VUCA + Future Value Generation @daniel_egger
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Transcript of VUCA + Future Value Generation @daniel_egger
THE KEY TO SUCCESS IS
ACCESS TO OPPORTUNITYIn today’s ever-changing world, we cannot explore new
possibilities and reduce the impact of daily surprises in pure
certainty, neither in complete uncertainty; we need an
integrative logic that guides us.
The Future Value Framework describes
such a guidance. More precisely, it
explores how to use more efficiently the
competitive advantage of time. Its goal:
human and context centric value
generation.
OPTIONS
PORTFOLIO
Resources and assets that
are risk weighted and
aligned to the value
strategy.
VALUE PROPOSITION
A platform where the
generated value meets the
perceived, with the goal to
establish a sustainable
Value Exchange.
PORTFOLIO OF CHANGE
A selection of key changes
that are relevant for the
organizational business
model.
FUTURES CONTEXT
A set of probable realities
of the future, the people
who live in it and a
description what they
value.
VISIONS
What the organization
desires and believes about
the future.
FUTURE VALUE
PROPOSITION
The offering of value that
creates a probable superior
market position and
positive value exchange.
VALUE
POLICIES
Guide execution of the set
value strategy that
connects the present and
the future value
proposition.
More(The link opens an other
slidedeck with more details
about the Framework)
VUCA is an acronym for a reality
that challenges.
It stands for volatility, uncertainty, complexity, and ambiguity.
Those four words describe an environment where decisions are
made in uncertainty and where constant challenges drive
organizations to adapt, experiment, access new information in
a much more agile way.
“Volatility provides profit opportunity” (Warwick-Ching, 2013)
“Uncertainty is opportunity” (Hemingway & Marquart, 2013)
“Simplifying (IT) complexity is a major opportunity” (Boston Consulting Group, 2013)
“Ambiguity equals opportunity” (Amerasia Consulting Group, 2013)
(Nathan Bennett and James Lemoine, 2014)
VOLATILITY
Relatively unstable
change; information
is available and the
situation is
understandable, but
changes is frequent
and can be
unpredictable
UNCERTAINTY
Lack of knowledge
whether (and when)
an event will have
business relevant and
significant
implications. Cause
and effect are
understood.
COMPLEXITY
Many interconnected
parts, not all known,
forming an elaborate
network of
information. But not
necessarily involve
immediate change.
AMBIGUITY
A lack of knowledge;
cause and effect are
not understood and
there is no precedent
for making prediction
as to what to expect.
(adapted from Nathan Bennett and James Lemoine, 2014)
VUCA equals opportunitywhen…
… organizations
incorporate agility and
resources allocation to
increase resiliency.
… organizations
gather beyond existing
information and
analyze them from
new perspectives.
… organizations
adapt their internal
logics to the external
changes mirroring
environmental
complexity.
… organizations
experiment to
determine what
strategies are the most
beneficial for a new
business logic.
VOLATILITY UNCERTAINTY COMPLEXITY. AMBIGUITY
(adapted from Nathan Bennett and James Lemoine, 2014)
The four counter actions to embrace VUCA
and transform it into an opportunity (agility,
information, adaptation and
experimentation) are incorporated logics of the Future Value Framework.
Agility is present throughout the Framework. However, in the case of VUCA the main value added comes from the Option Portfolio.
The Options Portfolio is a combination of risk-weighted and context relevant assets and resources. Pre-validated against the Value Policies the portfolio offers alternatives, a buffer accessed when needed. This concept facilitates decision-making and increase agility of implementation aligned to the set strategic north. The Option Portfolio integrate innovation with the strategy and balances short-term decision making with the long-term value strategy.
Portfolio of Change
Option Portfolio
Value Policies
Agility
New information and the understanding WHY changes occur that are relevant define the Portfolio of Change.
The Portfolio is a selection of selected Driving Forces (faster changes) and Attractors (slower accumulating changes) relevant for the organizational context. The portfolio establishes a focal point what information and changes we should consider. Four types of information are used to explore the changes:Pragmatic Information (including Political Information), Speculative Information and Imaginative Information. By exploring different types of information the quality and understanding of the changes increase.
Portfolio of Change
Information
Adaptation is present in the FVG by connecting three parts: The Portfolio of Change, the Value Policies and the Option Portfolio.
• As organizations already mapped the environment and validate it constantly. Consequently it is better prepared in case of sudden external changes. (Portfolio of Change)
• Secondly, organizations defined and researched strategic and tactic options for their set strategy and possible external changes. With more alternatives in hand they can react faster. (Option Portfolio)
• Those strategic choices are already aligned to the Value Policies, the guiding corridor that connects the external mapped changes with the strategic options and the future with the present. The Policies balance short term tactical responses and the long term value position. Pre-validatedthey allow a faster adaptation without the necessity to validate each choice with the stakeholders when sudden changes occur.(Value Policies)
Portfolio of Change
Option Portfolio
Value Policies
Adaptation
Experimentation is defined in the Framework by the Value Policies and the Option Portfolio.
The Policies define a corridor for decision-making. They set the boundaries and not the actions, and therefore represent guiding principles. They offer a space for experimentation which strategic option is the most adequate one compensating the changes and their relevancy for the new business logic.
The Portfolio of Change offers the options for the Policies. Existing options are adjusted constantly and new created. The option portfolio offers alternatives for experimentation.
Portfolio of Change
Option Portfolio
Value Policies
Experimentation