Tools Executives Use to Deal with Uncertainty and Complexity

Johannes Strikwerda ()
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Johannes Strikwerda: University of Amsterdam, Amsterdam Business School

Chapter 11 in Organized Complexity in Business, 2023, pp 243-285 from Springer

Abstract: Abstract At least 19 administrative instruments or tools used by executives can be identified, some existing for quite some time, some more recent, that are used by executives in different combinations and weights to master complexity and the accompanying uncertainty. Except for multidimensional information and the platform concept to support workers, none of these is really new, but well proven. In the conventional trade books these tools often are presented separately, as success factors in themselves, from the perspective of organized complexity these 16 tools constitute a coherent body of administrative and organization tools for the contemporary economy. Now these tools, which often were promoted separately in focused trade books, can be understood and applied in their interrelatedness, offering a more effective administration of organizations. These 19 tools also offer a proven toolbox to deal with uncertainties and risks in business, these are offensive tools as opposed to the defensive tools of risk management. One of the tools, fast feedback information, today emphasized by cheap sensors, and fast and cheap communications, and especially because of its use in AI and machine learning, turns out to be of limited value to deal with complexity, if not creating risks. Different types of feedback loops are identified, performance feedback, extrinsic feedback, autonomous feedback (from, e.g., social media), cognitive feedback, intellectual feedback, emotional feedback. Especially the types of social feedback loops very much complicate the free interaction between workers, to an extent that the social dominates the material hampering innovation. Through the social domain with its autonomous feedback, feedback also turns into a resource for the firm.

Date: 2023
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DOI: 10.1007/978-3-031-25237-2_11

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