Managing Complexity for Organizational Agility and Sustainable Success

In our latest podcast episode, we had the pleasure of hosting Esther Derby, an experienced consultant, and expert in managing complexity. Our discussion revolves around the latest addition to our surveys: Managing Complexity and its Impact on organizational success.

Understanding Complexity:

Esther began noticing that many team-related issues were actually rooted in decisions and actions made throughout the organization. To gain a deeper understanding, she developed hypotheses and used them to initiate conversations with individuals, empowering them to take action and recognize the consequences of their decisions on teams and product development.

The Significance of Steering:

Esther breaks down the three key areas of managing complexity: steering, enabling, and enhancing. Steering involves determining the organization’s direction, customer focus, market position, and organizational structure. Additionally, it addresses behavioral expectations and how people are treated within the organization.

Challenges in Communication and Understanding:

The conversation delves into the challenges of communication and understanding within organizations. Esther narrates an interaction with a CEO who struggled to find competent employees after the company had grown. She explains how knowledge bifurcation occurs as organizations expand, with top-level management possessing crucial information while frontline workers lack contextual understanding. This knowledge gap leads to a lack of trust and inhibits effective decision-making.

Permeating Information Throughout the Organization:

During the podcast, Simon, the podcast host, along with Esther explores strategies for permeating information throughout the organization. They stress the importance of not assuming that information is understood and highlight the need for a basic understanding of the company’s operations and individual roles within the broader context. Writing down strategies and objectives and making them easily accessible to all employees is essential for informed decision-making and alignment.

Enabling and Enhancing Performance:

Moving on to enabling and enhancing, Esther explains the significance of creating an environment where great work can flourish. Enabling involves providing teams with the necessary resources and reducing dependencies. Enhancing, on the other hand, focuses on optimizing workflow and removing obstacles to improve the organization’s overall effectiveness. They discuss the importance of horizontal collaboration and breaking away from strictly defined roles to foster a culture of shared responsibility.

Conclusion:

Managing complexity is a critical aspect of effective organizational management. By aligning the organization’s direction, enabling teams, and enhancing workflow, leaders can foster an environment where great work thrives. Furthermore, connecting strategy with execution through clear and tangible objectives helps create a shared understanding and empowers employees to make informed decisions. In this way, organizations can navigate complexity and achieve success in an ever-evolving landscape.

Listen to the whole episode here.