An Alternative Approach to Identifying and Appraising Adaptive Loops in Complex Organizations

Abstract This paper describes a research into the adaptation property of complex organizations. The research is focused on the development of a methodology for identifying and appraising loops that can allow for organizational adaptation. The proposed methodology draws a parallel between the nature of adaptation in complex organizations and the process of adaptive decision- making in human behavior. From this perspective, the adaptive loop in complex organizations can be divided into four steps adapted from the OODA loop (Observe-Orient-Decide-Act). The extension of the OODA loop to an organizational scale is incorporated with an assumption that flow of information, involved in adaptation processes, can be formed by different organizational components. Subsequently, the OODA loop can be presented as a chain of actions created by independent components of both the organization and its environment. Applying this approach to complex organizations necessitates mapping a functional definition of different organizational components within each step of the adaptive loop. Thus, while the functional definition of an organization can be done by using existing tools of organizational analysis (organizational structure, functional decomposition, architecture frameworks, etc.), the main goal of this proposed methodology is the determination of adaptive loops on an organizational scale.