19 annual congress southern african association of ... · understand the leadership challenges...

THE

Strategic Leadership Lectures

© Dr Sam RUTURI 2017 [email protected] Cell 263- 0734 371 341

19th Annual Congress

Southern African Association of

Accountants

TOPIC: VENUE: ELEPHANT HILLS HOTEL

VICTORIA FALLS

Date: 20th OCTOBER 2018

Facilitator: Dr Sam Ruturi

mailto:[email protected]

LET ME INTRODUCE MYSELF…

PRESENTER: Dr. Sam RUTURIFETC, (Lon),AIBS,(SA);AIB,(SA); Dip. H.F (USA), Grad. Diploma IMM (SA); BBA.(SA) B. Com. (SA) B Phil. (SA);

MSc. (UK); MBA (NUST) ,MBA,(USA) PhD (USA), MCom, (SA). DBA (France) (Pending)

Director & Senior Lecturer: 1. Mortgage Banking School of Southern AfricaPart-Time Lecturer: 2. MBA-GSM; University of Zimbabwe Part-Time Lecturer: 3. MBA-GSB; Chinhoyi University of TechnologyPart-Time Lecturer 4. MBL-GBS; Bindura University of Science& Education Consultant & Facilitator: 5. Strategy, Quality, Change and Housing Finance

Email address: [email protected] Cell; 0734 371 341 / 0712221348/ Tel.


UZ - MBA 543 - MANAGING CHANGE AND COMPLEXITY © DR. RUTURI 2014

3

Job Challenge What I do for fun

Who I admire Happiest momentin my life

PRESENTER: Dr. Sam RUTURIFETC, (Lon),AIBS,(SA);AIB,(SA); Dip. H.F (USA), Grad. Diploma IMM (SA); BBA.(SA) B. Com. (SA) B Phil. (SA);

MSc. (UK); MBA (NUST) ,MBA,(USA) PhD (USA), MCom, (SA). DBA (France) (Pending)

Director & Senior Lecturer: 1. Mortgage Banking School of Southern AfricaPart-Time Lecturer: 2. MBA-GSM; University of Zimbabwe Part-Time Lecturer: 3. MBA-GSB; Chinhoyi University of TechnologyPart-Time Lecturer 4. MBL-GBS; Bindura University of Science& Education Consultant & Facilitator: 5. Strategy, Quality, Change and Housing Finance

Email address: [email protected] Cell; 0734 371 341 / 0712221348/ Tel.

Day I bought

my first houseTom PETERS

Teaching people to

learn to act on what

they have learnt

LET ME INTRODUCE MYSELF…Dr Sam Ruturi

Play Golf

for Fun


4

WORKSHOP:LEADING CHANGE IN A

VUCA ENVIRONMENT

TEN MBA LECTURES: STUDENT WORKBOOK- UZ,MSU, IELE

LEADERSHIP

MASTERCLASS

CERTIFICATE

© Dr Sam Ruturi-2018

CHAPTER 1: OUTLINEReading Material

Learning Outcomes1. Understand the Mega-Buzzwords2. Understand the VUCA

Environmental Context3. Understand the Leadership

Challenges under VUCA4. Understand ROLES, Skills &

Competencies for Navigating the VUCA Environment

5. Understanding the VUCA PRIME, AGILITY, & LIVED Models. .

6. Conclusion

Question and Answers

SAAA © Dr. Sam RUTURI 2018 Email: [email protected] cell: 263 734371341


IntroductionThe President and Board Members of SAAA, Chief Executiveofficer Mr Alex Chidindi, and Staff of SAAA, Members,Distinguished Guests, Ladies and Gentlemen

• What I would like to offer you today, is a NEW LENS ofTheories that could be used to navigate the VUCA worldand overcome some of the challenges that are giving riseto the problems afflicting your industries today.

• I will also offer you some insights on how some of thesetheories have been used successfully by institutions thathave been able to withstand the test of time.



The quality of Accounting and Finance Professionals and

their ability to navigate the VUCA World, matters more

than we’d like to think it does.

• “The ability of companies to adjust theircapabilities and direction over the longterm to meet the challenges of new marketsand new competitors – grows directly out ofthe quality of leadership they receive fromAccountants and Finance Professional thatare tasked to run them …”

• Joseph L. Bower, The CEO Within: Why Inside-Outsiders are the Key toSuccession Planning


"In a time of change, it is learners who inheritthe future. The learned find themselves wellequipped to live in a world that no longerexists." — Eric Hoffer

Carpe Diem


Please apply these theories because:“There is nothing so practical as good Theory”

The NEW LENS of Theories :


• Leadership Vs Management

• Spotting Megatrends

• Business Environment And Nature of Turbulence

• Disruptive Innovations

• Hyper-competition

• VUCA – VOLATILE, UNCERTAIN, COMPLEX,

AMBIGUOUS

• NAVIGATING

• LEADERSHIP

• TURBULENCE

• COMPETENCE DESTROYING

• STABLE EQUILIBRIUM

• PUNCTUATED EQUILIBRIUM

DISEQUILIBRIUM

• CHAOTIC

• RISK

• Conclusion

• According to Tom Peters, the author of In Search ofExcellence and A Passion for Excellence, says in hispreface to Thriving on Chaos:

• “The winners of tomorrow will deal proactively withchaos,

• They will; look at chaos per se as the source of marketadvantage, not as a problem to be gotten around.

• Chaos and uncertainty are number one marketopportunity; capitalizing on fleeting market anomalieswill be the successful business’s greatestaccomplishment.”

• In the midst of chaos others see orderwith a lot of money to be made due to theabundance of opportunities.

LEADING AT THE EDGE OF CHAOS


A PARADIGM SHIFT THREE STAGES

National Independence

National Reconciliation & Development1980

ZIMCORD

Successive Currency Devaluation

ESAP

2009-2014

1997-2009

Stage of Normalcy Stage of Anomalies Stage of Replacement

Perf

orm

ance

20161980-1997

1980-1997 Things worked according to expectations

1997-2009 Events on the ground contradict the paradigm

2009 -2014 There was change over to a new paradigm as expectations have changed

Education & Healthcare Expansion 1997

Black Advancement

LEADERSHIP IN ZIMBABWE IN THE LAST 38 YEARS

MANAGERIAL PARADIGM: CONSISTS OF THE WAY

MANAGERS THINK AND ACT WHEN CONDUCTING BUSINESS.

1.Multi-currency regime

2.GNU

3. Economic Stability

4. Liquidity Crunch

4. Industry Closure/ Consumer economy

6. Political Instability

7. B

on

d N

ote

Th

reat


3.Hyperinflation

2.Devaluation of Zim$

1.Formation of MDC

4.Bearer Cheques / Agro Bills

5.Land reform

6.Collapse of Industries

7. Brain-drain

STAGES IN A PARADIGM SHIFT

RETURN TO PERIOD OF ANOMALIES 2014-2018

Printing of TBs & Bond Notes

Goods Disappear from Supermarket Shelves

ED PFEE

Fuel Shortages

Liquidity Crunch

Return of Black Market Economy

Political Instability

Industry Further Collapses

GeneralElections

Divided MDCLoosing Elections

Gamatox Vs

Weevils

G40 Vs LACOSTE

Insurrection Youth Interface Rallies

Regime Change

Food Shortages

Succession Issue In ZANU PF

Cholera & Typhoid Outbreak

Dual Currency RTGSVs US Dollar

GeneralElections

VP & CabalFIRED

VP & CabalFIRED

SI 205 of2018

MANAGERS SUFFER DISORIENTATION BECAUSE OF

THE VUCA ENVIRONMENT

People Want Change That Brings

Added Stakeholders ValueKeep Accounting Skills

But

BRING PROFOUND

CHANGE

CHANGE IS

THE ONLY

CONSTANT – Marcus Aurelius

Will Your Job Be Done by a Machine?

• Accountants and FinancePractitioners have 93.5%chane of their jobs being doneby machines

• Tax Preparers have a 98.7%chance of their jobs beingautomated.

Understand the VUCA Environmental Context

Understand the

VUCA

Environmental Context

Where did VUCA come from?

• The US Military started using this termin late 90s for the post-Cold War world

• It reflects a fast-paced, increasinglyunstable and rapidly changing world

• It implores us to deal with a changingbattlescape

• Business leaders face a similar,challenging, dynamic businesslandscape

Volatility The nature, speed, volume,

magnitude, and dynamics of

change

Uncertainty The lack of predictability of

issues and events.

Complexity The confounding of issues

and the chaos that

surrounds any organization.

Ambiguity The haziness of reality and

the mixed meanings of

conditions.

We are living in a VUCA world

SINK or SWIM

Lets Look at a Broad Toolkit for Stable and Turbulent Environments

VUCA-Volatility, Uncertainty, Complexity & Ambiguity

1. ExternalForces

2. InternalForces

Two Main FORCES DRIVING CHANGE

If the rate of change outside is faster than the rate of change inside.

You know the end is near. -Jack Welch

20

A NEW SET OF NON-LINEAR SKILLS ARE

REQUIRED

Study The Rain Clouds: Clearly, A Change is Needed

SAAA Dr. Sam RUTURI 2018 Email: [email protected] cell: 263 734371341

External Forces Industry Forces

Internal Forces

Flatter and Leaner

Technology

KNOWLEDGE

ECONOMY

Globalization& Emerging

Markets

Socio-

cultural

Changes

Fiscal Inexactitude

Innovation & Changing Strategies

Hypercompetition

DIGITAL CONVERGENCE

Regulatory

Changes

Marketplace

Disruptions

Political

UpheavalsSocial

Upheavals

VIRTUAL

ORGANIZATIONSIndustry

Collision

WHAT KIND OF A WORLD ARE WE LIVING IN?We are living in a world that is driven by relentless challenges, issues &

dilemmas. These factors are driving change, and uncertainty in your firms.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=8-YhY3zobYHC7M&tbnid=glELpoFCw13K6M:&ved=0CAUQjRw&url=http://www.theintegratedretailer.com/news/917/supermarkets-lead-the-way-when-it-comes-to-rewarding-customer-loyalty/&ei=uMrXU_uNFtWeyATeuIGoDA&bvm=bv.71778758,d.aWw&psig=AFQjCNHaasMWLiXFB9MkR6damd1CEoQ_Mw&ust=1406737354447195

UNORDERED Pattern Based Leadership

ORDERED Fact based Management

CHAOTIC - VUCADisequilibriumActSense Respond

COMPLEX –PeriodicPunctuated-EquilibriumProbeSense Respond

COMPLICATEDFluctuating EquilibriumSense

AnalyseRespond

SIMPLE–Sense-makingEquilibriumCategorise

Respond“known problemsknown solutions”

“unknown problems-unknown solutions”

“known problems

unknown solutions”

“unknowable problems-unknowable solutions”

The Cynefin Framework


TIME

PE

RF

OR

MA

NC

E

TIME

PER

FOR

MA

NC

E

Clear –enough future

TIME

PE

RF

OR

MA

NC

E

TIMEP

ER

FO

RM

AN

CE

Typ

e o

f D

isru

pti

on

Competence

Neutral/

Enhancing

Competence

Destroying

Frequency of DisruptionHighLow

The Nature of Change: Turbulence

Turbulence is Disruption of the Status Quo

DisequilibriumPunctuated

Equilibrium

EquilibriumFluctuating

Equilibrium

Today’s Work Environment

THE NEW NORMAL

VVOLATILITY

UUNCERTAINTY

CCOMPLEXITY

AAMBIGUITY

25

LEADERS MUST LEARN❑Leaders are already experiencing

volatility , uncertainty, complexity and

ambiguities in their operating

environment.

❑Therefore Accountants as leaders

must learn what is driving change.


92% of Accounting and Finance Professionals are NOT Future Ready!

• Future Ready is the capacity to

be aware, predictive, and

adaptive of emerging challenges,

technological innovations, and

trends and changes in business,

population, and social

environment.

War for Talent-Brain Gain

• Those who build great companiesunderstand that the ultimate thrust ongrowth for any great company is notmarkets, or technology, or competition,or products. It is one thing above allothers: the ability to get and keepenough of the right people. - JimCollins

Are you the right person for your firm?

WHAT DRIVES • Technology –Customers of the future want immediate results

• Industry Collision –Telecoms, building societies, banking and retail, channel convergences, global information

• New EntrantsThey don’t play by the rules, they redefine the rulesof the game, benchmark against best –in- class

• Customer Sophisticated• Vote with their feet• Never talk to a customer who has more information than you do.


YIELDS TO

Create a vision and “make sense of the world.”

❑ Things Changing Rapidly.

❑ Clear Vision- Focused People.

Right Direction Informed Choices.

Communicate Belief Focus

See things from a more strategic & long-term perspective

VUCA PRIME MODEL

• CURIOSITY - ask questions (coach) that challenge

the status quo in your organization every day

• EMPATHY - get where people are coming from – their

hopes, fears and desires

• OPEN MIND - explore new ideas, reflect and seek

constructive criticism

• IDENTIFY CAUSES – nothing happens out of nothing

UNCERTAINTY

YIELDS TO

VUCA PRIME MODEL

31

Multiple and competing realitiesSAAA © Dr. Sam RUTURI 2018 Email: [email protected] cell: 263 734371341

Hyper-competition

Leadership

Failure

Industry

Collision

Political Factors

Technological

Change

Disruptive

Innovation

Sanctions

Indigenisation

Policies

Culture of

Entitlement

Dependency

Culture

Micro

Management

Liquidity

Shortages

Lack of

Exports

Knowledge

Economy

COMPLEXITY - Yields– TO CLARITY

VUCA PRIME MODEL

• SIMPLIFY - chop the fat, cut through the

complexity and distill the core down to its essence

• INTUITION - use the gift of knowing without

reasoning, trust your gut and your experience

• SYSTEMS THINKING - approach problems from

a holistic perspective (a system of dynamic,

interacting, interdependent parts)

YIELDS TO

COMPLEXITY

• DECISIVENESS - adapt quickly to changing

circumstances and make decisions with confidence

• INNOVATE OR DIE - learn from your mistakes and

continuously seek new ways to get better at what

you do

• EMPOWER - value networks over hierarchy,

collaboration over control and set people free to do

great work

VUCA PRIME MODEL

YIELDS TO

Am

big

uit

y Agility

Stakeholder GroupsStakeholder groups will see things according totheir stake in the problem. Thus there are manydifferent ideas about what kind of solutions theremight be. We See & Value The Same Thing Differently


UNDERSTAND

LEADERSHIP

CHALLENGES

36

IT’S A VUCA WORLD!

“We are moving from a world of

problems, to a world of

dilemmas”

MOVE FROM TERRA FIRMA TO TERRA

INCOGNITO.

DON’T MANAGE YOUR BUSINESSES INTO

OBLIVION BY BEING SATISFIED WITH THE

STATUS QUO.


Primary Differences Between Risk Versus Uncertainty/ Ambiguity

Terra Firma: Risk - Known

World of Problems

Terra Incognita: Uncertainty -

Unknown World of Dilemmas

Known markets Uncharted markets

Known products Uncharted products

Known customers Uncharted customers

Known business models Uncharted business models

Known Competitors Uncharted Competitors

Known Technology Uncharted Technology

Many known variables & data

exists

Many unknown variables & no data

We can calculate risk& take a

spreadsheet based design

doing what if analysis,

simulations and modelling.

Cannot calculate uncertainty and

decisions need to be made with

minimum spreadsheet calculations

Risk Managers Uncertainty Navigators

THERE ARE TWO TYPES OF LEADERS

Quality ControlCreativity

Methods

Assets Utilisation

Corporate Rebranding

& New Brand

Development

Operational

EfficiencyGlobal Research

LogisticsStrategic Alliances

& Partnerships

Cycle TimesFuture Strategy: DI.

BOS, &

Hypercompetition

Managing Costs Growth /

Innovation

COMPETING ON THE EDGE OF CHAOS

Paradigm Re-

invention

ParadigmShift

Paradigm Pioneer

Paradigm Paralysis

Stand still Improving Benchmarking Resistance to Change

Out of the Box

New Context

Impact of Transformational and Change

Sco

pe

of

Tran

sfo

rmat

ion

an

d C

han

geThe Current Known World The Future, Unknown

Paradigms

Reinvented

Transformation

Quantum Change

or Demise

Paradigms

Challenged

Environmental Change Curve

The Edge of

Chaos

Discomfort

Management Paradigm

Focus on DoingLeadership Paradigm

Focus on Being

What is Your Unique Position?

Risk

Uncertainty

Ambiguity

Risk

Managers

Uncertainty

Navigators

Ambiguity

Explorers

High

LowLow High

Problem Clarity

So

luti

on

Cla

rity

Too Many

Too Few

Too

Much

Scarcity

Leadership

Competencies

& Skills

The VUCA Prime can be seen asthe continuum of skillsleaders can develop to helpmake sense of leading in aVUCA world.

VUCA model identifies theinternal and externalconditions affectingorganizations today. Thechaotic “new normal” in

business is real.

VUCA MODEL VUCA PRIME MODEL

V

C

UA

Volatility

Uncertainty

Complexity

Ambiguity Yield toVUCA

43

U ncertainty Yields to U nderstanding

V olatility Yields to V ision

C Omplexity Yields to C larity

A mbiguity Yields to A gility

VUCAVUCA MODEL VUCA PRIMEYields to

Graduate School of Management-University of Zimbabwe - MBA 543 - Managing Change & Complexity © Dr. Sam RUTURI 2017 Email: [email protected] cell: 263 734371341 Landline 263 4 750447/8


ANTICIPATE

• This is the ability to

see way in advance

whats next

• Disruptions:

• Problems:

• Customer Needs:

• New Opportunities

• This is the ability to see way in

advance whats next

• BEFORE THEY HAPPEN

• BEFORE YOU HAVE THEM

• BEFORE THEY HAVE THEM

• BEFORE THE

COMPETITION

ANTICIPATORY FINANCE AND ACCOUNTING PROFESSIONAL

Anticipatory

Reactionary

Future Focused

Legacy Thinking

Transform & extend

Protect & Defend

PEOPLE CULTURE PROCESS

Current Organisation

Anticipatory OrganisationTo

ols

an

d S

kil

ls A

pp

lied

ANTICIPATORY LEADERSHIP

AO

CO

ACTUALISED

OPPORTUNITY

MAXIMUM

OPPORTUNITY

Current

Opportunity

Opportunity

Matching Your Mindset to Turbulence

The Nature of Change and the Nature of Competitive Advantage

Typ

e o

f D

isru

pti

on

High

Fluctuating

Equilibrium

➢ Leverage Layer

Core of

CompetenciesDisequilibrium- VUCA

➢Disruptive Innovation

➢Hypercompetitive Strategies

➢Industry Convergences

Low

Equilibrium➢ Defensive Strategies

▪Strong Barriers &

▪Monopoly Power

▪Cartels, Associations

Punctuated Equilibrium ➢Strategy as Revolution❖Open Boundaries

❖ New Market Space

❖ Rebranding

❖ New Products/ scope

❖ Unbundling

❖ Partnerships & alliances

Competence

Neutral/

Enhancing

Competence

Destroying

The Nature of Change and Strategy


THERE ARE THREE MODELS WHICH I RECOMMEND LEADERS TO ADOPT

VUCA PRIME MODEL

AGILITY MODEL

LIVED MODEL

OTHER COMPETENCIES

Leadership Strategies and Tactics

V.U.C.A. Leadership

Skills

Competencies

Volatility Vision Flexibility, Insightfulness, and

situational awareness

Uncertainty Understanding Initiative and Listening Generously

Complexity Clarity Intuition and Collaboration

Ambiguity Agility Perspective taking, Openness to others

and Tolerance

Instructions

Using 1 identified competency from each V.U.C.A. condition, explain how

that competency supports each of the Leadership Strategy responses, in

other words, how does developing the competency of Flexibility support

Vision as a Leadership Strategy?

The AGILE Leadership Model for changing worldprovides five drivers for dealing with VUCA, asfollows

• Anticipate Change: Interpret the potential impact of businessturbulence and trends along with the implications to the enterprise.

• Generate Confidence: Create a culture of confidence andengagement with all stakeholders especially associates in effectiveand collaborative teams.

• Initiate Action: Provide the fuel and the systems to enable things tohappen proactively and responsively, at all levels of theorganization.

• Liberate Thinking: Create the climate and conditions for freshinnovative solutions by empowering, encouraging, teaching andexpecting others to be innovative.

• Evaluate Results: Maintaining a strong focus and feedback systemto continuously learn and improve from actions and changingdynamics.

Phase – 2: Review of Models available for dealing with VUCA:

2. AGILE Model

2. AGILITY MODEL For Agile Leadership

The AGILE Leadership Model for changing world

provides five drivers for dealing with VUCA, as follows

Anticipate Change:

Interpret the potential impact of business turbulence

and trends along with the implications to the

enterprise.

Generate

Confidence:

Create a culture of confidence and engagement with

all stakeholders especially employees/ associates in

effective and collaborative teams.

Initiate Action: :

Provide the fuel and the systems to enable things to

happen proactively and responsively, at all levels of

the organization.

Liberate Thinking:

Create the climate and conditions for fresh innovative

solutions by empowering, encouraging, teaching and

expecting others to be innovative.

Evaluate results:

Manages own emotions effectively, builds positive

relationships and uses emotions to influence and

inspire others

AGILE Model

55

Team development

What individuals are

doing to grow

capacity in their

teams:

• Collaboration

• Systems thinking

• Value diverse

perspectives

• Driving results

Skill building Developing learning agility:

• Present new learningexperiences toaddress complexchallenges

• Provide opportunitiesto reflect and makesense of newexperiences

• Find ways toincorporate new skillssets into daily work

The Three Phase Journey In Agility

Learning

agility

Developing capacity for agility

Leadership

agility

Enabling the enterprise

Broader actions leaders take to embed agility as an enabler:• Define what agility looks

like in business/strategy

• Socialize new thinking

• Create learningenvironment

• Reinforce/reward agilityin action

• Build stakeholdercoalitions for success

Strategic /Enterprise

agility

Relational

Web

Three Perspectives of Agility

Leadership

Agility

Learning

Agility

Strategic/

Enterprise

Agility

Three Perspectives of AgilityLeading Self Learning Agility

is the ability to rapidly develop neweffective behaviour, based on newexperiences.

Relational

Web

Relational Web

is the personal

and system-wide

network for

mutual support,

coordination,

resource and

idea sharing.

While it includes

your social

network, it also

includes your

relationship and

access to

relevant

knowledge and

resources.

Leading Others

Agile Leadershipis inclusive, democratic, and exhibit a greater openness to ideas and innovations. With a passion for learning, a focus on developing people, and a strong ability to define and communicate a desired vision.

Leading Organisations

Strategic agility

Is the ability of an organization to

sense and respond to opportunities

or obstacles through planning, swift

execution and effectively

Learning agility is the ability

andwillingness to learn

from experience,and subsequently apply that

learning to perform successfully under

new or first-time

conditions.

Learningagility

Learning Agility Factors

Mental

agilityThose with this type of

Are very curious.

Get to the root causes.

Have a broad perspective.

Find parallels and contrasts.

Question conventional wisdom.

Find solutions to tough problems.

People

agility...Those with this type of

❑Understand others.❑Are skilled communicators.❑Enjoy helping others succeed.❑Are comfortable with

diversity.❑Handle conflict constructively.❑Use others effectively.

62

Change

Enjoy tinkering with things.Often introduce new perspectives.Strive for continuous improvement.Can take the heat and pressure of change.Understand impact of change and how to manage it.


Results

Build high-performing teams.Are very flexible and adaptable.Perform well in first-time situations.Driven by challenge.Accomplish things against the odds.


Self-Awareness


Actively seeks feedback.Tend to be self-reflective.Is candid to a fault about self.Sensitive to their impact on others. Know personal strengths and weaknesses.Take corrective action based on feedback

SELF

Leadership Agility Profile

LEADERSHIP AGILITY PROFILE

FIVE KEY DRIVERS OF LEADERSHIP AGILITY

• Anticipating change

• Generating confidence

• Initiating Action - Act with & communicate a sense or urgency:–

collaborating, decision making, & bias for action

• Liberating thinking – personally employ out of the box thinking

• Evaluating Results – obtain regular feedback and learning from

your results

Being Agile While Doing Agile Individuals

&

Interactions

Working

Software Customer Collaboration

Responding

to Change

Bein

g A

gile A Anticipate Change

G Generate Confidence

I Initiate Action

L Liberate Thinking

E Evaluate Results

Doing Agile

1. BUSINESS AGILITY For Agile Leadership

Self ActivityHow much of your organization’s strategy is dependent on each

of the five factors on a scale from 1 to 5 (1 – the least, 5 – the most)?

Mental Agility

People Agility

Change Agility

Results Agility

Self-Awareness

1 – 2 – 3 – 4 – 5

1 – 2 – 3 – 4 – 5

1 – 2 – 3 – 4 – 5

1 – 2 – 3 – 4 – 5

1 – 2 – 3 – 4 – 5

Strategic Fit Illustration• Strategic fit index for innovation and mergers and acquisitions

(M&A) strategies. Learning agility profiles for companies pursuing:

• Innovation - need talent with high levels of Mental and Change Agility.

• M&A - need talent with high levels of Change and People Agility.

Enterprise Agility Diagnostic

How agile are we? Which areas are critical to our strategy?

How ready are we?

Overall strategic fit Strategy ReadinessFactors results and

importance to strategies

Enterprise Agility DiagnosticWhich areas are critical to our strategy?

Factors results and importance to strategies

3. LIVED MODEL

The LIVED Model provides a framework for

Leadership Assessment in a VUCA World.

Learning:

Willing and able to adapt to new environments and challenges

by drawing on learning and feedback from previous

experiences

Intellect:

Thinks incisively, deals effectively with complex and ambiguous

information, sees issues in a broader context and takes sound

decisions based on this analysis

Values:

Acts in an authentic and consistent way, inspires trust and

demonstrates integrity, courage and respect for others

Emotions:

Manages own emotions effectively, builds positive relationships

and uses emotions to influence and inspire others

Drive: Sets challenging goals, takes an action-oriented approach and

shows passion and determination to overcome obstacles, act

decisively and achieve results

The LIVED Leadership Model Dimension Definition Elements

Learning

Willing and able to adapt to new

environments and challenges by drawing

on learning and feedback from previous

experiences.

❑ Finding Learning

Opportunities

❑ Evaluating Experiences

❑ Applying Learning

Intellect Thinks incisively, deals effectively with

complex and ambiguous information,

sees issues in a broader context and

takes sound decisions based on this

analysis.

Incisive Analysis

Strategic Perspective

Insightful Judgement

Values Acts in an authentic and consistent way,

inspires trust and demonstrates integrity,

courage and respect for others.

Acts With Integrity

Fairness and Respect

Courage

Emotions Manages own emotions effectively, builds

positive relationships and uses emotions

to influence and inspire others.

Managing Own Emotions

Building Relationships

Influencing and Inspiring

Others

Drive Sets challenging goals, takes an action-

oriented approach and shows passion

and determination to overcome obstacles,

act decisively and achieve results.

Action Orientation

Drive for Results

Enthusiasm and Commitment

Phase – 4:Leadership Competencies for

A VUCA World• Following is a list of Leadership Competencies

along with a short/simple in-built description ofchange management aspect, in view of theneeds of VUCA.

• Some of these competencies could be a part andparcel of existing competencies; however,keeping the needs of VUCA in mind, it may berequired to redefine them.

• Again, customization of content shall be donebased on specific needs of organizations.

[1] Adaptive Mind-set: Being able to navigatesuccessfully through the maze of VUCA, beingcomfortable with unclear situations and being readyto move in unexplored paths

[2] Agile Learning: Being in a constant self-learningmode; being a beginner and a curious learner ofnew concepts, techniques etc.; having the ability tounlearn what is not relevant.

[3] Anticipate Change: Having a future mindednessand strategic foresight to estimate the possiblechanges that could occur in future

[4] Design for Future: Design systems, procedures,networks and alliances to safeguard the interests ofthe organization from unexpected challenges

Phase – 4:Leadership Competencies for

A VUCA World

[5] Develop Others: Creating learning forums; coach &mentor others and enable them to tap their latentpotential; provide futuristic orientation in view of the latesttrends

[6] Flexibility: Being open to consider the ideas of others;accept criticism; learn from exposure of others and takelead where necessary, instead of preferring own ideasalways.

[7] Guiding Change: Being there with the people andmanagement through the stages of understanding,initiating and mobilizing, whenever change occurs in theorganization

[8] Human Engagement: Promote the basic drivers ofhuman motivation: trust, hope, sense of worth, feel ofbeing competent etc. in the organization and constantlyencourage people to play active roles in the organization

Phase – 4: Leadership Competencies for VUCA World

[9] Inspiring Others: Motivating others so as to ensure theycontribute willingly and find job satisfaction and stayintact through changing times

[10] Mindfulness: Being observant of own actions; beingwatchful of when the actions of self could adverselyimpact others; being alert in focusing efforts in line withthe immediate needs/priorities of the organization

[11] Self-Awareness: Having an accurate picture ofstrengths and weaknesses of self; making it a consciouspractice of increasing awareness in line with the changesin internal and external environments

[12] Situational Awareness: Being able to comprehend thecurrent happenings and having the ability to forecast thenear future occurrences by studying the recent trends

Phase – 4: Leadership Competencies for VUCA World

COMPETENCY DEVELOPMENT

It may be noted that this is only an indicative list withsimplified definitions.

Competency development, in the first place, requiresdesigning of the entire competency managementsystem that involves

(a) identification of competencies,

(b) developing the competency content withproficiency levels,

(c) mapping & profiling of competencies based onroles

(e) initial assessment of competencies,

(f) giving feedback to concerned individuals and

(g) initiating developmental activities.

IV. CONCLUSION• VUCA has become inevitable for organizations and

people; all that one can expect now is more VUCA.

• After witnessing the fate of once highly successfulcompanies like Kodak, Enron, WorldCom, Pan Am, Nokiaand close to home ZUPCO, POSB, corporates do notneed more examples.

• The only thing they can do is to embrace this new normaland learn to live with it.

• In order to just survive, if not to thrive, the one thing thatorganizations must and should do is to develop theirleaders who in turn can guide their organizations throughthe turbulences of VUCA.

• VUCA is so unforgiving that an organization which takesno time to prepare could fall prey to its perils.

• What Mr. Jack Welch had quoted cannot be forgotten:

“If the rate of change on the outside exceeds the rate ofchange on the inside, then the end is near.”

What is VUCA?

❖Volatility - ‘A high rate of change’

❖Uncertainty - ‘Lack of clarity about the present and the future’

❖Complexity - ‘Multiple factors impacting key decisions’

❖Ambiguity - ‘Lack of clarity about the meaning of events’

Worksheet #1 – V.U.C.A. Defined• The acronym V.U.C.A. stands for:

• Volatility - Is the speed of change compounded by the whiplash

of unanticipated forces, and radical shifts.

• Uncertainty – Critical decision making information is only

partially available and much is ambiguous. This situation is in

competition with external forces and pressures that work to redirect

focus.

• Complexity - There are so many interdependent elements that

all proposed solutions have unforeseen and unintended

consequences that can negatively impact project success.

• Ambiguity – A lack of clarity, loss of stability, and exactness

creating a situation where opposing solutions can be equally true.

• Directions

• Using the definitions provided, have students discuss the

definitions of V.U.C.A. and relate personal examples of each of

the circumstances.

References

• What VUCA Really Means For You by NathanBennett and G.James Leoine, HarvardBusiness Review, January 2014 (Kindle edition)

• Winning a SuperVUCA World – saatchikevin.com/Winning_in_a_SuperVUCA_World/

VUCA - http://en.wikipedia.org/wiki/Volatility,_uncertainty,_complexity_and_ambiguity

http://en.wikipedia.org/wiki/Volatility

But for the Future

–Accountants– Beware of Arrogance

“Today’s Peacock is Tomorrow’s Feather Duster”

Dr Sam RuturiMBSSA Training and Advisory Services

A division of

Mortgage Banking School of Southern Africa (Private) Limited

80 Folyjon Crescent, Folyjon Estate, Glen Lorne, HarareEmail: [email protected]; [email protected]

[email protected]@mbssa.net ; [email protected]

Telephone:263 773610 590, 263 712 610 590Cell; 263 - 0734 371 341 or 263 - 0712 221 348







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