Many companies are switching to the implementation of Agile. In this age of continuous uncertainty, companies are desperately searching for tools to manage this uncertainty. The problem is that most of our strategies, processes and procedures were developed in a much more stable environment and these are unsuitable for today’s dynamic environment.
The traditional processes do need to understand the industry configuration and use the resources at your disposal but when the situation is dynamic we need better tools.
However, these dynamic situations combined with uncertainties can also generate new opportunities. It can be utilised to identify new opportunities and benefit from them. There are three factors to be considered when devising a new strategy
Understand an individual’s ability to cope with uncertainty.
People who have worked in traditional organisations are trained in various disciplines – sales, marketing finance, and production etc., However, we are all scared of uncertainty and do not have adequate tools or training to deal with it. We know that uncertain situations call for innovation and transformation but we are deterred by the risks associated with it. What we need to understand is that all the growth and transformation are accompanied by uncertainty and we have to manage this to achieve the desired result.
When leaders are trained to manage uncertainties, they can lead the organisation to a new growth path. Choosing the right person and training them to manage uncertainty is very important. they need to be trained in primarily four domains, namely
- reframing uncertainty to identify growth opportunities.
- prepare the organisation to manage uncertainty
- apply the right practices to break down the uncertainty into small steps and engage with each step.
- sustaining oneself through proper emotional management.
All these skills can be learned.
The ability to experiment.
Today, organisations are moving from a structured environment to a non-hierarchial alternative based on market requirements. Some of these experiments may fail but they result in an organisation willing to experiment and taking the failures in its stride. this requires several essential elements
- Companies should empower their people to solve problems rather than give them directions.
- Companies should move quickly to short-cycle projects to test and learn.
- they should create organisational structures that encourage experimentation.
The leaders can do long-term planning and direct people to solve the most important problem to solve.
Recognising strategy is a creative exercise.
The strategy in a dynamic environment should be based on a process that is adaptable, quick to pivot like agile and open to catching the new opportunities that arise. In uncertain environments, we learn not only to identify opportunities but also to be capable of creating opportunities that we can best utilise.
To summarise, in a dynamic environment you need different tools to create growth, change and transformation. Organisations must be prepared for uncertainty and be equipped with the right tools to benefit from it.
Strategy in an Age of Uncertainty
by Nathan Furr
June 27, 2022
R2G 