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Ethos Issue 7, Jan 2010

Thinking through Complexity,
Managing for Uncertainty

Lam Chuan Leong

Finally, in the Crisis quadrant, we are faced with matters that are highly complex, unpredictable and which give us little time to react. This calls for another style of management thinking and intervention aimed at restoring the situation to one that is more manageable: that is, one of the other three quadrants.

Since our interest is how best to operate in a complex and uncertain environment, we will focus our analysis on the Management quadrant.

MANAGING COMPLEXITY IN GOVERNANCE
If we apply this matrix to Singapore, we can describe the issues we faced from the 1960s to the 1980s as falling into a relatively simple set, which can be satisfactorily resolved by the application of the rational method. The characteristic problems of that time were quite straightforward—to build excellent infrastructure, schools and housing, and to create jobs. As Singapore evolves from a third-world to a first-world economy, there is a corresponding rise in the complexity of our problems. Issues such as a declining and ageing population, climate change and rising healthcare costs do not have obvious or straightforward answers. Greater calls for consultation, participation and variation from Singaporeans today can be seen as both symptom and cause of the complexity of our environment. The types of problems can be positioned on the time-complexity matrix as shown in Figure 3.

The strength of the Singapore Civil Service is, arguably, in the technical quadrant. Simple environments are generally amenable to what are essentially engineering solutions— solutions which depend on repeatable causes and effects (or at most on probabilistic or stochastic models). The problems of the 1960s to 1980s in Singapore fall into this quadrant.

However, many of our most pressing policy problems now fall in the top right quadrant, in the context of management. Take climate change, for example: governments have to juggle the competing concerns of environmental sustainability, economic competitiveness and national welfare to arrive at the most appropriate policy responses for their country—there are few certainties and no right answers. We have to make sense of the problem by probing, experimenting, creating environments conducive to the generation of new ideas and new interactions, and responding to emerging patterns and behaviours.

 

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