Michael Lissack
Chapter 5 examines how organizations combine and recombine building blocks to create coherent solutions in complex environments. Whether these blocks are ideas, capabilities, technologies, or resources, the ability to recognize components and imagine new combinations rep- resents a fundamental organizational capability in complex systems. We explore how companies like Thermo Electron spin out core businesses as independent entities while maintaining strategic connections, how JR East transformed waste water into profitable bottled water through creative recombination, and how fashion brands separate design func- tionality from production. The chapter reveals how context shapes which recombinations become possible, how recognizing functionality as a sepa- rate component enables innovation, and how aligning combinations with organizational purpose and identity creates coherence amid diversity. Through practical guidelines, we learn to treat ideas and capabilities as LEGO bricks—components that can be continuously combined and re- combined to create new solutions as conditions change. Chapter 6 addresses the reality that we all occupy multiple roles si- multaneously and explores how recognizing and respecting this multiplic- ity creates more authentic and effective organizations. Through the story of Lisa Stevens navigating conflicts between professional and parental responsibilities, we examine how traditional organizational approaches often forced artificial simplification of complex role identities. We contrast this with organizations like Whole Foods, 3M, and Virgin Group that acknowledge and leverage role multiplicity rather than denying it. The chapter introduces the concept of “holon” (from Arthur Koestler)—enti- ties that are simultaneously wholes in themselves and parts of larger sys- tems—to understand how individuals function across multiple contexts.
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