A look at Roger Martin's 'A New Way to Think' in exploring resilient organizations
In today's complex and uncertain business environment, traditional efficiency-focused strategies are no longer sufficient for long-term success. Roger Martin's book "A New Way to Think" proposes a shift from efficiency to resilience in business strategy, emphasizing the need for adaptability and exploration in the face of complexity.
Martin argues that organizations must move from a "where-to-play/how-to-win" strategy to a "playing to win" approach. Rather than solely focusing on exploiting existing advantages, companies should actively explore new opportunities and adapt to changing circumstances. While efficiency is about doing things right, resilience is about doing the right things.
In his book, Martin offers seven key lessons for building resilient organizations:
The need for a new approach to management and strategy is clear. As Martin explains in an interview with McKinsey, traditional management focused on optimization and efficiency is no longer sufficient in today's fast-changing business landscape. Organizations must embrace uncertainty and complexity, continuously exploring new opportunities and adapting to changing circumstances.
To craft a resilient strategy, organizations should foster a culture of experimentation, learning, and psychological safety. This allows teams to take calculated risks, learn from failures, and adapt quickly. Additionally, companies must balance the exploitation of current advantages with the exploration of new possibilities, as discussed in our blog post on balancing exploitation and exploration in product strategy.
Developing a systems perspective is also crucial for resilient strategy. Understanding the interconnections and potential second-order effects of decisions can help organizations anticipate and adapt to change more effectively. Our blog post on 20 Connected Dots illustrates the importance of seeing connections in complex systems.
Several tools and frameworks can support the development of resilient strategies:
To craft a resilient strategy, organizations should start with a clear and compelling vision. Our blog post on crafting a compelling company vision statement offers best practices for developing an effective vision. Next, identify key uncertainties and potential disruptions that could impact the organization's success. Rather than relying on a single plan, develop a portfolio of strategic options that can be adapted as circumstances change.
Continuously monitoring the environment and adapting strategies accordingly is crucial for resilient organizations. This requires a shift in mindset from a static, plan-based approach to a more dynamic, hypothesis-driven one. As Martin emphasizes, organizations must be willing to let go of outdated assumptions and adjust their strategies in response to new information.
To support this adaptive approach, fostering an organizational culture that values resilience is essential. This includes encouraging calculated risk-taking, learning from failures, and openly sharing insights across the organization. Leaders must model these behaviors and create an environment where employees feel safe to experiment and challenge the status quo.
In addition to the tools and frameworks mentioned earlier, several other practices can help organizations develop resilient strategies:
By embracing these practices and cultivating a resilient mindset, organizations can navigate uncertainty more effectively and seize new opportunities as they emerge. As Martin notes in his interview with McKinsey, the goal is not to be perfect in a stable environment but to be able to continuously morph and evolve in an unstable environment.
Transitioning from an efficiency-focused strategy to a resilience-oriented one is not a simple task. It requires a fundamental shift in mindset, culture, and capabilities across the organization. However, the rewards of this transformation can be significant, as organizations that prioritize resilience are better positioned to thrive in the face of disruption and uncertainty.
To begin this journey, organizations can start by assessing their current level of resilience and identifying areas for improvement. This may involve conducting a resilience audit, which examines factors such as adaptive capacity, diversity, redundancy, and connectivity across the organization. By understanding their strengths and weaknesses, organizations can develop targeted interventions to build resilience over time.
One key area for building resilience is talent management. As discussed in our blog post on psychological safety in crafting strategy, creating an environment where employees feel safe to take risks and share ideas is essential for fostering innovation and adaptability. This requires rethinking traditional performance management practices and emphasizing learning, growth, and collaboration.
Another critical aspect of resilient strategy is stakeholder engagement. In a complex, interconnected world, organizations must consider the needs and perspectives of a wide range of stakeholders, including customers, employees, suppliers, communities, and the environment. By actively engaging these stakeholders and incorporating their insights into decision-making processes, organizations can develop more robust and sustainable strategies.
In today's complex and uncertain business environment, efficiency is no longer enough. To thrive in the face of disruption and change, organizations must prioritize resilience in their strategies. By embracing a new way of thinking, one that values adaptability, experimentation, and continuous learning, companies can navigate the challenges and opportunities of the 21st century more effectively.
Shifting from an efficiency mindset to a resilience mindset requires a significant transformation in organizational culture, capabilities, and processes. However, the rewards of this transformation can be substantial, as resilient organizations are better positioned to seize new opportunities, weather unexpected shocks, and create long-term value for all stakeholders.
By adopting the principles, tools, and practices outlined in this guide, organizations can begin their journey towards greater resilience. It starts with a clear and compelling vision, a willingness to embrace uncertainty, and a commitment to continuous learning and adaptation. With these elements in place, companies can not only survive but thrive in the face of the unknown.
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