The speed of change makes it seems like AI, DNA technology, 3D printing, the IOT (Internet of Things), big data and digitalisation have been around for many years.
Some have used their strengths – thought leadership – and have powered ahead –other organisations have continuously adapted well – both their strategy and organisational structure, whilst others fall behind carrying on with their tried and tested, but somewhat outdated business models.
A survey of board level and top management executives showed that the respondents rated themselves highly in the categories of being agile, digitally knowledgeable, flexible and responding well to the changes including understanding changes in the customers’ demand.
What is interesting is that while the same executives see themselves as very alert and agile leaders, they do not see their organisations as responsive and adaptable.
However, changes and technological innovation are already here. It may be perceived as a competitive threat or it may be seen as an opportunity and turned into a competitive advantage.
How does an organisation respond to changes?
I suggest that you ask 3 key questions within the organisation:
- When working towards successful change in the digital age, what external aspects are most important to your organisation?
- Then look at the gaps in the strategy, what is missing?
- How can you fill a potential vacuum?
One answer to question 1 is:
Firstly, analyse the external trends.
A useful model for analysing the external environment to assess the current state of play is the robust VUCA model, often using in strategic planning and originating from the US military:
V – Volatile
U – Uncertain
C – Complexity
A – Ambiguity
An answer to the second question is to carry out a gap analysis with the following headings:
The strategic lack – the VACUUM model gap analysis:
V – Vision–Values
A – Asking-why and what if?
C – Courage-Consequences-Competition
U – Un-licensed to operate socially
U – Understand the Variables
M – Mindset
Once you have identified the gaps, here is an option for an operational model for dynamically working with strategic and leadership challenges.
Dynamic PREPARED- ness.
P – Peripheral vision
R – Resource management
E – Empowering staff
P – Planet – People – Profit
A – Action – Acceleration – Autonomy
R – Responsiveness – Risk taking
E – Equality – Egality
D – Decisive – Daring
The frameworks are designed to include key components, which contribute to success and failure in organisations, and they are illustrated by acronyms and mnemonics.
Mnemonics are an ancient learning technique with origins in Ancient Greece. Mnemonics were used by Greek academics to memorise the sum of their knowledge for scholarly debates. This technique hasn’t stayed in the ancient world though!
Mnemonics can be used to effectively aid memory when making decisions about change in order to keep key information present and increase memory recall.
To summarise, to analyse the dynamics in the external environment use the VUCA model, assess the effectiveness of the strategy by filling the VACUUM, and be PREPARED to rise to the challenge of speed and complexity!