Complexity theory.
Businesses are, and operate in, complex systems. This is important to understand because complex systems exhibit certain characteristics that impact how you should operate a company.
𝐂𝐨𝐧𝐧𝐞𝐜𝐭𝐞𝐝𝐧𝐞𝐬𝐬 – all parts of your business are connected, which in turn is connected to the outside environment. When making a decision, you must take a holistic approach and consider the impact of any decision on the entire system. A change in one part of the business almost always has an impact somewhere else.
𝐑𝐚𝐧𝐝𝐨𝐦𝐧𝐞𝐬𝐬 – Not everything is under your control or can be anticipated. Knowing this changes how you approach planning in general. Flexibility, principles and frameworks (rather than rigid rules), scenario analysis, a learning and growth focus, contingency planning, and a host of other techniques become crucial.
𝐄𝐱𝐭𝐫𝐞𝐦𝐞 𝐔𝐧𝐩𝐫𝐞𝐝𝐢𝐜𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 – circumstances can change overnight, which requires adaptability and a focus on nimble decision making.
Above all else, complexity teaches us to think in terms of probabilities and not absolutes. Certainty and control are an illusion.
Embrace the opportunities complexity provides.