Why Simulations Are Ideal for Navigating Complexity
The world is becoming increasingly complex, fast. That is no secret. But understanding how we solve problems in complexity is a skillset that is becoming increasingly important for leaders, not just at the executive level, but throughout the organisation.
However, the nature of complex systems is often still poorly understood.
Complicated and complex systems are not the same thing. Yet most people are not clear on the distinction. We often use the terms interchangeably for anything that feels difficult to understand. But from a systems-thinking perspective, these systems are vastly different and require very different approaches to problem-solving.
I love using this diagram because it helps explain the nature of different systems in a very simple way, using a few simple metaphors:
Simple Systems – predictable and repeatable. Like folding a paper plane, following a recipe, or assembling LEGO, success depends on precision and consistency.
Emergent Systems – simple in form but irreversible in outcome, like cracking an egg or lighting a match. Once the event happens, you can’t reverse it. Timing and awareness matter most.
Complicated Systems – predictable, but with lots of moving parts. Think of repairing an aircraft engine or implementing an ERP system. There are right answers, but they require analysis and skill.
Complex Systems – dynamic, interdependent, and unpredictable. Examples include organisational culture, the weather, or human relationships. Cause and effect are often only clear in hindsight.
But because complex environments feel messy and can’t be fully controlled, leaders and organisations often still try to solve complex problems using a complicated-systems mindset. More analysis. More planning. More control.
Complex systems don’t work that way. In complex environments, leaders need different skills: judgement, adaptability, and collaboration. The ability to interpret signals and respond as conditions change.
Business simulations allow leaders to practise decision-making in complexity, but without all of the real-world noise. Participants can more clearly see the ripple effects of their decisions, understand how different parts of the system interact, and learn through feedback, adaptation, and trying again.
While the competitive element makes the experience fun and engaging, it’s not really about “winning the game”. It’s about creating a safe environment where leaders can experiment, reflect, adapt, and build capability before real-world consequences are much higher.
Ultimately, learning to lead in complexity requires trial and error, either in a simulated risk-free space, or in the real world.