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    The Unshackled
    Organization: 
    Facing the Challenge of Unpredictability Through Spontaneous Reorganization 
    By Jeffrey Goldstein  
    1994, Productivity Press, Portland,
    Oregon 
     
    ABSTRACT - The author suggests a new approach to organizational change based on
    the theory of self-organization. He argues that the job of the leader who is interested in
    effecting change, building more effective and relevant organizations is to create
    far-from-equilibrium conditions which unleash the inherent creative capacity of the
    organization and its people. 
    
      
        | Chapter 1 -
        New Wine Skins | 
       
      
        Key Points:
        Four features of self-organization challenge traditional notions of organizational change: 
        
          Feature #1 - "Self
            -organization is a self-generated and self-guided process."  "What is
            radically new about the self-organization perspective is that a work group or organization
            will spontaneously know how to reorganize in the face of challenge, if the obstacles
            hindering its capacity to self-organize are removed." (emphasis added) This is
            contrasted to the conventional approach to change which, even if it involves
            participation, is essentially driven by the hierarchy.
           
          Feature #2 -
            "Self-organization moves beyond the idea of a system as an inert mass characterized
            by an innate resistance to change. Instead, change is the activation of a systems
            inherent potential for transformation, i.e., its "non-linearity.""
            Consider the image of a flower bulb - its contains the future flower that blossoms under
            the right conditions of soil, air temperature, sunlight, moisture. 
           
          Feature #3 -
            "Self-organization results from the utilization, even enhancement of random,
            accidental, and unexpected events. Change, then, is not the suppression of chaos: it
            is order emerging out of chaos..." In organizations we have been trained to view
            variation as a problem, to control and eliminate unpredictable variations and maintain the
            equilibrium. 
           
          Feature #4 -
            "Self-organization represents a system undergoing a revolution prompted by
            far-from-equilibrium conditions. This is vastly different than a mere shift in system
            functioning and a subsequent return to equilibrium." 
           
         
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        Chapter 2 - Growth in Nonlinear Systems"Difficult things beneath heaven 
        Are made up of easy things  
        Big things beneath heaven 
        Are made up of small things 
        Thus the sage 
        Never deals with the great, 
        But accomplishes greatness." 
                              
        - Tao Te Ching (63)  | 
       
      
        Key Points: 
        The differences between linear and nonlinear are presented.
        Conventional approaches to organizational change assume the system is linear. Hence
        management usually assumes that a major change initiative requires extensive advance
        planning, that resistance to change must be anticipated, when resistance arises you
        overcome it with persistence, determination and skill, and that large change requires
        large-scale efforts. This approach is based on a number of questionable assumptions,
        notably that organizations are "largely predictable enterprises," that do not
        change naturally and are "inert masses" which require a "proportionality
        between effort and results." 
        
          "In linear systems change is
            gradual and incremental, whereas in nonlinear systems change can be precipitous and
            revolutionary." 
             
           
          "In linear systems the whole
            is merely the sum of the parts, whereas in nonlinear systems, the whole is greater than
            the sum of the parts." 
             
           
          "In linear systems
            interaction is only one-way, whereas in nonlinear systems interaction is
            multidirectional." 
             
           
          "Linear systems have
            predictable outcomes, whereas nonlinear systems may have unpredictable outcomes." 
             
           
          "Linear systems at
            equilibrium conditions remain the same, whereas nonlinear systems at far-from-equilibrium
            conditions can undergo transformation." 
           
         
        Many change efforts fail, in whole
        or part, because linear methods are used to try to change nonlinear systems. It takes a
        nonlinear strategy to unlock the "evolutionary potential" inherent in a
        nonlinear system. 
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        | Chapter 4 -
        From Resistance To Attraction | 
       
      
        Key Points
        - "New research into nonlinear systems challenges the concept that resistance to
        change is inherent to systems. The traditional conception, in fact, is turned on its head
        - in nonlinear systems resistance shifts from being an inherent property to being a
        temporary condition of a system currently at equilibrium." 
        
          Recent research in psychology has
            shown in circumstances involving change, resistance is "an attraction to an
            affirmative core that involves the need to survive with dignity, autonomy and
            integrity....resistance simply indicates that the organizational patterns that are
            operating are initially and temporally attracting the system to remain the way it
            is." 
           
         
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          "Change is a matter of
            transiting into new attractors, a process brought about by appropriate
            far-from-equilibrium conditions. This implies that change does not overcome resistance,
            but that resistance is expected, accepted, and respected. Resistance ceases to be an issue
            when it is no longer the dominant attractor of a system." 
             
           
          Resistance then indicates that an
            organization or work group is "under the sway of an equilibrium attractor, which
            invites an exploration of the equilibrium-seeking processes...which keep the behavior of
            the system within the accepted setting, or culture, of the group by disallowing deviations
            from behavioral norms, decision-making methods, work design, management styles, and so
            on." 
           
         
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        | Chapter 5 -
        The Equilibrium Effect of Self-Fulfilling Prophecies | 
       
      
        Key Points:
         
        
          "The nonlinear, circular
            structure of self-fulfilling prophecies keeps an organizational system at equilibrium.
            This nonlinear cycle creates a barrier around work groups and organizations that keeps
            them isolated and closed-off to new information or new ways of interacting with their
            environments. The self-fulfilling prophecy has the power to do this because it is self-confirming
            - its own beliefs reinforce themselves by way of actions congruent with those
            beliefs." A run on a bank as an example - concern that a bank is collapsing leads to
            frantic withdrawals, which leads to a weakening position of the bank which confirms the
            original fears and so on. 
           
         
        
          
          "In the
            self-organization approach to system change, however, resistance as self-fulfilling
            prophecy is not a fortress to be stormed; it indicates the presence of an attractor -
            precisely the point where self-organizing transformation is unleashed. Therefore, whatever
            maintains a condition of resistance at equilibrium is the same process that leads to
            change at far-from-equilibrium conditions. The nonlinearity will need to be unleashed so
            that its evolutionary potential can become manifest...Whereas the self-fulfilling prophecy
            creates stability in a system under equilibrium conditions, under far-from-equilibrium
            conditions, when the inherent nonlinearity of the self-fulfilling prophecy is revealed and
            released, the same effect can lead the system to transform itself." 
          
          
         
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        | Chapter 6 -
        Generating Far-From-Equilibrium Conditions | 
       
      
        Key Points: To foster
        far-from-equilibrium conditions:
          Allow new information into
            the system  - "Information ...refers to knowledge that is available to a system
            of its own functioning, or the arrangement of its parts, where each element is and what it
            is doing. Whereas data is a set of facts, information in a social system goes beyond facts
            about the system to the relationship between the facts, or among the people in the system
            who know the facts. For example, if the husband in a family says "I am
            depressed," it is data, since it is a report about the person himself rather than in
            relation to another. But if the husband says, "I am depressed when my wife looks at
            me with an angry face," this is information because it is about the relationship
            between the members of the social system." 
            
           
         
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          Work with organizational
            boundaries  - "...arenas demarcated for change must be characterized by firm
            boundaries....structural boundaries between an organization and its environment, as well
            as the internal boundaries between functions inside the organization...If the boundaries
            in an organization are too weak, the system will not be able to withstand the increase of
            information that the far-from-equilibrium conditions generate." 
            
           
          Connect systems to
            environment  - The firm boundaries "must also be permeable enough to allow vital
            exchange with the systems environments. Therefore, a crucial phase of facilitating
            far-from-equilibrium conditions includes connecting work groups and organizations with
            their environments." 
            
           
          Question differences  -
            in attitudes, purposes, expectations, perceptions is a way of "churning up the
            underlying foundation of self-fulfilling prophecies....When members of a group question
            differences...they...generate the new information." 
            
           
          Challenge assumptions  -
            Identifying and challenging self-fulfilling prophecies and the assumptions which underlie
            them brings new information into the system. 
            
           
          Take advantage of chance and
            serendipity  - "...information in organizations can reside in organizational
            "noise" or random, mostly neglected, departures from an organizations
            equilibrium. Far-from-equilibrium methods enable the organization or work group to notice,
            use, and amplify this noise, and thereby turn it into new information." 
            
           
         
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        | Chapter 7 -
        Working With Boundaries | 
       
      
        Key Points: 
        
          "Self-organization only
            occurs within a firmly bounded arena . This firm boundary limits and channels the
            nonlinear processes that occur in the system...In human systems, boundaries provide a safe
            holding environment for anxiety and other uncomfortable experiences that accompany the
            emergence of novelty..." 
            
           
          "...new boundaries need to
            be demarcated in the following four organizational areas: authority, task, political (what
            is in it for us), identity." 
             
           
          
          "A far-from-equilibrium
            condition can...be generated by connecting a system with an environment from which it was
            previously isolated." 
          
          
         
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        | Chapter 10 -
        The Magic Theater | 
       
      
        Key Points: "Consider
        these features of nonlinear systems: orderly patterns emerge out of random events; small
        events have huge effects; huge efforts have negligible effects; and, mistakes can lead to
        profound new directions. Indeed, the behavior of nonlinear systems can seem strange,
        bizarre, and even counterintuitive...Nonlinear systems, them, require a kind of nonlinear
        intuition..." 
        
          "Nonlinear change requires
            nonlinear methods, so self-organization requires an appropriation of disproportionality,
            unpredictability, complexity, and randomness. Generating far-from-equilibrium conditions,
            then, is like establishing a magic theater where the necessary ingredients for
            self-organization can be concocted and enacted." 
             
           
         
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          "A change agent must take
            advantage of accidents, crises, and fortuitous events. A change agent needs to apply a bit
            of the absurd, the strange, and the complex, then find a key role for play, paradox,
            accidents, and fun." 
             
           
          
          "Serendipity is the key.
            The creative spirit lunges at the serendipitous chance event, the fluctuation, the
            accident, the fortuitous circumstance, the mutation prompted by a difficult and
            challenging situation." 
          
          
         
        "A crucial ingredient in the
        self-confirming cycle of a self-fulfilling prophecy is the inherent sense of being right.
        Because the outcomes resulting from the action are self-confirming, they contain a sense
        of their own righteousness, that is, they justify themselves. Consequently, the members of
        the group caught up in the self-fulfilling prophecy take these beliefs, actions, and
        results very seriously...If seriousness maintains equilibrium then one remedy for
        equilibrium is the opposite of seriousness - that is, play. Play, not hard work,
        can bring about deeper transformation." 
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