In recent years, much has been written about our
VUCA world, characterised by volatility, uncertainty, complexity and ambiguity.
‘Agility’ has become a buzzword as leaders learn to deal with unexpected
situations as swiftly and successfully as possible.
The government has yet to trigger Article 50 of
the Lisbon Treaty, Britain’s formal notice to leave the EU, which would give
the UK two years to negotiate withdrawal. Uncertainty over how soon this might
happen has led to a degree of nervousness among UK-based businesses. Nearly two
thirds of Institute of Directors members think Brexit will be bad for business
and director general Simon Walker suggested that leaders “will be busy working
out how they are going to adapt and succeed after the referendum result.”
CBI director general Carolyn Fairbairn said we
need “rapid clarity on who is making the decisions” and suggested the UK needs
to get “calm and decisive leadership in place as soon as possible.” More calls
for calm came from business secretary Sajid Javid, who warned companies not to
panic.
Messages from prominent European leaders have been
mixed. While German chancellor Angela Merkel said she would not push for an
immediate withdrawal, International Monetary Fund chief Christine Lagarde has
called for the UK and the EU to quell uncertainty over the implications of
Britain’s vote by acting quickly and cohesively. Back home, Boris Johnson has
asked Brexit voters to “build bridges” with Remain supporters who feel “loss
and confusion”.
So, from confusion and uncertainty is emerging a
desire for cohesion, connectedness – and clear leadership. What can business
leaders do to engage and motivate employees with a future which, for many, is
uncertain?
I mentioned agility earlier. We often think of agility
as important in responding to immediate, short-term challenges. However, it’s
even more important to embed the long-term capability to identify and respond
quickly to emerging threats and challenges in a world with high levels of
complexity and uncertainty.
Even out of the EU, most organisations will
continue to operate in the context of globalisation and international
interdependency, either directly or through their customers. More than ever, this highlights the need to
be nimble.
Being nimble and agile is not compatible with a
tightly-controlled command and control style of leadership. When faced with a
difficult challenge, it’s tempting to take control back to a small group at the
centre of the organisation. However, more sustainable success will come by
developing a more ‘connected’, shared model of leadership across the business.
The greater the complexity outside your business,
the simpler it needs to be inside. The temptation is often to introduce a
plethora of new systems and processes to deal with change. However, many
successful organisations are choosing to simplify their ways of working as a
way to increase agility and their ability to adapt to changing circumstances. Ruthless
prioritisation is a good way to start this process of simplification. It creates clarity for yourself and others on
what to focus on and, perhaps more importantly, what not to focus on, in order
to enable action in times of complexity and uncertainty. Set clear priorities
for the business and for your leadership team, so that everyone can then focus
on doing fewer things better. As more
clarity emerges over the weeks and months ahead, increased cohesion and
connectedness can help us to reach a successful outcome.