More and more companies are grappling with complex external business issues such as global raw material or component shortages. Remaining in this chaotic state for too long is stressful for employees and damaging for the organization. How can you transition from chaos back to order?
I recommend studying the πͺππππππ framework developed by Dave Snowden. For many challenges in the Integrated Business Planning (IBP) space, it may provide valuable insights on how to best run a business in different situations. You may also recognize that IBP has its limits in complex and chaotic environments. Consider exploring Integrated Business Sensing (IBSing) to fill those gaps.
β° A strong ππ©ππ«πππ’π§π π¬π²π¬πππ¦ in a stable and πππππ context (=with straightforward cause and effect relationships) adds value by enabling best practice solutions to challenges and automating activities, driving ππππππππππππππ ππππππππππ.
β° πππππππππππ business challenges with several potential good solutions require expertise. The Integrated Business Planning (π°π©π·) process, enabled by strong IBP system capabilities (E2E transparency, scenario planning, concurrent planning, digital twins, etc.) and investment in people competencies, facilitates appropriate decisions and responses.
β° To avoid ππππ
πππππ, it is always critical to take a π‘ππ₯π’ππ¨π©πππ« π©ππ«π¬π©ππππ’π―π to find out if current business activities are still aligned with todayβs context. There is a huge risk of continuing „business as usual“ in the case of an emergency. Allocation by decibel, stockpiling, shortcutting quality, and compliance for the qualification of new products or suppliers could indicate a shift from the clear domain into the chaotic domain via (what is called in Cynefin) the βcatastrophic fold.β
β° The twelve IBSing enablers (Self-Awareness, System-Awareness, Shared Vision, Responsibility, Accountability, Decision-Making, Team Collaboration, Conflict Resolution, Stakeholder Management, Essential Intent, Exception Management, Evolutionary Learning) require continuous practice and will prepare an organization for πππππππ business challenges.
β° In the case of πππππ, it is recommended to follow the βAssess β Adapt β Exapt β Transcendβ approach outlined in the Cynefin field guide.
ππ₯πππ¬π ππ¨π§ππππ π¦π for an informal conversation about IBP/IBSing in a more and more complex and chaotic environment. Trust me! With little investment, significant improvements in team engagement and organizational performance can be achieved.
Best wishes,
Helmut
