Our world is shaping up to be precisely as Bennis and Nanus (1987) visualised when they described the VUCA world (volatile, uncertain, complex and ambiguous), says Dr Lynda Folan. This environment is creating a new level of challenge and disruption that permeates all aspects of our lives, and it’s no longer an option for businesses to stay static and keep doing what’s always been done….
The VUCA world demands that organisations evolve and adapt on an ongoing basis; challenge the status quo and find new ways of doing things. Teams must build the capacity to innovate and enable risk-taking. To thrive in the VUCA world, organisations must have the ability to consistently innovate and transform – whilst effectively balancing their focus. They must find a balance between reacting/adapting to external forces and driving innovation that will bring about transformation.
Outlined below are the five foundational requirements that teams must have in place to consistently push boundaries and drive innovation:
Leaders who are committed to creating a team culture that values innovation and risk-taking
Edgar Schein said: “The only thing of importance that leaders do is to create and manage culture.” The starting point of innovation and creativity sits with the leader and the culture they choose to create. So, build one that openly values innovation and creativity; one where every team member is supported to make mistakes. Research shows that high-trust team cultures that support empowerment are crucial to delivering innovation and creativity.
Ongoing development for resilience and innovation
Well-designed development strategies are crucial to unlocking the team’s potential. First, focus on strategies designed to enhance resilience and agility so the team can adaptively respond to the constantly evolving environment. The other critical developmental focus for teams should be innovation and risk-taking, giving them the tools and techniques they need for this capability.
Attuned to the external environment
Teams must keep a watchful eye on the external environment, maintain responsiveness to what they are observing and leverage this for innovation – it is no longer good enough to wait until external factors push for change. Charles Handy suggested that the best time to make changes is not after you have reached the peak of success but before you reach it. If teams do not continuously assess their environment and align with changing dynamics, they will eventually decline or become irrelevant to clients/customers/community. To consistently deliver innovation and stay ahead of the curve, the team’s external networks must be well-developed.
Demarcated innovation and experimentation
Innovation is a buzzword that few organisations fully understand and most fail to deliver. For a team to successfully transform, there must be demarcated time allocated to the process of innovation and creative thinking. Tacking innovation onto normal business activities is not enough. Innovation occurs when there is time to explore and experiment without restraints and timelines. This is most effective if it occurs outside the standard linear frameworks and everyday business contexts. If teams want to deliver innovation and push boundaries, there needs to be time and resources dedicated to this.
A reward structure that supports innovation
Stephen Covey said: “You basically get what you reward.” Most of our reward strategies in organisations are focused on individuals but if you want a team to deliver innovation and push boundaries, you need to reward them in alignment with these goals. Shift the focus from individual rewards to team-based rewards for innovation and risk-taking.
The VUCA world is unrelenting and will not allow us to rely on traditional ways of working. It is time to build resilient and agile team cultures that enable innovation and creativity and encourage risk-taking.
