Complex vs. Complicated Problems
The role of leadership and co-learning when faced with complex problems
The Anthropocene — the geological era of humankind — is characterised by great acceleration (Steffen et al. 2015). There has been swift and dramatic growth across a range of domains, such as human population, GDP, technological advancements, resource extraction, climate change, species decline, and more. Another characteristic of our time is the level of connectivity — the Anthropocene is, to put it simply, hyperconnected. Social, economic, and environmental change processes interact through feedbacks and give rise to cascading effects across geographies and sectors, often with unexpected outcomes.
In a fast-changing and hyperconnected world, we find ourselves having to tackle new types of problems. They are complex, rather than (just) complicated, and this is an important distinction to make as different approaches are needed to successfully address and solve these kinds of problems.
The challenges we are most familiar with addressing are complicated problems that are embedded in a fair amount of certainty. Those problems might still involve a lot of stakeholders and chains of cause and effect but aren’t as changeable and unpredictable as complex problems. Our efficiency-focused ways of working, fine-tuned since the dawn of industrialisation, are fit for solving complicated problems where having a clear leader, division of labour, establishment of standards and processes, automatisation, and reactive responses to policies and regulations can usually work well.
Given this tradition, it’s not surprising that when faced with new business problems, such as climate crisis-induced shifts in commodity prices, customer demands for radical transparency, and pandemic-related supply chain disruptions, we tend towards the solutions we’re most used to (solutions that are suited to complicated problems). It’s what we know, it’s what’s being asked of us, and it has, in the past, led to results. However, more and more we are finding that this is just not enough. Established ways of addressing problems do not help us move forward in any significant way. So, the first step when approaching a problem then becomes taking the time to analyse what kind of problem it is that we’re faced with. Otherwise, we might be doing more harm than good as complex problem-solving requires different approaches.
The types of challenges Prosperous Planet works with are those focused on creating business futures fit for the Anthropocene that are backed up by research, effective leadership, and team development — this approach helps address complexity. We work with situations where goals are fuzzy and involve difficult trade-offs and where there are many unknowns and interrelated factors that do not fit into the type of problem-solving which rules and processes can solve. Complex problems do not follow a simple chain of cause and effect, and, therefore, the predictability of outcomes is low.
The first conundrum when dealing with complex problems is that you don’t have full control when being faced with a plethora of uncertainties. Another aspect is that the clearest answers will likely only be visible in retrospect. Managing and leading through complex problems require different approaches and tools, making certain detailed strategies and plans no longer relevant. Planning through this paradigm supports envisioning the future and desired outcomes, but exactly where we will end up or what turns the journey will take will not necessarily be clear. Alternative scenarios, futures, and actions have to be explored. This is where experiential co-learning and reflection becomes an effective way of working with complex problems.
Focus on learning is important to stay relevant in the rapidly changing world of the Anthropocene.
Co-learning provides valuable insights when addressing the complexity of a task. We know that the more complex a task is the more important collaboration is. We all need to contribute with different perspectives, competencies, values, and experiences. We need different perspectives as it provides a richness of solutions, approaches, and uncovering of biases.
In this rapidly changing world, solutions are not final. Instead, they are short-lived. Therefore, we need to be speedy with trying and testing things out, evaluating, and then iterating. Every iteration is a step forwards, and to be able to learn from those steps we need to dare (and possibly fail) to embrace the insights that this can bring us.
By focusing our reflections on concrete experiences and how different members of a group react to what happens, we can begin to better understand a situation. This form of learning, experiential co-learning, uncovers information valuable to use when looking at the opportunities for individuals and systems to adapt or transform. A useful model for experiential co-learning is Kolb’s Learning Cycle pictured above (Kolb D.A. 1984).
As managers and leaders of businesses dealing with complex problems, we must dare to let go a bit of our reliance on facts, standards, and best practices (which are great for complicated problem-solving) and instead start thinking creatively. Thinking is a creative process while knowing is an information-retrieval process. A complexity mindset focuses on what can be, rather than what is, and it recognises that complexity creates both challenges and opportunities. This is also the mindset that creates an avenue for competitive advantage in the Anthropocene, imagining and identifying trajectories towards a regenerative business future beyond break-even sustainability. With this mindset, companies can grow their business and expand their customer base by helping solve the global challenges of the day.
As philosopher Eric Hoffer observed, “In times of change learners inherit the earth; while the learned find themselves beautifully equipped to deal with a world that no longer exists.”
Here are a couple of statements that could help you identify if you are facing complex problems in your organisation and context:
- Strategies are less detailed, stretch shorter time spans, and are updated more frequently
- Values are a basis for recruitment, so recruiting becomes less about a position/role and more about a cultural fit (as skills can always be learned)
- The work being done needs cross-team collaboration
- Leadership is facilitative, geared towards coaching, and self-driven
