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System Level

Adaptation at the system level typically expresses itself in structural
change. An example; the shift to networked structures with globalized
ecosystems of supply and partnerships was a real response to the need

to adapt at the system level. Pieces of the system could be eliminated
or 'hot swapped' as the context changed. This shift had profound
effects on returns on assets and lowered risk at the system level

underpinned dramatic shifts in shareholder value as both assets and
risk were shifted from the firm to its suppliers and partners. Note, the
above example of shifting to looser more flexible structures can be
linked to the valuable sociology construct of tight and loose systems.

All the above implies that managing adaptation at the task level is a

core aspect of management (change management competence) and
building adaptiveness into a system's structure is a core requirement
of system leadership (strategic transformation competence).

Centralize – Decentralize

There isn’t an organization in history that hasn’t gone through
recurrent phases of centralization of decision making followed by
decentralization. This phenomenon is rooted in the need to adapt to

changing local conditions and demands while also retaining
organization-wide coherence across multiple localities. Of course, the
phenomenon also gets mixed up with ambition, control-freakiness,

and the sheer love of power on one side and local rebellion and
insistence on ‘we are different’ on the other side. The oscillation is a
permanent feature of organizations.

Self-organization

The ability of the agents in a context to self-organize by attending to
their local and personal interests and interacting with others is

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