Cracking

Complexity
The Breakthrough Formula for
Solving Just About Anything Fast

David Benjamin
and David Komlos

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 First published in 2019 by Nicholas Brealey Publishing
An imprint of John Murray Press

A Hachette UK company

24 23 22 21 20 19    1 2 3 4 5 6 7 8 9 10

Copyright © David Komlos and David Benjamin

The right of David Komlos and David Benjamin to be identified as the Authors of the Work has
been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,
or transmitted, in any form or by any means without the prior written permission of the
publisher nor be otherwise circulated in any form of binding or cover other than that in which it
is published and without a similar condition being imposed on the subsequent purchaser.

A CIP catalogue record for this title is available from the British Library

Library of Congress Control Number: 2018959160

ISBN 978-1-473-68564-2
US eBook ISBN 978-1-473-68566-6
UK eBook ISBN 978-1-473-68565-9

Printed and bound in the United States of America

John Murray Press policy is to use papers that are natural, renewable, and recyclable products
and made from wood grown in sustainable forests. The logging and manufacturing processes are
expected to conform to the environmental regulations of the country of origin.

John Murray Press Ltd Nicholas Brealey Publishing

Carmelite House Hachette Book Group
50 Victoria Embankment 53 State Street
London EC4Y 0DZ Boston, MA 02109, USA
Tel: 020 3122 6000 Tel: (617) 263 1834

[Link]

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 CHAPTER 2
Getting Started

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 Figure 2-1 Sensing the Lion

Figure 2-2 The Lion in the Office

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 Figure 2-3 Act Leap Curve

Figure 2-4 Power Leap 1

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 Figure 2-5 Power Leap SATDA

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 CHAPTER 3
A Picture Worth
418 Words

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 Figure 3-1 10-Step Highlight

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 CHAPTER 4
Step 1.
Acknowledge
the Complexity

Figure 4-1 Step 1

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 How Do You Know?
Determining whether a challenge is complex is as easy as asking these
questions:

Have you solved the problem before and then been able to
implement that same solution successfully in a variety of
similar situations?
If you said “yes,” then it’s complicated.
If you said “no,” then it’s complex.

Additional
Questions to Ask Answer Complex? Example

Would a thorough Yes Likely not Installation of

description of accounting
the challenge software
be exactly the
same as it was
previously?

If the Not really No Implementation

circumstances of an ERP
were different last system
time, does that
matter?

Would the experts No—they Likely Postmerger

who solved it would have integration
charge a fixed rate to account for
to do it again? unknowns that
significantly
affect time
and effort.

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 Is the solution closer to science than art? Is it
cause-and-effect?
Yes-it’s complicated.
No-complex.

Additional
Questions to Ask Answer Complex? Example

Is there a reliable Yes, cause- No Car engine

and predictable and-effect
interaction of
component parts?

Could a user Yes No Bookcase

manual be written assembly
on how to solve it?

Is there a creative Yes Yes Movie script

component?

Would two No Yes Talent strategy

“experts” bring
about the same
result?

Can success Yes No Science

be assessed experiment
unambiguously?

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 Is there a checklist someone could use to solve it? Could
there be?
Yes-it’s complicated.
No-complex.

Additional
Questions to Ask Answer Complex? Example

Is there a known Yes No Testing

sequence of steps software
to follow to solve
it?

Once it is solved, Yes No Rubik’s cube

could you write
instructions on
how to do it
again?

Is there an in-house or outside expert available who has

solved it before?
Yes-it’s complicated.
No-complex.

Additional
Questions to Ask Answer Complex? Example

Would they do it No Likely A consultant

again for a fixed on change
price? management

Would everyone Yes No A plumbing

agree it was repair
solved the first
time?

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 Additional
Questions to Ask Answer Complex? Example

Could the expert Yes No Printing two-

teach you or some sided copies
other expert to
do it?

Has the expert Many times No Developing a

solved it many website
times before, or
just the once?

Is there a chance No No A pilot flying a

the expert was plane
lucky the first
time?

Is there a packaged solution you could buy?

Yes-it’s complicated.
No-complex.

Additional
Questions to Ask Answer Complex? Example

Is it shrink- Yes No A model

wrapped with airplane
a picture of the
solved challenge
on the cover?

Does the No Maybe Setting up

packaged solution a document
automatically management
work wherever it system
is deployed?

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 Additional
Questions to Ask Answer Complex? Example

Is the problem Yes No Buying a new

solved as soon PC
as you “open the
box” and follow
the instructions it
contains?

Are there only a few “unknowns”? Are there only a few

“unknown unknowns”?
Yes-it’s likely complicated.
If there are many “unknowns” and “unknown unknowns”-likely
complex.

Additional
Questions to Ask Answer Complex? Example

Can the unknowns Yes—if I go get Likely not Set up of a

be easily known? some more new television,
And once known, information, instructions
is there a section it’s a step-by- for many cable
of the instructions step process configurations
you can then from there.
follow?

Can you think of Yes Likely Changing the

any reasonable company’s org
risks that might structure
prevent you from
solving this?

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 Additional
Questions to Ask Answer Complex? Example

Is there a human Yes—there Likely Implementing

dynamic that are people account
could reasonably who might management
derail the resist, throw
solution? up roadblocks,
or actively
sabotage the
solution.

When the answers point to complexity, start by acknowledging that.

That’s step 1.

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 CHAPTER 5
Step 2. Construct
a Really, Really
Good Question

Figure 5-1 Step 2

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 First Rule of Q
Use questions about the complicated to solve the challenge. Use
questions about the complex to define the challenge.

Question What Stands Out

What must we do now and The built-in tension of growing

over the next 12–18 months so earnings and margin without
that we grow earnings by 300 making the organization a
percent over the next 4 years miserable place to work
while maintaining acceptable
margins (20 percent or better)
and continuing to be a great
company to work with and for?

What must we do now and over The open-endedness of “existing

the next two years to capitalize or emerging” opportunities
on existing or emerging
opportunities in our external
environment, in order to ensure
sustained long-term growth?

What must we be doing The subtlety of the phrase “doing

differently over the next 12 differently” versus “doing
months and beyond to increase
our patient funnel and the speed
at which we are able to find,
diagnose, and get patients on the
path to getting better?

What must we do to evolve our The implication that we don’t

customer-facing capabilities currently have “genuine” insights
over the next 2 years to and understanding about our
achieve genuine insight and customers and that our skills and
understanding into customer behaviors aren’t what they need to
drivers and barriers, build be to compete
the necessary skills to change
our behavior accordingly, and
leverage these skills to outperform
the competition?

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 Question What Stands Out

What do we need to adopt, “What is all the work that needs to

let go of, or keep to create an get done” recognizes that there’s
environment that fosters a growth lots of it, better than the same
mind-set within our Contact phrase without the word “all.”
Center, and what is all the work
that we need to get done over the
next 6 months as a result?

What changes to the entire EVERY customer advocating for

customer experience do we need us? That certainly raises the bar.
to make to turn every customer
into an advocate for us?

In the next 12 months, what must Takes a very dry legal-financial-

we do to drive necessary changes risk conversation to the very
in mind-set, action, and behavior human realm of hearts, minds, and
to fully realize the benefits of behaviors
operational risk management
across the enterprise?

What is the best strategy to Not just the strategy, but the
pursue with the objective of best strategy. Not just a great
becoming the world’s leading innovation center, but the world
innovation center in 10 years? leader.

What must we do to develop and Takes “big data” out of the

leverage data and analytics across technology realm and into mission
the enterprise as a differentiator and strategic priorities
and as a means of fulfilling our
mission and overachieving on our
strategic priorities?

What can we do now and over the A good way to say “more with
next 2 years to get greater value less”
with more efficient expenditure
on our IT projects?

What must we do now and over Talent not just for talent’s sake, but
the next 18 months to firmly for a competitive advantage
establish talent development
as a capability that gives us a
competitive advantage?

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 If you now look back through some of the questions we just showed
you, you’ll see that many of them set a clear boundary around the chal-
lenge, and some set no boundaries beyond targets to be achieved. Here
are a few again with commentary on what the boundaries are or are not:

Bounding without Bias or

Question Constraint

How do we succeed (despite We know what go-to-market we’re

ourselves and all else that stands evolving to—the rest is up for
in our way) at evolving to a discussion.
fully functioning account-based
business?

What must we do now and over We have to grow earnings,

the next 12–18 months so that we maintain margins, and continue
grow earnings by 300 percent over to be a good place to work. How
the next 4 years while maintaining and where we do that is to be
acceptable margins (20 percent discussed.
or better) and continuing to be a
great company to work with and
for?

What must we be doing differently This is about finding, diagnosing,

over the next 12 months and and getting patients to treatment,
beyond to increase our patient not the treatment itself.
funnel and the speed at which we
are able to find, diagnose, and get
patients on the path to getting
better?

In the next 12 months, what must This is just about operational risk
we do to drive necessary changes management strategy.
in mind-set, action, and behavior
to fully realize the benefits of
operational risk management
across the enterprise?

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 Bounding without Bias or
Question Constraint

What must we do to develop and Data and analytics as a

leverage data and analytics across differentiator and a driver of
the enterprise as a differentiator mission and strategy; nothing else
and as a means of fulfilling our
mission and overachieving on our
strategic priorities?

What must we do now and over The focus is solely on talent

the next 18 months to firmly development.
establish talent development
as a capability that gives us a
competitive advantage?

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 Call for Action and Name the
Actors
Identify the system facing the challenge. Is it a department, a brand, a
function, a region, the whole organization, the organization plus some of
its partners, or an ecosystem that includes your organization? It’s easy to
get this wrong or not to consider it at all.
Name the system. And if you can’t, think about that. That means
people are probably going to be ambiguous about the issue when they
ponder the question. Consider these examples:

Organization Questions about the System

Pharmaceutical company about to Is the system your oncology brand

introduce a new cancer-fighting team, or is it the network made up
drug of all practitioners who participate
in the treatment of the tumor
types relevant to your brand?

Product company launching a new Is it the company, or does it also

product include the entire value chain that
is responsible for getting that
product into the market and the
hands of end users?
City working on its gridlock Is it the city? Is it the city plus all
problem of the transportation authorities
and companies that service it? Is it
everyone who travels into and out
of the city every day?

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 Version of Question Commentary

What must XYZ Inc. do to adapt When? What forces?

to the disruptive forces in our
market?

What must we do to adapt to the This just went from XYZ Inc. acting
disruptive forces in our market? on its own to a joint effort between
and amongst all those convened.

What must we do now and over A planning window! We’re looking

the next year to adapt to the for 1-year tactics!
disruptive forces in the market?

What must we do starting now This just got more interesting . . .
and over the next year to adapt to things don’t necessarily need to
the disruptive forces in the market? start and finish in the next year.

What must we do starting now No need to figure out and align on

and over the next year to adapt to what the disruptive forces might
Amazon’s impact on our market? be . . . it’s all Amazon. (Note that
this could be a mistake if there’s
more disruption beyond Amazon.)

What must we do starting now A planning window, and now an

and over the next year to adapt to outcomes window and a goal. That
the disruptive forces in the market changes things.
so that we remain the market
leader for the next 3 years and
beyond?

What must we do starting now A stretch goal. Wow, that’s going

and over the next year to adapt to to require some real change and
the disruptive forces in the market out-of-the-box thinking.
so that we become the market
leader and double growth each
year over the next 3 years?

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 Version of Question Commentary

What must we do starting now Wait a minute. A bunch of things

and over the next year to adapt to we could have talked about doing
the disruptive forces in the market just got shut down. Warning!
so that we become the market Warning!
leader and double growth each
year over the next 3 years without
affecting our current margins?

What must we do starting now Why are you asking me if you

and over the next year to fight off already have the answer?
the disruptive forces in the market
by introducing innovative and
differentiated products?

You get the idea. A lot is riding on the careful phrasing of the question.

A Question-Building Exercise
Let’s build a question together.

Consider Replacing the

Question with Placeholders Placeholder with. . .

What must . . . Must—to signal urgency and no

turning back
Can or should—to signal you’re
asking for ideas
Will—to grant authority to the
group to decide

. . . we do . . . We—the people in the room

We all—calling for individual and
group commitment

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 Consider Replacing the
Question with Placeholders Placeholder with. . .

XYZ Inc.—the company is looking

for its plan and probably including
outside advisers in the discussion.

. . . now . . . Now or starting now—calling for

immediate actions

. . . and over the next 3 years . . . Over the next 3 years—about as
long term as people can think
Year and beyond—looking
primarily at the short term
Over the next few years—more
open-ended about time lines
Over the next year—looking for
short-term tactics

. . . and beyond . . . Opening up the planning window

for future ideas
Allowing for things that start in the
time frame but may not finish by
then

. . . to double the business . . . Insert your own aspirational goal
here.

. . . without affecting margins . . . Insert your own constraint here to
add a balancing tension, whether
. . . while continuing to be a great
financial, work-life-balance-related,
place to work . . .
customer-related, or all of the
. . . while significantly improving above and a few other things.
the customer experience . . .

A note: Here and in the following chapters, we will narrate our heroes’
stories and share our perspective on what took place.

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 CHAPTER 6
Step 3. Target a
Requisite Variety
of Solvers

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 Figure 6-1 Step 3

Figure 6-2 Challenge Cloud

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 Figure 6-3 12 Zones of Variety

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6832_Book_V4.indd 76
Figure 6-4 Characteristic Cross-Checks

11/19/18 2:34 PM
 Figure 6-5 Lion Functions

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 Figure 6-6 Variety Matrix

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 Figure 6-7 12 Zones Expanded

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 Here’s a more complete list of common mistakes when selecting requisite
variety:

Mistake Risk Mitigation

Being political You get of a Exclude people and

about your bunch of the same blame the numbers.
invitations perspectives instead Explain to them how
of requisite variety. they’ll be involved before
and/or after.

Excluding the This will always If you really can’t invite

customer from a get mentioned customers, invite proxies
discussion about and affect your who work directly with
the customer credibility. them and tell them they’re
there to bring in the
customer voice. Survey
customers ahead of time.

Too little external Nobody challenges Think in terms of 10–20

voice the status quo; percent external. Find
nobody thinks out good external points of
of the box; you don’t view and beg them to
know what you don’t “bring it.”
know.
Too much of one A function or Actively pay attention to
constituency managerial level or just-enough coverage.
team dominates, Better to uninvite some
preventing other people if you have to.
voices/ideas from
being heard.

Leaving out the They see and know They will often try to
senior execs things others don’t— beg out because they
in other words, they don’t want to suppress
are part of requisite or dominate. Invite one
variety. or two senior execs—the
ones who will get it right.

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 Mistake Risk Mitigation

Avoiding the cynics You give them the Bring them in. Embrace
right to object later; them. Actively seek them
you can’t deal with out. They will become
the valid reasons your strongest advocates
for their cynicism when you involve them in
or anticipate those the right way.
things in your
planning.

Inviting the wrong What you think is Choose who to involve

external partners requisite variety carefully. Tell them
isn’t because the you’re expecting them to
external voice is challenge you and that
not being honest, your partnership is on the
more worried about line if they don’t.
protecting a contract
than telling you what
you need to hear.
Not serving youth Things are moving Youth must be served!
so fast, the youth Include them as a key
are the only ones demographic to cover.
keeping up— There are often “rising
meaning you make star” lists that you can tap
recommendations into to find the best and
about things that brightest.
already exist without
knowing they exist.
Not to mention the
absence of youthful
energy and fresh
perspectives.

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 Mistake Risk Mitigation

Agreeing to involve Removing them- Get a commitment

people who can’t selves for part or to full and dedicated
commit to being much of the time participation. If they aren’t
there means the zones and willing or able to give
characteristics they you that, thank them and
were supposed to move to a good substitute
cover aren’t covered. on your list.
You also lose the
powerful connections
they would have
made with others.

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 CHAPTER 7
Step 4. Localize
the Solvers

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 Figure 7-1 Step 4

Figure 7-2 Elephant in the Room

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 Objection—Sorry, but . . . Response

I’m not available on those If you can cancel those other

dates. commitments, please do. We will be
working on one of the most important
. . .

I can be there for some but not If the person who can’t be there is
all of that time. key, you should have preempted that
possibility by reaching out to them
to determine their availability before
finalizing dates.
Otherwise, choose a best-possible
substitute who can be fully
committed.

I have more important places What could be more important than

to be. solving one of the most important
challenges facing the organization?
This will be a critical exercise and we
need you there, working shoulder
to shoulder with a bunch of other
important and busy people. Here’s
who else will be there . . .

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 Objection—Sorry, but . . . Response

I would prefer to join remotely. Sorry, that won’t work. We need you to
be there in person. You’ll understand
why later.

I need to check with my boss. Please do. And have your boss reach
out to me if they’re not sure about you
coming.

I will need to get some other We’ll help you work around a few
work done while I’m with you. interruptions here and there, but we
need you there, in person and as
focused as possible, for the entire
duration.

Customer: Do you really need We hand-picked you as somebody

me there? who will really add important external
perspectives / customer voice to what
we’re talking about. We need you there
to keep us honest.

In any situation . . . We will be working on one of the

most important challenges facing the
organization and you’ve been hand-
picked to participate. Here’s who else
will be there . . .

With convening power . . . Clear your calendar and be there.

In an organization that has Did you hear about the success we had
used the Complexity Formula applying this Formula to our <growth
in the oncology franchise> challenge
last year? We’re doing the same thing
now on <cardiovascular>. The results
were amazing and we expect seriously
important things to happen this time
again.

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 CHAPTER 8
Step 5. Eliminate
the Noise

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 Figure 8-1 Step 5

Figure 8-2 Challenge Cloud

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 Ask yourself what the basic facts are that they might need to
work with from each of the following zones.

Zone Might Be Important to Share

1. Your System • Operational facts and basic data about the

system (size, revenue, org chart, etc.)
2. The (System’s)
Future • Mission, vision, purpose, values, goals,
objectives
3. The (System’s)
• Current strategy, past strategies
Past
• A good glossary of terminology and acronyms

7. The Market • Basic data and information about the market:

The usual market research stuff—customer
survey results, customer preferences, a good
article about market trends, competitive
analysis, strengths/weaknesses/opportunities/
threats (SWOT), etc.

9. Your Reality • Basic data and information about the industry

and the environment: environmental scan, a
good article

10. Parallel • Case study

Realities

11. The Challenge • The latest data on the size, scope, and impact
of the challenge; a good infographic or article
• What customers, partners, and experts are
saying related to the challenge
• What projects/initiatives are already underway
or planned related to this challenge
• Why the group is being brought together to
talk about it

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 CHAPTER 9
Step 6. Agree on
the Right Agenda

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 Figure 9.1 Step 6

Figure 9-2 Staff Meeting Minutes

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 # Subject Areas Subtopic Examples

1 Who we are Mission/Vision/Purpose, Brands, Values,

Principles, Culture, Social Responsibility

2 Governance Org Structure, Roles, Rules, How Decisions

Are Made, Accountabilities/Ownership

3 Our People / Human Development, Compensation,

Capital Recruitment, Retention, Communication,
Engagement

6832_Book_V4.indd 117 11/19/18 2:34 PM

 # Subject Areas Subtopic Examples

4 Results Management Outcomes, Key Indicators, Reporting,

Measuring Results

5 Internal Economy Resource Allocation, Budgeting, Stability,

Sustainability, Funding, Relationship with
Global

6 How We Work / Internal Collaboration (Depts., BUs,

Core Processes Products, etc.), Core Business Processes,
Lean

7 Information / IT Systems, Big Data, Knowledge

Information Management, Best-Practice Sharing,
Technology Customer Information

8 Support Processes / Finance, Legal, Standards, Ethics, Risk

Functions Management, etc.

9 Bricks and Mortar / Where Services Are Delivered, Workplace

Infrastructure

10 Long-term Direction Strategy, Commitment to Change, Change

Setting & Adaptation Management, Leadership Development

11 Project Execution/ Barriers, Enablers, Capabilities, Plan

Implementation Implementation Details

12 Product / Service Research, Development, Innovation

Innovation

13 Understanding the Market Research, Competitive Intelligence,

Market Segmentation

14 Preparing the Marketing, Advertising/PR/Promotion,

Market Public Education, Image, Value
Proposition

15 Key Partners / Suppliers, Channels, Networking,

Supply Chain Stakeholder Engagement, Labor
Relations, Advocacy

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 # Subject Areas Subtopic Examples

16 Products and Standards, Guidelines, Quality Control,

Services Quality Safety

17 Sales Sales, Sales Effectiveness, Sales Strategies

/ Tactics, Targeting, the Competition

18 Collaboration for the Collaboration / Joint Projects between

Common Good Orgs, Depts., BUs, Products, etc.

19 Customer Customer Experience, Service Delivery/

Experience with Support, Pricing, Access, Issues with
Products and Specific Populations
Services

20 Customer Alignment with Needs, Value Creation,

Relationships Engagement, CRM, Account Management

21 Governance of the Governance, Policy, Regulation, Funding,

Environment Compliance

22 Changes in the Emerging Threats, Surveillance

Environment

23 The Customer How Customers Work, What Customers

Reality Need and Want, Changing Customer
Demographics

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 Characteristics of a Good Topic Prompts to Test for This

Interesting to almost everyone How many of you would rank this

in your top three once we have 12
topics?

Undeniably relevant to the Can somebody state a goal that

question reflects our overarching question
through the lens of this topic?

Characteristics of a Good Topic Prompts to Test for This

Holds the promise for some What’s an example of an action

actionable recommendations that might come out of this
discussion?

Reflective of some strand of the How does this topic contribute to

complexity being faced the complexity in the question?

Important to resolve What’s at stake if we don’t resolve

this?

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 CHAPTER 10
Step 7. Put
People on a
Collision Course

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 Figure 10-1 Step 7

Figure 10-2 Connections

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 Figure 10-3 Hub-and-Spoke

Figure 10-4 Strategy Execution

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 Figure 10-5 Many to Many

Figure 10-6 Exponential Curve

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 CHAPTER 11
Step 8. Advance
Iteratively and
Emergently

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 Figure 11-1 Step 8

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 Figure 11-2 System Response

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 Figure 11-3 Lion Autostereogram

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 For those who had trouble seeing the three-dimensional “emergent”
image, here it is:

Figure 11-4 Autostereogram Revealed

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 Complicated/Complex
Examples Not Emergent Emergent

Having a wedding is A menu for the Friendship, love, trust

complicated; reception, a selection
having a happy of flowers
marriage is complex.

Fixing a car is Filling the radiator, Market acceptance,

complicated; tightening a lug nut driver preferences,
disrupting the competitor response
automotive industry is
complex.

Placing a bet on a The field, the The jostling in the

horse race is simple; favorites, the paddock, how each
placing an informed conditions horse reacts to the
bet is complicated; the conditions, accidents
race itself is complex
(if it weren’t, you’d only
place winning bets).
Completing a paint- Successfully painting Beauty, color blends,
by-numbers image of each numbered mistakes
a landscape is simple; space with the right
painting a landscape color
on a blank canvas is
complex.
Buying a house is Making an offer, Cordiality, respect,
complicated; being paying land transfer disputes and how
a good neighbor is tax they’re handled
complex.
Doing a math Successfully applying Creativity,
assignment is a formula, showing believability, voice,
complicated; doing a your work mood
writing assignment is
complex.

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 Complicated/Complex
Examples Not Emergent Emergent

Solving the Rubik’s Speed of applying Fads, viral uptake,

cube is complicated— the steps and word of mouth
maybe even simple; reaching a solution
establishing this
product as a world-
wide sensation and
commercial success
was complex.

Building a rocket that Engineering, The impact of a

can put a person on simulations, a splash charismatic and
the moon is merely landing visionary leader, the
complicated; rallying public’s response to
the country to create fear of a Cold War
the conditions where enemy
it could happen fast,
that was complex.
Implementing a User requirements, Customer
customer relationship successful installation satisfaction, trust,
management system of software and relationship
is complicated; hardware, bug-
delivering a winning tracking systems and
customer experience processes
consistently is
complex.
Installing a new Business process and Impact on work-life
enterprise-wide policy changes, new balance, incentives,
accounting system is instructions on how customer experience
complicated; taking to submit expenses with finance-related
10 points out of SG&A processes
without harming the
business is complex.

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 Complicated/Complex
Examples Not Emergent Emergent

Rolling out idea Submitting ideas Culture of innovation,

management software and voting on others’ breakthrough ideas,
is complicated; ideas resonance of ideas
creating and
executing on a robust
innovation agenda is
complex.

Implementing an ERP Process change, new Mind-set, behavior,

system to enable bar-code scanners employee
transformation satisfaction,
is complicated; successful leadership
transforming is
complex.

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 Figure 11-5 10-Step Highlight: Collision

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 CHAPTER 12
Step 9. Change
How People
Interact

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Figure 12-1 Step 9
 CHAPTER 13
Step 10.
Translate Clarity
and Insights
into Action

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 Figure 13-1 Step 10

Audience Now Soon (2 Weeks) Ongoing

Participants Thank you, raw Report out of Regular

/ Requisite output from the results progress and
Variety Group conversations status updates

Action Owners Heads up with Their actions Status updates

details to follow and the relevant from them and
details from the overall plan
group updates to
them

Executives Brief summary Action plan for Dashboard

(Board) of output approval
Request for Expectations of
support? the leadership
team

Everyone Why that Description of Regular

illustrious group the overall plan updates on
was away / progress
what they got
done

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 APPENDIX B
Troubleshooting

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 Step-by-Step Troubleshooting
Barrier Symptom Impact Response

Senior Senior Paralysis, delays Find something

leadership leadership and roadblocks ‘safe’ on which
denial / the and other creating time to apply the
immune influencers lags you can’t Formula a first
system of the passively or afford, people time and prove
organization actively resisting not engaging its value.
your efforts
Loyalty to Invite those
traditional partners in to
approaches your requisite
and the variety.
partners who
deploy them

Pride / control Discomfort Hesitancy to Remain the

issues admitting to engage with the champion, join
a seeming requisite variety the requisite
inadequacy group and hand variety, and
to solve the the challenge demonstrate
problem, and/or over to them that you know
with letting go how to solve for
of the reins complexity.

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 Step 2. Construct a really, really good question
Here, you need to identify what system you’re dealing with, what the
complexity is, what the goals and time lines should be, and how to put
all of that into a really compelling question.

Barrier Symptom Impact Response

The system No personal Need to build Step up to the

facing the authority to consensus funding if the
challenge is get after the amongst several ROI for your
ill-defined and challenge; no groups slows organization
unowned; or single owner things down; no is big; take the
owned but who has the single source for lead / initiative
not yours. authority funding in selling the
Formula to
others and
getting their
support; use the
question as a
selling tool and
commit your
own people first.

The system No uptake on Time delay, Make the case

isn’t talk of solving failure to get for the value
interested in it; heads in the commitments of solving
solving the sand about the from people, no the challenge
challenge. threat traction (express it in $s
if you can).

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 Barrier Symptom Impact Response

The No amount of Can’t come up Choose one

complexity question-writing with a good “deck” from
defies is adequately question which to
definition; it’s expressing the jump into the
too big or too complexity. complexity (e.g.,
nebulous. talent strategy)
or come up with
a question that
you know can’t
be answered
without
addressing the
complexity (e.g.,
growth).

The question Everyone is People aren’t Be open to

seems to be getting hung up solving the changing it,
the wrong on the question. challenge, just but beware
question. arguing about of watering
the question. it down,
introducing bias,
or skirting the
main issue in
doing so.

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 Step 3. Target a requisite variety of solvers
The success of the Complexity Formula relies heavily on the involvement
of requisite variety. In this step, the job is to get them to give you their
time and focus.

Barrier Symptom Impact Response

Requisite The invitee list Can’t deal with Reduce the

variety has 50+ names that number scope of the
represents too on it. of people in challenge
many people. one session; or break the
can’t afford to application of
convene them the Formula
all into several
steps (e.g.,
starting with
senior leaders,
then later with
the ‘doers’).

No convening Can’t make Everyone Go up the

power for people come, needs to be chain to find
requisite variety can only ask convinced, and a champion
them to too many can with convening
just say no. power—sell that
person first,
then get their
name on the
invitation.

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 Barrier Symptom Impact Response

Can’t It’s too risky Can’t really Use proxies

realistically to ‘open the achieve who are closest
involve requisite kimono’ with requisite variety to the groups
variety (e.g., outsiders, and thus the you can’t
your customers) with lower best possible involve; be
levels of the result explicit that
organization, they are to
etc. represent those
groups.

Key people Important Missing key Stress their

are resisting or people are voices individual
unavailable. declining to importance,
engage. stroke their
egos, ask for
alternative
times when
they would be
willing to join,
and reschedule
if necessary.

Key People point Missing key Involve them in

perspectives out their voices and the the steps that
/ people are absence from opportunity will come later
excluded or the group. for key (e.g., vetting
forgotten. engagement the action plan,
serving on
the steering
committee,
solving
subsequent
complexities).

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 Step 4. Localize the solvers
Getting people together is the imperative here.

Barrier Symptom Impact Response

People won’t “I can’t be Missing key Ensure the

come or won’t there the whole voices (if they objection is
stay. time,” “Can I don’t come) or really about
join remotely?,” missing their availability (and
“Can I send a necessary focus not resistance)
delegate?” and find the
next best
substitute,
but don’t let
them choose
a delegate
because they
might not be
the right person.

People don’t Everyone They may be Bring them

want to (or knows that disruptive in the together, coach
shouldn’t) be in those two beginning, but them ahead
the same room people together the group itself of time, then
together. will ruin the will ultimately have them
experience / drown out colliding with
outcomes for the noise each other and
everyone else. they make; with everyone
the impact of else as equals;
not bringing they will marvel
them together after about
is potentially the common
more severe ground they
since they are share.
part of the
complexity.

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 Step 5. Eliminate the noise
You’re trying to help people cut through the noise, but that’s hard to do
when there’s so much noise and you can’t necessarily separate what mat-
ters from what doesn’t.

Barrier Symptom Impact Response

Missing Unable to or People believe Ask the group

key data/ failed to source they can’t do to rely on
information key data / what they’re their tacit
information being asked to knowledge,
(e.g., current do without the state their
customer data. assumptions,
satisfaction and/or fill in
numbers) the blanks with
at-hand data as
people realize
they need it.

People can’t Discussions are Slow progress, Call a time-

agree on even at a standstill frustration, out and get
the most basic as people argue disengagement everyone
facts. the facts. together to
remedy the
The data / People are
situation (e.g.,
information disputing
by getting the
shared is flawed the data /
facts straight,
and/or biased. information
by getting
instead of
better data,
talking about
by agreeing to
the challenge.
disagree and
stating some
assumptions to
proceed with).

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 Step 6. Agree on the right agenda
Your requisite variety group sets their own agenda (within the confines
of the question you’re asking them), and who knows what they’ll come
up with?

Barrier Symptom Impact Response

The agenda A strong Very likely, no Leave it be—the

isn’t what you feeling that impact group now owns the
wanted. something is agenda and to force
missing from a change on them
A key topic is
the agenda is disempowering;
missing.
and/or that trust that everything
something on is there or missing
the agenda for good reason
will be a and that there will
waste of time be opportunities to
and energy address either case
along the way (e.g.,
redirecting a topic,
adding a missing
topic into another
related one).

There is A topic seems The topic Shape the topic so

insufficient important doesn’t that the group can
expertise but there’s get proper handle it without the
amongst the nobody in coverage, experts and agree
people in the the room and people that there will be
overall group who knows become some guessing and
to do justice enough about frustrated / assumptions that will
to a key topic. it. disillusioned need to be validated
about the later, or take the topic
progress they out of scope for now
can make as a and treat it as a TBD.
result.

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 Barrier Symptom Impact Response

People can’t The agenda- An agenda Keep shaping and

agree on the setting comes is needed reshaping topics
topics. to a grinding to move on, during the agenda-
halt. so progress setting until you
stops until can find consensus;
there is ultimately, call it to a
resolution. vote.

A taboo topic People agree Something Face the topic

is key (e.g., that a topic important head-on and assure
leadership, is important, gets left everyone it’s okay
physician but people behind, to discuss it; sign up
payment are generally potentially for it yourself and
models, skittish about undermining demonstrate what it
dealing discussing it. the entire means to be open to
with poor exercise. discussing it.
performers).

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 Step 7. Put people on a collision course
It’s one thing to say you need a many-to-many network model and forced
collisions, it’s another to do that well.

Barrier Symptom Impact Response

You don’t Temptation No guarantee Focus on using

know how to just throw of the meetings on the
to set up people collisions you identified topics as
a many- together and need, or good the formal settings
to-many hope the right collisions for collisions; keep the
network. things happen groups small in those
meetings (5–8 people
talking at a time)
so the collisions are
meaningful; assign
people into those
meetings to optimize
how many others
they overlap with.

People aren’t “Why am I in Unless they’re People learn a lot

happy with that topic? I absence from attending
their place in don’t know means a lack topics they don’t
the network. anything of key exper- know much about
about that,” tise, or their and contribute in
and/or “How presence is surprising ways.
can I not be genuinely If people who are
in that topic, a problem, usually involved in
I’m very close very little a topic miss it this
to it.” impact. The time, you can expect
more impor- completely new ideas
tant impact is and outcomes. The
potential dis- connections between
engagement topics amount to
or passive everyone contributing
resistance. to every topic,
directly or indirectly.

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 Barrier Symptom Impact Response

The sequence “How can we None— This isn’t a linear,

of topics talk about x sequence step-by-step
doesn’t seem if we haven’t doesn’t examination of the
to make first talked matter. topics; it’s nonlinear
sense. about y?” and sequence never
matters in retrospect.

Step 8. Advance iteratively and emergently

Iteration and emergence will get you there, but it requires some patience.

Barrier Symptom Impact Response

People want to In Iteration 1, If people don’t Hold people

solve first and frustration that talk status quo to the task
rationalize later. the group is first, they don’t of using the
being held back share baseline first iteration
from answering information, to share
the question stories, issues, information,
and instead and so on that even if they
encouraged to will be key don’t like it.
have a gripe to the group
session finding the right
answers.

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 Barrier Symptom Impact Response

People think “We’re done. Missing the The third

two iterations is No need for a third iteration iteration
enough. third iteration?” means is always
missing all the profoundly
convergence, important, so
retracing push people
of steps, through their
challenging of misguided
assumptions, belief that it’s
processing not necessary—
of new they will thank
information, you when it’s
etc., that over.
come with it.
The impact is
having partial
and potentially
wrong clarity
on what needs
to be done.

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 Step 9. Change how people interact
What happens in collision teams, with just the right number of people
present for effective conversations, is what drives the progress made
across all the topics on the overarching question; those meetings have
to be really good, and we’ve given you some strong guidance on how to
make them so.

Barrier Symptom Impact Response

People won’t Outbursts, Too many Apologize in

play along with people talking people talking advance for
their roles. when they at once, holding people
should be disorder, bad to their roles,
listening, and meeting then enforce
vice versa them politely
but firmly.

People aren’t People are Diminishing Show right from

respecting the arriving late, faith in ‘the the start that
clock. meetings aren’t process,’ less time matters.
starting on camaraderie, Start on time
time, and some imbalance in even if some
meetings are time afforded key people are
getting less teams to have missing, start
time than they important meetings on
should. discussions time, end them
on time, and
keep reminding
people where
they need to
be and when.
The sponsoring
team needs to
be modeling
the desired
behavior
throughout.

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 Step 10. Translate clarity and insights into action
By the end, you and your requisite variety group have clarity on what
needs to happen. For some, that may be where the really hard work begins.

Barrier Symptom Impact Response

We aren’t People are Complexity Set up proper

good at saying at the doesn’t get governance;
follow-through. end, “Great solved if there’s use your
session, but the not execution. requisite variety
proof will be group within
in whether or the governance
not we follow structure to
through this keep you
time.” honest and on
track.

We aren’t good Pilots and In the complex Acquire outside

at running or prototypes domain you help.
monitoring never end, and try things, you
experiments. everybody amplify what
knows that. works and stop
what doesn’t.
If you’re not
doing that,
meaningful
progress
is severely
hampered.

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 Barrier Symptom Impact Response

We can’t do People are Usually much, Do a planning

everything that overwhelmed but not all exercise to
surfaced. by the sheer needs to be agree on priori-
volume done, and ties, sequence,
of actions sequence, and interdepen-
that were timing, who’s dencies. Find 3
identified—all doing it, etc., areas to focus
of which seem go a long way on that cover
important. to making most of every-
the work thing else.
manageable. If
it’s all treated
as one massive
effort, then
people won’t
execute, and
the complexity
won’t be dealt
with.

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