One of the most difficult problems to solve is that of maintaining creativity as an organization scales. It is easier for things to go wrong. This sentiment was recently expressed by Jeff Bezos in his thought that one day Amazon (our parent company) will fail and that the task at hand is to delay that day as much as possible.
This notion of things going wrong or easily getting disorganized is none other than entropy, and scientists state that it is a fundamental law of the universe. In his insightful writing, 19th-century Russian dramatist Anton Chekov suggested, "Only entropy comes easy." But evidence indicates to me that a universal law even more fundamental than entropy is that of creativity, and that in fact entropy needs to be seen as a doorway to creativity. For it is usually when fundamental creativity is being stifled by an outdated purpose and a set of resources that cannot be correctly utilized that an automatic redistribution process begins — and that is entropy.
Arguably, creativity in larger organizations is dependent on two scaling advantages: sublinear and superlinear scaling. Sublinear scaling can be thought of as economies of scale, so that as an organization gets bigger, less energy is required to create the same output. Superlinear scaling can be thought of as the innovation that kicks in due to richer intra- and inter-group interaction.
But there are inherent inefficiencies associated with both types of scaling and so it is important to manage entropy in real time. Sublinear inefficiencies may have to do with fragmentation as an organization differentiates in the process of scaling. Superlinear inefficiencies may have to do with negative socioeconomic phenomenon such as groupthink or an over-reliance on past laurels or a culture that is failing to adapt to the needs of the hour.
To the extent that the inherent advantages of these types of scaling remain efficient, the differential between them will dictate how creative an organization can be. And it is usually when such differential becomes real that it can be said that a complex adaptive organization (CAS) has come into being.
Managing entropy, then, is a critical success factor in creating and operating a CAS.
One experimental approach we are taking right now to manage entropy is through increasing EQ within the organization. This is because emotions intimately tie together each person with their environment and are arguably a result of a person’s expectations — or internal model — with respect to the environment.
If a person’s expectations are met, they tend to have a positive emotion. If their expectations are not met, they tend to have a negative emotion. But if emotions are objectified and an associated root-cause analysis is completed, then pictures of aggregate internal models result, and this in turn sheds light on sources of entropy. It may be the case, for example, that frustrations employees experience have common and identifiable drivers, and this then becomes a call to action to change the organization in a more desirable direction in real time.
As entropy is managed, the natural creative forces that always exist will become operative again. It's arguable that the notion often attributed to Pablo Picasso, that “every child is an artist. The problem is staying an artist when you grow up,” refers to such natural creative forces. When Vincent Van Gogh allegedly said “If you hear a voice within you say, ‘You cannot paint,’ then by all means paint, and the voice will be silenced,” he captured the idea of overcoming entropy through self-awareness.
As creativity driven by sublinear-superlinear differential increases, the resulting CAS will continue to evolve to display the following kinds of operating principles and characteristics:
• A single organization with truly decentralized control.
• A high degree of interrelation and interaction both inside and outside the organization.
• A deeply cohesive culture that binds the loosely connected organization together.
• Emergence of increasing creativity though unpredictable high-order initiatives, structures, processes and products.
• A co-evolution between the loosely connected autonomous parts such that all parts benefit from.
• A continually morphing organization that may continue to look completely different but still maintain the core of what it is. This notion has been captured in my previous writing on the secret to creating a living culture.
• An increasing reality of paradox where often seemingly insignificant developments can result in huge gains, implying a reality of suspending judgment or learning to see differently, as I explored in a previous article on neuroplasticity and creating new markets.
Such an organization will be truly egalitarian and it is likely that inclusiveness, diversity and authenticity will more easily flourish. Such an organization may even result in each individual truly being the manager of their own work, driver of their own progression and master of their own destiny.
