■ agility and decisiveness prerequisites in our teams and in our leadership.
In this chapter, we will explore the current business landscape, and how a collaborative approach is integral to surviving and thriving into the future.
The world where you live
The future is so uncertain that many organisations and consultants have adopted a term originally coined by the US Army to describe the results of the end of the Cold War – the acronym VUCA. VUCA describes a world that is increasingly Volatile, Uncertain, Complex and Ambiguous. This world is fast, change-focused and demanding. Agile thinking, decision-making and action are now the norm. And the result? Individuals and leaders are left feeling alone, exhausted and uncertain about their place in the future. The rapid changes that are taking place are affecting how we operate. We are forced into the space of Me – one where we reassess, consider options, invest and focus on the self. We protect what we know, learn what we don’t and then hope that we can fake it till we make it.
So what approaches will work in our rapidly changing environment? The collaborative economy is where networks of connected individuals, communities and businesses – as opposed to centralised closed-door thinking and business planning – work together to drive success. The power of this is inestimable as it connects people, businesses, skills, services, products and space to drive new opportunities and strategies for future-proofing. Who could have imagined, for example, that one day – and that day is now – NASA would be using LEGO building blocks to educate astronauts in the International Space Station, and in turn providing LEGO with inspiration for their designs? Or that Coca-Cola would be working with ECO Plastics to develop sustainable and ethical bottles? Their agreement marks a turning point in the processing of industrial waste in the UK.
Collaboration is so much more than the sum of its parts. The nuts and bolts of sending an email, being on social media, placing a paid advertisement or doing a mass mailing are no longer enough in terms of ‘engagement’. What consumers and internal clients are asking for is that businesses understand them; that they speak to them as human beings, not numbers. They are demanding a customer-centric approach to decision-making and new product development. They want to know the depth behind the logo, the thinking and the rationale behind the leadership.
The collaborative economy is a space where if we are authentic, play by rules of openness and transparency, and follow our passions, we have the opportunity to build collective intelligence, trust and connection, and to surprise and influence many.
Future uncertainty
The phenomenal speed of change that got us to the 21st century’s technological frenzy is not going to slow down any time soon – and it is creating an uncertain future on a global business level. In The World Is Flat, Thomas Friedman suggests that the changes that we are experiencing now are ‘directly or indirectly touching a lot more people on the planet’ than ever before. In an increasingly decentralised and digitally connected economy, companies and people need to constantly explore ways to improve – and if they don’t, what is the risk? Fall behind. Lose momentum. Flatline. Fail.
The future is uncertain for the following reasons:
■ A worldwide unstable economic environment continues to place increasing pressure on governments, businesses and individuals.
■ The changing political structures around the world affect consumer confidence and stability.
■ Evolving social trends and behaviours are influencing the individual needs of society and the labour force.
■ The growth of entrepreneurialism and more agile, fast-moving, disruptive businesses is challenging the traditional corporate structures, growth strategies and decision-making.
Figure 1.1 shows that we are at the juncture of three distinct areas of uncertainty: innovation, socio-economic dynamics and business change. These three critical areas are summarised on pages 8 and 9 and will be covered in more detail in chapter 2.
Figure 1.1 the future is uncertain
We are living in a highly connected world where information and resources are readily available 24/7. This access to information is supporting consumer awareness and self-education, and enabling research and ongoing improvements to products, communication methods and delivery solutions. In the ‘old’ world, intelligent thinking, high-quality products, services and the breadth of range that is available now simply didn’t exist. Consumers would do their research, find what they want and make a purchase. Now everything is everywhere in mass supply and we want it better, quicker and cheaper.
Increased technology, increased knowledge and economic instability – all of these are driving a demand for innovation on a continuous basis for large and small businesses alike. The entrepreneur is everywhere; new businesses are born and new products created overnight. Evolution is essential for survival, for economic viability, for customer engagement, and most importantly, to keep staff engaged and secure in the knowledge that our business is where they want to be working.
Economic changes, changing family structures and globalisation have altered society forever. The main changing dynamics are:
■ the role of women in the workforce. More women are entering higher education, participating in the workforce and becoming increasingly wealthy than ever before.
■ generational change. We are experiencing four generations of people at work – Baby Boomers, Gen X, Gen Y and Gen Z. Each generation is bringing to the workplace a pre-determined set of values, work ethic and career expectations.
■ work-life balance. The work-life balance debate is evolving as more people are talking about creating balanced lives.
While some industries and corporate environments remain more rigid than others, there is no doubting that both business etiquette and the ‘rules of engagement’ have moved on. It may not be as rapidly as some of us would like, but nonetheless, the goalposts – and the goals – of modern leaders are shifting. And only for the better.
Business processes, structures and operations are evolving at a much faster pace than ever before in an effort to keep ahead of change while future-proofing business. Consumers are becoming increasingly vocal about their expectations. The fight is on to find talented and skilled employees. Competition for products, sales, profit and people is now global. Two of the areas business is changing in are as follows:
■ The make-up of our future workforce. Jobs that are secure today may not even exist in the future as they are replaced by technology or outsourced to other areas in the world. Equally, who knows what jobs may exist in the future given the speed of change that we are witnessing?
■ The ubiquity of entrepreneurship. Many economists believe that the growing trend across the world towards entrepreneurship will drive economic and financial stability over the coming years. The impact of small business cannot go unnoticed as it continues to be the incubator for innovation and employment.
The Me to We shift
The question being asked by many in this VUCA world is ‘What do I have to do next?’ These rapid changes are demanding a new operating system – one where we can bring our skills, strengths and talents to the table and together amplify and share expertise to create progressive, results-oriented solutions.
As shown in figure 1.1(see p. 7), the sweet spot of opportunity is at the juncture of innovation, socio-economic dynamics and business change. It is a place where things happen differently, creative thinking is accepted and disruption and innovation are the norm. A place where commercial collaboration drives change and shifts