Managing with VUCA: Breaking the Corporate Addiction to Luck and Hope

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Managing With VUCA: Breaking The Corporate Addiction To Luck & Hope EVOLVED MANAGEMENT PRACTICES TO THRIVE IN CONTEMPORARY BUSINESS ENVIRONMENTS

Transcript of Managing with VUCA: Breaking the Corporate Addiction to Luck and Hope

Page 1: Managing with VUCA: Breaking the Corporate Addiction to Luck and Hope

Managing With VUCA: Breaking The Corporate Addiction To Luck & HopeEVOLVED MANAG EMENT PR ACT ICES TO T HR IVE IN CO NT E MPOR A RY B USINE SS E NVIR O NMENTS

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Agenda

• VUCA – The times, they are a changin’

• The tools and skills that pay the bills

• White Light

• Fortes Fortuna Adiuvat

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It’s not your “Daddy’s corporate environment” anymore

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Rules of “Daddy’s corporate environment”

Grow shareholder value through autonomous,

rigid and industrialized corporate structure.

Success is obtained by avoiding complexity and

focusing on repeatable events.

Long term, strategic thinking distracts from short

term success.

Great leadership avoids non-linear,

interdisciplinary approaches to obstacles.

With size comes power and control – “we’re too

big to fail.”

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Has the business environment really changed?

Industrial Era Digital Era Social Era

800 lb Gorillas Rule

Low level of “inter-connected” industry and societies

High level of control over your environment

Slowly Evolving Future – High predictability

Accelerating level of “inter-connected” industry and societies

Moderate level of control over your environment

Moderately Evolving Future – Reasonable predictability

High level of “inter-connected” industry and societies

Minimum level of control over your environment

Rapidly Evolving Future – Minimum predictability

Business Environment Characteristics

800 lb Gorillas Endangered ??

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Yes, it fundamentally has!

Industrial Era Digital Era Social Era

800 lb Gorillas Rule

TRADITIONAL STRATEGY• Self-Centered strategy matters most• Size equates to control• Stability is the goal for growth• Sustainable market dominance is possible• Centralized control of everything

MODERN STRATEGY• Pretty much the same thing…..with a few modifications• Outsource to lowest operational cost• Expand market channels to include website• 5 step sales cycle….ask a few questions• Create a workflow or value chain model

SOCIAL STRATEGY•Network based strategy matters most• Network interaction equates to understanding• Agility is the key to growth• Sustainable market loyalty is possible• Collaborative and integrated engagement of everything

800 lb Gorillas Endangered ??

Institutional value and power

is primary objective

Collaborative innovation is

primary objective

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Can you feel it……………..?

Things change and happen so fast…..

Seemingly with no warning….

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VUCA - Reality of contemporary business environments

•V olatile

•U ncertain

•C omplex

•A mbiguous

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What does VUCA have to do with it?

A rapidly evolving, dynamic, chaotic, complex business environment is the norm rather than the exception.

IT ’ S NOT J UST A B UZ Z WO R D – O R A “ NE W AG E ” FE E L ING

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Our technological and economic systems have also become dependent on networks of enormous complexity. This has made their behavior increasingly difficult to reason about, and increasingly risky to tinker with. It has made them susceptible to disruptions that spread through the underlying network structures, sometimes turning localized breakdowns into cascading failures or financial crises.

Networks, Crowds, and Markets: Reasoning about a Highly Connected World. Pg 1– David Easley and Jon Kleinberg. Cambridge University Press 2010

It is an evolution of our own making

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A rapidly evolving, dynamic, chaotic, complex business environment is the norm rather than the exception.

THAT’S NOT THE PROBLEM

THAT’S THE PROBLEMThe fundamentals of business leadership and corporate strategy haven’t evolved at the same pace – creating a gap between social behavior and business practices.

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Industrial Era

Digital Era

Social Era

This gap is filled by HOPE and LUCK

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Evolve or become endangered…..

MANAGEMeasure

Monitor

Industrial Era

Digital Era

Social Era

MEASURE

MONITORManage

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To drive out reliance on HOPE and LUCK you need management skills of pattern recognition, sense making and collaborative continuous improvement.

MANAGEMeasure

Monitor

Industrial Era

Digital Era

Social Era

MEASURE

MONITORManage

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Fusion of evolved skills, tools and processes

THE EVOLVED LEADER

FORESIGHT

Pattern Recognition

Futuristic

Ideation

Environmental Scanning

Network Weaving

Game Modeling

SKILLS

INSIGHT

Big Data Analytics

Computational Modeling

Market Behavior Modeling

Chaos & Complex Theory Models

Open Innovation Platforms

TOOLS

THE EVOLVED ORGANIZATION

ACTION

Clear Strategic Goal

Organization Behavioral Management

Collaborative Network Structure

Engagement With Complexity

Multi-Strategy-Strategy

PROCESSES

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“He may be mad, but there’s method in his madness. There nearly always is method in madness. It’s what drives men mad, being methodical.”

- G.K. Chesterton

Organizational InventorySet of analytical metrics designed to establish two primary points:• Serve as indicators for organization’s strategic and tactical alignment and balance with the market’s behavioral patterns•Performance baseline to measure and correlate strategies to improvements

Market Behavioral InventorySet of analytical metrics designed to establish two primary points:

• Behavioral Modeling and Mapping of profiles and stakeholder ecosystem within marketplace• Establish behavioral driven guidance program to calibrate strategic initiatives

Scope and Requirements for Evolution Balanced by economic and organizational realities:

• Phased or modular program that transitions to Social Era applicable management tools and processes• Deploys monitoring processes and analytics to drive the creation of a situational awareness picture

Continual Feedback and RecalibrationContinual assessment to increase confidence levels:

• Continual Improvement Programs to transition from reactive to proactive organizations• Increase confidence levels in monitoring and sensing skills, tools and processes

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Is that the end of the tunnel, or an oncoming train?

AT THIS MOMENT OF TRUTH, JUST HOW MUCH HOPE AND LUCK IS INVOLVED WITH YOUR STRATEGY?

Leadership is about putting the organization or team in the best position to be successful.

ARE YOU ON THE RIGHT TRACK?

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“You’ve got to think about big things while you’re doing small things, so that all of the small things go in the right direction.”

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.”

- Alvin Toffler

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Fortes Fortuna Adiuvat

FORTUNE FAVORS THE BOLD

Hope is a wonderful human element and luck is a great thing to have.

You just don’t want to have them as a key component of your strategy.

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Change is never a simple and easy thing to do.

Change though is constant in life, and things have fundamentally changed.

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Complexity is traditionally an uncomfortable thing to absorb.

Simplicity though, lies just on the other side of complexity.

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THERE IS HELP OUT THERE. WE’RE HERE FOR YOU. WE CAN HELP YOU BREAK THE ADDICTION.

Acknowledgments

Harvard Business Review – Blog Network: Nilofer Merchant http://blogs.hbr.org/cs/2012/02/rules_for_the_social_era.html

http://blogs.hbr.org/cs/2012/09/traditional_strategy_is_dead_w.html

DUKE – The Fuqua School of Business:http://www.fuqua.duke.edu/programs/other_programs/executive_education/advanced_management/vuca_video

Dept. of Computer Sciences, Cornell University: David Easley and Jon Kleinberg – Networks, Crowds, and Markets: Reasoning About a Highly Connected World

http://www.cs.cornell.edu/home/kleinber/networks -book/

K. H-S

Google Imagery

Audio: http://trainweb.org/mdamtrak199/trainsounds.html

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About

I believe the value from traditional principles related to analyzing market or social environments is becoming extremely limited. Current and emerging issues facing the world today are more complex and dynamic in nature than in decades past. Traditional, simple, and historic demographic based data isn't sophisticated enough to properly quantify the characteristics of these more complex and dynamic market and social environments. This results in failed or stalled attempts to introduce needed innovations into the marketplace which in turn is often mistakenly characterized as ineffective. However, the innovation isn't necessarily ineffective, rather the business strategies and tactics deployed to deliver the innovation to the marketplace may be fundamentally flawed. An increased level of complexity requires a similar increase in sophistication to measure, monitor and manage.

Why

Business Strategist and Solution Engineer with a background in Communications Studies: Issue Management & Behavioral Studies. 15+ years experience in developing and deploying the principles presented. Always open to connecting and collaborating with those “in the know” on building a smarter planet.

Contactwww.linkedin.com/in/dsypnieski/www.davidsypnieski.com/blog/ www.davidsypnieski.comwww.slideshare.net/davidsypwww.ted.com/profiles/1689287