Chinese Year of the Water Dragon – How best to navigate another year of uncertainty, transition and change
By Susan Moor | Published: 20 February 2012 | Comments (0)
In the Chinese zodiac the year of the Water Dragon is an incredibly positive sign – signifying strength, dominance and ambition. But it is perhaps the characteristics of uncertainty, transition and change, also associated with this sign, which managers will most recognise this business year. For many, 2012 will be about effective change management and keeping a steady nerve in what will be another turbulent year.
Despite a more positive forecast for growth delivered by Bank of England Governor Sir Mervyn King on 15 February, many economic advisors rebuffed the projected 3 per cent GDP growth rate by the start of 2013, asserting there were too many factors weighing on growth. With continued turbulence in the Eurozone and another rise, albeit the smallest in almost a year, in quarterly unemployment figures to 2.67m, the economy looks set to "zig-zag" as Sir Mervyn predicts.
The reality of the situation for business leaders is that in the face of continued uncertainty, even where there is appetite for growth, the associated risks are paralysing managers from taking action. But what is more concerning, is that many businesses we come across are not only refusing to take a step forward – which in some circumstances is right and understandable – but are insisting on retaining the same business model and behaviour as that adopted while in a benign economy, or else are tinkering around the edges with ineffectual, and frequently damaging, cost-cutting measures.
In the face of such a tempestuous economic environment, this is a dangerous path to follow. A business that does not adapt to change is very likely to stagnate and ultimately, fail. But as with many macro-environment situations, it could be that the existing management team simply doesn't have the experience or relevant expertise to guide the business effectively through a transition. Keeping up with new technology whether that be IT projects or digital media marketing or outsourcing production it stands to reason that when facing unchartered territory, the human condition tends to default to "head in the sand" mode in fear of the unknown. We see many talented and accomplished managers resolutely applying tried and tested strategies in answer to challenges they have never before encountered. And funnily enough, they rarely work.
Managers need to be brave – but that does not necessarily mean charging head first into the unknown armed with nothing more than guts and instinct, it can mean recognising that the skill set doesn't exist within the business to navigate this new world and requires external expertise. Sometimes, and in our experience more often than not, management are at their bravest when they admit they're not the right people to captain this particular mission, and a change manager with the right experience is far better placed to share the driving seat and map the right course and deliver a fit for purpose product on budget and on time.
Susan Moor