Here is an excerpt from a classic article written by Sam Bourton,Johanne Lavoie, and Tiffany Vogel for the McKinsey Quarterly, published by McKinsey & Company (March 29, 2018). To read the complete article, check out others, learn more about the firm, and sign up for email alerts, please click here.
* * *
We live in an age of accelerating disruption. Every company is facing up to the profound changes wrought by digitization. Industry boundaries have become permeable. Data, algorithms, and artificial intelligence are changing the nature of forecasting, decision making, and the workplace itself. All this is happening at once, and established companies are responding by rethinking their business models, redesigning their organizations, adopting novel agile-management practices, and embracing design thinking.
We’ve had a front-row seat at many such transformation efforts. Their importance, and the challenge they pose for institutions, has been well documented by management writers. But comparatively little attention has been paid to the cognitive and emotional load that change of this magnitude creates for the individuals involved—including the senior executives responsible for the success or failure of these corporate transformations. What makes the burden especially onerous is the lack of clear answers: the very nature of disruption means that even the best, most prescient leaders will be steering their company into, and through, a fog of uncertainty.
You aren’t alone if you feel threatened by this—everyone does, whether consciously or subconsciously. Even seasoned leaders internalize the acute stress of such moments—so much so that their judgment and decision-making skills seem insufficient. The result? They fall back on old habits, which, unfortunately, are almost always out of sync with what the current context demands.
The problem isn’t the problem; our relationship to the problem is the problem. In other words, we have many of the skills needed to handle what’s being thrown at us. But when faced with continual complexity at unprecedented pace, our survival instincts kick in. In a mental panic to regain control, we fight, flee, or freeze: we act before thinking (“we’ve got to make some kind of decision, now!”), we analyze an issue to the point of paralysis, or we abdicate responsibility by ignoring the problem or shunting it off to a committee or task force. We need inner agility, but our brain instinctively seeks stasis. At the very time that visionary, empathetic, and creative leadership is needed, we fall into conservative, rigid old habits.
You can’t steer your company through constant change if you are relying on the safety of your own cruise control. To spot opportunities—and threats—in this environment, we must teach ourselves how to have a more comfortable and creative relationship with uncertainty. That means learning how to relax at the edge of uncertainty, paying attention to subtle clues both in our environment and in how we experience the moment that may inform unconventional action.
Developing this kind of inner agility isn’t easy. In some ways, it goes against our very nature, which wants to simplify a problem by applying our expert mind-set and best practices. To address complex problems, we need to become more complex ourselves. We need to recognize and appreciate emergent possibilities. That’s how the complexity we face can become manageable, even exciting.
In our experience, five personal practices can meaningfully contribute to the mind-set needed for leadership effectiveness during transformative times. They are extensions of timeless principles of centered leadership; taken together, they can be the building blocks of your personal inner agility:
- Pause to move faster. Pausing while remaining engaged in action is a counterintuitive step that leaders can use to create space for clear judgment, original thinking, and speedy, purposeful action.
- Embrace your ignorance. Good new ideas can come from anywhere, competitors can emerge from neighboring industries, and a single technology product can reshape your business. In such a world, listening—and thinking—from a place of not knowing is a critical means of encouraging the discovery of original, unexpected, breakthrough ideas.
- Radically reframe the questions. One way to discern the complex patterns that give rise to both problems and windows of emergent possibilities is to change the nature of the questions we ask ourselves. Asking yourself challenging questions may help unblock your existing mental model.
- Set direction, not destination. In our complex systems and in this complex era, solutions are rarely straightforward. Instead of telling your team to move from point A to point B, join them in a journey toward a general direction. Lead yourself, and your team, with purposeful vision, not just objectives.
- Test your solutions—and yourself. Quick, cheap failures can avert major, costly disasters. This fundamental Silicon Valley tenet is as true for you as it is for your company. Thinking of yourself as a living laboratory helps make the task of leading an agile, ever-shifting company exciting instead of terrifying.
To be clear, these steps are not panaceas but a set of interrelated touchstones. Nor are they trivial to tackle. (See sidebar, “Micropractices that help you find stillness.”) But with conscious, disciplined practice, you stand a better chance of rising above the harried din of day-to-day specifics, leading your team effectively, and surveying your company and its competitive landscape with creative foresight. Let’s look now at how this played out in some real-life examples, starting with two leaders who were trying to save a merger that had unfolded in unpredictable, troubling ways.
1. Pause to move faster
Anticipating tough questions at an upcoming board meeting, the CEO and CFO of a global manufacturer met to review the status of a substantial merger they had engineered about 12 months earlier. It wasn’t a pretty picture. Despite following the integration plan closely, despite intensive scenario planning, and despite clear, achievable targets, productivity was falling. The more the two dug into the results of their grand plan, the more heated the discussion. The CFO wanted to shutter a dozen factories in the company’s expanded portfolio. The CEO, who had promised that the merger would lead to bold innovation, wanted to increase funding of those very plants, since they were making the ambitious products the company would need in the long run. Despite having worked together for quite a while, the two men had such differing views that neither knew how to move forward together.
The stakes were highly personal. The CFO feared that the board and his executive colleagues would blame him for failing to identify the true cost structure of the combined companies. He gave serious thought to resigning. The CEO feared that the board would begin to doubt his strategic rationale for the merger. With their competence threatened, each had reverted to fallback positions, insisting that their own experience justified the solution they proposed. That’s why their two days of nonstop meetings had led to an impasse.
Then they agreed to temporarily halt their discussions. Given the urgency each man felt, this was not an easy decision. But they believed they had no other choice—they weren’t going to arrive at a solution by continuing to butt heads. They agreed to cut off their conversation for a week and committed to spending the time investigating the productivity failure on their own, hunting for clues they might have missed.
The two leaders had decided to pause, in order to move faster. This kind of pause isn’t an abdication; it isn’t even a concession that finding an answer will take a long time. Instead, it’s a real-time pause that allows you to decouple from the immediate challenge so that you can find new ways of responding. Instead of being limited by old habits, you’re trying to give yourself greater freedom of choice.
Most executives have trouble pulling back from obsessive engagement with the issue at hand; for many, in fact, that focus has been a key to success. But trying to survive one crisis after another by relying on the tried and true isn’t enough these days. Pausing in the chaos of great change is a counterintuitive action that can lead to greater creativity and efficiency. It carves out a safe space for self-awareness, for recentering yourself, for something new to emerge.
Claiming this space is hard, and there are no silver bullets. Some CEOs like daily meditation. We know one CEO who takes a ten-minute walk through the neighborhood around his office—leaving his cell phone on his desk. Others regularly catch a minute’s worth of deep breathing between meetings. The repetition of such practices helps them pause in the moment, interrupt well-grooved habits that get triggered under duress, and create space to practice something different.
Pausing requires substantial self-awareness, and you may not get immediate results. Every bit of benefit counts, though, and if you don’t start the journey of learning how to decouple from your context and the immediate response it provokes, you’ll find it harder and harder to be open to new ideas, or to become a better listener—both traits that are critical at moments where your own vision is clouded.
what is below the words, or do I listen for what I already know or believe?” If it’s the latter (as it is for so many of us), go on to this second one: “What would I have to let go of to truly listen?” Third: “What is the very worst that could happen?” The answer to that can help you find the hidden fear that you may need to befriend. And, finally, there’s a fourth: “Am I the leader I want to be?” If the answer is “not yet,” then you know why embracing ignorance must become a priority. Asking these questions may not dissolve the reactive habits that hold us back, but they can begin a process of letting go to find new capacities within ourselves.
* * *
Here is a direct link to the complete article.