Fractal decision-making: Leading in a fragmented and complex world

Abstract

This thesis discusses Fractal Decision-Making, a model that may enhance and enrich our understanding of management and ethical leadership while providing a comprehensive foundation for academic inquiry. Drawing from management theory, moral philosophy, systems theory, and fractal organization theory, this model demonstrates its adaptability and relevance across various cultural and business contexts. The thesis showcases empirical evidence from organizations like Buurtzorg, FAVI, and NRG Flow B.V., offering valuable insights and suggesting avenues for future research, making it a critical resource for scholars. The global business environment today is strangely enough both fragmented and interconnected, marked by regional distinctions and global networks. Traditional, centralized decision-making frameworks struggle to adapt swiftly to local conditions or address broader impacts across these interconnected markets. Fractal Decision-Making offers a solution by integrating decentralized decision-making with ethical governance, promoting responsiveness to local needs while maintaining alignment with global objectives. Fractal principles, known for their self-similarity and scalability, provide insights into organizational structures that emphasize adaptability and ethical decision-making. By applying fractal geometry, as seen in natural phenomena like coastlines and galaxies, organizations can build resilient, agile systems. These ideas converge with Teal organizational principles, which prioritize self-management, wholeness, and evolutionary purpose, creating a shift from hierarchical to network-based structures. The effectiveness of Fractal Decision-Making is supported by case studies from Buurtzorg, FAVI, and NRG Flow B.V., which demonstrate improved performance and employee satisfaction through decentralized decision-making. These organizations embody the valuesdriven culture seen in Teal organizations, where ethical considerations guide decisionmaking. However, the thesis also explores possible pitfalls, particularly through the experience of NRG Flow B.V., raising important questions about the limitations of decentralization. Finally, this research opens the door to further exploration of how AI and blockchain may enhance or challenge fractal organizations. While these technologies offer potential for greater scalability and transparency, they also introduce ethical dilemmas that require careful examination, leaving open the question of how organizations will balance these new tools with ethical governance.