ABSTRACT

Complexity is concerned with the underlying cause and effect behind interactions between actors, events and entities, and whether this cause and effect can be determined. In the context of strategy, if cause and effect can be determined, then accurate predictions about the result of certain strategic actions can be made, resulting in better execution success rates. This chapter presents a framework that synthesizes the different types of complexity into a continuum of obvious, complicated, complex, chaotic and disorder environments. Complexity affects strategy execution in three fundamental ways. First, it affects the degree to which predictions about the future can be relied upon and used as a basis on which to form strategies. Second, complexity influences whether deliberate strategy, emergent strategy or a mixture of both will be realised. Finally, complexity influences the perceptions of employees and, as a result, their engagement levels48 and resistance to or motivation towards strategy execution efforts.