MODERN LEADERSHIP
Effective Leadership in a VUCA world
By Patrick Hollingworth
The world is becoming more volatile , uncertain , complex and ambiguous ( VUCA ) by the day . You can feel it in your bones . As for how you respond to this change , you ’ ve got two options : you can either ignore it , and your business will perish , or you can embrace it , study it , understand it , respond accordingly , and your business will succeed . If you ’ re a leader of an organisation in this VUCA world , here are three tips to help with your journey :
It ’ s the Journey that matters Don ’ t focus completely on the goal , destination or outcome . In a business environment which is obsessed with transactions , quantity and metrics , this can sound counterintuitive . But focusing only on the numbers and the outcome can lead to a process known as goalodicy , which is where an obsession with a goal can be detrimental to the extent that the likelihood of the goal actually being achieved is diminished . In addition to this , it ’ s also quite possible that in this world
of rapid change , your goal will be irrelevant by the time it has been achieved . Instead , focus equally on the quality of the journey . Improved processes and improved employee experiences will ultimately reflect in improved customer experiences .
Embrace risk Remember that risk is uncertainty that matters — it has both a downside and an upside . But much organisational thinking and communication around risk these days seems to convey that risk only has a downside . This belief then leads to organizations aiming for robustness and resilience as the solution to downside risk . But robustness and resilience is normally manifest in the organisation by increased bureaucracy , structure and size , which does not enable it to respond and take advantage of upside risk , which leads to extinction .
Observe wisely Read and watch , listen and learn . Have a voracious appetite for new ideas , especially ones which are outside of your industry , and appreciate that learning is an infinite , life-long process . In today ’ s VUCA world , it ’ s the only way that as a leader you can stay current .
Patrick Hollingworth helps senior organisational executives deal with uncertainty and complexity . He consults widely and speaks globally on the solution to uncertainty and and complexity , which he calls Light and Fast . He ’ s the author of The Light and Fast Organisation : A New Way of Dealing with Uncertainty ( Wiley ). Check out www . patrickhollingworth . com
18 ModernBusiness May 2016