A633.2.3.RB - Butterfly Effect

A633.2.3.RB - Butterfly Effect

Based on this week's reading, reflect on complexity science and theory in organizations and the butterfly effect (p.66). 

Identify 2 examples where “small changes yield large results” in your organization.

What are the implication of complexity theory for you and your organization and how can you use this to drive improvements.

Complexity science consists of four types: Imposed, Inherent, Designed, and Unnecessary complexities. (Obolensky, 2015) Imposed complexity comes from the outside…statutory and regulatory laws put in place that an organization must comply with in order to do business. Inherent complexities and internal to a company and can only be dealt with by changing the scope and structure of a business. Designed complexities has to do with how an organization does business. An example would be a company that, as a rule, does not outsource their manufacturing or only sells their product at a minimum mark-up. It can hinder immediate success but can also garner loyalty in their customers. Unnecessary complexities seem to be what most businesses struggle with. Management is pressured to solve a problem, they see it as a complicated issue and they put more stringent rules in place without even investigating the real issues. It’s the embodiment of cutting your nose off despite your face. (Obolensky, 2015) Organizations are all in a big hurry to beat out their competitor and climb that mountain of money for their investors. They forget that real problem solving takes time, not a lot…but some, and takes listening to people. What seems like a huge deal might actually have a simple solution. For example, mechanics on the floor constantly have jobs behind schedule because they are having trouble with rivets. Since the shop runs on a positional manufacturing model, delays in position one cause delays and parts problems all the way down the line. The mechanics complain that the rivets they get in their kits are the wrong size so they constantly have to reorder new rivets which causes a delay. Management imposes a tighter schedule expectation thinking that if they have to get the job done in less time, they’ll just make the rivets work. This causes even more back-ups because the rivets still don’t work so they still have to be reordered. Now everyone is in a panic and a recovery plan is ordered which now involves other departments…people are working overtime…its chaos. No one has asked why the rivets don’t work. The real problem is that the rivet supplier that was previously used has gone out of business and now the rivets are coming from another vendor who was given outdated specifications. Until this is figured out, people are going to be frustrated and work over time unnecessarily. If the manager had stopped to ask a simple question about the rivets, they would have been able to start on the right path to a simple solution to a complex problem.

Small changes yielding large results seems to come down to culture in my organization. One department has failed their customer so many times in the past that the customer has been diverting their requests to another shift where the supply chain is more reliable for years. No one really pays attention to this until someone new joins the team and goes to order a specific part. The lead comes up and tells him to stop…let the next shift order that part. When it is explained to the new person, they go and talk to the people in the supply chain team. The mechanic asks why there is a problem getting parts and the supply chain team looks at him like he’s the only one wearing a costume at a Halloween party. They explain that there used to be a hiccup in the software but that’s been fixed for a few years, they just never get requests on this shift anymore and haven’t questioned why. This new person requests the parts they need and they are actually delivered earlier than expected. When the new person explains the situation, the people who have been ordering parts from a different shift realize that no one actually asked why before. Being able to have a part requested and delivered on their shift will actually save them (and the company) a lot of time. One question, one small act can save labor hours which saves the organization money, which is always a good thing.

I will say that another small change that can yield large results is in how we treat other people. This isn’t a fancy business solution but in my experience, when you work in an organization, there are going to be times when you need help from someone. I make it my priority to find out who the procurement people are, the maintenance folks, materials management, and even executive assistants. I try to treat everyone with kindness regardless…life is hard enough without people being snarky and rude. But the people in the above mentioned positions are usually treated as if they are invisible until something happens and then people want their help. So, the small change that can yield large results is to reach out to people and be kind…being kind should be your default setting.

References:

Obolensky, N. (2015). Complex Adaptive Leadership. Farnham, Surrey, England: Gower Publishing Limited.