Highlights
Learning Outcomes
1. To describe complexity theory and explain its influence on strategy.
2. To list ways in which complexity thinking complements orthodox approaches to strategy.
3. To link the four bedrock principles identified by Pascale in Reading 18 to strategic management.
Word limit: 2000 words
About the TMA
US management scholar Richard Pascale sets out some practical consequences of complex adaptive systems in the article ‘Surfing the edge of chaos’. Pascale’s article on ‘Surfing the edge of chaos’ includes the example of how complexity thinking was applied in Shell, and the material in Block 6 includes a discussion of Downs et al., (2003) and Carlisle (2010) on the managerial implications of the approach. These are potentially useful pieces of theory with which to approach the question. As in any critical argument, make sure you offer a balance of points for and against a point of view – in this case the extent to which complexity theory might enhance strategy formation and strategy implementation. While connected, these are two different issues so make sure you offer a reasoned opinion on both.
Task
On reading, ‘Surfing the edge of chaos’ by Richard Pascale, analyse and discuss your answer to the following points- What does Pascale list as the four properties of a complex adaptive system? List and explain the four ‘bedrock principles relevant to new strategic work’, which Pascale identifies. On ‘Stable equilibrium equals death’ to the end of the article, reflect and comment on how well you feel the example of Steve Miller’s work at Shell exemplifies the bedrock principles.
Assessment Guidance
Please note that the word count for this assignment is 2000 words, reflecting the fact that it is a single essay. The first part of Block 6 Unit 2, including Reading 18, gives an extensive account of the nature of complex adaptive systems, and the implications for strategists of seeing their organisations as such systems. This material revisits important themes from earlier in B301, such as the nature of change, how strategy is formed (we use the terms ‘strategy formation’ and ‘strategy formulation’ interchangeably), the resource-based view of strategy including the nature of strategic capabilities, and innovation. Complexity thinking casts new light on all these topics. While at first sight complexity thinking might appear radically different from conventional approaches to strategy, Block 6 suggests that they complement each other.
The purpose of the task is to introduce the basic ideas on which Pascale builds his application of complexity theory to strategy. It is necessary to unpack Pascale’s ‘bedrock principles’ in order to explain why they imply such a radically different understanding of change from conventional theory as well as a different way to manage it. Now, resume your reading from the paragraph headed ‘Stable equilibrium equals death’ to the end of the article. As you read, make notes on how well you feel the example of Steve Miller’s work at Shell exemplifies the bedrock principles. You need to form your own view of the effectiveness of Pascale’s running illustration of his bedrock principles, depending on how convinced you are by complexity theory as an idea.
Examples are important when we make arguments. Examples about strategy are difficult to come by as organisations tend not to give away details of their strategy in public and even people working in the same organisation can have different interpretations of its strategy. Potential sources, apart from any personal experience you may be able to draw on, include media reports, magazines such as The Economist, and your learning materials themselves. You may need to make it clear that your examples are based on interpretations.
The word count (2000 words for one question) is designed to allow you to develop your arguments and examples in order to answer the question as fully as possible.
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