That is, realize that informal relationships, gossip,
rumor and hallway conversations contribute
significantly to agents’ mental models and subsequent actions.
Complexity theorist Ralph Stacey points out that every
organization actually consists of two organizations:
the legitimate and shadow systems. Everyone in an organization is part of both. The legitimate system
consists of the formal hierarchy, rules and communications patterns in the organization. The shadow
organization lies behind the scenes. It consists of hallway conversation, the grapevine, the rumor mill
and
the informal procedures for getting things done. Most traditional management theory either ignores the
shadow system, or speaks of it as something leaders must battle against (as in, “overcome resistance
to
change” – it’s that military metaphor again).
Stacey further points out that because the shadow system
harbors such diversity of thought and approach,
it is often the place where much of the creativity resides within an organization. While the legitimate
system
is often focused on procedures, routines and the like, the shadow system has few rules and constraints.
The diversity, tension and paradox of these two organizations that coexist within one can be a great
source
of innovation if leaders could just learn to listen to, rather than battle against, the shadow.
One health care executive entered the shadow system when
he joined a group of doctors and nurses talking
in the cafeteria one day. He was so fascinated by their discussion of improving the process for delivering
anti-coagulants, he soon became part of this underground ad-hoc team. In doing so, he quietly sidestepped
the difficult, formal process for approving quality improvement projects instituted by the hospital.
The
resulting work was so successful, it led to a close re-examination of the approval process that had
been
unintentionally discouraging such innovation.
When we see our organizations as CASs, we realize that
the shadow system is just a natural part of the
larger system. It is simply more interconnections among agents, often stronger interconnections than
those
in the legitimate system. Leaders who lead from an understanding of CASs, will not have a need to
discredit, agonize over, or combat the shadow systems in their organizations. Rather, they will recognize
and listen to the shadow organization, using the interconnections it represents as another avenue for
tuning information flow, diversity of opinion, anxiety, and power differential.
"When the legitimate and shadow system operate
against each other, an organization is in the phase
transition at the edge of chaos; it is only here that it is changeable, because it is only here that
it is
capable of double-loop learning …. When an organization is in this state, at least some of its
members
play by engaging in exploratory dialogue, utilizing analogies and metaphors, and employing self-
reflection to develop new knowledge …. If this change is then amplified throughout the organization
to
become the dominant schema of the organization, potential innovation has occurred."
–Stacey
1. Thoughts
