The rate of change in the business world today is greater than our ability to respond. In a world that is often described as VUCA (Volatile, Uncertain, Complex and ambiguous), there are major tectonic shifts that demand a new mindset of leadership. First, let us look at these shifts.
In recent years, we have seen disruption of market leaders like Kodak and Nokia amongst many others. The average lifespan of an S&P 500 company has gone down from 67 years in 1937 to 18 years in 2011. With advances in technology, mobiles are becoming more of a convergence device that replaces so many utilities (calculators, alarm clocks, small digital cameras etc.) that we used otherwise. Generations at workplace are changing and new generations bring different values, expectations and mindsets at work. Rise in automation is resulting in heavy disruption. Right from purchasing stuff to booking taxies and filing tax returns, everything is increasingly being automated. The agents, middlemen and the whole supply chain related to these services is being disrupted. And, we are not even talking about automated cars yet – the next big frontier for the technology battle!
With a hyper connected workforce, organization cultures have become transparent. With opportunities abound, employees are “volunteers” who have global choices. In this world, having a compelling purpose is a mandatory pre-requisite for profits to follow. Traditional hierarchical structures are fading away to give way to purposeful networks and communities of people working together to achieve a shared purpose. The cumulative impact of these forces demands a new mindset and competences for leaders to be able to stay relevant and make a positive difference to people and hence, business.
If you are a leader at any level in a modern organization or aspiring to be one, here are some of the critical competencies and skills you need to thrive in a VUCA world.
1. Develop an Adaptive Mindset: To navigate successfully through the maze of VUCA, leaders will need to be comfortable with unclear situations and travel into unexplored paths. This means leaders will encounter “first time” situations more often and they need to build their muscle to still deliver results. With “rapid prototyping” approach, leaders will need to constantly experiment to get early and frequent feedback that enables constant realignment.
2. Have a Vision: Vision is a perpetual force, a critical anchor that drives decisions, actions and judgments. With a younger workforce that is purpose driven, having a compelling vision for the future is also a key driver of engaging and retaining high performing team members. In fact, a compelling vision is an important pre-requisite for any community or network to succeed. Leaders who will thrive in future are the ones who have a clear vision of where they want their organizations and teams to be.
3. Embrace Abundance Mindset: Abundance mindset sees possibilities where a constraint mindset sees challenges. A leader’s ability to spot the white spaces, unique problems and interdisciplinary intersections is as critical in the new world as their ability to “do something about it.” In VUCA world, leaders have to listen to the future by virtue of constantly scanning the horizon, being future minded and having strategic foresight without losing the sight of the current reality. When they do this, leaders build a unique ability to see through contradictions towards a future others cannot see.
4. Weave Ecosystems for Human Engagement: One of the biggest leadership challenges is to create an environment that taps into intrinsic motivation of people. Deloitte’s Human Capital Trends 2015 reports that softer areas such as culture, engagement, leadership and development have become urgent priorities on a CEO’s desk.;