3. Simplicity and Complexity

The principle of Ockham’s Razor underlying scientific explanation and thus conventional MBA concepts is no longer tenable in business. But the human need for simplicity cannot and should not be denied. In dealing with complexity a constant awareness is needed, at the individual level, group level and institutional level, for a constant and strong need for simplicity. As different types of complexity exist, so can different types of simplicity be discerned. The most responsible type of simplicity is that which is achieved through an intellectual effort of understanding the new complexity of a situation, acknowledging that the new complexity cannot be understood through conventional theories. A more short-cut but unreliable simplicity is achieved through the myopia of learning. The simplicity of the era of modernism was achieved through institutional reductionism, especially denying or suppressing the marginal in society. The post-modern movement has broken this up, but also for other reasons the effectiveness of institutions is reduced. In that context, the simplicity of MBA methods was achieved through reductionism, of which the limits no longer can be denied. A specific type of simplicity in business is the phenomenon of dominant logic. For reasons of focus a dominant logic is needed, but relying too heavily on a successfully dominant logic, especially in a changing complex organization will derail the organization. This demonstrates a more general principle that simplicity is not absolute, but is bound to time and situation, simplicity always is needed and always is to be distrusted.