Biology of Business

The Architecture of Complexity

Herbert A. Simon

Proceedings of the American Philosophical Society (1962)

TL;DR

Complex systems are nearly universally hierarchical

By Alex Denne

Simon's classic paper argued that complex systems are nearly always hierarchically organized because hierarchy provides stability and evolvability. He showed that hierarchical (fractal-like) structures evolve faster than non-hierarchical ones because subsystems can be developed and optimized independently.

This work provides theoretical grounding for why fractal organizational structures are ubiquitous - they're not just efficient for resource distribution, but also more evolvable and stable than flat alternatives.

Key Findings from Simon (1962)

  • Complex systems are nearly universally hierarchical
  • Hierarchy enables faster evolution through modular development
  • Near-decomposability allows subsystems to be optimized independently
  • Hierarchic systems evolve far more quickly than non-hierarchic systems
  • Near-decomposability enables managing complexity through modular organization
  • Stable intermediate forms are essential for evolution of complex systems
  • Complex systems are nearly decomposable - subsystem interactions are weaker than internal interactions

Used in 2 chapters

See how this research informs the book's frameworks:

Related Mechanisms for The Architecture of Complexity

Related Frameworks for The Architecture of Complexity

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