A633.3.3.RB – Complex Adaptive System

           Johnsonville Foods, Inc.’s commitment to sustainability where they're focused on business operations that benefit their members, workforce, community and the environment.  Their mission statement of continuous enrichment of the lives of the citizens of the globe by providing premium products and development of the God-given talents of their workforce aligns with my current organization.  Like Adventist Health System Johnsonville’s commitment to minimizing their overall effect on the environment through the use of technology launching exhaustive learning and implementation processes and programmings.

Our global industry has become an innovative environment.  More than ever, organizations, mid, large or small endeavor for excellent ideas that are new and unique.  Adventist Health System aims to amaze the world of health care most specifically the world of its patients across the board. We continue to be deeply committed to leveraging technology for innovative solutions and ameliorate the health and care our workforce, environment, and community.  Across the four state system of Adventist Health, what had become a call to action was “innovation everywhere.” But to be clear, in AHS, we do not promote innovation for a revenue increase and be well known in the healthcare industry alone.  At AHS campuses, innovation is a culture change within 52 facilities’ patients and employees where innovative ideas diffused and implemented collaboratively from one healthcare site to another.

            According to Obolensky (2014), the purpose of the complex adaptive system is to articulate a dynamic organization where members are formulated, perform with excellence then dissolved when needed.  The framework of the said dynamic is clear people policies and procedures, logical and adaptable communication and information systems of technology, and transparent strategy that are inclusive and malleable in its developmental process. (Obolensky, 2014, p. 26).

In Adventist Health System, diversification, and growth are driving how we manage finances and our workforce directing a higher level of flexibility and scalability.  The required regulatory changes are forcing our Executive Leadership in restructuring cost management, engaging employees in decision-making to fully leverage talents, and data changing resulting in adopting new technologies that reinforce imperatives cost and P&L governance gearing to a value-added reporting and analysis.  Although new technology-based product development is one of the most explanatory variables for a beneficial organization performance (Suzuki, 2014), we can also say that exploitative and exploratory innovation significantly influence organizational performance (Suzuki, 2014).  According to Suzuki (2014), exploitation relates to increased efficiency, organizational improvements and incremental adjustments while exploration equates to new possibilities, radical or revolutionary change, and diversified generation.

            Our corporate leadership focuses on innovating for a better future for our patients, employees, community, and stakeholders, in short, leadership and innovation are interrelated.  According to Hoch and Kunreuther (2005), today’s business environment has become a labyrinth of data information that is mostly driven by the internet or advanced technology.  My current organization has been standardizing policies, procedures, and system technologies within the 52 hospitals.  In the East Florida Region where my company is located, we have struggled with the decision making of our Corporate Executives.  Our local Executive Officers, unfortunately, can only assure us that things will get better.

According to Hoch and Kunreuther (2005), as the environment of decision-making becomes increasingly more complex, working out the specifics of the decision beforehand will not be practical nor prudent.  One thing I am sure of is that for Adventist Health System to be successful in moving forward, it is of utmost importance that all organizational change, innovation, and development initiatives are communicated with transparency to our workforce.  In complex decision making, two-way and constant communication regarding change and risks throughout the process of leadership decision-making is essential to the logical decisions that are satisfactory to the organization’s workforce, vendors, customers, community, and stakeholders. 

            In all organizational business initiatives, leadership must be strategic and adaptable in their decision-making.  As Reeves (2014) emphasized that in today’s innovative and complex environment, traditional strategy in itself needs a strategy.  Ovans (2015) described strategy at a fundamental level as doing what everybody is doing or doing something that nobody can do.  Our diverse business environment has been stretched-out with unpredictable changes, and no one strategy fits all but instead, it is critical that our desired strategy matches our current situation (Reeves, 2014).  For example, in a predictable environment, traditional strategy fits where we can merely plan, analyze and execute; and in a turbulent technological environment, we adopt the science of biology where we adapt, experiment, scales, and reiterate (Reeves, 2014).

            At Adventist Health System formulating a strategic vision and developing change initiatives that are designed to capitalize on the big picture or opportunity is to our advantage.  All new ideas and products in our organization are reviewed and assessed by our Strategy and Innovation team.  Once the quality of the product or the usefulness of the new design pass our Strategy and Innovation team, a focus group is created to brainstorm and make recommendations appropriate recommendations on how to improve and implement the new idea.  What makes us stand out is that for every innovation or changes in our organization, it is always tied to our company mission and vision of Extending the Healing Ministry of Christ.           

To be competitive in the healthcare industry in Florida, we have rolled out Medicare Advantage Program where we take full capitation risk for some patients on an annual basis.  Through this model, our concern for patients broadens when they are not in the hospital and when they require a hospital stay where we get involved with their recovery after hospital discharge.  Regardless if we do not take full capitation, the reimbursement method that Medicare and other payers are moving towards places our organization at financial risk for the post-discharge course of care for at least 30 days after the date of discharge.  This type of model what we call at-risk value-based care.  

Our corporate leadership focuses on innovating for a better future for our patients, employees, community, and stakeholders, in short, leadership and innovation are interrelated.  We have been standardizing policies, procedures, and system technologies within the 52 hospitals and is very transparent in communicating the organization’s vision and expectations from all of the 52 campuses.  In the East Florida Region where my company is located, the six President/CEO are consistent and transparent in communicating the financial status and expected performance and contributions from every employee to achieve our regional and corporate vision and goals as a whole.

References

About us (n.d.). Retrieved from http://www.johnsonville.com/about.html.

Hammer, R. J., Edwards, J. S., & Tapinos, E. (2012). Examining the strategy development

            process through the lens of complex adaptive systems theory. The Journal of the

Operational Research Society, 63(7), 909-919. http://dx.doi.org.ezproxy.libproxy.db.erau.edu/10.1057/jors.2011.97

Hoch, S. J., & Kunreuther, H. C. (2005). Wharton on making decisions. (1st edition.).

Hoboken, NJ: John Wiley & Sons Inc.

Obolensky, N. (2014). Complex adaptive leadership (2^nd ed.). London, UK: Gower/Ashgate.

Ovans, A. (12 May 2015). What is strategy again? Harvard Business Review. Retrieved from

            https://hbr.org/2015/05/what-is-strategy-again.

Suzuki, O. (2015). Unpacking performance benefits of innovation ambidexterity: Evidence from

the pharmaceutical industry **. Management Revue, 26(4), 328-348. doi: http://dx.doi.org.ezproxy.libproxy.db.erau.edu/10.1688/mrev-2015-04-Suzuki.

Ted Institute (22 Dec. 2014). Martin Reeves: Your strategy needs a strategy. Retrieved from

            https://www.youtube.com/watch?time_continue=50&v=YE_ETgaFVo8.