2. Properties of Complex Systems: Tradeoffs Chaos Self-organizing Bounded rationality Resilient Hierarchical

3. Tradeoffs A tradeoff is a choice between two or more alternatives of relatively equal value

4. DID YOU EVER HAVE TO MAKE UP YOUR MIND? by the Lovin’ Spoonful Did you ever have to make up your mind? Pick up on one and leave the other behind It's not often easy and not often kind Did you ever have to make up your mind? Did you ever have to finally decide? Say yes to one and let the other one ride There's so many changes and tears you must hide Did you ever have to finally decide? Sometimes there's one with big blue eyes, cute as a bunny With hair down to here, and plenty of money And just when you think she's that one in the world You heart gets stolen by some mousey little girl And then you know you'd better make up your mind Pick up on one and leave the other behind It's not often easy and not often kind Did you ever have to make up your mind? Sometimes you really dig a girl the moment you kiss her And then you get distracted by her older sister When in walks her father and takes you aside And says, "You better go home, son, and make up your mind" And then you bet you'd better finally decide Say yes to one and let the other one ride There's so many changes and tears you must hide Did you ever have to finally decide?

5. Chaos in Systems Importance: Disorder can be the source of order Growth is found in disequilibrium, not in balance Dynamics: New information disturbs the system in its current form This causes the system to become unstable When maximum instability is reached, the system is at a crossroad between death and creative reordering This is the bifurcation point. Two choices: a. The system can disintegrate (death) b. The system can reconfigure itself (self-organize) to a higher level of complexity to better deal with its new environment.

6. Chaos theory from a systems perspective: The dynamic factors that disturb the equilibrium can play a crucial role in creating new forms of order. Chaos can be necessary for an organization’s growth. In the process of chaos, energy is created that is used to restructure the organization. The more freedom in an organization, the more opportunity it has to restructure. Control is not order in an organization. An organization that has its own internal stability has openness to its environment. It does not quickly react to environmental disturbances. It is sensitive to the environment, and still resilient to it.

7. Characteristics of self-organizing systems They avoid rigid or permanent solutions They change to a changing environment They develop the capacity to respond with greater flexibility They create structures that fit the moment Stasis, balance, and equilibrium are temporary states. What endures is a dynamic, adaptive, and creative process.