The Flexibility of Living Organisms and Organizational Theory ~ Shinichi Fukuoka, Contributor

Dentsu Inc. Youth Research Department "Wakamon" (hereafter Wakamon), a planning and creative unit exploring emerging values under the vision "Designing the Future from Youth," researches the management mindset necessary for future leaders.

From this work emerged the concept of "Flat Management." Its core idea is that leaders should not impose opinions top-down, but rather respect subordinates and team members, engaging with them on an equal, horizontal level to create a "comfortable team."

In this series, we've interviewed prominent figures practicing "Flat Management" (previous articles here ). For the final installment, we present a contribution by biologist and author Shinichi Fukuoka: "The 'Dynamic Equilibrium' Theory of Organizations." Fukuoka's perspective, which considers the ideal form of an organization based on the behavior of individual cells that make up the human body, may offer hints for building flat and flexible organizations.

Biologist and author. Completed his doctoral program at Kyoto University Graduate School. After serving as a Harvard University research fellow and Kyoto University associate professor, he is currently a professor at Aoyama Gakuin University and a visiting professor at Rockefeller University in the United States. He has published numerous works, including the "Between Life and Non-Life" and "Dynamic Equilibrium" series, which reexamine "the nature of life" from the perspective of dynamic equilibrium theory. Photo: Kotaro Kikuta

Contribution: "Dynamic Equilibrium" Organizational Theory

I would like to consider organizational theory from a biological perspective. Just as living organisms are composed of numerous cells, social organizations are also made up of many members with distinct individualities. Therefore, observing how cells behave can provide hints for envisioning the ideal form of an organization.

Multicellular organisms are built on a division of labor among specialized cells with distinct properties. Neurons that form the brain, epithelial cells that shape the skin, muscle cells that generate the heartbeat, liver cells that produce nutrients and metabolize alcohol, B cells in the islets of Langerhans that secrete insulin, acinar cells in the pancreas that produce digestive enzymes, T cells that control immunity...

Yet, all these diverse cells originate from a single cell: the fertilized egg cell formed when sperm and egg unite. The fertilized egg cell divides into two cells. At this point, all cellular components—including DNA and mitochondria—are copied and equally distributed to both cells. The same process occurs again: division into four cells. Division repeats, and the number of cells doubles each time. Eight, sixteen, thirty-two, sixty-four, one hundred twenty-eight... After ten such divisions, the cells number 2 to the power of ten, or 1024. The cells continue to divide.

At this stage (the early developmental phase), there are no differences or specialization among the cells. They are identical in form and contents. The DNA within each cell is also identical. The DNA does not contain instructions specifying what role each cell will eventually take on. What is written in the DNA is the blueprint for the proteins used by the cell.

All cells originating from the fertilized egg cell possess only the same DNA—that is, the identical set of blueprints. Each cell holds the information to perform any specialized function. In short, the cell can become anything. Yet in the early stages of development, it remains in a completely undifferentiated state, unable to become anything yet, its future undetermined.

Yet, at this very moment, the cells are performing an extremely important task. Observed under a microscope, the cluster of cells (called the early embryo) appears tightly packed together, constantly quivering minutely, as if engaged in a game of musical chairs.

In reality, the cells are constantly sensing the atmosphere around each other. If this metaphor seems to anthropomorphize the cells too much, we could instead say they are communicating with each other. Cells are enclosed by a thin sheet called the cell membrane. Numerous tiny projections sprout from the surface of this sheet. These projections connect or repel each other with neighboring cells in all directions. This "conversation" is relayed within the cells. As a result, each cell selects which components from its DNA blueprint should be used.

This intercellular conversation goes something like this: "I'll become a nerve cell." In response, the neighboring cell says, "If you become a nerve cell, then I'll become a skin epithelial cell."

The conversation continues: "If you become an epithelial cell, I'll become a muscle cell that moves the heart"...

This is how the identity of each cell is determined. A cell's destiny is not predetermined within its own DNA; it is only decided through the interactions between cells. In other words, a cell's identity does not reside within the cell itself, but is generated from the "space" between cells.

The insight this offers for tissue theory is that the role of members within a tissue is not determined by qualities inherent within the members themselves, but rather by the relationships between the members.

There is another crucial point regarding cellular behavior: cells are constantly in a dynamic state. Every cell is continuously being renewed. For example, cells in the digestive tract are discarded within two or three days, replaced by new cells. Cells in other organs also undergo constant turnover, albeit at varying rates.

This constant dynamic state allows cells to adapt flexibly to changes in their nutritional status and the external environment. Cells are variable, and the body maintains a reserve of stem cells that retain a degree of undifferentiated state. This system enables cells to compensate for shortages in certain cell types and repair damage.

Machines cannot repair faults or wear while operating. This is because each part has a uniquely defined function, and its role within the mechanism is fixed. If any one part breaks, the machine must be stopped for replacement or repair.

However, the components of living organisms—not only cells, but also the proteins that make up cells—are constantly being renewed. They are perpetually in the midst of decomposition and synthesis. I call this the "dynamic equilibrium" of life. It is precisely because this dynamic equilibrium is maintained that living organisms are resilient. Even if something is missing or malfunctions, they can immediately address the problem by adjusting increases or decreases, bringing in a pinch hitter, or creating a bypass. Cells and their components are fundamentally multifunctional, capable of performing different roles.

More crucially, life's dynamic equilibrium is autonomous and decentralized. Individual cells do not possess a bird's-eye view of the whole. This autonomy, combined with variable roles, is life's strength. Life has no need for a centralized system. Each cell merely maintains its own local dynamic equilibrium. Even the brain is not truly the "central hub" for life. Rather, it functions merely as a server-like service, aggregating perceptual and sensory information and relaying it to the necessary departments. How to act upon that information is left to the autonomy of the local individual cells and organs. Individual cells and proteins are like jigsaw puzzle pieces, constantly updating themselves while coordinating with the pieces before, behind, and to their sides. As long as the complementary relationships (complementarity) between neighboring pieces are maintained, even if a piece itself is replaced, the jigsaw puzzle remains loosely interconnected as a whole, and the image remains unchanged.

Newly added pieces, as the saying goes, "When in Rome, do as the Romans do," determine their position and role within the surrounding relationships. Existing pieces make room for the newcomers with tolerance. Thus, while the pieces themselves are constantly updated, the living organism undergoes fine-tuning each time, seeking a new dynamic equilibrium and renewing itself.

While the behavior of cells and the dynamic equilibrium of life may not be directly applicable to human social organizations, since humans are also living organisms, learning from this flexible approach should provide an important perspective when considering organizational theory.

This time, as Wakamon, we approached themes like "organizational theory" and "management theory" from the perspective of youth research (previous articles can be found here ).

For over a decade, we have continuously researched the youth generation in their teens and twenties. Studying young people is not merely about understanding their behavior. We believe that understanding the younger generation provides clues to grasp the present and envision the future—to comprehend how our era is unfolding and in what direction the future will progress.

The world continues to change at a dizzying pace. Even within the term "young generation," differences between cohorts are striking; for example, young people five years ago are entirely different from those today. Furthermore, the past three years of experiencing the COVID-19 pandemic have brought significant changes not only to the young generation but also to society's structures and rules themselves.

However, the sentiment among older generations—that "I don't understand what today's youth are thinking" or "Why do young people act that way?"—remains unchanged across eras. In every generation, adults struggle with how to interact with the younger generation.

That said, in today's business world, where the very nature of "how we work" is undergoing major transformation, the question "How should we engage with the younger generation?" has become a more pressing topic than ever before.

Considering this societal context, our upcoming Wakamon paperback, scheduled for release in early summer 2023, examines from organizational and management perspectives how supervisors should engage with younger subordinates. It further explores what constitutes an ideal supervisor today, extending beyond just the younger generation.

For the release of this book, we asked Professor Shinichi Fukuoka to contribute an article to Dentsu Inc. We requested his contribution because we felt the core of the 'Flat Management Thinking' proposed in our book for future leaders aligns closely with the inherent functions of living organisms. Professor Fukuoka writes: "The role of members within an organization is not determined by qualities inherent within the member themselves, but rather exists within the relationships between members."

We believe that "the relationships between members are crucial" is a fundamental principle inherent in living organisms. "Flat Management Thinking" incorporates a similar concept. It emphasizes the importance of how members can engage in relationships—that is, communication—without preconceptions, and how they can approach their communication partners with a truly flat stance.

Furthermore, Professor Fukuoka's contribution includes another crucial point: "There is another vital aspect to how cells behave. Cells are constantly in a dynamic state. Every cell is continuously renewed. For example, cells in the digestive tract are discarded within two or three days, replaced by new cells. Cells in other organs also undergo constant turnover, albeit at varying speeds." This observation holds true for the fluidity of human personnel within organizations.

Within organizations, personnel are constantly changing in a fluid manner. Furthermore, as time passes, the way work is done, societal values, and the nature of work that is valued continue to evolve. Amidst such rapid change, we must perform our work, and leaders are required to manage within this context.

Flat Management Thinking proposes the following approaches:

[Seven Principles of Flat Management]
Thought 1: New Values Over Fixed Ideas ~ "Your Common Sense" is Your Subordinate's Nonsense ~
Thought 2: Subordinates' Own "Satisfactory Solution" Over Company Convenience ~ Only Bosses Crave Promotion ~
Thought 3: Time Effectiveness over Cost Effectiveness ~ Dinner with you isn't gratitude~
Thought 4: Small Actions Over Grand Visions ~ Bosses Who Only Talk Have Light Words and Heavy Feet ~
Thought 5: Sideways Perspective Over Top-Down View ~ Leaders Who Can't Learn From Their Subordinates Can't Grow ~
Thought 6: Honest Feedback Over Polite Facades ~ Not reprimanding is just self-indulgence ~
Thought 7: Sustainable Life Over Rich Career — "Frogs in the well" bosses aren't respected

In "work," one of the major daily endeavors of the human life form, how should we conduct ourselves? We would be delighted if you could incorporate the "Flat Management Thinking" proposed by Wakamon.

On sale July 21, 2023! (Pre-order here )
Flat Management: 7 Ways Leaders Create "Comfortable Teams"

Published by MDN Corporation, ¥1,760 (tax included), 208 pages, ISBN 978-4-295-20472-5