Management is in need of a major rethink.
We live in a volatile, uncertain, complex and ambiguous (“VUCA”) world – where we have very little ability to control or predict what will happen in our near future. This reality is also true in organisations that rely on knowledge, information and ideas, as opposed to activities that rely on a production line system. Unless you work on the factory floor, or some form of production line – chances are you will be dealing with quite an amount of VUCA.
For some time management has been aiming at trying to control, predict and eliminate the VUCA, but it is a losing battle. VUCA is the reality, and no amount of management can eliminate it. After all, you can never really predict nor forecast the future now can you?
Management as we know it was invented at the time of the Industrial Revolution whereby, human capital was just seen as tools in a production line created in order to make widgets at scale, faster and more efficiently. Industrial Age management emphasised control, conformity, predictability and efficiency.
In many situations today, such production lines are increasingly automated or outsourced to cheaper locations. What many organisations have left to do is to respond to the changing customer demands and technology disruptions, amongst many other changes. Unfortunately, management still employs processes and practices that were created for the production line in a futile aim of controlling and predicting outcomes.
Let me correct the last statement a little. Management can still to some extent control and predict outcomes – only if it aims to stay within a very narrow range with near to zero risk of variance. But this results in stagnation and in worst cases, doom.
Management has been slow to adapt to the fast pace of development as well as the increasing VUCA we face in our businesses and economies on a daily basis.
Organisations must evolve to the changing environment. This is true. But management will need to stop trying to control and predict outcomes. Instead, management will need to quickly sense and adapt to the changing environment in order to deliver the best outcomes.
This is why management will need to move away from “command and control” towards a model that empowers and inspires the best out of people. This is because, people are organic and are very adaptable to changing environments. People respond to environment changes quickly. So management will need to harness this ability effectively.
It is in this context, that I sought out management ideas to help guide our way. Through a colleague, I first stumbled on the Beyond Budgeting Roundtable. Subsequently, I discovered other materials and I would recommend a few books that can shed some light into how management should rethink itself in this context of VUCA.