organisation has to make the transition from a world defined primarily by repetition to one primarily defined by change. This is the biggest transformation in the structure of how humans work together since the Agricultural Revolution.
Anybody who believes that the business landscape is the same as it was in the ‘old days’ has their head well and truly buried in the 20th-century sand. There is an evolution going on that is affecting the business world and how we lead and manage within it.
We are all being forced to rethink how we behave and what we do. The changes of greater society – changes in generations, gender dynamics and technology – are leading to a shift in business from large, highly structured corporate entities to agile, innovative entrepreneurial enterprises.
This evolution isn’t about to stop any time soon – if anything, the pace of change is only going to increase exponentially – and it is challenging us to rethink what we do, how we communicate with each other and how we will operate as leaders and businesses into the future. It is challenging us to develop new operating systems to future-proof success. It is challenging us, as managers, to learn to lead movements in a way that makes our teams secure enough to think and act collaboratively.
As leaders, business owners and individuals, we are caught between two worlds: one that thrives on volatility and one that craves stability. There is an ongoing tug of war between the pursuit of growth on one side and a desire for control and constancy on the other. In the pursuit of growth, we actively seek knowledge and experience, looking to others for inspiration and ideas, creating big-picture visions for our future self. On the opposite side of the tug of war is the need for control: our existing work streams and structures prefer predictability, productivity and control.
The evolution is making:
■ leadership styles change from ‘tell’ to ‘engage’, with leadership now about inspiring and becoming truly authentic
■ traditional business structures far more fluid and blended
■ innovation and invention essential business tools as consumers want better products and services delivered more quickly than ever before
■ agility and decisiveness prerequisites in our teams and in our leadership.
In this chapter, we will explore the current business landscape, and how a collaborative approach is integral to surviving and thriving into the future.
The world where you live
The future is so uncertain that many organisations and consultants have adopted a term originally coined by the US Army to describe the results of the end of the Cold War – the acronym VUCA. VUCA describes a world that is increasingly Volatile, Uncertain, Complex and Ambiguous. This world is fast, change-focused and demanding. Agile thinking, decision-making and action are now the norm. And the result? Individuals and leaders are left feeling alone, exhausted and uncertain about their place in the future. The rapid changes that are taking place are affecting how we operate. We are forced into the space of Me – one where we reassess, consider options, invest and focus on the self. We protect what we know, learn what we don’t and then hope that we can fake it till we make it.
So what approaches will work in our rapidly changing environment? The collaborative economy is where networks of connected individuals, communities and businesses – as opposed to centralised closed-door thinking and business planning – work together to drive success. The power of this is inestimable as it connects people, businesses, skills, services, products and space to drive new opportunities and strategies for future-proofing. Who could have imagined, for example, that one day – and that day is now – NASA would be using LEGO building blocks to educate astronauts in the International Space Station, and in turn providing LEGO with inspiration for their designs? Or that Coca-Cola would be working with ECO Plastics to develop sustainable and ethical bottles? Their agreement marks a turning point in the processing of industrial waste in the UK.
Collaboration is so much more than the sum of its parts. The nuts and bolts of sending an email, being on social media, placing a paid advertisement or doing a mass mailing are no longer enough in terms of ‘engagement’. What consumers and internal clients are asking for is that businesses understand them; that they speak to them as human beings, not numbers. They are demanding a customer-centric approach to decision-making and new product development. They want to know the depth behind the logo, the thinking and the rationale behind the leadership.
The collaborative economy is a space where if we are authentic, play by rules of openness and transparency, and follow our passions, we have the opportunity to build collective intelligence, trust and connection, and to surprise and influence many.
Future uncertainty
The phenomenal speed of change that got us to the 21st century’s technological frenzy is not going to slow down any time soon – and it is creating an uncertain future on a global business level. In The World Is Flat, Thomas Friedman suggests that the changes that we are experiencing now are ‘directly or indirectly touching a lot more people on the planet’ than ever before. In an increasingly decentralised and digitally connected economy, companies and people need to constantly explore ways to improve – and if they don’t, what is the risk? Fall behind. Lose momentum. Flatline. Fail.
The future is uncertain for the following reasons:
■ A worldwide unstable economic environment continues to place increasing pressure on governments, businesses and individuals.
■ The changing political structures around the world affect consumer confidence and stability.
■ Evolving social trends and behaviours are influencing the individual needs of society and the labour force.
■ The growth of entrepreneurialism and more agile, fast-moving, disruptive businesses is challenging the traditional corporate structures, growth strategies and decision-making.
Figure 1.1 shows that we are at the juncture of three distinct areas of uncertainty: innovation, socio-economic dynamics and business change. These three critical areas are summarised on pages 8 and 9 and will be covered in more detail in chapter 2.
Figure 1.1 the future is uncertain
We are living in a highly connected world where information and resources are readily available 24/7. This access to information is supporting consumer awareness and self-education, and enabling research and ongoing improvements to products, communication methods and delivery solutions. In the ‘old’ world, intelligent thinking, high-quality products, services and the breadth of range that is available now simply didn’t exist. Consumers would do their research, find what they want and make a purchase. Now everything is everywhere in mass supply and we want it better, quicker and cheaper.
Increased technology, increased knowledge and economic instability – all of these are driving a demand for innovation on a continuous basis for large and small businesses alike. The entrepreneur is everywhere; new businesses are born and new products created overnight. Evolution is essential for survival, for economic viability, for customer engagement, and most importantly, to keep staff engaged and secure in the knowledge that our business is where they want to be working.
Economic changes, changing family structures and globalisation have altered society forever. The main changing dynamics are:
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