Managing in the Age of Complexity

By Alan Zucker

Volatility, uncertainty, complexity, and ambiguity are persistent management challenges. Today, managers are navigating volatile supply chains, uncertainty around AI, hybrid and remote collaboration, economic pressure, and constant organizational change.

Strategic change efforts often get the most attention. But tactical change, the day-to-day disruptions managers must help their teams absorb, can be just as consequential. Team well-being, operational performance, and organizational effectiveness often depend on how managers respond in the moment.

The experiences of managers who have led teams through major enterprise crises, including the Salomon Brothers Treasury securities scandal, the aftermath of the 2008 housing crisis, and the MCI WorldCom bankruptcy, offer a consistent lesson: Executives may manage the external fallout, but managers are often the ones who must translate disruption into action for their teams.

Amid chaos, managers must stabilize people, make sense of uncertainty, and lead with courage.

Understand the Context

When disruption hits, the first responsibility of a manager is to understand the situation before rushing to respond.

During the 1991 Salomon Brothers Treasury securities crisis, a team at the U.S. Department of the Treasury was suddenly thrust into a chaotic situation. Investigators arrived. Regulations had to be rewritten. Procedures and controls had to be redesigned. A new application had to be built and deployed.

At first, simple fixes seemed like the natural response. But they were not enough. As the crisis stabilized, the work could be separated into different types of problems. Some were simple and could be addressed with established practices. Others were complicated and required expert analysis. Still others were complex and required experimentation, feedback, and iteration.

The lesson remains relevant today: Not every problem should be managed the same way. Managers need to understand whether they are facing a simple, complicated, complex or chaotic situation before deciding how to act.

Remember That People Are Complex

Organizations often try to manage change as if people will respond predictably. They will not.

After the 2008 housing crisis, one Fortune 50 financial services company split its IT organization into “Run” and “Change.” Run was responsible for ongoing operations and legacy application support, while Change focused on strategic initiatives. The goal was to improve alignment and accountability.

The plan was detailed, with responsibilities formally transferred between managers. But on Day One, work fell through the cracks. Friction grew between the organizations. Within a year, the company reverted to its previous structure.

The plan failed because it did not account for complexity. People, organizations, and cultures are adaptive systems. Employees respond to change differently. Some become champions. Some resist. Others participate cautiously or wait to see what happens.

Managers need to define the desired end state, explain why it matters, and establish short-term plans that allow for feedback and adjustment. In complex environments, adaptive management is more effective than rigid long-term planning.

Build Resilient Teams

A few weeks before MCI WorldCom filed the largest bankruptcy in history, one manager had to lay off a third of the team. Days later, the remaining team still had to process and audit hundreds of data files for the monthly financial close.

The moment was emotional. The manager acknowledged the loss, prioritized the critical work, and postponed or dropped what was not essential. Despite the upheaval, the close went smoothly.

Great teams are built day by day through relationships and trust. Stressful events can tear a team apart or make it stronger. The difference often depends on whether managers have already created the conditions for cooperation and accountability.

Lessons for Today’s Manager

Circumstances change, but the manager’s role in guiding teams through disruption remains constant. Today’s managers face disruptive technologies, economic uncertainty, shifting workforce expectations, and complex team dynamics.

The lessons are timeless:

• Understand the context. Before responding, determine what kind of situation you are facing and what kind of response it requires.
• Adapt incrementally. Detailed long-term plans often fail in complex environments. Set a direction, begin the work, gather feedback, and adjust.
• Recognize that people are essential. Teams are made up of individuals with different needs, motivations, and responses to change. Relationships and trust matter.
• Build resilience. Resilience strengthens with use. Empower team members to take ownership and build confidence through experience.
• Use emotional intelligence. Emotional intelligence is a manager’s force multiplier. Managers who are self-aware and attuned to others are better equipped to create positive work environments and lead through uncertainty.

The future will continue to bring disruption. Managers cannot eliminate complexity, but they can help their teams navigate it with resilience.

Frequently Asked Questions

What does it mean to manage in the age of complexity?

It means leading teams through situations that are fast-changing and often unpredictable. Managers must make sense of disruption and adjust plans as conditions evolve.

Why is context so important for managers?

Different situations require different responses. A simple problem may have a clear best practice, while a complex problem may require experimentation and learning. Managers need to understand the nature of the situation before deciding how to act.

What is the difference between complicated and complex problems?

Complicated problems can often be solved through expert analysis. Complex problems are less predictable and require experimentation and adaptation. People-related change is often complex because individuals and cultures do not respond uniformly.

Why do detailed change plans often fail?

Detailed plans can fail when they assume people, teams, and organizations will behave predictably. In reality, employees respond to change in different ways. Managers need to communicate the desired outcome and adjust based on feedback.

How can managers help employees through disruption?

Managers can help by explaining what is happening, clarifying priorities, acknowledging uncertainty, listening to concerns, and focusing the team on what matters most. Trust and communication are critical.

What makes a team resilient?

Resilient teams are built on relationships, trust, accountability, and shared purpose. They are able to absorb stress, adjust to change, and continue performing without relying on individual heroics alone.

Why is emotional intelligence important for managers?

Emotional intelligence helps managers understand how people are experiencing change, respond with empathy, and create a positive work environment. It also helps managers stay adaptable and composed under pressure.

What is the biggest takeaway for today’s managers?

Managers cannot control every disruption, but they can shape how their teams respond. By understanding context, adapting incrementally, building trust, and leading with emotional intelligence, managers can help teams perform even in uncertain conditions.