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Adaptation
Jurgen Appelo
@jurgenappelo
Uncertainty, sensemaking, mindset
Thursday 17 September 2020, 9:00 CEST
At the end of this session, you will…
Understand what VUCA is about
Understand what sensemaking is about
Have access to a new sensemaking model
Change
VUCA
Adaptation
Sensemaking
Wrapping up
Mindset
Let’s talk about
change
Photo by Simon Migaj on Unsplash
https://mediakix.com/blog/tesla-profit/
https://www.statista.com/chart/20606/tesla-market-valuation-record/
Have a look at Tesla
What does Tesla do
differently compared
to Toyota and other
car manufacturers?
Photo by Andreas Dress on Unsplash
Technology
adoption rates
are increasing
Tesla embraces and causes change
Another recent
disruption:
COVID-19
https://ec.europa.eu/eurostat/statistics-explained/index.php/Impact_of_Covid-19_crisis_on_industrial_production
The next big change:
Artificial Intelligence
https://www.aitrends.com/features/tractica-projects-ai-market-to-reach-36-8-b-globally-by-2025/
What else do you think
is going to force
companies to change?
Change
VUCA
Sensemaking
Wrapping up
Mindset
Adaptation
Volatility Uncertainty
Ambiguity Complexity
VUCA
Speed, dynamics, and randomness
Unstable situation, unknown duration
Fluctuations, turbulence
Examples: oil prices, cryptocurrencies,
games industry
Volatility
The pace of change
Uncertainty
Lack of predictability and forecasts
Surprises and turns of events
Unknown causes and effects
Examples: Brexit, COVID-19 vaccines,
next steps of China and Russia
The direction of change
Complexity
(Complicatedness)
Many interconnected variables
Interrelated factors and forces
Confounding of cause-and-effect
Examples: COVID-19 policies, financial
regulations, healthcare industry
The amount of change
Ambiguity
Fuzziness of reality, causes and effects
Multiple meanings, interpretations
Lack of information, many conclusions
Examples: social media, artificial
intelligence, diversity and inclusion
The kind of change
Volatility Uncertainty AmbiguityComplexity
Decreasing ability to understand the world and how to deal with it
Increased confrontations with disruptions and unknown unknowns
The traditional Goal - Plan - Execute approach doesn't work anymore
Strategy and tactics need continuous evaluation and revision.
Everyone must contribute to an increased adaptability of the organization.
Photo by jan abellan on Unsplash Photo by Science in HD on Unsplash
Volatile
Uncertain
Complex
Ambiguous
Volatile
+ Uncertain
+ Complicated
+ Ambiguous
= Complexity
What the military called complex…
The scientists now call complicated.
Change
VUCA
Sensemaking
Wrapping up
Mindset
Adaptation
So, what do we do now?
Photo by Ozan Safak on Unsplash
“Sensemaking is a
collaborative process
of creating shared
awareness and
understanding out of
different individuals'
perspectives and
varied interests.”
https://www.linkedin.com/pulse/making-sense-organizational-change-through-justin-balaski?articleId=6301406986009477120
https://www.goodreads.com/book/photo/818257.Sensemaking_in_Organizations
Karl E. Weick
Simply pushing harder within the
old boundaries will not do.
- Karl E. Weick
Sensemaking is perceiving and influencing the world
through our chosen identities.
Photo by Alex Iby on Unsplash
Sensemaking is turning signals into meaning and reinforcing
understanding through speaking and writing.
Photo by Senad Palic on Unsplash
Photo by Laurenz Kleinheider on Unsplash
Sensemaking is having our meaning reflect where
we come from and who we interact with.
Sensemaking is a continuous flow of awareness and
meaning in a world that’s always changing.
Photo by Mark Basarab on Unsplash
Sensemaking is about sufficiency and imperfectly
moving forward as best as we can.
Photo by Max Bender on Unsplash
Sensemaking
“As the rate of technological, social,
environmental and economic change
accelerates we need to build plausible
maps of the shifting world, testing
these maps through observation,
listening, conducting conversations,
capturing diverse perspectives,
harnessing the collective intelligence,
interpreting data and then repeatedly
refining these maps re-testing our
assumptions again and again over time.”
Photo by Jakayla Toney on Unsplash https://medium.com/@rlschutte/sensemaking-the-core-skill-for-the-21st-century-ebc8c679cfe8
The Cynefin Framework
for sensemaking
https://en.wikipedia.org/wiki/Cynefin_framework
Clear
(Obvious/Simple)
ComplicatedComplex
Chaotic
Disorder
Clarity
Clear
(Obvious/Simple)
Known knowns
Stable environments
Obvious cause-and effect
Find the proper rule and apply it
Risk of bureaucracy and complacency
Sense - categorize - respond
Convolution
Complicated
Known unknowns
Experts and specialists
Intricate cause-and effect
Difficult to understand
Work rationally toward a decision
Sense - Analyze - Respond
Coherence
Complex
Unknown unknowns
Markets, teams, cultures
Cause-and-effect only in retrospect
Actions change the situation
Perform safe-to-fail experiments
Probe-Sense-Respond
Crisis
Chaotic
No time to ask everyone’s input
Cause-and-effect unknown
Top-down communication
Re-establish order quickly
Any action is better than nothing
Act-Sense-Respond
Confusion
Incomprehensible or conflicting signals
Fuzzy situation, no meaning assigned
Not enough information
Keep interacting until meaning forms
Disorder
Jurgen’s Sensemaking Model
Confusion
Clarity
CrisisConvolution Coherence
Change
VUCA
Sensemaking
Wrapping up
Mindset
Adaptation
Any examples of
businesses adapting
to COVID-19?
The benefits of crisis
Photo by Cata on Unsplash
“Some things benefit from shocks; they
thrive and grow when exposed to
volatility, randomness, disorder, and
stressors and love adventure, risk, and
uncertainty. Yet, in spite of the ubiquity
of the phenomenon, there is no word
for the exact opposite of fragile. Let us
call it antifragile. Antifragility is beyond
resilience or robustness. The resilient
resists shocks and stays the same; the
antifragile gets better.”
- Nassim N. Taleb
Nassim Nicholas Taleb
Never think that lack of variability
is stability. Don't confuse lack of
volatility with stability, ever.
- Nassim Nicholas Taleb
https://www.goodreads.com/book/show/13530973-antifragile
This tag cloud was created
using the following sources
1 Categorical Imperative
2 Pillars of TPS
2 Pillars of The Toyota Way
2 Rules of Personal Kanban
3 Laws of Agile
3 Pillars of Scrum
4 Values of the Agile Manifesto
4 Values of Software Craftsmanship
4 Imperatives of Heart of Agile
4 Guiding Principles of Modern Agile
4 Core Values of SAFe
5 Principles of Organic Agile
5 Values of Scrum
5 Values of XP
6 Core Principles of Kanban
6 Views of Management 3.0
6 Principles of DevOps
7 Principles of Lean Development
7 Principles of ITIL
7 Principles of Agile People
7 Principles of Sociocracy 3.0
8 Principles of Product Development
9 Principles of DSDM
10 Principles of SAFe
10 Principles of LeSS
12 Principles of Beyond Budgeting
12 Principles of the Agile Manifesto
12 Principles of Ecosystem Thinking
14 Principles of the Toyota Way
14 Points of Deming
Glenda Eoyang
Open to external influences, many
factors and nonlinear causality,
complex systems are by nature
unpredictable. The best you can
hope to do is to build adaptive
capacity to coevolve with the
system as it changes over time.
- Glenda Eoyang
https://www.goodreads.com/book/show/16157999-adaptive-action
How do we change organizational
culture?
Organizational
culture is a shared
mindset
Mindset emerges
from interaction
with context
To change the
mindset, change
the context
Photo by Kyndall Ramirez on Unsplash
Change
VUCA
Sensemaking
Wrapping up
Mindset
Adaptation
General Stanley McChrystal
Efficiency remains important, but
the ability to adapt to complexity
and continual change has become
an imperative.
- General Stanley McChrystal
https://www.goodreads.com/book/show/22529127-team-of-teams
https://www.forbes.com/sites/jeroenkraaijenbrink/2018/12/19/what-does-vuca-really-mean/
https://www.imd.org/research-knowledge/articles/is-vuca-the-end-of-strategy-and-leadership/
https://medium.com/@rlschutte/sensemaking-the-core-skill-for-the-21st-century-ebc8c679cfe8
https://www.epicpeople.org/sensemaking-in-organizations/
https://www.epicpeople.org/sensemaking-methodology/
https://twproject.com/blog/lean-agile-differences-similarities/
https://www.linkedin.com/pulse/making-sense-organizational-change-through-justin-balaski
Resources
hello@shiftup.work
shiftup.work

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