Core Principles of Transformation

SCAN, SCOUT, AND STEER
Uncertain times prevent clear, long-range vision. As a result, scanning and scouting are dramatically needed. Because the environment is in constant upheaval, individuals and organizations must remain flexible, and adaptive; nimbly steering toward opportunities while simultaneously avoiding sudden pitfalls.

The primary purpose of scanning and scouting is to gain accurate, near-term and mid-term foresight. In the heady days of the late ’90s, due to a plethora of opportunities to create (albeit in many cases short-lived) wealth, foresight, and even strategy became hugely undervalued. Today and tomorrow, foresight and strategy are paramount. The most successful organizations will be those that discover new opportunities created by the emergence of new or hybrid industries. Leaders skilled in scanning and scouting will reap coveted rewards, as they discover new potential, where nuggets of innovation can be mined to create the new value and wealth of tomorrow.

TELL THE TRUTH; ACT WITH INTEGRITY
Glossing over the realities of uncertain environments becomes increasingly dangerous. Additionally, character corrosion is a common pitfall of a harsh climate: very successful people often default to shading the truth or covering up problems to maintain ego. Instead, build trust and motivation by confronting the brutal facts, and adapting cogent strategies that respond to them. Create a climate where truth can be told with impunity, and charisma does not become a liability.

There has been no worse collusion than that between company leaders, stock analysts, and investment bankers. This legacy casts a long shadow over “corporate” America. Covering up the facts, and making businesses look more viable than they actually are will stand as one of the great tragedies (as well as a last gasp) of the Industrial Age. Even in the darkest moments or most difficult situations, a leader who tells the truth will have a better chance of gaining trust and the motivation of his/her people, as well as longer-term success.

FOSTER RAPID DECISION-MAKING
While uncertain conditions make decision-making difficult, it is critical to make decisions that accelerate action. Keep as many good options open as possible; postpone any choices that might limit opportunities. Conditions in the environment change fast enough that slow deciders may perish.

Making rapid decisions involves a lot of risk-taking. It is a given that some decisions will fail. However, failure can precipitate hidden benefits, including the creation of climates of innovation. Most companies are poor at supporting failure: they must instead learn to allow, recover, and learn from their mistakes. While fear of risk may be a paralyzing force, in a competitive world it is better to act and evolve than sit idle.

ENGAGE IN DISCIPLINED EXECUTION
Many companies have lived through the crippling cycle of great ideas married to poor execution. This mode of thinking must die with the past. Today, the knowing/doing gap is at epidemic proportions. Survival requires that organizations create cultures that can execute masterfully with grounded focus and aplomb.

SEEK COLLISIONS
In uncertain and challenging times most companies will lack both the right people, and the diversity of people needed to make the journey. To remedy this and create an effective climate of innovation, organizations must operate outside of the usual parameters, people, and experiences of the past. Successful leaders must be activists on the edge of comfort.

POSITION YOURSELF AT THE INTERSECTION OF MULTIPLE PATHWAYS
Successfully navigating the future means staying close to multiple options and unconventional convergences. This behavior yields both rich and surprising options, and an easy return to home-base if your choice (and its trade-offs) wind up falling short.

Risks and failures are integral to success. The only pitfall is to not recognize a wrong-turn quickly. Leave behind what doesn’t pan out.

LEVERAGE STRENGTHS
Enhance execution and innovation by coaching people — the right people — to work only from their strengths. Unfortunately, most workers and leaders are keenly aware of weaknesses, not strengths. Turn the tide by increasing, and supporting positive attributes and aptitudes.

In uncertain times, leaders need the courage to reorganize people in a way that boldly leverages their strengths and passions. While it will be tempting to try a host of ideas and alliances, success will require vigilant focus.

INNOVATE OPPORTUNISTICALLY
Far-sightedness is impossible in today’s changing world. Pitfalls — and new opportunities — will pop up fast. Organizations must recognize, and ultimately execute rapid responses to significant options while avoiding innovations they are not passionate about, and dropping ideas they cannot deliver on.

Every part of, and person within an organization or network must have an attitude of innovation. Given that there will be many new industries and types of organizations created in the next 10 years, innovation must be opportunistic. Many organizations try to move forward with very poor climates for innovation. Creating a culture of innovation — one of the New Capabilities for success — will be a key leadership challenge.

RELAX; PACE YOUR PROGRESS
Although you need to be nimble, although you must foster rapid decisions and effective executions, relax. It will take time to build up the capabilities you need and transform your organization. No metamorphosis happens overnight. There is no silver bullet, no rescuing miracle; escape is merely an illusion. Instead, be patient. Foster disciplined, smart adaptations one by one. And above all remember: pain hurts more if you are rigid and brittle.