operations, it provided significant
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