The document discusses concepts from chaos theory and complexity science and how they can be applied to business. It explains key ideas like emergence, self-organization, co-creation, and how systems are composed of interconnected parts that give rise to new properties and behaviors over time through non-linear interactions and feedback loops. The document argues that understanding these dynamics can provide important lessons and tools for strategically managing organizations.

1. Chaos and Complexity Applied to Business Kathryn Alexander Strategic Leadership Ethical Impact, LLC

10. © Kathryn Alexander. 2008 What is a System?? - Ecologies and Organizations A collection of interrelated parts that come together for a purpose, acting in responsive relationship with one another, which then form a whole. These relationships become more complex over time which allows for the emergence of new behavior and capacities.

11. © Kathryn Alexander. 2008 Living Systems All living systems perform the following: Choice = decision process Pattern = many similar decisions Structure = consistently replicated patterns This is a description of self-organization

12. © Kathryn Alexander. 2008 A System always has an aim or purpose The role of leadership is to manage the various purposes by aligning the actions/behavior of the organization with its purpose (strategy) to meet the needs of ALL participants.

15. © Kathryn Alexander. 2008 Relationship Means: A shift from focusing on structure to focusing on process. Form follows process. Structures need to change as the organism adapts.

17. A Process for Changing Beliefs: © Kathryn Alexander. 2008 Understanding of Variation Knowledge of a System P R O F O U N D KNOW LEDGE DR. DEMING'S PHILOSOPHY Psychology Theory of Knowledge