Cynefin and Complexity: A Gentle Introduction

1. NYC Lean Kanban Meetup Cynefin and Complexity: A Gentle Introduction Jocko Selberg @JockoSelberg Jocko21@gmail.com NYC Cynefin Group - Meetup Oct 28, 2015 #nyclean * Lean Coffee to follow talk – create your topics

2. Story Time! Mr. Narrative Fragments & Little Miss Context #nyclean@JockoSelberg

3. A Very Special Message #nyclean@JockoSelberg

4. 3 Vignettes #nyclean@JockoSelberg Our brains instantly construct a story based on our perception of the context. 1. We see car arrive - followed by Mr. Skinhead turning and scampering away. 2. We see Mr. Skinhead engaging Mr. Trenchcoat man. 3. We see Mr. Skinhead saving Mr. Trenchcoat man from falling bricks. Is Mr. Skinhead a criminal or an undercover cop? Is Mr. Trenchcoat man a banker or a drug dealer? Who is in that car?

5. Stories in Context #nyclean@JockoSelberg These stories can be radically different based on your point of view (identity). The ‘Bro Officer O’Malley The Director

6. First-fit Pattern Matching We often find ourselves responding to events without fully considering the context. Once we categorize something, it is cognitively very difficult to change your mind about it. – we categorize! #nyclean@JockoSelberg For example, as a PM or an executive, you may anchor the context in assuming you need for a detailed project plan for all work Categorizing allows us to make quick decisions based on limited information

7. Sense & Respond How can we make sense of a situation such that we can respond intelligently given incomplete information? (whenever a decision is required, we are ALWAYS limited by incomplete information) #nyclean@JockoSelberg Given the fact that we are very prone to categorizing everything…

8. Context is Everything There are no universal solutions, but there are contextual solutions There are different ways of doing things based on the context you are operating in #nyclean@JockoSelberg

9. Making Sense of the Problem How can we more accurately sense the context we are operating in so that we might better act? #nyclean@JockoSelberg

10. Order! #nyclean@JockoSelberg (S)he who defines the constraint, defines (anchors) the solution space.

11. What is Order? or·der /ˈôrdər/ noun 1. the arrangement or disposition of people or things in relation to each other according to a particular sequence or pattern. How does order happen? Must we create order, or can we allow order to emerge? #nyclean@JockoSelberg

12. Emergent vs Directed Emergent Order Relationships between cause and effect are unknown, unpredictable or not perceivable Relationships between cause and effect are well established or discoverable through analysis Order emerges out of initial starting conditions Directed Order Order is directed or imposed For the purposes of Cynefin, we’ll rename Directed Order to Ordered and Emergent Order to Un-ordered #nyclean@JockoSelberg

13. Characteristics of Order Un-ordered Relationships between cause and effect are unknown, unpredictable or not perceivable Relationships between cause and effect are well established or discoverable through analysis Order emerges out of the initial starting conditions Ordered Order is directed or imposed Higher degree of Certainty (highly predictable) Lower degree of Certainty (less predictable) CausalDispositional Linear relationships (output is directly proportional to the input) Non-linear relationships (output NOT directly proportional to the input) Exploitation - Commoditization (Repeatability) Exploration - Innovation (Novelty) #nyclean@JockoSelberg

14. Managing Differently Un-ordered Relationships between cause and effect are unknown, unpredictable or not perceivable Relationships between cause and effect are well established or discoverable through analysis Things Grow Ordered Things are Made Define Ideal Future State (close the gap) Describe the Present (influence the direction of change) Manage the Plan (set rules, scope - implementation) Manage the Constraints (set attractors, boundaries - experimentation) Monitor for Adherence (governance) Monitor for Emergence (patterns, weak signals) Architect the Solution (engineer) Amplify / Dampen Attractors* (feedback loops) #nyclean@JockoSelberg * An attractor is a state or set of states toward which a system tends to evolve. System values that get close enough to the attractor remain close.

15. Triaging Un-ordered Relationships between cause and effect are unknown, unpredictable or not perceivable Relationships between cause and effect are well established or discoverable through analysis Are you looking for a repeatable solution? Are you looking for a novel solution? The realm of learning Ordered The realm of planning Nobody in the company, the industry, or the world has solved this type of problem in the past. You, your team, the company or a specialized group has solved this type of problem in the past. #nyclean@JockoSelberg

16. Systems #nyclean@JockoSelberg

17. 3 Types of Systems • A system is any network with coherence • An agent is anything which acts on or within the system • In nature, there are 3 types of systems:* • Ordered Systems: the system tightly constrains agent behavior. • Complex Systems: the system loosely constrains agent behavior. The system and agents (collectively) modify each others behaviors. • Chaotic Systems: the system imposes little or no constraints on agents. Agents act independently of each other, behavior appears random. * Constraints-based definition #nyclean@JockoSelberg

18. Let’s Map These Systems Ordered (Directed Order) Un-ordered (Emergent Order) • Complex • Chaotic • Ordered Systems• Complicated domain Cynefin breaks Ordered Systems into 2 domains: Complicated & Obvious, based on peoples perception of the relationship between cause and effect. • Obvious domain • Dis-order domain Systems Systems domain domain #nyclean@JockoSelberg

19. Chaotic domain Complicated domain Complex domain Obvious domain Un-ordered Ordered Cause-Effect relationship perceivable only in retrospect. Not Repeatable (except by accident) Cause-Effect relationship discoverable via analysis and/or expert knowledge. Cause-Effect relationship is not perceivable at a systems level. Cause-Effect relationship is obvious to all Perceivable, Predictable & Repeatable. Introducing the Cynefin Domains The boundary between Obvious and Chaotic is represented as a cliff, or a catastrophic failure arising from complacency. #nyclean@JockoSelberg

20. Notes on Sense-making Cynefin is a Sense-making framework, it is not a Categorization Schema It’s all about the dynamic movement between domains #nyclean@JockoSelberg

21. Complexity 101 #nyclean@JockoSelberg

22. Flow and Self Organization • Autonomy – each “actor” is making individual decisions • Locality – behavior dependent on decisions of immediate neighbors • Distributed Cognition – no centralized control • Dynamic Interactions – via continuous “micro-decisions” • Simple “rules” – Match speed, avoid collision, fly to the center of the flock • Agents are generally ignorant of the behavior of the system as a whole #nyclean@JockoSelberg

23. Agents An agent is anything which acts on or within the system. Examples of agents might be molecules, ants, memes, myths, identities, etc. * Relationships between the agents are more important than the agents themselves. Agents are autonomous and self-organize. * People are rarely agents. They are complex systems in and of themselves. #nyclean@JockoSelberg

24. Agents Interact with Agents Agents interact with each other locally and modify each others behaviors via their mutual interactions. Proximity and connectivity are key. Simple “rules” act to both constrain and enable behavior. #nyclean@JockoSelberg

25. System and Agents Interact Agents and the System also interact with each other. Each may also modify the behavior of the other. They co-evolve together. Order emerges, it is not imposed. #nyclean@JockoSelberg

26. Complex Adaptive Behavior New Patterns Emerge Patterns Modify Behavior (+)(-) As agents continually interact, patterns emerge. Positive and negative feedback loops develop… …further modifying the behavior of the agents. These patterns modify the behavior of the agents. ...which act to amplify or dampen existing patterns… Rinse, Repeat, Concurrently - billions and billions of times. #nyclean@JockoSelberg

27. Systems are Hierarchical These systems may also act as agents in a larger system. They are self- similar and hierarchical. That is, systems both contain sub-systems and are contained by larger systems. They’re fractal. At each level of complexity, entirely new properties appear. #nyclean@JockoSelberg

28. Complexity in a Nutshell • Systems are hierarchical – cells, organs, organisms, societies… • Systems are dynamic – systems change in patterns over time • Agents self-organize – There is no centralized control • Order emerges – it is not imposed • Multiple autonomous agents – interact with each other and the system • Simple ”rules” (constraints) – produce complex interactions • Systems and agents co-evolve • Co-evolution is irreversible – There is only the current state* #nyclean@JockoSelberg * and its history – The present is informed by the past.

29. Designing a Complex System Can such a system be designed or engineered? “Not bloody likely.” - Eliza Doolittle (Pygmalion) That is, can a complex system be driven towards an Ideal Future State? #nyclean@JockoSelberg

30. Why is This? Complex systems are fundamentally different • Small changes may produce massive impacts, or may do nothing at all • You cannot know in advance which solution will work best because of the dynamic nature of the network of interactions • These systems evolve, there is no Ideal Future State to “achieve” • These systems do not lend themselves to a reductionist approach • There is only “fitness for purpose” within the “situated present” #nyclean@JockoSelberg Irony Alert – The present is generally more certain than the future

31. Working in Complex Systems… …requires a shift in how we view our work at a systems level • Monitor for emerging patterns, suppress the urge to categorize: Probe • Identify patterns as they emerge (in real time) • Seek opportunities that allow the system to move in a desirable direction • Amplify / Dampen patterns rather than trying to drive system: Nudge • Beneficial coherence can be amplified (within attractors) • Negative coherence can be dampened by denying energy (resources) • Manage the constraints rather than “the plan”: Bound • Apply context sensitive constraints – the level of constraint is defined by the domain • Manage via constant, small interactions - within boundaries #nyclean@JockoSelberg The only way to manage a complex adaptive system is by interacting with it

32. My Mayonnaise is Complex “A jumbo jet is complicated, but a mayonnaise is complex.” - Paul Cilliers (1956-2011) #nyclean@JockoSelberg

33. Cynefin “It infuriates me to be wrong when I know I'm right.” - Molière #nyclean@JockoSelberg The “right” solution in the wrong context is the wrong solution.

34. Knowns, Gnomes and Unknowns “As we know, there are known knowns; there are things we know we know. (obvious) We also know there are known unknowns; that is to say we know there are some things we do not know. (complicated) But there are also unknown unknowns - the ones we don't know we don't know. “ (complex) Donald Rumsfeld – (a known gnome) February 12, 2002 #nyclean@JockoSelberg

35. Let’s Make Sense of This… …using the Cynefin Framework #nyclean@JockoSelberg

36. Chaotic domain Complicated domain Complex domain Obvious domain Un-ordered Ordered The Cynefin Domains Cause-Effect relationship perceivable only in retrospect. Not Repeatable (dispositional, not causal) Flux Cause-Effect relationship separated by space & time. Requires analysis and/or expert knowledge. Cause-Effect relationship is not perceivable at a systems level. Turbulent. Cause-Effect relationship is obvious to all Perceivable, Predictable & Repeatable. Stable Retrospectively coherent causality (Unknown unknowns) Incoherent causality (Unknowable unknowns) Knowable causality (Known unknowns) Known causality (Known knowns) “Emergent practice” “Good practice” “Novel practice” “Best practice”

37. Chaotic ComplicatedComplex Obvious Un-ordered Ordered Responding in Cynefin Domains Complexity Based Approach Create multiple, safe-to-fail interventions (identify patterns, gain insights) Manage in the present. Focus on the evolutionary potential of the present Systems Thinking Approach Not Self-evident (test & refine hypothesis) Engineering (reductive) Trust the Experts Focus on goals Crisis Management Approach (stability-focused intervention, impose order) Urgent Rapid-Response Define the constraint – while you still can Standard Operating Procedures Self-evident (automation, rules) Trust the Manual Focus on efficiency Sense – Analyze – Respond Act – Sense – Respond Sense – Categorize – Respond Probe – Sense – Respond #nyclean@JockoSelberg

38. Contextualization #nyclean@JockoSelberg

39. Un-ordered Ordered Contextualization Submitting an invoice Refactoring code Building a House Trouble-shooting an outage Operating a Start-up Creating 'product buzz' Finding new markets Shooting Rampage #nyclean@JockoSelberg

40. Un-ordered Ordered Let’s Build a House! Building a House Finding a Location Construction Medical Emergency Making Payments Securing a Mortgage Building a House on Mars You’re Fired! Building a Bird House Building Shelter (from a storm) #nyclean@JockoSelberg

41. Conclusion A complexity based approach asks the following: • In the context of what is going on at the moment, what can we change? • Out of what we can change, what and how can we monitor for the impact of that change? • Out of the things we can monitor for impact, where can we amplify success or dampen failure? #nyclean@JockoSelberg What is going on at the moment? “We evolve forward into a future state, which is more sustainable and resilient, but which we could not have anticipated.” - Dave Snowden

42. Thank You! NYC Lean Kanban MeetupSpecial Thanks to: Dave Snowden Jocko Selberg @JockoSelberg Jocko21@gmail.com NYC Cynefin Group - Meetup