Figure source. Just some crazy thought, but suppose organizations could make all of their decisions in realtime, just like a flock of birds does? What kind of information would we need to make realtime decisions? Well, if the goal is just to “survive” (“keep flying”) it would probably be sufficient to have information of the innovation speed and direction of direct “neighbors”. Suppose we could facilitate (supported with modern ICT) a distributed network of decision making information. And each node (decision making “entity”) in the network would get the decision making information relevant for making the most important (“survival”) decisions. So what are then the most important decisions? If we compare to the flock of birds, it’s making sure you’re “local” innovation speed and direction matches that of your direct environment. It’s allmost as if we would apply Ashby’s Law of Requisite Variety here. The law states that “variety absorbs variety, defines the minimum number of states necessary for a controller to control a system of a given number of states.” So here you have it: you need to match your own variety with that of your direct environment. Don’t make it more complex or less complex but make sure the complexity matches. And to reduce the decision making complexity you could try to limit the number of decision making connections because that would make the distributed decision making process more complex. That is because the complexity of the network increases quadratically with the number of connected nodes. But also the value of a network increases proportional to the number of connected nodes (Metcalfe’s Law). So we need large networks to create more value. The large networks could consist of interconnected small “local” networks to reduce the total decision making complexity. So here’s a wrap up: use the distributed topology Paul Baran† designed for the Internet as a reference model for distributed decision making and as a reference model for distributed value creation, combine that with Ashby’s Law of Requisite Variety to reduce the “local” decision making complexity and combine that with Metcalfe’s Law to increase the total value of our network. If we would really do that, I wonder how our would world look like?
Posts tagged ‘decision making’