A Framework for Understanding VUCA

Executives have taken to using the military acronym VUCA–Volatility, Uncertainty, Complexity, Ambiguity–to describe the world in which they operate and to ask that question: In a VUCA world, what’s the point of strategy?

Strategy does still have a purpose, but building one in a VUCA environment requires more nuanced thinking. And treating those four traits as a single idea leads to poorer decision making. 

Watch and listen as Nathan Bennett provides a framework, first featured in an HBR article, for how you should deal with a world that includes V, and U, and C, and A.

A Framework for Understanding VUCA

5 Transitions Great Leaders Make That Average Leaders Don't

The secret to leadership is there aren’t any real secrets. The best leaders have simply gone to school on improving their tradecraft. While the capabilities possessed by the best leaders might seem otherworldly to many, they are merely the outcome of hard work, experience, perspective, and yes, a bit of luck. The best leaders have just learned to make certain transitions that less effective leaders curiously remain blind to.

Some leaders hit their stride early in their career, others find their path later in life, and regrettably, far too many leaders never seem to get their footing. Great leaders discover pivot points and transitions that create a certain rhythm and balance, while average leaders tend to be somewhat tone deaf and awkward. We all recognize great leadership when we see it, but many fail to see what it is that actually makes the leader great. Following are 5 key transitions great leaders make that average leaders do not.

The best leaders recognize a common purpose, shared values, and aligned vision are the hallmarks of any great organization. These three elements set the foundation for a sustainable culture. Leaderswho fail to bring people together around these three constructs sentence their company first to the chaos of mediocrity, and ultimately to the pain of obsolescence. Great leaders create culture by design, while average leaders allow culture to evolve by default.

A lesson lost on many is profit doesn’t drive purpose, but purpose certainly drives profit – great leaders understand this; average leaders do not. Leaders who are driven by profit will find they may be successful for a season, but they’ll eventually come to realize a pure profit agenda is not sustainable over the long haul. Great leaders make the transition from profit to purpose and are handsomely rewarded for doing so. A unified purpose can endure all things.

People First– Leaders are nothing without people. Put another way, people will make or break you as a leader. You’ll either treat them well, earn their trust, respect and loyalty, or you won’t. You’ll either see people as capital to be leveraged or humans to be developed and fulfilled. You’ll either view yourself as superior to your employees, or as one whose job it is to serve them, learn from them, and leave them be better off for being led by you.

The best leaders don’t put people in a box – they free them from boxes. Ultimately, a leaders job isn’t to create followers, but to strive for ubiquitous leadership. Average leaders spend time scaling processes, systems, and models – great leaders focus on scaling leadership.

Develop Awareness– Great leaders are self aware, organizationally aware, culturally aware, contextually aware, and emotionally aware. They value listening, engaging, observing, and learning over pontificating. They value sensitivity over insensitivity and humility over hubris.

Leaders who come across as if they know everything haven’t fooled anyone – except themselves. 

Great leaders avoid the traps, gaps, and blind spots average leaders so easily step into. Leaders who choose to live in the bubble of their own thinking rather than understanding the benefits of seeking others input and counsel make things harder on everyone. The willingness to allow your positions and opinions to be challenged is a sign of strength not weakness. I’ve often said the most powerful and overlooked aspect of learning is unlearning. Leaders never willing to change their mind ensure only one outcome – a lack of growth and development.

Shun Complexity– Complexity is a leader’s enemy not their friend. Great leaders live to eliminate or simplify the complex, while average leaders allow themselves and those they lead to be consumed by it. Complexity stifles innovation, slows development, gates progress, and adversely impacts culture.Complexity is expensive, inefficient, and ineffective.

I’m not minimizing the fact we live in a complex world, and I’m not suggesting that profit cannot be found in complexity. But great leaders understand opportunity and profits are extracted from complexity through simplification, not by adding to the complexity. While many think it was Einstein who said, “Simplicity is the ultimate sophistication,” the statement was actually borrowed from Leonardo de Vinci – both gentlemen were correct.

Get Personal– If I only had a nickel for every time I’ve heard someone say, “It’s not personal; it’s just business.” Great leaders understand nothing is more personal than leadership, and they engage accordingly. The best leaders understand a failure to engage is in fact a failure to lead. 

Average leaders remain aloof and distant – great leaders look to know and care for their people.

Average leaders are viewed as business executives, the best leaders are viewed as great human beings.The best leaders understand it’s not a weakness to get personal, to display empathy, kindness, and compassion – it’s the ultimate strength. Peak performance is never built on the backs of others, but by helping others become successful. Treat your people as if your life depends on it – it does.

The reality is anyone can lead, but very few lead well. Will you just show up for work and check the box, or will you lead well? Thoughts?


 

Mike Myatt,

7 Strategies For Simplifying Your Organization

This post is co-authored with Lisa Bodell.

Over the past several years we have heard hundreds of managers talk about the negative impact of complexity on both productivity and workplace morale. This message has been reinforced by the findings of major CEO surveys conducted by IBM and KPMG [PDF], both of which identified complexity as a key business challenge.

Agreeing on complexity as a problem is one thing, but doing something about it is quite another — particularly for managers who are already over-worked, stressed, and can barely keep up with their current workload. In fact, the Catch-22 of complexity is that most managers don’t feel that they have the time to focus on it: Having the problem precludes the ability to solve it.

With this dilemma in mind, we think it’s important for managers to have a strategic framework that they can use to address complexity in their own areas, at their own pace, in their own ways. So to that end, we would like to offer a “simple” seven-step simplification strategy. While we present these sequentially, they can be implemented in any order, depending on where you might be able to make the greatest difference most quickly. Over time however, it’s important to do all seven so that simplicity becomes a core capability of your organization and not just a one-time project.

1. Clear the underbrush. An easy starting point for simplification is to get rid of stupid rules and low-value activities, time-wasters that exist in abundance in most organizations. Look, for example, at how many people need to review and sign off on expense reports or small purchases; or how many times slide decks need to be reviewed before they are presented. If you can shed a few simple tasks, you will create bandwidth to focus on more substantial simplification opportunities.
2. Take an outside-in perspective. Simplification should be driven by the need to add value to your customers, either internal or external. So a key step in the process is to proactively clarify what your customers (internal or external) really want and what you can do to make them more successful. One manager, for example, took her team to visit a customer plant so that people could see how their product was actually used, which gave them ideas about how to improve it.
3. Prioritize, prioritize, prioritize. One of the keys to simplification is to figure out what’s really important (and what’s not), and continually reassess the priority list as new things are added.
4. Take the shortest path from here to there. Once it’s clear that you are working on the right things, root out the extra steps in core processes. Where are the extraneous loops, redundancies, and opportunities to make our processes as lean as possible?
5. Stop being so nice. One of the patterns that causes or exacerbates complexity is the tendency to not speak up about poor practices. This is particularly true when people hesitate to challenge more senior people who unintentionally cause complexity through poor meeting management, unclear assignments, unnecessary emails, over-analysis, or other bad managerial habits. To counter this trend, use constructive feedback and conflict to keep your colleagues (and yourself) honest about personal behaviors that might cause complexity.
6. Reduce levels and increase spans. Another source of complexity is the structural tendency to add layers of management, which often leads to managers supervising just one or two people. When that happens, managers feel compelled to add value by questioning everything that their subordinates are doing, which adds work and reduces morale. To reduce this kind of complexity and stay away from micromanaging, take a periodic look at the organization’s structure and find ways to reduce levels and management and increase spans of control.
7. Don’t let the weeds grow back. Finally, remember that complexity is like a weed in the garden that can always creep back in. Whenever you feel like you’ve got it solved, do steps 1 through 6 over again.

In today’s global, increasingly digital organizations, complexity is a growing drag on productivity and workplace satisfaction. Managers need to develop simplification as a core leadership capability and a critical component of the business strategy. Hopefully these steps will help you get started.

Lisa Bodell is the founder and CEO of FutureThink and the author of Kill the Company.