Surfing the Edge of Chaos: The Laws of Nature and the New Laws of Business (Paperback)

~ Richard Pascale (Author), Mark Milleman (Author), Linda Gioja (Author) "There is a new scientific renaissance in the making..." (more)
Key Phrases: United States, Town Hall, Silicon Valley (more...)

Editorial Reviews

From Publishers Weekly

In this breakthrough business book, Pascale, Millemann and Gioja troll the emerging science of complexity for "ideas [that] can produce a concrete bottom-line impact." Extracting key "dynamics of survival" from the life sciences, these three management consultants successfully show business leaders how to turn their companies into agile and adaptable "living systems" that achieve long-term vitality and sustainability in a swiftly evolving environment. Their four "bedrock" principles are "Equilibrium is a precursor to death"; "Living things move toward the edge of chaos"; "Components of living systems self-organize" in response to turmoil; and "Living systems cannot be directed along a linear path." Writing with clarity and verve, the authors illustrate these larger points by comparing the functioning of organic systems (e.g., Yellowstone National Park), the behavior of organisms (dental plaque) and of insects (fire ants) with detailed case studies of five companies (British Petroleum, Hewlett-Packard, Monsanto, Royal Dutch/Shell and Sun Microsystems) and the U.S. Army. Practical-minded readers will appreciate their nitty-gritty insights into the relative advantages of "adaptive" and traditional "operational" leadership, as well as their consistent distillation of concrete business guidelines. While the authors aver that "there is no permanent victory in this eternal cycle of life and death," they make a persuasive case that "understanding living systems does not decisively win the game but, most assuredly, it improves the odds." (Nov. 1)
Copyright 2000 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.

Review

"Great storytelling, experience-based insight, and effortless prose convey a compelling message: Leading the talent-driven, distributed enterprise is the management challenge of the knowledge economy. The answers lie in complexity science, which provides relevant insights into the workings of living systems. Surfing the Edge of Chaos is the Rosetta stone, translating between real-world problems and exciting, illuminating theory. Pascale, Millemann and Gioja have at last made practical the idea of organization as organism."
-- Christopher Meyer, Director, The Cap Gemini Ernst & Young Center for Business Innovation, and author of BLUR: The Speed of Change in the Connected Economy and Future Wealth

"Surfing the Edge of Chaos is a breakthrough book, achingly relevant for the New Millennium, by synthesizing new developments from the life sciences, social sciences, and physical sciences into an exciting framework that will help organizations and their leaders thrive and revitalize themselves in this post-modern, hypo-turbulent era. It has the added advantage of rendering subtle and complex ideas into readable prose by refracting the ideas through the prism of real-life organizations. This book will be must reading for any serious executive or student of organizational change."
-- Warren Bennis, University Professor and Founding Chairman of the Leadership Institute, University of Southern California, and author of Managing the Dream

"Surfing the Edge of Chaos is an action plan for bringing organizations to life and life to organizations. An organization is a living system that must adapt to a changing environment -- the same as species in nature. Thinking of a company as a 'well-oiled machine' or of yourself as a cog in that machine is a recipe for extinction. Richard Pascale, Mark Millemann, and Linda Gioja provide exciting new ways to think about the professional and personal challenges everyone faces today."
-- Prof. Gary Hamel, author of Leading the Revolution and coauthor of Competing for the Future; Visiting Professor, London Business School; and Chairman of Strategos

"Grounded in both theory and practice, Surfing the Edge of Chaos helps any manager facing change to replace equilibrium and the status quo with innovation and self-renewal. The links drawn between the world of nature and the world of business form a particularly rich source of ideas for turning complexity and chaos into resolve and results."
-- Dave Ulrich, Professor of Business, University of Michigan, and author of Results-Based Leadership -- Review --This text refers to an out of print or unavailable edition of this title.

See all Editorial Reviews

Product Details

• Paperback: 336 pages
• Publisher: Three Rivers Press (December 26, 2001)
• Language: English
• ISBN-10: 0609808834
• ISBN-13: 978-0609808832
• Product Dimensions: 7.9 x 5.2 x 1.1 inches
• Shipping Weight: 8.8 ounces (View shipping rates and policies)
• Average Customer Review: 3.7 out of 5 stars  See all reviews (11 customer reviews)
• Amazon.com Sales Rank: #238,452 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

22 of 26 people found the following review helpful:

5.0 out of 5 stars A Must Read, March 1, 2001

By	J. Michael Gallipo (Portsmouth, NH USA) - See all my reviews (REAL NAME)

This review is from: Surfing the Edge of Chaos: The Laws of Nature and the New Laws of Business (Hardcover)

Surfing the Edge of Chaos does a marvelous job of taking many of the ideas being developed in complexity theory and applying them to the business world. In contrast say to Garrett Ralls who tried to do much the same thing, this book succeeds. I found myself continually thinking about not only the examples they provide, but also on my own work experiences and other companies that I have analyzed.

The authors do an excellent job of contrasting their approach (adaptive leadership) with more traditional reorganization (operational leadership). But refreshingly, they also acknowledge that in some cases, the more traditional approach might be more appropriate. There are many interesting concepts being developed by complexity theorists and this book manages to capture many, if not most, of them.

They show repeatedly the need to increase the stress on an organization in order to break past patterns of behavior. Their use of fitness landscapes (the idea that a successful company rests on a peak, and that in order to reach a new higher peak, often you must go down into the valley) is very powerful and at least partially explains why so many successful companies subsequently struggle, or fail, to adapt. Importantly though, the authors also spend a great deal of time talking about the unintended (or second and third order) effects of change. The point is not that you will be able to predict all of them (which is what chaos theory explicity says you cannot do), but rather that you must be flexible enough to roll with those unanticipated consequences.

Does that mean that every idea in this book is new? Of course not, but to be successful, a new theory often must combine the old with the new. And this book does a masterful of applying the ideas of Chaos/Complexity theory to business, of providing a new framework to think about both old and new problems. You may not agree with everything that appears in this book, but you will certainly come away with much food for thought.

32 of 41 people found the following review helpful:

5.0 out of 5 stars "Exhilerating, rewarding, and crucial", October 20, 2000

By	Professor Donald Mitchell "Jesus Makes Me a P... (Boston) - See all my reviews (TOP 10 REVIEWER)

This review is from: Surfing the Edge of Chaos: The Laws of Nature and the New Laws of Business (Hardcover)

"'Living systems' isn't a metaphor for how human institutions operate. It's the way it is." The book is built on this point. Living systems work much more rapidly and effectively than most human ones do. By using the most successful living systems as models, we can make great strides in improving our human organizations. Think of this as a best practice book based on the ants and the bees.

Surfing the Edge of Chaos is an unusually good book on applying the lessons of complexity science about the biological world to business progress. The material is aimed at continuous renewal of the large existing organization, but will be valuable to organizations of all ages and sizes. The explanations of the key principles are well documented with many interesting animal and business examples. Based on experience by the authors as advisors to most of the businesses cited, the stories have a depth and a resonance that is missing in many books about how to apply the lessons of "complex adaptive systems" to human organizations.

The book also strongly and effectively challenges the existing engineering and reengineering models of how to improve organizations. If you are about to put a lot of effort into these areas, hold up until you have a chance to read this book. You may well change your mind.

Many people tell me that they still do not understand what they need to do in order to apply the lessons of complexity science to their business after reading books on this subject. Few will have that problem after reading this excellent work.

The authors help make the transition between the mechanical model of organizations to a biological one by synthesizing four new principles:

(1) "Equilibrium is a precursor to death."

(2) "In the face of threat, or when galvanized by a compelling opportunity, living things move toward the edge of chaos. This condition evokes higher levels of mutation and experimentation, and fresh solutions are likely to be found."

(3) "When this excitation takes place, the components of living systems self-organize and new forms and repertoires emerge from the turmoil."

(4) "Living systems cannot be directed along a linear path. Unforeseen consequences are inevitable. The challenge is to disturb them in a manner that approximates the desired outcome."

Fascinating examples are drawn from the exploration unit of British Petroleum, Hewlett-Packard, Monsanto's refocus into biotechnology, Royal Dutch/Shell's downstream activities, Sears' refocus of its store activities, and the U.S. Army's approach to war gaming to illustrate these principles. One of the things I liked about the examples is that they pointed out the errors that the organizations made, as well as the successes. In most cases, the companies only partially converted to following these principles. You will also learn about African termites, South American fire ants, North American coyotes, and fires at Yellowstone as examples of these principles, as well. The book is also strengthened by many mini-examples of applying complexity science such as Cemex dispatching roving cement trucks and British Telecom doing the same with service trucks to emulate ant pheromone track models in order to provide better service at lower cost.

The book's strength though lies in its proposition of 7 core disciplines of how to use complexity science. These disciplines will help many to begin applying complexity science lessons for the first time. There is also a good discussion of what leaders need to do to assist in supporting the needed revolutions and evolutions for maximum development. It would be unfair to the book to attempt to summarize these ideas here, but I certainly endorse them based on my consulting experience.

After you finish reading this book, I strongly urge you to follow the example of the town meetings described in the book to launch an assessment and begin a process of adaptive leadership in your organization. You will learn much more by practicing with what is in the book than by just thinking about the material.

I also leave you with a challenge. After you have been applying this approach for a while, how can you change your company's orientation so that these organizational processes will constantly emerge in highly effective ways? In other ways, how can you place yourself in the center of the wave's curl where the ride is best all the time? For when you do, your progress will be irresistible.

17 of 21 people found the following review helpful:

5.0 out of 5 stars Belongs on your list of books on chaos, January 28, 2001

By	G. ACarleton (Apple Valley MN USA) - See all my reviews (REAL NAME)

This review is from: Surfing the Edge of Chaos: The Laws of Nature and the New Laws of Business (Hardcover)

In the process of reading a number of related books on chaos and complex adaptive systems, Surfing in the Edge is one on my current list. It compliments well other readings, and in many cases quotes meaningfully from them (e.g., Haeckel's - Adaptive Enterprises; Kelly - New Rules for the New Economy; McMaster - Intelligence Advantage).

I found this book an easy read, constantly underlining sentences and putting the book down to reflect on what was said and my own past experiences. I could see why my past approaches to management and motivation (especially reward systems which the book discusses in depth), described here as being used even by management considered open and progressive, was not successful, or if successful, not sustainable.

Anyone looking for specific answers on what organizational approaches should be used to take advantage of the concepts behind chaos should perhaps focus on this book's emphasis of things being messy, emerging in ways we cannot predict, and the experience of generating change not being straight forward (Herding Butterflies). If one can have faith that in the designed sloppiness, good things can be emerging, that faith could help one and other true believers stay the course without returning to command-and-control methods. It takes a whole new mindset to create the kind of change described in this book, and it takes a degree of critical mass in gaining converts who will in good faith implement the precepts over what could be a long period of time. The need for patience is well explained in the book.

The book is clearly not into the biology view of allowing just anything to emerge on its own. Boundaries and interventions are clearly proscribed here as needing to be taken, something very difficult to judge what they should be in a particular situation, but the guiding principles should generate dialogue and reflection from those attempting to design organizations for emergence.

This book does an outstanding job of continually discussing our tendencies to go for optimization as the end goal. In many cases, as described in this book, what we focus on to optimize eventually causes the problem because there are so many ways the efforts can be sabotaged. Those who tend to continually optimize tend to take the traditional approach of assuming predictability of future events (thus assuming few changes will take place as plans are implemented), and as managers having the answers to be imposed on an organization waiting for guidance. This book gives wonderful advice on just what management can and cannot do without the eyes and ears of the masses on the front line where the real change is taking place; it is truly humbling but exhilarating to think of the potential that can be unleashed in organizations if managers will see themselves as designers for emergence.

Wonderful case studies. Normally I tend to gloss over case studies, but those in this book are important, in part because assumed successes later deteriorated and returned to poor results of the past. This awareness alone makes the book worth reading; no organization can assume whatever it is doing right is sustainable. Gains can be reversed much faster than the time it took to get the initial gains.

On page 202, a diagram/framework is proposed, and then described. Harnessing Complexity, by Axelrod, has its own framework. I think the importance is to read these books, take what inspires, and let them all merge into your way of thinking about organizations and motivating people to change how they work together. For those who agree, this book clearly belongs on the list of references where the author has does the homework, and is attempting to clarify a subject that is highly abstract, and one where most organizations will not willingly allocate time to consider or apply its principles. Some organizations have no chance of applying these concepts; some organization only need a worthy sponsor. Sponsors need meaty material to study so they can speak within their organization with credibility, and have references that can direct others to read.

In my view, this book reflects a whole new paradigm gaining momentum of how to best create organizations capable of adapting to the fast changing new economy. It make take a number of years before the wisdom becomes commonplace in practice, and then we move on to the next level of sophistication. One day we will likely be looking back and marveling how, as we do today with Fredrick Taylor, we could have for generations tapped human talent by deploying the command-and-control techniques that still dominate the corporate landscape. I cannot imagine the concepts in these books being one day written as another fad that died.