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Leadership Competencies
for a

VUCA World	

Tathagat Varma	

VP, Strategic Process Innovations	

[24]7 Innovation Labs
Do you want to be in movies?	


Good! Let’s go…
How about?	


OK, how about all four?
Volatility
The nature and dynamics of change, and
the nature and speed of change forces and
change catalysts.
Volatility – Leadership Challenges	

The pace of change is faster and more rapid than our ability to respond	

The increased pace of change requires accelerated decision making	

Change are large scale and occur suddenly and usually require an urgent response.	

Leaders are left feel overwhelmed, stress, anxious and unprepared to lead effectively	

The challenge for leaders is to learn to respond and manage change more effectively. To
shift from reacting to change and move towards a more proactive response to change	

Command and control structures fail in fast changing and disruptive environments.	


hp://www.georgeambler.com/vuca-­‐leading-­‐in-­‐turbulent-­‐8mes/	
  	
  
Uncertainty
The lack of predictability, the prospects
for surprise, and the sense of awareness
and understanding of issues and events.
Uncertainty – Leadership Challenges	

It’s difficult to get a handle on what’s actually happening	

Leaders are required to act on incomplete or insufficient
information	

Leaders are are more likely to rely on what seemed to have
worked in the past	

Too much information noise, not enough signal	

Difficulty in “connecting the dots” to understand the outcomes of
an event	

hp://www.georgeambler.com/vuca-­‐leading-­‐in-­‐turbulent-­‐8mes/	
  	
  
Complexity
The multiplex of forces, the confounding of
issues and the chaos and confusion that
surround an organization.
Complexity – Leadership Challenges	

Difficulty in acting and drive the change required to address the web of
interrelated issues and concerns	

Increased complexity makes it difficult to know where to start to drive
change	

Temptation to act on and implement short-term solutions and over rely on
quick wins	

Leaders lack the time to reflect and think through the complexities and end
up acting too quickly	

Mitigating actions do not address the root cause only the symptoms	

The danger of getting stuck in analysis paralysis and end up acting too late	

hp://www.georgeambler.com/vuca-­‐leading-­‐in-­‐turbulent-­‐8mes/	
  	
  
Ambiguity
The haziness of reality, the potential for
misreads, and the mixed meanings of
conditions; cause-and-effect confusion.
Ambiguity – Leadership Challenges	

Failure to understand the significance of an event	

High risk of miss-interpreting events and
responding inappropriately of in ineffective ways	

Leaders are too far removed from the source and
context of the events	

Leaders act based on a limited understanding of
events and their meaning	

hp://www.georgeambler.com/vuca-­‐leading-­‐in-­‐turbulent-­‐8mes/	
  	
  
So, what’s this VUCA thingy?	

•  US Military started using this term in late 90s
for the post-Cold War world	

•  “relates to how people view the conditions
under which they make decisions, plan
forward, manage risks, foster change and solve
problems.”	

•  Reflects a fast-paced, increasingly unstable and
rapidly changing world	

•  …The New Normal!
How does it impact?	

Vola8lity	
  

Causes	
  fear,	
  
risk-­‐aversion	
  
and	
  ‘back-­‐to-­‐
basics’	
  
reac8ons	
  

Uncertainty	
   Complexity	
  
Causes	
  
paralysis	
  
through	
  a	
  
tendency	
  to	
  
invest	
  
excessive	
  –	
  
and	
  fu8le	
  –	
  
efforts	
  on	
  
data	
  analysis	
  

hp://www.zeislerassociates.com/VUCA.html	
  	
  

Causes	
  a	
  
desire	
  to	
  
look	
  for	
  
scapegoats	
  
or	
  black	
  and	
  
white	
  
solu8ons	
  
that	
  are	
  
usually	
  
erroneous	
  

Ambiguity	
  
Induces	
  
doubt,	
  
distrust	
  and	
  
hesitancy,	
  
and	
  impedes	
  
decision-­‐
making	
  and	
  
change	
  
The antidote – VUCA Prime 	


Leaders	
  Make	
  The	
  Future	
  –	
  Bob	
  Johansen	
  
Leadership Lessons from US Military	

Vola8lity	
  
•  Translate	
  data	
  
into	
  
informa8on	
  
•  Communicate	
  
early	
  
•  Ensure	
  your	
  
intent	
  is	
  
understood	
  

Uncertainty	
  
•  Get	
  a	
  fresh	
  
perspec8ve	
  
•  Be	
  flexible	
  
•  Glance	
  back,	
  
look	
  ahead	
  

hp://hbr.org/special-­‐collec8ons/spotlights/2010/november	
  	
  

Complexity	
  
•  Develop	
  
collabora8ve	
  
leaders	
  
•  Stop	
  seeking	
  
permanent	
  
solu8ons	
  
•  Train	
  
tomorrow’s	
  
heroes	
  now	
  

Ambiguity	
  
•  Listen	
  well	
  
•  Think	
  
Divergently	
  
•  Setup	
  
incremental	
  
dividends	
  
Success factors from Industry	


Capitalize	
  on	
  
complexity	
  

An8cipate	
  risks	
  but	
  
don’t	
  invest	
  too	
  
much	
  8me	
  in	
  long-­‐
term	
  strategic	
  plans	
  

Think	
  big	
  picture	
  

Be	
  curious	
  

Encourage	
  
networks	
  rather	
  
than	
  hierarchies	
  

Leverage	
  Diversity	
  

Employee	
  
engagement	
  

Retain	
  a	
  clear	
  vision	
  

Provide	
  clear	
  
direc8on	
  and	
  
consistent	
  
messaging	
  

Get	
  used	
  to	
  being	
  
uncomfortable!	
  

hp://www.impac8nterna8onal.com/blog/2012/01/leadership-­‐vuca-­‐world	
  	
  
“…Having spent forty
years forecasting, I
believe that the future
world will be more
volatile, more
uncertain, more
complex, and more
ambiguous, or so it will
seem if you are in a
seat of leadership.”
Ten Leadership Skills	

Maker	
  Ins8nct	
  

Construc8ve	
  
Depolarizing

Clarity	
  	
  

Quiet	
  
Transparency	
  

Dilemma	
  Flipping	
  	
  

Rapid	
  Prototyping	
  

Immersive	
  
Learning	
  Ability	
  

Smart	
  mob	
  
organizing	
  

Bio-­‐empathy	
  

Commons	
  
Crea8ng	
  

	
  	
  
Recap	

The	
  new	
  normal…
and	
  only	
  gets	
  beer!	
  
Needs	
  different	
  set	
  
of	
  leadership	
  skills	
  
Key	
  is	
  to	
  have	
  Vision,	
  
Understanding,	
  
Clarity	
  and	
  Agility	
  

Pic:	
  hp://managementhelp.org/blogs/leadership/2011/02/23/using-­‐vuca-­‐%E2%88%9E-­‐vuca-­‐prime/	
  	
  
References	

• 
• 
• 
• 
• 

• 
• 

• 
• 
• 

VUCA - http://en.wikipedia.org/wiki/Volatility,_uncertainty,_complexity_and_ambiguity	

Understanding the VUCA World with Bob Johansen and David Small http://www.youtube.com/watch?v=KJqCPFzq6kU	

Living in a VUCA World - http://www.youtube.com/watch?v=bg6x7JeNNsU	

Living in the VUCA World with Prof. Paul Kinsinger - http://vimeo.com/64649575	

Leadership in a VUCA World with Marish Manwani http://www.youtube.com/watch?v=YA02Jvpo8LQ and
http://www.hul.co.in/Images/Harish-AGM-Speech-2013-Leadership-in-a-VUCAWorld_tcm114-365167.pdf 	

Leading change in the VUCA world - http://prezi.com/1s2xds8yngir/vuca-prime/	

Leading in a VUCA Environment - http://blogs.hbr.org/2010/11/leading-in-a-vuca-environment/,
http://blogs.hbr.org/2010/11/leading-in-a-vuca-environment-1/,
http://blogs.hbr.org/2010/12/leading-effectively-in-a-vuca/,
http://blogs.hbr.org/2011/01/leading-effectively-in-a-vuca-1/ 	

Developing Leaders in a VUC Environment http://www.kenan-flagler.unc.edu/~/media/Files/documents/executive-development/developingleaders-in-a-vuca-environment.pdf	

http://blog.jerasustainabledevelopment.com/2012/09/05/downside-up---managing-risks-part-1.aspx 	

Winning a SuperVUCA World - http://www.saatchikevin.com/Winning_in_a_SuperVUCA_World/

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Leadership Competencies for VUCA World

  • 1. Leadership Competencies for a VUCA World Tathagat Varma VP, Strategic Process Innovations [24]7 Innovation Labs
  • 2. Do you want to be in movies? Good! Let’s go…
  • 3. How about? OK, how about all four?
  • 4. Volatility The nature and dynamics of change, and the nature and speed of change forces and change catalysts.
  • 5. Volatility – Leadership Challenges The pace of change is faster and more rapid than our ability to respond The increased pace of change requires accelerated decision making Change are large scale and occur suddenly and usually require an urgent response. Leaders are left feel overwhelmed, stress, anxious and unprepared to lead effectively The challenge for leaders is to learn to respond and manage change more effectively. To shift from reacting to change and move towards a more proactive response to change Command and control structures fail in fast changing and disruptive environments. hp://www.georgeambler.com/vuca-­‐leading-­‐in-­‐turbulent-­‐8mes/    
  • 6. Uncertainty The lack of predictability, the prospects for surprise, and the sense of awareness and understanding of issues and events.
  • 7. Uncertainty – Leadership Challenges It’s difficult to get a handle on what’s actually happening Leaders are required to act on incomplete or insufficient information Leaders are are more likely to rely on what seemed to have worked in the past Too much information noise, not enough signal Difficulty in “connecting the dots” to understand the outcomes of an event hp://www.georgeambler.com/vuca-­‐leading-­‐in-­‐turbulent-­‐8mes/    
  • 8. Complexity The multiplex of forces, the confounding of issues and the chaos and confusion that surround an organization.
  • 9. Complexity – Leadership Challenges Difficulty in acting and drive the change required to address the web of interrelated issues and concerns Increased complexity makes it difficult to know where to start to drive change Temptation to act on and implement short-term solutions and over rely on quick wins Leaders lack the time to reflect and think through the complexities and end up acting too quickly Mitigating actions do not address the root cause only the symptoms The danger of getting stuck in analysis paralysis and end up acting too late hp://www.georgeambler.com/vuca-­‐leading-­‐in-­‐turbulent-­‐8mes/    
  • 10. Ambiguity The haziness of reality, the potential for misreads, and the mixed meanings of conditions; cause-and-effect confusion.
  • 11. Ambiguity – Leadership Challenges Failure to understand the significance of an event High risk of miss-interpreting events and responding inappropriately of in ineffective ways Leaders are too far removed from the source and context of the events Leaders act based on a limited understanding of events and their meaning hp://www.georgeambler.com/vuca-­‐leading-­‐in-­‐turbulent-­‐8mes/    
  • 12. So, what’s this VUCA thingy? •  US Military started using this term in late 90s for the post-Cold War world •  “relates to how people view the conditions under which they make decisions, plan forward, manage risks, foster change and solve problems.” •  Reflects a fast-paced, increasingly unstable and rapidly changing world •  …The New Normal!
  • 13. How does it impact? Vola8lity   Causes  fear,   risk-­‐aversion   and  ‘back-­‐to-­‐ basics’   reac8ons   Uncertainty   Complexity   Causes   paralysis   through  a   tendency  to   invest   excessive  –   and  fu8le  –   efforts  on   data  analysis   hp://www.zeislerassociates.com/VUCA.html     Causes  a   desire  to   look  for   scapegoats   or  black  and   white   solu8ons   that  are   usually   erroneous   Ambiguity   Induces   doubt,   distrust  and   hesitancy,   and  impedes   decision-­‐ making  and   change  
  • 14. The antidote – VUCA Prime Leaders  Make  The  Future  –  Bob  Johansen  
  • 15. Leadership Lessons from US Military Vola8lity   •  Translate  data   into   informa8on   •  Communicate   early   •  Ensure  your   intent  is   understood   Uncertainty   •  Get  a  fresh   perspec8ve   •  Be  flexible   •  Glance  back,   look  ahead   hp://hbr.org/special-­‐collec8ons/spotlights/2010/november     Complexity   •  Develop   collabora8ve   leaders   •  Stop  seeking   permanent   solu8ons   •  Train   tomorrow’s   heroes  now   Ambiguity   •  Listen  well   •  Think   Divergently   •  Setup   incremental   dividends  
  • 16. Success factors from Industry Capitalize  on   complexity   An8cipate  risks  but   don’t  invest  too   much  8me  in  long-­‐ term  strategic  plans   Think  big  picture   Be  curious   Encourage   networks  rather   than  hierarchies   Leverage  Diversity   Employee   engagement   Retain  a  clear  vision   Provide  clear   direc8on  and   consistent   messaging   Get  used  to  being   uncomfortable!   hp://www.impac8nterna8onal.com/blog/2012/01/leadership-­‐vuca-­‐world    
  • 17. “…Having spent forty years forecasting, I believe that the future world will be more volatile, more uncertain, more complex, and more ambiguous, or so it will seem if you are in a seat of leadership.”
  • 18. Ten Leadership Skills Maker  Ins8nct   Construc8ve   Depolarizing Clarity     Quiet   Transparency   Dilemma  Flipping     Rapid  Prototyping   Immersive   Learning  Ability   Smart  mob   organizing   Bio-­‐empathy   Commons   Crea8ng      
  • 19. Recap The  new  normal… and  only  gets  beer!   Needs  different  set   of  leadership  skills   Key  is  to  have  Vision,   Understanding,   Clarity  and  Agility   Pic:  hp://managementhelp.org/blogs/leadership/2011/02/23/using-­‐vuca-­‐%E2%88%9E-­‐vuca-­‐prime/    
  • 20. References •  •  •  •  •  •  •  •  •  •  VUCA - http://en.wikipedia.org/wiki/Volatility,_uncertainty,_complexity_and_ambiguity Understanding the VUCA World with Bob Johansen and David Small http://www.youtube.com/watch?v=KJqCPFzq6kU Living in a VUCA World - http://www.youtube.com/watch?v=bg6x7JeNNsU Living in the VUCA World with Prof. Paul Kinsinger - http://vimeo.com/64649575 Leadership in a VUCA World with Marish Manwani http://www.youtube.com/watch?v=YA02Jvpo8LQ and http://www.hul.co.in/Images/Harish-AGM-Speech-2013-Leadership-in-a-VUCAWorld_tcm114-365167.pdf Leading change in the VUCA world - http://prezi.com/1s2xds8yngir/vuca-prime/ Leading in a VUCA Environment - http://blogs.hbr.org/2010/11/leading-in-a-vuca-environment/, http://blogs.hbr.org/2010/11/leading-in-a-vuca-environment-1/, http://blogs.hbr.org/2010/12/leading-effectively-in-a-vuca/, http://blogs.hbr.org/2011/01/leading-effectively-in-a-vuca-1/ Developing Leaders in a VUC Environment http://www.kenan-flagler.unc.edu/~/media/Files/documents/executive-development/developingleaders-in-a-vuca-environment.pdf http://blog.jerasustainabledevelopment.com/2012/09/05/downside-up---managing-risks-part-1.aspx Winning a SuperVUCA World - http://www.saatchikevin.com/Winning_in_a_SuperVUCA_World/