December 1, 2017
Volatility and Uncertainty No Deterrent to Business
Success
EAST
GREENWICH, RI—The uncertainty of natural disasters, as well as labor and
political unrest across the globe, should not derail smart businesses from
continuing to grow and thrive, according to The Society for the Advancement of
Consulting® (SAC).
Keep up the Speed to
Stay Ahead of Trends
“In spite of the volatility associated with the last few
years from politics to natural disasters, the U.S. stock market is at a
multi-decade low in terms of volatility, according to the Chicago Board Options
Exchange’s Volatility Index (VIX),” points out Lisa Anderson,
known as The Manufacturing Business TransformerSM and president of LMA Consulting Group, Inc., Claremont, CA.
“We have a bit of a dichotomy across the board,” Anderson
notes. “To successfully navigate these ever-changing waters, leaders must rise
to the occasion. Agility is more important now than ever before! Speed is
essential.
“Just as in jet skiing, you don’t successfully jump waves by
going slow. Instead, speeding up is the only path to safety. To stay on the jet ski, it also helps to read
the waves. Staying in front of the coming trends and building your predictive
muscle is paramount to thriving in this environment,” she adds.
Stay Focused on the Strategic Factors that
Matter
Rebecca
Morgan, founder of strategic manufacturing operations consulting firm Fulcrum
ConsultingWorks, says: “Wow, talk
about uncertainty. Brexit. Trump. Catalonia. Healthcare. Tax reform. North
Korea. How’s a business owner supposed to make good strategic decisions under
these circumstances?”
Morgan
has three guidelines. “First, remember there is a big difference between what
has happened, what will definitively happen, and what might happen. Second, distinguish between short term
and long-term factors. And third, identify elements that will significantly
impact your industry and business regardless of fluid political leadership,
tariffs, trade pacts, and labor laws,” she says.
“Look for the things that are certain, and those
that will matter over time. Ensure that your vision, strategy, and capabilities
in those arenas are always top priorities. Then, and only then, add near-term
opportunistic strategic alternatives to the mix.
“It’s easy
to react to every headline. Don’t do it. Absolutely stay abreast of advances
around and in your industry. And create your own. Certainly, consider
opportunities to gain market share. But don’t waste precious resources on
brawling battles that are not strategic to the war you intend to win,” Morgan
adds.
Mindful
Leaders Create Change Resiliency
Dr. Maynard Brusman, a consulting psychologist, executive coach,
and emotional intelligence/mindful leadership expert, notes, “As the world
becomes more volatile, uncertain complex and ambiguous (VUCA), there is a need
for inspiring leaders to lead innovative organizational change initiatives.
Neuroscience research shows that employee engagement conversations are critical
so that people feel they have control over their lives.”
According to Dr. Brusman, “Change resilient leaders create purpose-driven cultures where there is
clarity, psychological safety, respect, shared values and trust. Agile leaders
inspire everyone with a shared vision of a sustainable future.”
Dr. Brusman advises his clients to develop a growth mindset and
resilience to thrive in uncertain times. Resilience is the process of adapting
well in the face of adversity, tragedy, threats or significant sources of
stress. It means ‘bouncing back’ from difficult experiences. Resilience
involves behaviors, thoughts and actions that can be learned and developed.”
Balance
Reaction and Complacency
“Natural disasters, armed conflict, and political unrest
have always been with us”, says Patrick Daly, Managing Director of
Alba Consulting
Group. “The world economy today and the global supply
chains that underpin it are more interconnected and co-dependent than ever
because of advances in transport, communications technology and the integration
of previously underdeveloped parts of the world into our global productive
networks.
Daly adds, “The critical capability that businesses need now
to thrive is a deep and broad understanding with clear perspective on global
events and whether they need to change their thinking in response, guarding
equally against overreaction to some events and complacency in the face of
others.
“For example, many British companies underestimate the
future costs of moving goods in and out of UK post-Brexit, whereas many US
companies overestimate the risks of doing business internationally in places
such as Latin America and the Middle East. Only 1% of America’s 30 million
companies currently export anywhere at all,” he notes.
Build an Organization
That Can Weather the Storm
“This year, 2017, has brought its share of storms—dramatic
disruptions across the political, economic, and regulatory landscapes—alongside
hurricanes, earthquakes, wildfires, and floods. In the face of turbulence and
change, leaders must help their organizations stay solid yet flexible, able to
pivot, and meet new challenges head-on,” advises Dr. Liz Bywater, leadership
expert and author of
Slow Down to Speed Up: Lead, Succeed and Thrive in a 24/7 World.
“I advise my clients to engage their teams in robust
dialogue about the challenges around
them. This will help their organizations develop innovative strategies, adapt
to changing circumstances, and prevent “regrettable repetitions” of costly
mistakes.
“Leaders must also be direct about the impact of constant change. Reorganizations,
budget cuts, natural disasters, and pending changes to the tax code and the ACA
are among the many stressors faced. Executives must make it clear that they
recognize how tough a road it’s been. They should also model optimism. Leaders
have tremendous influence on the tenor of their organizations. Genuine
enthusiasm about the future will inspire confidence and hope among their
workforce,” Bywater adds.
Lead by Example
“Choose vision, not
fear,” advises
Karen Eber Davis, author of
7 Nonprofit Income Streams and president
of Karen Eber Davis Consulting, a Sarasota, Florida firm that helps leaders
motivated by vision find pathways to growth and revenue.
“In the middle of hurricanes, political upheavals, and labor
unrest, you can choose to glue yourself to media, to get caught in the push and
pull forces, or to focus on your vision in order to lead yourself and those
around you to stable ground. Your sphere of influence is larger than you think.
Besides your firm, your leadership will influence and refocus your customers,
vendors, government, and those whom you support philanthropically,” Eber adds.
Pursue Strategic Simplicity
To Counteract Volatility
According
to Praveen Puri, expert in Strategic
Simplicity and
president of Puri Consulting LLC, “The future of business will be
coping with volatility, unrest, and rapid change on a global scale.”
“Those
businesses that work to make their operations and strategies simpler and more
robust will have a big advantage over their inflexible, bureaucratic rival,”
Puri adds.
There’s
Nothing More Certain Than Uncertainty
“We can’t predict what the next
disaster—natural or man-made—will be, but we can predict that these events will occur. There’s no excuse not to
be prepared for something unusual and
perhaps even catastrophic to occur,” according to Popky.
“This means taking proper precautions against those events that are more likely
to occur, having contingency plans in place to respond quickly, and putting
staff and customers through ‘what if’ drills so they are prepared.
“There was no way that Capt. Sully
Sullenberger could have known a bird strike would require him to land a jet
plane on the Hudson, but the extensive emergency preparation and training he
had been through allowed him to calmly evaluate the situation and respond
quickly and effectively,” she notes.
Consistent Value and
Outstanding Service Still Win
“Despite a volatile time in terms of natural disaster, political
uncertainty, and social upheaval, the US stock market continues an historic
advance, unemployment is virtually zero, tax cuts are imminent for most, and
consumer spending is up,” said SAC CEO Alan Weiss, PhD. “The desire for a good life is alive and well,
and those who provide consistent value and outstanding service will thrive, no
matter what.”
About SAC
The Society for the Advancement of Consulting (SAC) is an
international association of consulting professionals who subscribe to an
industry code of ethics and have provided evidence of significant consulting
results among their clients. For more information, please go to
http://www.consultingsociety.com,
write to
info@summitconsulting.com,
or call 401/886-4097.
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