This document discusses adopting non-deterministic management approaches to increase business agility. It explores concepts from chaos theory and complex systems that suggest management should be non-linear and lack central control. Examples are given of companies like Morning Star and Goretex that follow principles of self-organization, interdependence, feedback and emergence inspired by non-deterministic sciences. Adopting these principles can help organizations adapt better to changing environments. The document argues this "non-deterministic management" is the next evolution for increasingly agile businesses facing more complexity.

1. Creating Business Agility
by Adopting
Non-Deterministic
Management
By Natty Gur

2. The most agile organization
Agile: Ability to move quickly and easily

3. Why people are working together

4. Ashby’s Law

5. Ashby’s law
• For a system is to be stable, the number of states of its control
mechanism must be greater than or equal to the number of
states in the system being controlled
• Complex environments need organizations that are sufficiently
complex to match those environments
• Ashby’s Law explains continuous change in companies

6. Ford & Taylorism

7. General Motor (GM)

8. NUMMI
12/1984

9. Toyota

10. Toyota Production System & Agile Manifesto
- Individuals and interactions over processes and tools
- Working software over comprehensive documentation
- Customer collaboration over contract negotiation
- Responding to change over following a plan
February 11-13, 2001

11. Meanwhile in the science world

12. When science was challenged

13. The Success of Non-linear
Non-deterministic Sciences

14. Quantum, complex and chaos theories
are non-linear non-deterministic and
contribute to mankind
• Solid state electronics
• Lasers
• Semiconductors
• Remote controls
• DVD

15. Chaos Theory & Complex Systems

16. What we can learn from
Chaos and Complexity
• Quantum was the first step
• Chaos theory
• (Strange) Attractors (Butterfly effect) - breaks the first law of thermodynamics
• Universality - flow come together and then fall apart couple of time before stabilize
• Fractals
• Bifurcations - random change that is going for a long time suddenly change significantly
• Complex systems
• Self organization
• Inter relatedness
• Adaptive nature
• Emergence

17. Non-linear and Non-deterministic
Management

18. Non-deterministic and Non-linear theories
can be principles for agile management
•No central control (CAS)
•Self Organized (CAS)
•No-silos - items within the system are repeating each
other and are interlinked (fractal)
•Governed by feedbacks and modules (CAS)
•Focused on emergent(CAS)
•Purpose is essential (CAS)

19. Leading NDM Practices and Tools

20. Existing Non-deterministic
Management Systems
New wave of management systems based on the principles of
non-deterministic management
• Morning Star
• Goretex
• Haier
• Holacracy (Zappos)
• Eco-Autonomous

21. How to bring it all together

22. Discussion
www.ongalaxies.com/blog

23. Backup

24. Existing Tools
• System Thinking
• Elements
• Causal loops
• Flows & stocks
• Computer models

25. The origin of Agile –
Business Need
Need for business changes increased
•Industrial revolution
•Globalization
•Virtual & data revolutions
•Robotic intelligence revolution

26. External Complexity
Internal Complexity
Resources
Max resources
available
Up – Order
Down - Entropy

27. How business changes impact
management
• Scientific management
• Theory Y
• Toyota Production System
• Agile business