Everyone seems to be talking about a VUCA (Volatile, Uncertain, Complex & Ambiguous) world now. But VUCA isn’t something that’s new.
There is more ‘volatility’ now as new technologies rapidly change industries in unexpected ways. There is more ‘uncertainty’ as we don’t know what’s going to happen next. The world is more ‘complex’ as new players enter our markets and customer needs continually change. And the world is more ‘ambiguous’ as we struggle to agree on the right next steps to take.
But we’ve been here before. So how did we survive (and then thrive) last time?
When we can’t predict what’s going to happen we shouldn’t try to make plans, but many organisations do as it gives them a comforting illusion of certainty. And when we’re not in control of all the variables (what rivals do, how customers react, or if there’s going to be an economic crisis) plans are pointless, but many organisations still plan as it gives them a comforting illusion of control.
So if we shouldn’t make plans what should we do instead?
Successful organisations operate according to an agreed set of principles that create a logical and consistent way of seeing, thinking and acting amongst their people. Principles also guide their people how to safely explore and discover new and better ways of doing things. Principles therefore can help your organisation adapt to change so it survives AND thrives in a VUCA world.
A memorable example of the power of principles comes from the Chinese civil war. Despite lacking critical resources like radios and other means of communication Mao Zedong led his peasant army to victory by keeping them aligned, yet flexible enough to act when the situation demanded it. Mao achieved this by introducing four simple principles that provided guidance to his commanders.
These principles were called “The Four Nevers”:
Never be afraid to negotiate
Never be afraid to change your plans
Never be afraid to retreat
Never be afraid to attack
Mao also introduced four simple principles to teach his peasant army, many of whom were illiterate, about tactics — or how to act — so there were aligned with their commanders. As this vast peasant army marched they sang these principles into their understanding and used them to defeat a vastly more experienced and better equipped rival:
When the enemy advances, we retreat
When he retreats, we pursue
When he escapes, we harass
When he is tired, we attack.
Mao explained that: “Those sixteen characters [which translates the above principles into Mandarin] are the basic directives for a counter-campaign against encirclement, for both strategic defence and offence, for strategic withdrawal and counter-offensive. Everything else was just an elaboration.”
This is the power of principles — cutting away anything superfluous and guiding the most stunning victories. And this is the secret sauce driving many of the world’s most successful businesses today.
So how about your business — do you have an agreed and proven set of principles that both aligns your people yet gives them the flexibility to act when needed? If not, don’t worry, that’s easily fixed as the hard work figuring what principles modern businesses need has been done for us.