Perhaps the most challenging aspect of complexity is that it is not static. This year, it may be that the after-effects of recession are causing additional complexity. Next year they may give way to the impact of regulations designed to avoid recessions in the future, followed by a new technology that revolutionalizes the way business is done, followed by a struggle to find the right people to manage that technology and turn it to advantage.
Faced with this stream of issues, senior management has a responsibility to respond with strategies to mitigate complexity and take advantage of the opportunities it presents. This implies institutionalizing the study of complexity, to identify the most effective techniques for dealing with it and apply them throughout the organization. Successful management teams will be looking for ways to embed agility into their organizations, moving rapidly to understand and meet the changing needs of their markets. They also will need to develop powerful, yet flexible structures to manage the demands of increasing regulation without stifling innovation.
There are some important differences emerging between specific economic regions and groups at different stages in their development. These will be reflected in the actions taken by companies based in these areas. But it is striking how similar are the concerns of companies throughout the world.
It is not so much the nature of the complexity a company faces that will determine its success, it is the extent to which the company can effectively analyze the situation and bring resources to bear. This applies throughout the world, and strategies learned in one market or one geography may well prove applicable in other markets.
It is not realistic to expect complexity to decline in an increasingly sophisticated global economy. The most appropriate course is to seek ways to understand it, to focus on the opportunities it presents, and to turn challenges into engines for growth.