Selection of Business Practices in the Midst of Evolving Complexity

I admire leaders who, with little experience and training, create organizations that make major contributions in their industries, especially given that a great number of businesses fail. Some fail spectacularly, in headline-grabbing fashion, but most failed businesses implode quietly. In the United States alone, half of small businesses do not survive beyond 5 years; each year more than 1 million file for bankruptcy, and another 1.5 million-plus await bankruptcy resolution. For an organization to survive, the recurring and nonrecurring interlocking behavior of the organization members must ultimately adapt to the complex and dynamic demands of the organization’s external environments. Based on an understanding of behavioral dynamics, this article offers a perspective on how leaders can identify realistic improvements inside their organizations and orchestrate their implementation to better adapt to the requirements of the external environment.