MBA

EOB 2023.24

NAVIGATING
COMPLEXITY
Dr Jill Bogie

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science

SESSION OBJECTIVES

Objectives:
Using theories, concepts, and frameworks of complexity and complex environments to:
• recognise and assess large-scale challenges faced by organisations;
• understand the interconnectedness of business, social and environmental issues; and
• use complexity approaches to formulate a response and take meaningful action.

Key topics:
• The principles and concepts of sustainability transformations
• The characteristics of Robust Action

© 2018 Gordon Institute of Business Science

 LESSON PLAN
NAVIGATING COMPLEXITY

Break

30 minutes

90 minutes 90 minutes

Introduction to
NIKE PART
complex systems

Questions
Plenary
Discussion
+
Some Theory

© 2018 Gordon Institute of Business Science

DISCUSSION

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
Three questions

1. What are some of the key characteristics of

a complex system?
2. Explain why climate change cannot be
addressed by a single organization.
3. How is climate change affecting business in
South Africa?

© 2018 Gordon Institute of Business Science

INTRODUCTION TO COMPLEX
SYSTEMS

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
Characteristics of complex systems
• large number of elements
• elements interact dynamically
• non-linear interactions
• direct and indirect interactions
• far from equilibrium – a system in equilibrium is no longer
alive
• continuity - past – present – and future
• behaviour of the system cannot be predicted by considering
the elements – it is more than the ‘sum of the parts’
• complex systems adapt – they are self-organising
• outcomes are emergent

From: Cilliers, P. (1998). Complexity and Postmodernism: Understanding Complex Systems. Abingdon: Routledge.
Cilliers, P. (2000). What can we learn from a Theory of Complexity? Emergence , 2(1), 23-33. © 2018 Gordon Institute of Business Science
 Strategic
choices in
complex
contexts

Understanding complexity: A basic

framework for decision-making
[Adapted from Snowden & Boone]

Adapted from: Snowden, D. & Boone, M. (2006). A Leader’s Framework for Decision Making. Harvard Business Review, 85(11), 68-76. © 2021 Gordon Institute of Business Science
© 2018 Gordon Institute of Business Science
Types of system

SINGLE SYSTEM MULTIPLE SYSTEMS

SIMPLE COMPLICATED COMPLEX

Action: FIX Action: DESIGN

Problem solve

KNOWN KNOWNS KNOWN UNKNOWNS

FUNCTIONAL - REACTIVE GOAL ORIENTED - ADAPTIVE

Adapted from:
Snowden, D. & Boone, M. (2006). A Leader’s Framework for Decision Making. Harvard Business Review, 85(11), 68-76. © 2018 Gordon Institute of Business Science
Types of system

SINGLE SYSTEM MULTIPLE SYSTEMS NETWORK OF SYSTEMS

SIMPLE COMPLICATED COMPLEX

Action: FIX Action: DESIGN Action: ADAPT; CREATE

Problem solve TRANSFORM; EVOLVE
CREATING THE FUTURE

KNOWN KNOWNS KNOWN UNKNOWNS UNKNOWN UNKNOWNS

FUNCTIONAL - REACTIVE GOAL ORIENTED - ADAPTIVE PURPOSEFUL - CREATIVE

Action to reflect the level of complexity

Adapted from:
Snowden, D. & Boone, M. (2006). A Leader’s Framework for Decision Making. Harvard Business Review, 85(11), 68-76. © 2018 Gordon Institute of Business Science
Types of system SOCIO-ECOLOGICAL
SYSTEMS

COMPLEX ADAPTIVE COMPLEX SOCIAL

SYSTEMS SYSTEMS

Sum of parts Sum of parts More than sum of parts

EFFICIENT CAUSE EFFICIENT CAUSE EMERGENT OUTCOMES

SIMPLE COMPLICATED COMPLEX

Action: FIX Action: DESIGN Action: ADAPT; CREATE

Problem solve TRANSFORM; EVOLVE
CREATING THE FUTURE

ANALYSE ANALYSE LOOK FOR PATTERNS

LEARN FROM WHAT DESIGN LEARN FROM WHAT
GOES WRONG THINKING WORKS WELL
Adapted from:
Snowden, D. & Boone, M. (2006). A Leader’s Framework for Decision Making. Harvard Business Review, 85(11), 68-76. © 2018 Gordon Institute of Business Science
Types of system

Sum of parts Sum of parts More than sum of parts

EFFICIENT CAUSE EFFICIENT CAUSE EMERGENT OUTCOMES

SIMPLE COMPLICATED COMPLEX

Action: FIX Action: DESIGN Action: ADAPT; CREATE

Problem solve TRANSFORM; EVOLVE
CREATING THE FUTURE

ANALYSE ANALYSE LOOK FOR PATTERNS

LEARN FROM WHAT DESIGN LEARN FROM WHAT
GOES WRONG THINKING WORKS WELL
Adapted from:
Snowden, D. & Boone, M. (2006). A Leader’s Framework for Decision Making. Harvard Business Review, 85(11), 68-76. © 2018 Gordon Institute of Business Science
Some relevant literature:
• Waddock: Complexity and
transformation
• Etzion, Gehman & Ferraro: An
action orientation: Grand
Challenges and Robust Action’

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
Complexity

Business transformation – transformative business models - business model

innovation for sustainability
Epimimetic – system changes alter the context in which organisations operate
and then the organisations change to reflect the new context
System transformation - transformative innovation and change
Purpose - Perspectives (multiple) - Power - Practices - Performance
Business transformation – leveraging the systems change – purposeful –
changing mindsets – being the change – measuring progress

From: Waddock, S. (2020). Advancing sustainability requires systemic business transformation. Global Sustainability,
3, e12, 1-12. https://doi.org/10.1017/sus.2020.9 © 2018 GORDON INSTITUTE OF BUSINESS SCIENCE
© 2018 Gordon Institute of Business Science
 Grand challenges – robust action options
Key points:
Conventional management limitations
Alternative for ‘grand challenges’ – robust action
Grand challenges – complex – uncertain - evaluative
Robust action: multiple dimensions
1. Structural – participatory architecture
2. Interpretive – multivocal inscription
3. Practice – distributive experimentation

Climate action is a grand challenge – SDG13

From: Etzion, D., Gehman. J., Ferraro, F., & Avidan, M. (2017). Unleashing sustainability transformations through robust action.
Journal of Cleaner Production, 140, 167-178. http://dx.doi.org/10.1016/j.jclepro.2015.06.064
© 2018 Gordon Institute of Business Science
© 2018 Gordon Institute of Business Science
NIKE Case: Part 3
Sustainable sourcing
Nien-Hê Hsieh

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
Briefing the case: Nike Part 3

(a) understanding
the complex
context of the
NIKE supply
(b) what happened
next?

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
Case analysis: Global Sourcing at Nike
CASE ANALYSIS
COMPLEX CONTEXT OF GLOBAL SUPPLY CHAINS

Robust action strategies are ways of responding to grand challenges in a

complex content. Apply the 3 robust action strategic options described by
Etzion et al. (2017).
1. Describe in your own words what each option means
2. Discuss whether and to what extent Nike has applied these strategic options.
Provide examples from the case material and the Nike initiatives: Investing
in our Planet – carbon – waste – water – chemicals.
State the ‘robust action’ and then provide evidence from the case.
No right or wrong answers, but others may offer alternative perspectives.
© 2018 GORDON INSTITUTE OF BUSINESS SCIENCE
© 2018 Gordon Institute of Business Science
 Nike: The complexity of global supply chains
1. Participatory architecture (PA)
2. Multivocal inscription (MI)
3. Distributed experimentation (DE)

Product – trials and experiments

involved in new product development
= DE

Planet
https://purpose.nike.com/planet

People
45% representation of women at VP
level = PA
Invest in play = PA
Inclusive communities = MI
https://purpose.nike.com/diversity-
equity-inclusion

https://purpose-cms-preprod01.s3.amazonaws.com/wp-content/uploads/2021/04/26225049/FY20_NIKE_Inc_Impact_Report2.pdf
© 2021 Gordon Institute of Business Science
© 2018 Gordon Institute of Business Science
 What
happened
next?

Share price performance

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
Nike: What happened next?

105,74 USD 2 Sept 2022

167,29 USD October 2021

Peak price

76,96 USD 20 July 2018

Date of case

5,01 USD early 1998 14,52 USD mid-2009

Changing sourcing practices Project Rewire
53,87 USD mid-2017
Start of a period of international growth
© 2018 Gordon Institute of Business Science
Nike: What happened next?

Current

76,96 USD 20 July 2018

Date of case

Period 1 Period 2 © 2018 Gordon Institute of Business Science

Q&A

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science
MBA
EOB 2023.24

NAVIGATING
COMPLEXITY
Dr Jill Bogie

© 2021 Gordon Institute of Business Science

© 2018 Gordon Institute of Business Science