CEO Seminar 2022: Leading in a VUCA World

智瑞 and EGN Singapore (Executives' Global Network) came together again on Sep 29, 2022 to co-host the annual CEO Seminar. It's the first one that we conducted since 2019 .

Keynote

I kicked off the seminar with a short keynote on the VUCA world that I delivered via Zoom. I lost my passport a few weeks before the CEO Seminar and I needed to be in Malaysia to get a new passport. Truly experiencing VUCA!

The world is certainly more Volatile, Uncertain, Complex and Ambiguous than previous years. This impacts how we work and how we live. I also shared a few key pointers on how to lead in a VUCA world.

Focus on Vision & Purpose

Firstly, leaders need to focus on the vision and purpose of the company. Not losing sight of the long term is essential to success. At the same time, leaders need to actively communicate the "reason of existence (purpose)" of the company.

Be Agile & Reactive

Next, leaders need to always be prepared for Plan B or C. It is important that leaders run through multiple scenarios with the team, helping them to make decisions and to carry out contingencies when require. Part of the preparation for the team is to help the members to be open to changes and train them to be flexible and adaptable.

Have a Bias for Action

In a VUCA environment, leaders need to have a bias for action, i.e. when in doubt, do not go into "freeze (no action or wait and see)" mode. Instead, be bold in acting without the full picture or complete information. Leaders also play the role of encouraging team members to experiment, take risks, and learn.

At the same time, leaders should avoid "analysis paralysis", i.e. over-planning. In a VUCA world, it is simply unwise to predict everything. Instead, take actions and let the market provide the feedback.

Develop Buffers

Leaders need to create buffers for "just in case" scenarios. In the early days of the pandemic, it was clear that the "just in time" global supply chains are very fragile. It created huge bottlenecks and disrupted many companies. Having a sufficient buffer will help leaders to have fewer shocks.

"Cash is king" is no longer just a cliché. Having a healthy cash buffer to absorb shocks will help many companies to survive multiple crises.

Leaders also should put in place processes to hire talents continuously. If companies want to rebound quickly, having the right people in place is essential. Waiting for the storm to be over before hiring will lead to delay in growth for companies.

Promote Divergent Thinking

In a VUCA environment, no leaders will have a full view of the picture. Leaders should promote divergent thinking in the team to cover all bases. This means that leaders need to be aware of their personal biases and blind spots. Prioritizing Diversity and Inclusion (D&I) will create a competitive advantage for organizations.

Focus on People

Lastly, leaders need to actively involve others. Regular engagement needs to be a norm for leaders. They should not be afraid of "over-communicating" to keep the team focused on the most essential topics. It also helps the organization to be agile. Building the habit of remaining humble, asking questions, and listening will help leaders to be successful in a VUCA world.

Panel Discussion

After the keynote, we invited a group of senior business leaders to share their insights on the roles of leaders in a VUCA world.

After sharing a summary of their individual experiences leading in a VUCA world, the panelists engaged in a discussion regarding their predictions for the next 1 to 2 years and how they are preparing their teams for the future.

Nick Jonsson - Human Connection Mastermind , MD of EGN Singapore facilitated the session with the four business leaders.

Jerrica Chooi stressed that with the world recovering from COVID-19, the forgiveness and leeway given to leaders are now gone. Double-digit growth and other similar expectations will become prevalent again. She called on leaders to stick close to their clients and aim to understand their ever-changing needs in the constantly changing world. She believes that a key area for leaders to focus on is how to encourage innovation while not overwhelming the team. She emphasized the need for an entrepreneurial spirit in all, especially in well-established companies with a long history of success.

Kenneth Daniel TAN shared that as opposed to specifics, he would like to engage in a more philosophical discussion. He believes that leaders need to figure out the ‘true certainties’ and use that as an anchor for future decisions and leadership. He shared some examples of ‘true certainties’, namely:

1. The global workforce will continue to work in a hybrid setting with a mix of online and F2F working arrangements.
2. The war for talent is still going on and employees now need to have a sense of purpose to drive them.
3. Digital transformation will become the norm and the focus will increasingly be on the adoption by people as compared to just the technology.

Kenneth expands on these ‘true certainties’ and explains that businesses will face two reckonings, namely:

1. The digital reckoning and the importance of changing people’s mindset and building a culture of buy-in for digital transformation
2. The purpose of work reckoning and the need for a clear, defined purpose for people to rally behind.

Isabelle Alvarez added to Kenneth’s sharing and pointed out that besides purpose, the people also require stability and security, especially in an increasingly unstable and uncertain world. She calls on leaders to provide this stability and security from the top through systems, processes, and contingencies, echoing Ricky’s prior sharing.

Arkadiusz Czopor shared that while there is a need to look and plan ahead, leaders should put short-term goals first and take small steps quickly and focus on solving surgical problems first before planning for the future, addressing leaders of businesses who may not have fully recovered from the impact of COVID-19. He also expresses concern regarding remote work and its impact on the connections between people. He believed that power and value are created when face-to-face human interactions and collaborations occur, especially with the advent of AI and robots.

The panelists were then asked what adjustments they had to make to their leadership style and what further adjustments they might make or advise leaders to make for the future.

Jerrica noted that the younger generation wishes to remain working from home but also understands that she needs staff to come and work together in the office to promote discussion, collaboration, and growth. She shared that she thinks the hybrid model is working but may require adjustments based on individual businesses' needs. She also emphasized that there is no longer a correct answer or correct formula. Instead, she called on leaders to empower their teams and assure them that mistakes are ok and failure is not to be feared. She believed that the younger generation will continue to be innovative and that the future of leadership and company structure will be much flatter.

Kenneth echoed Jerrica’s sentiment that leadership styles must change, especially concerning mistakes and failure. Kenneth shared the concept of ‘controlled chaos’, where leaders are challenged with informed and constructive dissent, driving more discussions. This will bring together more separate perspectives that will hopefully allow leaders to build a more comprehensive big picture.

Both Kenneth and Isabel shared the need for leaders to listen to their people and team. Kenneth brought up an interesting example where leaders might say that they understand and add a ‘but’ into the conversation, effectively sidelining any concerns or issues that their team members may have. Kenneth and Isabel stressed the need to build a human-centric organization where leaders have compassionate empathy. They believe that empathy alone might isolate individuals who were on the fringe as ‘Others’ and not be effective in including everyone.

Arkadiusz Czopor shared that he believes previous experience is becoming increasingly less relevant in a VUCA world as some situations and issues have had no precedent, negating the value of past experiences. He shared that he is pushing strongly within his organisation to build teams based on relevance instead of experience and hierarchy. He called for leaders to do the same and believes that this approach will have a higher chance of finding the right person for the job regardless of department and reporting lines. He also echoed the need for leaders to be challenged and acknowledges that it can often be uncomfortable but believes that this will ultimately lead to progress and growth which in his opinion, is more important than perfection.

When asked what recommendations they had for current and future leaders, our panelists summarized their prior sharing into a few key points as below:

Recommendations for Leaders

Jerrica Chooi

• Talent is key and the way to attract talent is to understand the change in expectations of employees.
• Younger employees are increasingly driven by values and visions and thus listening to employees and clear communication is vital.

Kenneth Tan

• While the younger generation may be disruptors to the status quo, they have a lot of power to bring about progress.
• A clear purpose at the company or team level will be crucial in attracting talent and navigating the uncertain chaos in the future.

Isabel Alvarez Fernandez

• There needs to be more care for each other as people. The young might lack experience and wisdom but might surprise people by bringing effective and innovative solutions
• Feedback is a gift that different parts of the world receive and give differently.

Arkadiusz Czopor

• Leaders should push their teams to strive to be as good as possible but allow for gaps, mistakes and oversight.
• Perfection is not possible in a VUCA world and should not be the end goal for leaders or teams.

If you are keen to have a discussion on the seminar and leadership topics in APAC or join us for future CEO Seminars in Singapore, please be in touch with Ricky Foo ([email protected]).