Leading Change with Curiosity, Courage, and Creativity

Remaining steadfast in defending the status quo does not bode well for the future of the enterprise. In the first instance, the use of new technologies requires a new way of working and the creation of new processes, which need to be embedded both in the structure of the organisation as much as the operational systems which help run the enterprise.

So then, how can urgent structural and systemic change be achieved?

This requires both the curiosity in the first instance, to ask the uncomfortable “what if” questions, and then creativity to interpret the data.

We should seek to find solutions beyond what is presented by a rapid machine analysis of the facts pertaining to the past, with underlying assumptions that may not be true, perhaps incomplete, nor ethical in their nature, as they ought to be by design.

There are many reasons why we should also question machine learning outputs, not least because thus far it is programmed by means of a linear equation, whereas the dynamics of change in the real world are non-linear and the impact of changes taking place both on society and the economy is also unevenly distributed.

Therefore the significance of changes taking place for businesses will also vary, subject to individual sectors, geographical involvement through business activities and policy changes in particular jurisdictions, both in relation to digital (virtual) and physical realities.

Though it is clear facts that occurred in the past (i.e. data) may be a good way of learning about how we got to the present situation, and they can help us to understand where we are in the business cycle, by providing us with context, the past does not necessarily inform us about the emergent complexities of the present.

Nor does it help us to predict the future with any degree of accuracy. Given the emergent complexities of a multi-faceted reality are not easily reduced into a linear equation.  In addition, statistical, probabilistic analysis thus far modelled by machines, is mostly skewed towards financial measurement of value; rather than the actual or real measurement of values, namely what matters the most to people’s lives and the known environment, that is to say planet earth, which sustains life itself.

Fundamentally, as leaders we are required to ‘zoom in’ and ‘zoom out’ simultaneously, in order to make sense of what is happening around us. Since we cannot know or experience everything, it is important to remain open-minded and to bring in diverse thinking when examining some of the biggest challenges companies face today.

This is also in essence the reason why vision and strategy are critically important, underpinning corporate culture with a clear purpose, as this ultimately leads to business and financial success.

To achieve this, we need to set about building some important skills, nurturing them more consistently within the enterprise and its immediate ecosystem:

1. Adaptability and Resilience
2. Grit (perseverance + passion)
3. Growth Mindset: Open-Mindedness and a willingness to explore the new
4. Learning to play the “infinite game”

These are the four pillars of success when leading change.  It is worthwhile paying attention as to how these business capabilities are developed in the process of implementing both structural and systemic change, within the enterprise, whether in response to internal dynamics or external shocks.

Adaptability is the ability to adapt to change promptly, and it is a key characteristic of the ability to learn. Sadly, both structurally and systemically this ability is often denied and this has led to a loss of real productivity growth in absolute terms.

Resilience is the ability to bounce back from adversity in a timely manner, with the appropriate response, over and over again. It is like a muscle, and needs to be built intentionally. It does not happen by chance, or at least both the expected and the potential results are not maximised if it is not pursued with conviction.

As we all know, actions speak louder than words; and so just as any other business objective; intentionally, it needs to be a part of the core business strategy, the unique value proposition of any business and it needs to be included in the set of desirable business outcomes.

Some have termed this “anti-fragility” and whilst terms to describe the need may differ, it is clear an increasing emphasis will be placed on the ability of corporations and institutions to plan for failure and bounce back quickly. Perhaps, independently of aid, given resources at the governmental or state level have been depleted so dramatically during the current pandemic.

However, building adaptability and resilience within the leadership of the organization vertically, horizontally and indeed at all levels, takes time. It requires a clear vision, strategy, and a culture built on a clear sense of purpose shared by all and a set of “true values” clearly defined (and re-defined by the business as situations continue to evolve) to achieve this desirable state of play.

Moreover, to maintain adaptability and resilience, arguably the most desirable of business capabilities, requires constant exercise. It is worthwhile pursuing because the benefits far outweigh the perceived costs. In the short term, these capabilities carry the momentum of change in a positive direction and in the long-term, they assure the longevity of the enterprise. If the building process is done well, then the learning process, which ensues will positively impact the direction and quality of growth, and thereby nudge the enterprise towards enduring sustainability.

Strategy in today’s world cannot be separated from Vision; and vision cannot be separated from strategy. Together they form the Culture. True grit is required more than ever before, to sustain the enterprise, a combination of perseverance and passion. Passion being the powerful positive energy that drives forward momentum and creates a willingness to overcome any obstacle, which in turn characterises a virtuous cycle of change where growth, improvement and prosperity ensues.

As an example, think of household names known around the world, such as Disney or Ferrari. Both companies started with the big dream (vision) of an individual, which became contagious and lives on within each business, as they continue to face the challenges of the modern world with great success.

A well-thought-out strategy and a strong vision should not exclude the development of human capabilities, for lack of investment or lack of time as this will prove very costly over the long term, even if short term gains may be achieved. As well as technological advancements in the pursuit of business efficiency, process design within inter-dependent systems is equally important, whilst striving to reach the end goal in sight.

Thus, personal development as leaders whether at an individual level, as team players and as Board members should not be discounted, if the enterprise is to develop and evolve as a whole, becoming a beneficial player in the wider community.

In fact, to be able to play the “infinite game” where the rules may be changing continuously and many factors or future challenges are as yet unknown, keeping an open-mindedness to learn as situations evolve will be of paramount importance.

It is not that change is something new. But, the speed and scale at which change can be facilitated by technological disruption (and as we now know, further accelerated by large “double” external shocks, concerning human health and the economy) has radically been altered. We are no longer afforded the luxury of waiting to see what happens. If you wait, it will be simply be too late.

For example, whilst some may wish to attribute the closure of high-street retail chains due to the pandemic, nothing could be further from the truth. Changes in consumer behaviour and preferences were happening long before the pandemic took hold, with the forced closure of many retail outlets around the world. It is simply that those warning signs were largely ignored; so long as the cogs in the wheel kept spinning, it was onwards but never really upwards.

Unscrupulous behaviour and ill-conceived choices at the very top management level has cost many thousands of jobs and devastated people’s lives; economic strife exacerbating already high anxiety levels being experienced, and now compounded by the pandemic.

At a structural level this may be seen as inevitable, but the truth is the writing had been on the wall for a very long time.

However, in times of crisis, there is also great opportunity. It is an opportunity to be curious enough to imagine a new future, a better world; creative enough to foresee how that can be achieved, and courageous enough to make it happen.

Given technology is levelling out the playing field, that is to say many more organisations are adopting platform based integrated systems to support their businesses, reduce development costs and time-to-market for new products and services, it stands to reason that the rules of the game are changing and constantly evolving.

It is difficult to see clear winners and losers, and in some cases the barriers to market entry have come crushing down through the advent and widespread use of advanced digital technologies. Moreover, as the access to new money increases, it is hard to ignore “unseen” threats in many industries.

If your organisation is struggling, then you need to be probing the difficult questions, and at the very least challenging the status quo. This requires an open-mindedness to see the possibilities and a growth mindset to want to pursue them.

Innovation is no longer a nice to have; it really is a must have. This means channelling resources and investment productively, sometimes into areas, which may be perceived or deemed to be at the edges of the enterprise.

As an example, if you should have any doubts, examine the growth trajectory pursued by Amazon.  It began as a digital bookseller, evolved to exploit its digital platforms to obtain an even more sizeable portion of revenue, and then look at the manner in which it is now pursuing future growth: insurance and healthcare.

This is not to say that all companies should become this large, but the determination to “create a customer” and the holistic view taken of the customer, their needs, desires and preferences over the lifetime cycle, is what drives the business forward.

They are playing the “infinite game” and they have clearly chosen to look ahead; whilst also learning from the past, whereby failures are treated as incredible learning opportunities.

The infinite game today requires pioneering innovation, and the new competitive advantage will more likely be found at the edges of the enterprise and its ecosystem. To fulfil its purpose the enterprise needs to be built on TRUST and universal human values.

Harnessing discretionary effort is the art of leadership, raising morale and performance levels to sustain the enterprise and ultimately secure its longevity. Whenever as a leader you are passing on the baton, the ambition ought to have been to leave the enterprise in a better state than you found it.

Organisations who have learned and continue to learn how to manage structural and systemic change successfully on an on-going basis will continue to thrive, even when faced with the most difficult market conditions.