Preface:
The age-old adage, “out with the old, in with the new” is a poignant reminder of the accelerating pace of change. The business landscape is brutal for companies that fail to adapt. Further playing the catch-up game is not easy and often comes with a price, the most unfortunate being the human cost.
The ‘Opportunity gap’ in many ways represents the biggest challenge (and opportunity) facing business leaders – which is to manage the duality of stability and change. Successfully navigating this duality, is key to unlocking business value. Said differently, it is the equivalent of being an ‘ambidextrous organisation’, having one foot in the present, and one foot in the future.
“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change” – Charles Darwin
External Context – driving change
At any given point, there are multiple external forces exerting its influence on the organisation. These include but not limited to, technological advancements, changing consumer preferences and the growing competitive landscape amongst others.
Firstly, rapid technological evolution such as Digital and AI are catalyzing innovation and disrupting traditional business models. This together with changing consumer preferences are pushing businesses to reevaluate their products and services and finally, the competitive landscape are necessitating strategic re-adjustments.
Each company’s leadership is having to respond to one or more of these external factors at any given point. How the leadership responds are also facilitated by some of the internal factors which are elaborated below.
The Internal context – forces that support stability
The Internal context here refers to the human and organizational factors that is designed for stability over change. Therefore, anything that disturbs the status quo can be seen as a threat, and the response is to mitigate the threat using defense mechanisms. There are both individual and collective defenses, some of which are mentioned below:
Individual defenses:
- Resistance to change
- Fear of the unknown
- Slow decision making
Collective defenses:
- Rigid structures and hierarchies
- Functional silos
- Group think
While these defenses are normal and acceptable in the short term, they have a destabilizing effect over the long term. Leaders will therefore need to be aware of this and address it become it is steeped into the culture of the organisation.
“Navigating the duopoly between stability and change, remains one of the greatest challenges and opportunity facing business leaders. Effective leadership involves knowing when to stay the course, and when to pivot.”
Navigating this duopoly
Stability is needed as it helps to maintain consistency, reliability and operational efficiency. It also provides the sense of security for employees and ensures that the core business continues without any interruption.
On the other hand, is the need for ‘change and ‘innovation’. This is to ensure that the business stays competitive and is able to respond to changing business dynamics. This requires a willingness to challenge the status quo, take calculated risks and embrace uncertainty.
Navigating this duopoly is not easy and require strong leadership who can deftly manage the two opposites. Successful companies are able to manage this tension by focusing on a growth mindset, managing polarities and creating the culture that values both stability and change. In doing so, the leadership can create value for all stakeholders involved.
Conclusion
In conclusion, the dynamics of stability and change will remain an enduring challenge for organizations and its leaders. Thinking of it differently, it is also an integration of opposites.
Stability provides that foundation that allows us to experiment and take risks. The tension between these competing priorities underscores the importance of adaptive leadership. By fostering a culture that promotes stability and change, companies can navigate uncertainty with confidence.
Srikanth is the founder of Vruddhi India, a management consulting firm focused on Change leadership practices. We specialize in guiding companies through the complexities of change in a way that is uniquely personal and customized. You can email me at srikanth.pv@vruddhiindia.com for more information.