This section will address how fluctuations can lead to significant change in systems, which results in higher degrees of order and complexity, and how this relates to the concept of the systems’ transformation and self-organisation. Fluctuation in this case can be defined in general as a spontaneous deviation from average behaviour (Nicolis, 1979). In chemistry, it can be defined as follows (Jantsch, 1980, pp. 42-3):

However, the theory of dissipative structure has the potential to be applied to systems beyond those of concern to natural science (Nicolis and Prigogine, 1977; Jantsch, 1980; Prigogine and Stengers, 1984). In this theory, fluctuations play a vital role in causing significant system change because, when a system is driven to a critical instability point (bifurcation point or point of singularity), the non-equilibrium system can be regarded as testing various configurations by fluctuations, which results in a new space and time structure (Haken, 1984, 1987). In other words fluctuations, which lead to instabilities, may be introduced to the system in order to yield new types of function and structure. In this sense, no system is structurally stable. Rather, the evolution of dissipative structure is a self-determining sequence of its function and boundary testing, spatio-temporal structure, and fluctuations (Nicolis and Prigogine, 1977; Allen, 1981) as illustrated in Figure 11.5, “The role of fluctuations in creating order.”.

In addition, the source of fluctuations can be internal or external (Allen, 1981). In organisations, sources of internal fluctuations may come from the action of leaders or managers or the dynamic of power and political struggle and activities. External sources may arise from both the macro-environment (i.e. economic, technological, political, and socio-cultural) and the micro-environment (i.e. customers, suppliers, competitors, etc.).

Figure 11.6, “System transformation and production of macroscopic order.” shows how macroscopic order can be created through fluctuations and how it is related to the system’s ability to cope with complexity and environmental contingencies. At α₁ an organisation, as a complex system, has a capacity to cope with complexity at level L₁, within a range of environmental contingencies R₁. As the environmental contingencies increase, the system can still maintain a steady state, a state within which negative feedback operates. This is represented by the straight-line portion of the graph within range R₁. However, as the environmental contingencies keep on increasing, the system starts to destabilise and fluctuations start to occur. If fluctuations are accentuated, this is because positive feedback is now dominating in the system. This process will continue until it reaches a bifurcation point (or point of singularity), where the system either self-organises and transforms (evolves) into a new form (i.e. new spatio-temporal structure), which is more complex and more capable of coping with the new level of complexity (a state of α₂ at level L₂) and the next range of increased environmental contingencies R₂, or it deteriorates and runs down because it fails to self-organise. This process will continue as long as the system succeeds in self-organising itself to handle the increase in environmental contingencies (i.e. it can achieve a state of α₂ , α₃ , …).

Based on the theory of dissipative structure, the system needs energy from the external environment to achieve a higher-level state or to be transformed into a new form with higher complexity and more capability to deal with increased environmental contingencies. In organisational theory, energy can be considered analogous to resources, efforts, change strategy, leadership, knowledge and information, and power required to effect fluctuations, which result in a transition from one state to another.