The invisible hand of free markets. The self-actualization process of humans. The emergent behavior of complex systems. Swarm theory. What do all these things have in common?
Most systems in traditional organizations are well crafted closed systems. They neatly connect vendor, firm and customer. Marketing sets up feedback loops and participatory forums with varying success, which adds some information. But the issue is that it is too closed. There is virtually no space in the system for creativity other than key positions in the hierarchy. There are really relatively few meaningful touches with the customer. And there are certainly almost no meaningful touches with the person saying, “No.”
In traditional systems, a great deal of time has been spent connecting vendor systems. But not much time has been spent connecting lost sales. We only dimly realize that a system that records sales will eventually sell and stock nothing at all. The reason is simple; there are only reasons to get rid of sku’s. There are very few reasons to add them. The system must go outside itself to find them. New product introductions in this light serve one fundamental purpose; to shock the system. We believe that brands get ‘tired.’ Given our systems, of course they do.
Systems are tracking discrete customer behaviors (sales). They are not tracking the customer or the market. Most importantly, they are not tracking the right brain or evolving maturity of the customer, which together adds up to the swarm. And the hierarchical system finds itself satisfied by the information and sales it sees. It finds rationalizations to believe it understands current events. It has relatively few interactions of cognitive dissonance, and virtually no capacity to adapt to it as a matter of course. The market moves on. The product either moves as well, or slowly ages.
Most successful adaptation and innovation is the result of ill defined emergent behavior in the market place as opposed to top-down organizational vision or strategy. This is a documented fact. It destroys existent products. It reorganizes organizations or sends them into bankruptcy. After, all creativity necessarily involves death. ‘Creative destruction’ is a redundant term. But our systems are not adaptive. Neither are they emergent. They do not allow it. Our marketing efforts do not measure the organism; they measure the skeleton of the organism. The vast majority of managers have no idea where their largest growth opportunities are. How could they?
Organizations think globally. Organizations make sweeping generalizations. Organizations are macroeconomic and statistically politically correct. Markets are micro. Buying is individual. People are unique. People are individualistic. People are social. Cultures are complex systems.
Do you know how to introduce an emergent system into your organization? Do you know how to cultivate the full breadth of an associate, rather than their compliance? Do you know where your market is going?
