Sunday, January 25, 2015

A633.2.3.RB - Butterfly Effect

Organizations are complex in structure and have dynamic networks of interactions and relationships.  Most organizations are self-organizing; having rules but providing freedom within that structure.  At my current organization, we are set up in a very similar structure, where we have a set of ‘rules’ and basic qualifications to perform your job, but you are given flexibility in terms of how you perform that job, as long as it aligns with the company’s philosophy.  In these types of structures, I believe providing an environment where there is freedom to make your own choices within a set structure can be positive to the overall attitude of the company.  It also helps to provide an environment where learning and growing are encouraged. 

While the positives of this structure are clear, this can lead to changes within the company as noted in the butterfly effect concept.  When employees at my company are given leeway to make their own choices about specific situations that occur for them, it can lead to a lot of Inconsistency company wide.  For example, if a customer comes in to a store requesting the use of a discount even though they do not have that specific discount and the employee gives it to them, the next time the customer could go in to another store somewhere else and assume they can use it again even if they forgot.  This can cause uncomfortable situations for the next employee that may encounter this issue, as they are faced with a situation of prior leniency that has turned into a pattern.  While it’s a small change, whether for customer service or lack of knowledge, it can lead to big changes in terms of monetary profits company wide, as well as company reputation through customer word of mouth. 

The butterfly effect can lead to both positive and negative changes in a company or organization.  It’s important to be aware of the small actions that we take on a daily basis while utilizing our freedom within structure.

Obolensky, N. (2010). Complex adaptive leadership embracing paradox and uncertainty. Farnham, Surrey: Gower.

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