Leading through the fog

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Table of content

1. Introduction
2. How to maintain a bold overview towards specific goals during uncertainty
3. Visual of the week
4. ?? Special offer: Build an efficient and responsive organization, the playbook
5. Conclusion

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Introduction

Over the past few months, we’ve been working with board executives and management teams from various sectors, including cybersecurity, finance, energy, healthcare, manufacturing, and retail, to leverage sustainability strategies to come next.

By using advanced technology (AI/ML), we’ve learned that first, even the most uncertain business environments contain a lot of strategically "relevant information" and that it is rare for leaders to know absolutely nothing of strategic importance. Yet, due to the pandemic shock and time re-appropriation, traditional approaches led many executives and managers to operate in a binary way—to assume that the world is either certain (observed before the crisis, despite historical events), and therefore to keep their operations towards their initial predictions (whatever it costs), or uncertainty, and therefore wholly unpredictable.

The two approaches are opposite but obviously related.

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How to maintain a bold overview towards specific goals during uncertainty

Covid-19 isn't a one-off challenge. We should expect additional phases of the current situation and other pandemics. Since the first wave occurred a year ago, many businesses were forced to permanently close their doors, while some organizations made wise decisions and saw their businesses grow. We realized how conventional strategic thinking hasn’t helped most organizations plan for the next “new normal.” [Read more on our Annual letter 2021].

Underestimating uncertainty has resulted in policies that do not defend against threats or take advantage of the opportunities provided by higher levels of uncertainty.

Research and development to benefit execution

The organizational dynamics, internal velocities, social practices, daily rituals, and cultural needs are yet to be redefined. Practice processes and preparation for the unexpected invite multidisciplinary teams to reassess the probability of the unlikely events incite that every decision made today will inevitably weigh on the future. It is now likely that preparation for the next crisis–or the next phase of the current one–will be much more effective than an ad hoc, reactive reaction when the crisis actually strikes.

From our various explorations and findings, we conclude insights are highlighting the role of sustainability as a long-term strategy under complex conditions and efforts to make substantial investments and contributions.

Moreover, our research series made for the "Build a resilient and responsive organization" playbook indicates one variable most predictive of eventual success–preparation and anticipation towards dynamic crises.

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.—Michelangelo

The problem is that many leaders don’t know where to start. We've noticed that many risk-averse decision-makers evolving in uncertain environments are not confident of their gut instincts and suffer from paralysis of decisions. They avoid making critical strategic decisions about the technologies, markets, and products that they should develop. Due to adherence to standard operating procedures, most decisions are driven to bureaucratic solutions and extreme risk-reticence—[Read more on the previous review: Costs and benefits post-crisis].

Strategic decisions under uncertainty require alternative approaches

This is an attitude we can all recognize. Instead, although the "emergency" level requires responsiveness, the organizational focus is based on optimizing engineering processes, quality management, or internal cost-reduction programs. Although valuable, those procedures are not substitutes for sustainability strategies.

However, given the very different degrees of readiness across organizations, the high level of eventuality for upcoming disruptions, and the probability of being better prepared for future crises, it is worth trying to uproot what we have learned so far.

The following sources will help you get started for responding to unfolding events:

?? Upgrade your intelligence: identify the categories of historical data you are working within the context, the patterns, the salience bias. "Today, the largest companies in the world have made a fundamental shift, leaping a negative to a positive orientation when it comes to the widespread data analysis or the collection and use of big data." → [Continue reading "Data management for purpose-driven ecosystems" + "The responsible production and supply chains of the future"]

?? Detect the hype cycles: define your strategy (behavior, opinion, feeling, knowledge). "The process bears similarity with many other life cycle type processes, particularly the renewal cycle that can be defined in four phases of capital and connectedness." → [Continue reading "Evaluating resource management requires time and efforts" + "Resource and lifecycle management"]

?? Build resilience principles in developing policies: to define proper sustainable financial plans and embed them in the post-COVID-19 recovery corporate strategies: policies must be aligned with long-term objectives. "One of the main barriers for organizations to move away from business-as-usual is the organizational inertia and the lack of attention to societal problems and not considering the environment they are evolving in - that somehow have misled them during the pandemic."→ [Continue reading "The importance of quantifying purpose-driven ecosystems" + "How regulations and policies can support market recovery and encourage smarter investments"]

?? Organize readiness: "The plan for capacity building should include readiness, responsiveness, and the ability to evolve strategically and operatively and provide the necessary balances for financial stability despite the economic and geopolitical complicated environments."→ [Continue reading "#1 Build a resilient and responsive organization - Part 1/3"]

?? You can explore further from the series "From chaos to uncertainty": building resilience (part 1/3), recovery and well-being (part 2/3), and deploy sustainable approaches to innovation (part 3/3).

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Visual of the week

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Conclusion

Many organizations will need to supplement their standard strategy playbook to perform the kinds of analyses appropriate to what we call "the uncertainty constant." Diverse and inclusive plans and various techniques are fundamental to determining a strategy to apprehend uncertainty.

Continue reading on Nevelab's Vault.

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Explore more:

• ?? Should you make a big decision right now? [Read this here!]
• ?? How can technical expertise and economic empowerment support underserved communities and provide solutions to diversity, equity, and inclusion? [Read this here!]

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Special offer: Build a resilient and responsive organization, the playbook

?? Join the community on Nevelab's Vault: for each yearly subscription (20% off), get the "Build a resilient and responsive organization" playbook (value: $149, release March 1st, 2021).

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A few more things

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Disclaimer

The road to sustainability is an initiative by Nevelab Technologies and is circulated for informational and educational purposes only.

Nevelab Technologies Research utilizes data and information from the public, private and internal sources, including data from actual Nevelab open data access. While we consider information from external sources reliable, we do not assume responsibility for its accuracy.

The views expressed herein are solely those of Nevelab Technologies as of this report's date and are subject to change without notice. Nevelab Technologies may have a significant financial interest in one or more of the positions and securities or derivatives discussed. Those responsible for preparing this report receive compensation based upon various factors, including, among other things, the quality of their work and firm revenues.