Can Business Schools Help Us Cope With Complexity?
by A. Brown, F. Röösli

Posted on 3 CommentsPosted in 5th Global Peter Drucker Forum

J. Birkinshaw, S. Denning, T. Roy and V. Hlupic [1]   Why do decentralized, seemingly disorganized market economies routinely outperform centrally planned, tightly controlled economies?   One reason is the principle of obliquity. Direct, goal-oriented action works well in simple stable contexts , where tasks are easy, consequences of actions are predictable and feedback is quick. But in complex, turbulent contexts, where tasks are difficult, consequences of any individual action are unpredictable and feedback is delayed, oblique or indirect goals generally work better.   In 2004, economist John Kay recommended applying the principle of obliquity to business: “meeting global business targets [is] the type of goal that [is] best achieved when pursued indirectly.”[2] Thus, when […]