An earlier post introduced Eric Beinhocker’s new book, The Origin of Wealth, and the concept of Complexity Economics. Far from being a theory, the concept is presented in the book as a consortium of sorts; the author calls it a work-in-progress of a system of hypotheses and discussions. Undoubtedly, this dynamicism will continue to evolve as we wrestle with new ways to consider how it will affect strategy, organization and business applications in different contexts. Having just finished the first section of this work, I have so far found just the opposite of what a reviewer from Publishers Weekly concluded: Namely, that the author presents Complexity Economics as a panacea for political and social ills.

While Beinhocker questions the assumptions of traditional economics, he grounds his views on a growing school of thought that views the business context as an evolving and organic reality. This premise reminds me of a helpful case on Shell’s advertising activity. This paper (written by Dr. Verity of Cranfield School of Management) attributes Shell’s success in transforming its global business coordination and its communication and branding activities to its dynamic capability, the processes and routines within an organization adopted to bring about change. Especially valuable is the real-life perspective the paper provides throughout the transition process.

If competitive advantage is to move from the safe harbors of theory into the unpredictable waves of reality, organizational reflexes must be in place as it develops, adopts and implements new technology solutions to their everyday operations. Perhaps Shell’s transformation might provide just the right jumping off point for your organization.