On Culture: Successful Leadership in a VUCA World
- Myste Wylde
- Jan 18, 2024
- 6 min read
Dear Culturati Insider,
As we navigate the early weeks of 2024, it's impossible not to feel the pulse of change coming down the line. Each headline, corporate strategy shift, and socio-political ripple affects us, shaping the contours of our collective experience. In this edition, we're untangling the major themes and their meanings for us and for the broader community.
To start, the fabric of risk management is changing. In order to stay ahead, those at the helm must learn to read the subtleties - how they connect, accumulate, and morph into new challenges. Rebuilding strategic foresight will prove a powerful tool as cultural divides and political complexities deepen.
Through research and insights shared from CEOs and coaches, we're finding once again that effective leadership hinges on a strong foundational culture rooted in psychological safety, constructive dissent, personal awareness, and courageous conversations. This, combined with transparent, empathetic, and inclusive management practices, is key to addressing internal challenges and evolving employee expectations
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In reports from Davos, the measured optimism among global CEOs, despite looming geopolitical and economic uncertainties, offers a pleasantly balanced perspective. It's a reminder that hope and pragmatism can coexist, even in the most challenging times.
This resilient leadership style will likely become vital as the 2024 elections near. Our polarized landscape, with corporate America caught in the crosshairs, is more than a business challenge; it's a reflection of society's changing values. As leaders, this fragmentation requires our attention and empathy, urging us to consider the broader implications of our corporate decisions.
As we move further into the new year, I encourage you to explore the curated Culturati: On Demand selections below. These videos from industry leaders, scholars, and subject matter experts provide both timeless insight and timely application - this week on successfully leading in a VUCA world. We'll also delve more deeply into these issues at our upcoming Culturati: Summit, April 7 & 8. As always, your thoughts, questions, and feedback play an enormous role in guiding our path forward. We'd love to hear from you.
To courage and compassion in leadership,
Myste Wylde, COO
How CEOs can Mitigate Compounding Risks |
McKinsey & Company By Ram Charan, Celia Huber, and Ophelia Usher
Summary: Compounding risks, which often go unnoticed by risk management, CEOs, and boards, pose a significant threat to organizational survival, especially in an era marked by increasing geopolitical tensions and rapid technological changes. These risks are classified into three types: connected risks, where different threats are interlinked within a larger system; cumulative risks, where individual risks build up over time, leading to a major shock; and novel risks, where known risks combine to create unexpected new challenges. To effectively manage these risks, leaders are advised to ensure their organizations are adept at tracking the interplay among various risks and preparing for the possibility of multiple simultaneous crises. This involves enhancing risk management governance, conducting thorough risk analyses through pre-mortems, adopting long-term horizon planning, and making "big strategic bets" to mitigate multiple threats concurrently. |
Bringing True Strategic Foresight Back to Business Harvard Business Review By Amy Webb
Summary: Today's corporate landscape is significantly more intricate than previously anticipated by strategists and futurists. The fusion of strategy and foresight is critical in steering organizations through the complexities of modern disruptions and transformations. Historically, these two elements were a cohesive force, allowing companies to envision and navigate future scenarios with confidence. However, as the roles within corporations became more specialized, this powerful synergy was lost. Strategy, now often narrowly focused on immediate goals, leaves organizations exposed to unforeseen challenges, while foresight, devoid of actionable strategies, fails to translate into tangible business outcomes. To overcome these shortcomings, a reintegration of strategy and foresight is essential. This recombination entails a comprehensive process that includes detecting emerging signals, identifying trends, and crafting plausible scenarios, all underpinned by extensive research and analysis. Such a holistic approach to strategic foresight enables businesses to effectively forecast future possibilities, adapt their strategies accordingly, and measure the success of their initiatives, thereby equipping them to thrive in an era of constant change and uncertainty. |
Risky Business Euroasia Group By Ian Bremmer and Cliff Kupchan
Summary: Two years after warnings about the US culture wars impacting corporate boardrooms, the situation has escalated with conservatives retaliating against liberal corporate stances. Texas banned state funds from firms boycotting fossil fuels, while Florida punished Disney for opposing the “Don't Say Gay” law. Corporate America now faces a fragmented market with divergent state policies on LGBTQ rights, education, and health mandates, exemplified by clashes over Walgreens' distribution of abortion pills and Target's Pride merchandise. As the 2024 elections approach, companies are increasingly caught in political crossfires, with legal challenges to diversity programs and state-level decisions on contentious issues like transgender rights and environmental regulations. This polarization is forcing firms to navigate conflicting laws, risking their market presence and elevating operational costs. |
Seven Strategies to Keep Your Team United in Divisive Times Forbes By Thaley Germain
Summary: Global conflicts and resulting polarization often lead to internal divisions within companies, challenging leaders to navigate complex socio-political dynamics while sustaining their organizational culture. In such scenarios, maintaining a connection to core values becomes difficult without a strong foundational culture. Such a culture is characterized by four critical components: psychological safety, where employees feel secure to express views; room for dissent, allowing open, constructive disagreements; courageous conversations, fostering direct and honest dialogues; and a well-cultivated awareness among leaders about their team's dynamics. To build or strengthen these aspects, leaders can follow seven strategic steps: 1) Reaffirm and communicate the organization's core values; 2) Clearly define acceptable and unacceptable behaviors; 3) Keep communication channels open for all staff levels; 4) Embed inclusive language and behaviors through DEI efforts; 5) Establish robust conflict management systems; 6) Provide unbiased and comprehensive resources for staff development; and 7) Ensure the effectiveness of Employee Resource Groups as support systems. These steps are designed to initiate and sustain a resilient and cohesive culture, vital for navigating and thriving in times of external turmoil and internal challenges. |
This is What Employees Need from Management, according to Coaches and Leaders |
Fast Company
Summary: In the dynamic world of work, traditional norms are being replaced by employee expectations of autonomy, flexibility, and professional growth. Insights gathered from career coaches and CEOs highlight 12 key strategies necessary for effective management today. 1.)Effort for Reconnection, highlighting the need for transparent and empathetic leadership; 2) Bridge for Executive-Employee Gap, addressing the disconnect between leaders and employees; 3) Collaborative Leadership, promoting open-mindedness and team engagement; 4) Model Resilience and Career Path, focusing on clear expectations and career-life alignment; 5) Flexibility Adopting New Modes of Work, emphasizing the importance of adapting to flexible working norms; 6) Accountability in Creating Safe Spaces, underlining the creation of inclusive and safe work environments; 7) Secure Self-Awareness and Attachment Style, focusing on leaders' self-awareness and response to feedback; 8) Authentic Human Connection, valuing genuine relationships and trust; 9) Situational Awareness, advocating for adaptive leadership and understanding team needs; 10) Emotional Intelligence and Empathy, emphasizing understanding and respecting team emotions; 11) Proficiency in DEI, stressing the importance of diversity, equity, and inclusion in leadership; and 12) Focus on Trust, prioritizing trustworthiness and character over mere performance. These perspectives collectively offer a comprehensive guide for leaders to navigate the complex terrain of modern management. |
A Turbulent Year May Lie Ahead—CEOs at Davos Are Optimistic |
The Wall Street Journal By Chip Cutter and Emily Glazer
Summary: At the World Economic Forum in Davos, CEOs displayed optimism about the U.S. economy amidst global conflicts and the looming U.S. election, buoyed by cooling inflation and strong consumer demand. Leaders like PepsiCo's Ramon Laguarta noted a stabilizing job market and Honeywell's Vimal Kapur mentioned strong air travel demand. However, geopolitical events, such as Houthi attacks on commercial ships, pose risks to business operations and supply chains. The uncertainty of elections in over 60 countries, including the U.S., India, and the UK, also adds to the complexity. Intel's CEO, Pat Gelsinger, acknowledged these challenges but remained positive about the company's position. Leaders are engaged in scenario planning for the U.S. election outcomes, considering impacts on government policies and investment climates. Despite these concerns, optimism prevails among many due to factors like robust growth in India's economy and anticipated Federal Reserve interest-rate cuts, but there's caution that geopolitical issues remain critical factors which may lead to market volatility. |
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