Fractal Scaling
Fractal scaling applies a similar learning process at different organizational levels while keeping local strategies coherent with the mission. Trial and error is the source’s example: the process can recur even when the decisions and stakes differ.
THE IDEA
Fractal Scaling
A strategy based on movement through the complex domain to establish core capabilities in the ordered domains is fractal - and micro-strategies that are coherent with the mission or purpose can occur at all levels. That means that the relationship between context and movement is the same at any level of the organization. An example of a fractal relationship is the concept of trial and error. The simple process of finding a plausible solution, trialing it, learning from errors and trying again with a modified hypothesis, is self-similar at any scale. ‘Trial and error’ can be used in assessing shoe size, or in the acquisition of a complementary business.
The organizational strategic plan does not need to be more or less detailed, exact, or defined than the operational plans that flow from the strategy. This self-similar relationship can exist right down to individual resource allocation.
The aim is to establish a shared way of developing strategy as the organization grows or diversifies. Self-similarity concerns the process; it does not require identical plans or mean that changing objectives and risks can be ignored.
When to use it
Scaling a startup from a small team to a large corporation while maintaining coherent strategy and culture.
Applying the same iterative process to both feature-level product development and overall roadmap planning.
Using fractal scaling in organizational change management by piloting changes at a small scale with the same principles as the full rollout.
Integrating acquired businesses by applying the same strategic approach and operational mode across different scales.
FROM THEORY TO EVERYDAY LIFE
In practice
Trial and Error as Fractal
The concept of trial and error is self-similar at any scale, from assessing shoe size to acquiring a complementary business.
Fractal Strategic Planning
An organization uses a similar cycle of proposing, testing, and revising at strategic and operational levels. Each plan can use detail suited to its decision while remaining coherent with the overall mission.
A MOMENT TO REFLECT
Put it to work.
Which parts of your strategy-development process could recur at different levels, and which need to change with the context?
In what other areas of your life or work can you apply fractal scaling to maintain consistency and coherence?
What are the potential pitfalls of not having a fractal relationship between high-level strategy and day-to-day operations?
CONTINUE THE CONVERSATION
Source texts
- Cynefin - Weaving Sense-Making into the Fabric of Our World ED02 (Dave Snowden Sonja Blignaut Zhen Goh)