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Random, coherent and correlated behaviors illustrate the relationship between the behavior of parts and the collective behavior of a system. In both random and coherent behavior the collective behavior of the system is simple. Correlated behavior gives rise to complex collective behavior. Examples illustrating these types of behavior can be found in physical, biological and social systems.

The complexity profile is a mathematical tool that is designed to capture important aspects of the relationship between the behavior of parts of a system and the behavior of the entire system. Behaviors of the system are assigned a scale which is related to the ability of an observer to see that behavior. Typically, larger scale behaviors involve coordination between more parts and/or larger amounts of energy. The complexity profile counts the number of behaviors that are observable at a particular scale, which includes all behaviors assigned to that scale or larger scales. When a system is formed out of independent parts, the behaviors are on a small scale. When a system is formed out of parts that all move in the same direction, the behavior is on the largest scale. When a system is formed out of parts whose behaviors are partially correlated and partially independent then as we look at the system on finer and finer scales we see more and more details. This is characteristic of complex systems formed out of specialized and correlated parts. Such systems have a complexity profile that declines gradually with scale.

Hierarchical organizations are designed to impose correlations in human behavior primarily through the influence of the hierarchical control structure. In an ideal hierarchy all influences/communications between two "workers" must travel through a common manager. As the complexity of collective behavior increases, the number of independent influences increases, and a manager becomes unable to process/communicate all of them. Increasing the number of managers and decreasing the branching ratio (the number of individuals supervised by one manager) helps. However, this strategy is defeated when the complexity of collective behavior increases beyond the complexity of an individual. Networks allowing more direct lateral interactions do not suffer from this limitation.

From this argument it is possible to begin to understand processes of historical change in human organizational structures. Human organizations exist within an environment that places demands upon them. If the complexity of these demands exceeds the complexity of an organization, the organization will be likely to fail. Thus, those organizations that survive must have a complexity sufficiently large to respond to the complexity of environmental demands at the scale of these demands. As a result, a form of evolutionary change occurs due to competition. Competition is relevant because for human organizations, the environment itself is formed in part out of organizations of human beings. According to this argument, one can expect a self-consistent process of complexity increase where competition between organizations causes the behavior of one organization to serve as part of the environment in which others must survive.

he history of human civilization reflects a progressive increase in the complexity of large scale behaviors. Early civilizations introduced a few relatively simple large scale behaviors by use of many individuals (slaves or soldiers) performing the same repetitive task. Progressive specialization with coordination increased the complexity of large scale behaviors. The industrial revolution accelerated this process which continues till today. When the complexity of collective behaviors increases beyond that of an individual human being then hierarchical controls become ineffective. Hierarchically controled systems must yield to networked systems. Note that a system which has fixed energy and material can change its complexity profile only by transfering activities from one scale to another. Increasing complexity at one scale must be compensated by decreasing complexity at another scale. However, an increasing human population, and the addition of sources of energy during the industrial revolution (coal, oil and gas), violated these conditions, enabling the complexity to increase on all scales. As indicated on the horizontal axis, the scale of human civilization also increased.

The most dramatic increases in the complexity of organizational behavior followed the industrial revolution. The use of new energy sources and automation enabled larger scale behavior in and of itself. This, in turn, enabled higher complexity behaviors of human systems because the amplification of the behavior to a larger scale can be accomplished by the use of energy rather than by task repetition.

A schematic history of human civilization reflects a growing complexity of the collective behavior of human organizations. The internal structure of organizations changed from the large branching ratio hierarchies of ancient civilizations, through decreasing branching ratios of massive hierarchical bureaucracies, to hybrid systems where lateral connections appear to be more important than the hierarchy. As the importance of lateral interactions increases, the boundaries between subsystems become porous. The increasing collective complexity also is manifest in the increaseing specialization and diversity of professions. Among the possible future organizational structures are fully networked systems where hierarchical structures are unimportant.