Managing in Turbulent Environments

Read the paper, watch the news, listen to people talk - - the words uncertainty, ambiguity, and turbulence come across loud and clear. Change, at much greater speed, breadth, and depth - - has individuals and organizations on edge. In these turbulent environments, data and analyzed information are either not readily available or are no longer valid.

Leaders are having to focus their time and energies on three different approaches in this difficult and uncertain world:

1. Taking an Ecological Perspective - - I cannot stress this enough. We live in a world of increasing interconnectivity between organizations, sectors and markets across the world's economies. The U.S. subprime housing disaster produces a collapse in dry cargo vessel rates - - that is the level of interconnectivity that is present. You need to have the ability to look beyond your particular sector and boundary - - and you need to do this quickly. Waiting can be too late and too risky. In the context of organizational and business life, the adoption of a more holistic perspective requires a shift from the left brain to right brain thinking, a trusting of the intuitive, emotional aspects of leadership; and their integration with the rational, logical side. External relationship management becomes critical - - sharing of information and ideas with suppliers, customers, clients, competitors, etc. Concentrate on scenario thinking and planning - - think possible, probable, and unlikely in a holistic manner.
2. Making Sense of Rapid and Abrupt Change - - People look to their leaders with a simple question. What is happening? This is a normal social and psychological response to people in crisis. Your response goes back to Listen, Learn and Lead - - the key is helping your organization develop a shared understanding of our new world. This involves enabling people to share their perspectives, hunches and opinions and also listen to the perspective of others. Interactive exchange becomes an important process -- help people to create space to stand back and share their experiences and reflect on what they are noticing and how their interactions are changing with customers, suppliers, and shareholders. Invest time in establishing networks beyond the limits of the organization and recognize the importance of these networks for making sense of the extended environments.
3. Working Positively with Anxiety - - Our historical daily "givens" are at risk of unraveling. You really cannot count on very much anymore. This has produced tremendous individual and collective anxiety. This can have problematic or even disastrous consequences, because the necessary process of sense-making is averted. Anxiety also produces an environment of looped blame and attack. People want and look for connection and social support from others. Leaders who bring people together and appeal to a sense of community can help people manage their fears and anxieties. Leaders have several roles - - being "fully present" and sympathetic are fundamentally important. Providing clear direction and boundaries to the organization which highlights where action needs to be taken and providing clarity about how individuals can contribute is also important. The most basic goal is developing trust in people by being visible, open, showing a concern for people, being transparent and congruent.

Read more in the Fall 2010 issue of Rotman (Developing Leaders for a World of Uncertainty by Andrew Day and Kevin Power)