8 Critical capabilities for a complex world
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The document outlines eight critical capabilities necessary for navigating a VUCA (volatility, uncertainty, complexity, ambiguity) world. These capabilities include embracing complexity, acting strategically, activating systems thinking, fostering innovation, leveraging networks, inspiring engagement, cultivating learning agility, and developing personal adaptability. Each capability is essential for leaders and organizations to effectively manage and thrive amidst complex, unpredictable environments.
8 Critical capabilities for a complex world
- 1. 8 CRITICAL CAPABILITIES8 CRITICAL CAPABILITIES FOR A COMPLEX WORLDFOR A COMPLEX WORLD
- 2. LIVING IN ALIVING IN A VUCA WORLDVUCA WORLD
- 3. A VUCA WORLD We are living in a VUCA world, an environment made of : VOLATILITY, UNCERTAINTY, COMPLEXITY, AMBIGUITY. How much do you know about the situation ? How well can you predict the results of your actions ? COMPLEXITY VOLATILITY AMBIGUITY UNCERTAINTY - + + The situation has many interconnected parts and variables.Some information is available or can be predicted, but the volume or nature of it can be overwhelming to process. The challenge is unexpected or unstable, and may be of unknown duration, but it's not necessarily hard to understand ; knowledge about it is often available. Causal relationships are completely unclear. No precedents exist ; you face ''unknown unknowns''. Despite a lack of other information, the event's basic cause and effect are known. Change is possible but not a given. Source : Harvard Business Review
- 4. WHAT IS COMPLEXITY ? COMPLEXITY : Condition of having many diverse and autonomous but interrelated and interdependent components or parts linked through many (dense) interconnections. In the context of an organization, complexity is associated with : Source : Business Dictionary Organization's interrelationships with external environment Their effect on the organization Interrelationships of the individuals
- 5. FROM SIMPLE TO COMPLEX STACEY MATRIX COMPLICATED COMPLICATED COMPLEX SIMPLE CERTAINTY AGREEMENT Amongst stakeholders CHAOS Source : Ralph D. Stacey, Strategic Management and Organizational Dynamics : The Challenge of Complexity. Prentice Hall, 2002.
- 6. FROM SIMPLE TO COMPLEX CYNEFIN FRAMEWORK Source : Wikipedia Complex and chaotic, are "unordered": cause and effect can be deduced only with hindsight or not at all Simple (or obvious) and complicated, are "ordered": cause and effect are known or can be discovered. Cynefin offers five contexts or "domains" of decision-making. These domains offer managers a "sense of place" from which to analyse behaviour and decide how to act in similar situations.
- 7. 8 CAPABILITIES8 CAPABILITIES TO MANAGETO MANAGE COMPLEXITYCOMPLEXITY
- 8. 1 EMBRACE COMPLEXITY Means : Adopting the right tools and pratices, so as to keep solving problems and making decisions under fast-changing conditions. Keep an eye out for indicators of change ● Strategic watch ● Benchmarking ● Strategic tools (Pest, Pestel, Porter's 6 forces, SWOT). Build diverse teams to solve problems ● Ages, gender, seniority... ● Schools & experience... ● Avoid cloning. Consider organizations as complex systems ● Systems thinking ● Stacey Matrix ● Cynefin framework
- 9. EMBRACE COMPLEXITY Context's characteristics The leader's job Danger signals Response to danger signals Source : Harvard Business Review
- 10. 2 ACT STRATEGICALLY Means : Leading the organization into the future by adjusting strategies to capture emerging opportunities or tackle unexpected challenges. Understand competitive forces shaping your industry Identify and evaluate strategic opportunities Communicate a compelling strategic vision Follow through on execution
- 11. 3 ACTIVATE SYSTEMS THINKING ALWAYS ZOOM OUT SO AS TO SEE THE “ BIG PICTURE “ (Holistic view, mindmapping habit) UNDERSTAND THAT THE MAP IS NOT THE TERRITORY (Consider underlying elements, root causes, motives and intentions...) FOCUS ON INTERCONNECTIONS (Between People / entity-environment / between sub-systems)
- 12. 4 FOSTER INNOVATION Means : building reliable innovation processes, and a collaborative, creative environment. Why it matters : Importance of letting emerge the kind of ideas needed to drive growth. Establish the structures that best support innovation Cross-disciplinarity, intrapreneurship, partnerships, joint ventures... Encourage people to discover new ways to achieve success (Design thinking, etc.)Effectively manage systems & processes Fail management, allow initiative and calculated risk.
- 13. 5 LEVERAGE NETWORKS Means : Systematically developing networks to achieve organizational goals. ● LEVERAGE NETWORKS TO GAIN INSIGHT INTO COMPLEX PROBLEMS. ● CREATE NETWORKS TO ENHANCE INFLUENCE. ● TREAT NETWORKS AS MUTUALLY REWARDING RELATIONSHIPS.
- 14. 6 INSPIRE ENGAGEMENT Means : Fostering a culture that creates meaningful connections between employees' values and those of the organization.* * Only ~13% of employees worldwide are engaged at work, Gallup, State of the Global Workforce Survey. Understand individual employee's values and needs Shape work assignments to meet different needs and values Foster an inclusive work environment
- 15. 7 CULTIVATE LEARNING AGILITY Means : Routinely seeking out new learning opportunities and systematically learning from new experiences. ● SEEK OUT OPPORTUNITIES TO DISCOVER NEW APPROACHES AND ACQUIRE NEW SKILLS. ● RAPIDLY ANALYZE PROBLEMS AND SYNTHESIZE INFORMATION. ● SEARCH FOR LESSONS IN BOTH SUCCESSFUL AND UNSUCCESSFUL OUTCOMES.
- 16. 8 DEVELOP PERSONAL ADAPTABILITY Means : Remaining focused and effective in the face of uncertainty and ambiguity. Deal flexibly and creatively with challenging situations. Build Resilience by effectively managing stress, time, and energy. Adapt to change. Recognize that past approaches often do not work in current situations.
- 17. ADAPTABILITY : THE NEED FOR COMBINING MANAGEMENT & LEADERSHIP EXCELLENCE Source : Kotter International
- 18. THE ONLY SIMPLICITY TO BE TRUSTED IS THE SIMPLICITY TO BE FOUND ON THE FAR SIDE OF COMPLEXITY Alfred North Whitehead
- 19. RESOURCES ● Harvard Business Publishing ● Harvard Business Review ● Business Dictionary.com ● Kotter International ● Leadership Tools (link).