Prosperity out of Adversity – Paving the Way: Managing Chaos

If you haven’t noticed – the world is changing – fast.

In the book, No Ordinary Disruption, which is based on years of research by the McKinsey Institute, the authors make the case that the world economy’s operating system is being rewritten. That there are four disruptive forces at work.

One of the disruptive forces is accelerating technology change - the acceleration in the scope, scale, and economic impact of technology. The furious pace of technological adoption and innovation is shortening the life cycle of products and companies and forcing executives to make decisions and commit resources much more quickly.

Much as waves can amplify one another, these trends are gaining strength, magnitude, and influence as they interact with, coincide with, and feed upon one another. Together, the four fundamental disruptive trends are producing monumental change.

Today, they are disrupting long-established patterns in virtually every market and every sector of the world economy–indeed, in every aspect of our lives. Everywhere we look, they are causing trends to break down, to break up … or simply to break.

We Live in a Time of Market Disruption

Many business leaders believe that it is actually harder to do business today than it was five years ago. Research points to the fact that competitive intensity has doubled during the last 40 years, and the rate at which large companies have lost their leadership positions has more than doubled. And looking forward, it may be even harder. … 

Compared with the Industrial Revolution, the estimates are that this change is happening 10x faster and at 300x the scale, or roughly 3,000x the impact. Although we all know that these disruptions are happening, most of us fail to comprehend their full magnitude and the second- and third-order effects that will result.

It’s A VUCA World

There is a term in the defense community called VUCA. It is short for the description of the environment – Volatile, Uncertain, Chaotic, Ambiguous. In business, as in warfare, when things become uncertain and chaotic, people can “hunker down” and get stuck.

Our world is changing radically from the one in which many of us grew up, prospered, and formed the intuitions that are so vital to our decision making.

And yet there are still a few business myths out there that keep trying to feed us disinformation. Like chaos is just noise and, as long as you spend your time running the business, everything will be okay. Or that your industry is protected due to capital intensity, strong relationships and high barriers to entry.

Bottom line, the world is moving so quickly that there is no steady state. Change has become the new normal, so adaptation and a commitment to strategic growth is critical.

Looking Inside-Out for Growth in a Turbulent World

After hailing the prospects for global economic growth, CEOs have curbed their enthusiasm given the trade issues, growing barriers between markets and uncertainty about the ease of doing business there.

According a survey by PwC, CEOs cite the best revenue and expansion opportunities are more internally oriented and closer to home. As they turn to what they can actively control inside their organizations, they confront the cracks in their own capabilities, especially the information and skills gaps.

While hailing the promise of BIG Data and Artificial Intelligence, organizations struggle to corral data into useable and actionable intelligence. In terms of additional concerns about the skills gap, this was their response:

·        55% said their organizations are not able to innovate effectively

·        52% said their people costs are rising more than expected

This reminds me of the what is known as the “founder’s mentality” coined by Bain & Company. They discovered that CEOs cited internal obstacles as the primary reasons for not meeting revenue and growth targets. Too often, it’s the internal capabilities that are lacking.

Is Chaos Stealing Your Growth?

If we look at the world through a rear view mirror and make decisions on the basis of the intuition built on our experience, we could well be wrong.

Business models that have lasted for decades are now under increasing threat as a result of market and technology disruption. The lines between industries are blurring, while technology change is increasing. This is leading to slower growth or the elimination of it all together. 

Bottom line, the world is moving so quickly that there is no steady state. Change has become the new normal, so adaptation and a commitment to strategic growth is critical.  

Complacency can be fatal in today’s dynamic markets.

Why not try something new - Use Chaos to Your Advantage.

Motivational Tip # 14 – Gamify Your Approach

If you are having trouble continuing toward a goal, often you may be thinking too hard about it. The usual worry-mind takes over, cataloging all the reasons that something could go wrong, why you are not up to the task, or why you are destined to fail. What would happen if you switched your perception? Think to yourself: this isn’t a high-stakes situation (it rarely is), this is a just a game.

When you start looking at a goal or a project as a game, it suddenly takes the pressure off. It also helps to focus on little wins. Instead of feeling pressure to accomplish something, it becomes a fun challenge. Men who are particularly successful at meeting women often use this psychology: they see it as a numbers game. Each time they go out to talk to women, they know they will “win some and lose some.” But by thinking of it as a game, adding in their own rules and rewards, it helps them relax and enjoy the challenge. 

Rich Kohler is the Private Growth Advisor To Aerospace & Defense CEOs who are looking to Boost Profitability and Organization Value. A former Fortune 500 executive with over 30 years of “street smarts” in business strategy, marketing, new business development, executive and leadership development, Rich works extensively with CEOs, Senior Executives and Business Owners at mid-size, privately-held and Fortune 500 companies to successfully identify areas that restrict profit and sales growth. 

?? If you are open to a different perspective to growing your business, contact me at 480-766-1772, or email me: [email protected]