Richard Pascale, Mark Milleman and Linda Gioja, Surfing the Edge of Chaos: The Laws of Nature and the New Laws of Business. Crown Business, 2001.
Referenced in: Leadership and New Science
LifeandLeadership.com Summary
This is one of a growing number of texts on Leadership and the New Science. I recommend this as an advanced level reading alongside other texts as listed in the Ministry Resource Guide on the subject.
In this volume, the authors are passionate about the significance of the New Science. They say,
We are entering another scientific renaissance. The magnets for the inquiry are called complex adaptive systems. Also known as “complexity science,” this work grapples with the mysteries of life itself, and is propelled forward by the confluence of three streams of inquiry: 1) breakthrough discoveries in the life sciences (e.g. biology, medicine, and ecology); 2) insights in the social sciences
Rapid rates of change, an explosion of new insights from the life sciences, and the insufficiency of the machine model to explain how business today really works have created a critical mass for a revolution in management thinking. The fallout of the scientific renaissance has fostered uncertainty and soul-searching.” (4)
Though not church-related, it is referenced significantly by church leaders, especially among missionals who prefer emergent, non-directive, and self-generative methods of congregational mission discernment. It is also heralded as a landmark text in the field of business management.
The authors first describe the old rules of leadership. They build on Ron Heifetz’ model of adaptive change which calls leaders to challenge organizations to the deep-level transformations that are important to survival and effectiveness. Similar to Heifetz’ distinction between adaptive and technical changes, these authors distinguish adaptive from operational leadership, or the efficient operation of an organization in a stable environment. Operational leadership is a “social engineering” model built on three assumptions.
- Intelligence is located in top management.
- The pathways toward change follow predictable patterns and can be controlled.
- Change initiatives follow “cascading intention,” in which directives come from the top and are communicated or rolled out such that those below will understand and implement what the leaders intended.
The authors argue these assumptions no longer hold. They are the old rules, but the new scientific research on complex adaptive systems has revealed a new set of principles, which they summarize (6).
- Equilibrium is a precursor to death. When a living system is in a state of equilibrium, it is less responsive to the changes that are occurring around it. This places it at maximum risk. – Organizations may ride the success of previous change efforts such that they are tempted by the lure of equilibrium through strong values, close-knit social systems, and refined operational procedures. This same stability makes them less capable of responding effectively to changes in the environment. They may respond to the changes with what worked before, but usually with ever diminishing returns. They become victims of their own success.
- In the face of threat, or when galvanized by a compelling opportunity, living things move toward the edge of chaos. This condition evokes higher levels of mutation and experimentation, and fresh mutations are more likely to be found.
- When living things move closer to the edge of chaos, the components of living systems self-organize, and new forms and repertoires emerge from the turmoil. This property of life, called “self-organization and emergence,” is a major source of innovation, creativity, and evolution.
- Living systems cannot be directed along a linear path. Unforeseen consequences are inevitable. The challenge is to disturb them in a manner that approximates the desired outcome. They describe this as the place top-down strategies completely break down:
If adaptive intention is required, the social system must be disturbed in a profound and prolonged fashion. Magnifying a threat or utilizing organizational devices to propagate “genetic diversity” then becomes important. Adaptive leaders don’t move too quickly or reach for a quick fix. Rather (taking actions quite the opposite of social engineering), they emphasize mobilizing followers deep within the ranks to help find the way forward. This is achieved, as Heifetz describes it, by (1) communicating the urgency of the adaptive challenge (i.e., the threat of death), (2) establishing a broad understanding of the circumstance creating the problem, to clarify why traditional solutions won’t work (i.e., sustaining disequilibrium), and (3) holding the stress in play until guerrilla leaders come forward with solutions (i.e., making room for genetic diversity). This sequence generates anxiety and tension. (40)
Many in the organization will resist and even marginalize adaptive leaders to protect themselves from the deep change required. It is easy for leaders to acquiesce, but they should instead hold the collective feet to the fire, regulate distress to help draw the system out of its comfort zone, and managing avoidance measures such as scapegoating, marshaling authority figures, etc.
The authors also describe the tools that are important for leaders as they seek to provide the compass to help complex adaptive systems move toward chaos without self-destructing.
From the Publisher
Every few years a book changes the way people think about a field. In psychology there is Daniel Goleman’s Emotional Intelligence. In science, James Gleick’s Chaos. In economics and finance, Burton Malkiel’s A Random Walk Down Wall Street. And in business there is now Surfing the Edge of Chaos by Richard T. Pascale, Mark Millemann, and Linda Gioja.
Surfing the Edge of Chaos is a brilliant, powerful, and practical book about the parallels between business and nature — two fields that feature nonstop battles between the forces of tradition and the forces of transformation. It offers a bold new way of thinking about and responding to the personal and strategic challenges everyone in business faces these days.
Pascale, Millemann, and Gioja argue that because every business is a living system (not just as metaphor but in reality), the four cornerstone principles of the life sciences are just as true for organizations as they are for species. These principles are:
- Equilibrium is death.
- Innovation usually takes place on the edge of chaos.
- Self-organization and emergence occur naturally.
- Organizations can only be disturbed, not directed.
Using intriguing, in-depth case studies (Sears Roebuck, Monsanto, Royal Dutch Shell, the U.S. Army, British Petroleum, Hewlett Packard, Sun Microsystems), Surfing the Edge of Chaos shows that in business, as in nature, there are no permanent winners. There are just companies and species that either react to change and evolve, or get left behind and become extinct. Some examples:
Parallels between Yellowstone National Park and Sears show why equilibrium is a dangerous place in both nature and business.
- How Monsanto used a “strange attractor” to move to the edge of chaos to alter its identity and transform its culture.
- The unlikely story of how the U.S. Army embraced the ideas of self-organization and emergence.
- Why the misapplication of linear logic (reengineering a business or attempting to eradicate predators in nature) will inevitably fail.
The stories in Surfing the Edge of Chaos are of pioneering efforts that show how the principles of living systems produce bottom-line impact and profound transformational change. What’s really striking about them, though, is their reality. They are about success and failure, breakthroughs and dead-ends. In short, they are like the business you are in and the challenges you face.
About the Authors
Richard T. Pascale is the coauthor of The Art of Japanese Management and author of Managing on the Edge. He has also written for the Harvard Business Review.
Mark Millemann has extensive experience working with CEOs and executive teams of companies around the world, including Sears, Hughes Space and Communications, BP Oil, Borg Warner Automotive, and the Illinois Power Company.
Linda Gioja has consulted with CEOs and executives at such companies as Allstate, Sears, and Hughes Space and Communications.
***For additional information on this resource, including reviews, click the bookstore links. Check the reference at page top or the links below for resource guides on related topics.***
Related Areas
See Other Resources on Leadership and the New Science:
See Other Resources on Leadership:
See Resources on Over 100 Areas of Ministry Leadership: