Patterns of Scale: How Entrepreneurs Can Dance With Chaos

"The only constant in life is change." - Heraclitus.

As #entrepreneurs, we are all too familiar with this ancient wisdom. Our journey is a testament to the incredible variability and unpredictability of the business environment. But have you ever paused to consider how these elements of chaos and complexity might be, in fact, your greatest allies? Let's delve into the mesmerizing realm of Chaos Theory and Fractals, pioneered by the brilliant mind of Benoit Mandelbrot, to illuminate the path to entrepreneurial resilience and scalability.

To understand how chaos theory can guide us in navigating business uncertainty, it's crucial to know its basics. Chaos theory, in essence, is the study of apparently random or unpredictable behavior in systems governed by deterministic laws. It's about finding the hidden order in the chaos, the patterns in what seems to be random. A visual representation of these patterns, Fractals, are beautiful and intricate structures, repeating themselves in an ongoing feedback loop.

But there are inherent issues in linking this with systems thinking of an entrepreneur. We are biased creatures, and it feels like it takes a lot to think in complex systems. Yet, complex fractals are nothing more than patterns of repeated simplicity.

"When you come to a fork in the road, take it," said Yogi Berra, the famous baseball player known for his witticisms. Could this be the essence of entrepreneurship! As founders, our journeys are more about juggling flaming batons while balancing on a unicycle, rather than casually walking on a well-trodden path. But here's the fun part – amidst this 'flaming baton-juggling act,' there are some fascinating insights that we can borrow from an unlikely source: Chaos Theory, Fractals, and the fractal nature of our own brains.

Now, I know what you’re thinking: "I signed up for business advice, not a crash course in theoretical physics and psychedelic art!" But bear with me. There's a method to this madness, a pattern in the pandemonium. By the end of this article, you'll be laughing at the intricacies of chaos theory as much as you'll be learning from them.

Make Luck Happen Through Patterns of Progress.

In a recent Supernova event, I discussed something with Terence Quek , CEO of the Singapore Institute of Directors. If not for the fact that he had diversified his efforts, it would not have triangulated to his ability to build strong networks across business, and become extraordinarily lucky. Apparently, the more results you put out into the world with patterns of reliability, the more lucky you get!

Essentially, chaos theory studies the unpredictable, and fractals are its visual representative, patterns that repeat in an infinitely intricate loop. Imagine a beautiful snowflake, and you're on the right track. In fact, with a little squinting, you can see the fractal in everything from a head of broccoli to the patterns of flight of a flock of migrating birds.

Intriguingly, the networks of neurons in our brains also resemble fractals. This suggests our thoughts and patterns of thinking can be fractal-like. If this is starting to feel like that dream where you showed up to a meeting in your pyjamas, don't worry. Things are about to make a lot more sense.

Reduce Rigidity and Embrace Flexible Iteration.

Now, let's look at some common entrepreneurial gaffes. For some reason, certain founders love only formulaic processes. It's as if they've replaced their morning cereal with a bowl of SOPs (Standard Operating Procedures) and strategy manuals. They expect businesses to function like a well-oiled machine, or like a predictable Hollywood movie: face a problem in the first act, find a solution by the second, and by the third, celebrate the happily-ever-after.

Alvin Poh and I have debated this. SOPs have to be "living documents" to prevent yourself from dropping into the depths of 'death-by-bureaucracy'. An SOP is not an expectation. It is a guideline. It grants stability, and yet it changes.

While we dislike change for obvious reasons of cost and inconvenience, reality is often closer to an avant-garde art-house film, where unexpected plot twists are the norm. A pandemic could turn the world upside down, a competitor might spring out of nowhere, or your product, painstakingly designed, ends up only popular with a demographic you never considered.

Here's where the wisdom of chaos theory and fractals come into play. Entrepreneurs can't prevent chaos, but they can learn to dance with it, turning it into a partner rather than an adversary. Because our very own thought patterns, much like fractals, are complex systems that evolve and grow, sometimes in unpredictable ways, learning how to incorporate this into our business can enable the infinite expansion of ideas arrive at opportunities that could transform into radical, scalable results.

5 Key Entrepreneurial Lessons

Here are five key lessons entrepreneurs can learn from chaos theory:

1. Give Uncertainty a Bear Hug!

When Super Scaling was born, it was more of an attempt to turn a passion in to a business. Entrepreneurs and founders have their inherent capabilities. But few people would realize how powerful it would be to form a community of eager growth agents. Chaos theory is synonymous with the butterfly effect - a butterfly flaps its wings in Brazil, and a tornado occurs in Texas. In business, this could be a tweet that spirals into a PR disaster or a minor supply chain issue turning into a production nightmare. Instead of hoping the butterfly never flaps its wings (good luck with that!), entrepreneurs should prepare for the flaps and twisters. Yes, it's tough to embrace something as elusive as uncertainty. But remember, even if you fall flat on your face, you're still moving forward!

2. Adapt or Become a Dinosaur: Fractals are all about evolving patterns. This is why Super Scaling emphasizes our business operating system (B.O.S.) from the standpoint of a pillar in the 5E Scale Engine called Evolve. We know that evolution is necessary, and that will entail innovation and some kind of system to manage it. Some entrepreneurs, however, act like their company is a fossil, refusing to change, sticking to the good old ways. The result? They join Nokia in going the way of the dinosaurs. It's important to adapt, to tweak the pattern of your business fractal. What are the patterns of your mistakes? What are patterns that lead to successes? Answer these questions well, and you will arrive at key principles for scaling your business.

3. Variety is the Spice of Business: Chaos theory loves diversity; it brings resilience and adaptability. Unfortunately, some founders like their business as bland as unsalted popcorn. They hire clones of themselves, creating a company culture as diverse as a field of identical corn. Remember, a variety of spices makes a delicious business stew.

4. Patterns, not Tea Leaves, Predict the Future: Our brains are built for pattern recognition, which is much better than reading tea leaves or asking someone to wave a magic wand. Some entrepreneurs forget this, making decisions based on gut feelings or the phase of the moon. Using pattern recognition, you can see market trends and potential opportunities. The frameworks that exist in business are powerful, but only if used effectively (e.g. the lowly SWOT analysis). Deep dive in it. Don't be a thought warrior - really dive deep and do it many times so you can put down that wand and focus on the patterns in front of you.

5. Slow and Steady Wins the Business Race: Fractals grow, but they maintain their pattern, their structure. Entrepreneurs can learn from this, aiming for sustainable growth. Yet, some are like kids in a candy store, wanting to scale too quickly without a stable base. Remember, even Rome wasn't built in a day. What are your actions? Do you reflect on them? How do you innovate on your customer journey? Do you do this regularly? How do you get feedback so that your partnership with your customers is airtight? In the end, repeatable and sustained patterns are scalable.

Conclusion

In the words of Benoit Mandelbrot, "Clouds are not spheres, mountains are not cones, coastlines are not circles, and bark is not smooth, nor does lightning travel in a straight line."

Similarly, the path to entrepreneurial success is not a straight line. It is a fractal journey, filled with complexity, chaos, and most importantly, magnificent potential for growth. Embrace the chaos, recognize the patterns, and you will uncover the path to scalability and success.