The answer can be found in the complexity of the work of organizations As described in the previous section, flat organizations with more fluid processes allow more people to participate more often in shaping the future of the organization This is a key, but insufficient condition for productivity The theory of complexity shows why this is insufficient

In our experience, we find that organizations that achieve high levels of productivity do so because they have developed a sufficiently complex and adaptive structure These organizations have created polycentric organizations, in which authority and influence are distributed in many different places Within these polycentric organizations, people are able to exercise their judgment and develop new ideas and initiatives

In contrast, traditional hierarchical organizations have a very simple structure, which is adaptive only under very specific circumstances For this reason, they are very resistant to change, which, in turn, makes them very inflexible That is why a flat organization structure is not sufficient for high productivity A flat organization structure can be very effective for disseminating information, but it is insufficient for developing new ideas

To have a truly productive organization, as well as one that is adaptive to change, you need a complex and adaptive structure

A COMPLEX STRUCTURE IS MORE RESPONSIVE TO CHANGE THAN A SIMPLE STRUCTURE

A complex structure is more responsive to change than a simple structure This is because a complex structure has more degrees of freedom, which means that the structure allows more options and alternatives than a simple structure In a simple structure, changes in the external environment must be accommodated by changing the structure of the organization In a complex structure, the changes in the external environment can be accommodated by changing the behavior of the organization’s people

Hence, a complex structure is more flexible and adaptable than a simple structure Thus, complex structures are better able to respond to changing conditions and to benefit from new opportunities

A COMPLEX STRUCTURE IS MORE RESILIENT THAT A SIMPLE STRUCTURE

A complex structure is more resilient than a simple structure Because a complex structure has more degrees of freedom, it is less vulnerable to disturbances, and therefore, it is more able to recover from disturbances A complex structure has a greater ability to absorb disturbances by adjusting its internal structure rather than by suffering from a major structural change