Living in a VUCA world - Complexity - 8 Capabilities to manage Complexity - Stacey Matrix - Cynefin Framework.

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).