VUCA is a continuous process that results in increasing disruption over time. Automation, machine learning, artificial intelligence, Internet of Things, and many technologies are advancing faster than our abilities to understand and cope. Companies have to adapt. VUCANs have to be resilient. Some companies and VUCANs can adjust well, others can’t or won’t.
So, what to do? Disruptor companies will have strengths which may involve IP, costing, people, tech, or process advantages. The disruptee company will have to respond to the comparative advantages of the disruptor or be toast.[i]
Legacy and disruptee companies have established paradigms and processes that inhibit innovation and new behaviors. Like moving a mega container ship, large companies can’t pivot like startups that can develop new products and services and market them rapidly.
It comes down to people. Interesting phenomenon we’ve seen is Human Resource organizations have rebranded to talent organizations. Companies are realizing that new ideas come from VUCANs and creatives are critical to a company’s sustainability, competitiveness, and profitability. So what you’re seeing is a new class of creatives with special talents being paid a premium.
Work Lesson Earned: So, what can companies do to be nimble and entrepreneurial in the Future of Work? Over the next 5 years, all companies are developing effective change and sustainable business models. There is no management guru pointing the way or offering tips on adaptation and resiliency. Possible steps may involve:
- Challenge workand business model assumptions.
- Create a team to help lead the effort.
- Define the organization’s visionof the Future of Work.
- Communicate the new visionof the Future of Work to all stakeholders.
- Experiment and empower workers to act as startups.
6. Implement broad based change carefully.[ii]
[i] ‘Surviving Disruption’, Harvard Business Review, December , 2012.
[ii] ‘Six Steps to Adapt to the Future of Work’, Forbes, January 28, 2016.