A633.3.3.RB - Complex Adaptive Systems

A633.3.3.RB - Complex Adaptive Systems

Find a company which reflects Morning Star and St Luke’s image of a Complex Adaptive System (CAS) and reflect in your blog what the implications are for you and your present organization (or any organization you are familiar with). Identify what you believe are appropriate actions to move your organization forward.

There is a company called Grace Manufacturing that was founded by Richard Grace in 1966 in Russellville, Arkansas. It started as a precision tool and die shop and has evolved into a company with products in several markets. The remarkable thing about this company is that they were able to adapt and change as the times changed. With the onset of the dot-matrix printer in the late 1980’s, they saw the need for some of their precision tool and die work was diminishing. They looked to what they already had on hand…lots of sharp metal and thought about what they could do with that. “As CEO (and founder’s son) Chris Grace put it, “We realized we were good at making sharp things. And so we thought, what can we make that’s sharp?”’ (Richardson, 2011)  

They looked to woodworking first because that made the most sense; sharp edges for axes and planers. “Grace had some success with these tools, but then the unexpected happened: chefs started using them in novel ways. Grace inadvertently created a need and a new product category: the culinary microplane, which extracts more flavors from foods than traditional grating and shaving.” (Richardson, 2011) They not only adapted their organization to fit the needs of the customer, Grace Manufacturing actually created a new niche market for their product.

The unexpected success with the microplane rejuvenated a company that could have easily stagnated. Instead, through the decades they were able to merge new products with products and services that they had built their foundation upon from photochemical machined precision parts for the computer peripheral market and the metal stamping operation to heat treating, injection molding, and clean room packaging. (Grace Manufacturing, 2016) This company used their technical knowledge and problem solving skills to continuously improve and evolve their processes and products.  “It’s a fascinating example of questioning assumptions about your business domain when under pressure, staying alert to customer needs, and being open to opportunities as they appear.” (Richardson, 2011)

The leaders at Grace Manufacturing used a dilemma evolution to move their organization forward. Instead of an “either/or” approach, they used a “both/and” strategy and in this case it was successful. (Obolensky, 2015) While this example has more to do with processes and products and less to do with organizational strategy, I do think that it shows a great amount of humility on the part of the leadership of Grace Manufacturing to see the bigger picture. They were able to keep up with how the world was changing but still maintain the core values of what they wanted to be as a company. As it says on their website: “Precision Products Through Innovative Manufacturing” is more than a slogan. It’s our philosophy and our commitment to the industries we serve.” (Grace Manufacturing, 2016)

References:

Grace Manufacturing. (2016) About Grace Manufacturing. http://gracemfg.com/home/?page_id=2

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

Richardson, A. (January 18, 2011) Lessons in Adaptive Strategy. Harvard Business Review. January 18, 2011. https://hbr.org/2011/01/lessons-in-adaptive-strategy

USMicroplane. (2016) The Microplane Story. http://us.microplane.com/about-us.aspx