Complex Organizations Have Complex Processes

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Complex Organizations Have Complex Processes
eugenio bastianon, Professor, Italy

The problem is the complexity of the organizations in which these processes are carried out. We must remember: a) the Theory on Bounded Rationality in organizations (Simon 1955); b) the Contingency Theory (Woodward 1965); c) the Theory of Transactions (Williamson 1975); d) the Theory of Evolution (Thom 1972; Rullani 1984).
All these theories suggest that the complexity of organizations coincides with the complexity of the processes.

No Direct Correlation
Mick Breare, Business Consultant, United Kingdom
I am wary of a direct correlation between a complex organisation out of necessity or default having complex processes as in my experience, this is not always the case.
I would argue this depends on the organisation in question.
The objective of having effective processes is to identify and adopt good practice and where efficiency savings may be found (lean).
Just a thought, do unduly complex processes reflect inefficient management?

Complex Organizations Have Complex Processes
eugenio bastianon, Professor, Italy
The case of SMH (Ed: Swatch Group) shows that:
a) Companies may have complex organizational forms: bionic, fractal..(Warnecke's Die Fraktale Fabrik," 1992);
b) There may be processes in these companies at the edge of chaos: conflict of interest between brands (Kauffman 'Investigations', 2000).
In an article I showed that the competitive equilibrium between SMH brands is the Nash Equilibrium by Aumann.

Elegant Business Processes
Joseph Collins, Director, United States
Do not disregard elegance in business processes: Just as in programming, an elegant program is the shortest program that produces a given output. Likewise in business, if a process can be simplified and still produce the same output while adhering to all environmental factors - it should be simplified.
If environmental factors are making processes needlessly complex, work to influence the environment. If one cannot influence the environment, the goal should be to remove as much of the process from the environment so that it does not needlessly add complexity the the whole business process.


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