The world can be an uncertain place. See how savvy technology leaders can build flexibility and resilience within their organizations to win in uncertain times.
In these challenging times, each day brings something unexpected. From the global pandemic to wildly fluctuating financial markets, we are seeing dramatic changes like never before. But one thing constant is the need for strong leadership.
Of course, leading in uncertain times like these is a challenge. A well-formulated plan that was perfect yesterday becomes useless very quickly.
It can be tempting to abandon attempts at long-term planning in times like these, feeling that these efforts are irrelevant. After all, why invest time and resources in an exercise that doesn't seem useful? While it may seem cathartic to abandon long-term planning, it's not a very effective way to lead .
So how can you lead in times of uncertainty? Here are some ideas.
Open your “organizational ears”
In more predictable times, most leaders can leverage past experiences to move their teams and their organization forward. Uncertainty neutralizes this “superpower” to some extent, forcing leaders to develop new and unconventional responses rather than relying on what has been successful in the past.
Instead of duplicating what worked well in simpler times, strive to listen instead of talk and create new ways to obtain information. On an individual level, seek diverse opinions from your teams and others outside of technology, listen to media sources other than those you normally consume, and pause before dismissing ideas that may seem outside the norm.
Organizationally, your teams will likely have access to large amounts of data. Work with colleagues across business units to develop new reporting and analysis tools that help the business and broader markets.
Invest in scenario planning
When military leaders are faced with a complex challenge, they often create potential “war game” scenarios. Whether it is an armed conflict, a cyber attack or the disruption of a critical logistics route, militaries routinely pit their planning, policies and procedures against an adversary to test their ability to survive in adverse conditions .
Fortunately, there's little chance you'll manage life-and-death military actions, but scenario planning can be critical in uncertain times. This process doesn't need to be complex or require Hollywood-inspired darkrooms full of maps and staff.
A war game could be as simple as getting a handful of employees from different groups together and asking a question like, “What if we could no longer get materials from Europe?” Spend an hour or two discussing the implications of this scenario and how you would analyze the problem, develop immediate and long-term mitigations , and how they would be implemented and prioritized.
If you find that your team is unable to respond to some element of a scenario, you've likely identified a potential vulnerability worth addressing. If there is an irreplaceable supplier, infrastructure component, or leadership structure that could severely impact your company's ability to operate, this is likely an area that merits deeper investigation and mitigation planning.
Several tools and companies are dedicated to helping with scenario planning, but there's no need to overcomplicate things. You may even have colleagues or employees available who will appreciate the opportunity to be part of the “red team” and come up with challenging scenarios that will force you to explore the impacts of uncertainty on your infrastructure and business.
Invest in long-term flexibility
A paradox of uncertain times is that they can cause leaders to avoid investing in long-term projects for fear that the investment will become obsolete as the world changes. This is a legitimate concern , and there are likely to be libraries full of books that could be written about initiatives that seemed like great ideas in 2019 and were subsequently abandoned several months later.
However, there are long-term investments that are relevant in times of uncertainty and they generally fall into 2 categories. First are investments in organizational “ears” that allow you to identify and assess changing conditions more quickly. The second category of investments creates more organizational flexibility.
The 2 categories of long-term flexibility
Investing in your organizational “ears” can help you identify trends and market changes before they create a significant impact on your business. Suppose you can use technology to identify and communicate “bumps” in the supply chain before they turn into crises, or quickly predict the financial outcomes of various scenarios based on your war games. In this case, you will empower your colleagues and consolidate the value of technology in the eyes of the entire organization.
Review your long-term technology investments and ask which ones will create the greatest organizational flexibility as the operating environment becomes uncertain. A multi-year cost reduction program in your supply chain that seeks to eliminate flexibility and optimize costs obviously does not fall into this category.
However, a technological investment in flexible development capabilities or new rapid development tools and methodologies can enable you to react to changing conditions.
Take time to evaluate your suppliers and partners and look for those who can react quickly to meet diverse needs. Likewise, investigate where you get everything from hardware to services. A “sole source” contract may be good for the bottom line, but if your suppliers and partners are limited to specific regions or constrained by global supply chains, a good deal on a product you can't get is much worse than slightly higher costs to get what you need when you need it.
Looking to the Future: Leading in Uncertain Times
An uncertain operating environment can be frustrating and challenging. However, it also offers opportunities and an opportunity for technology leaders to help their organizations identify, analyze and mitigate everything that an uncertain world throws their way.
