For many people, the bad economic picture will not change soon enough. According to a USA Today/Gallup Poll, almost three-fourths of those surveyed don’t like what’s going on in the country. David Walker, the former chief of the Government Accountable Office, predicts a poorer America if the economic ship doesn’t change direction: “We’ve kicked the can down the road as far as we can. We are at the abyss.”
Market turbulence has overtaken our ability to realize the American Dream. This turbulence relates to the chaos that now plaques our financial institutions, wrecking havoc on our normalcy. With a weak job growth, many U.S. jobs will continue to be outsourced globally or automated through technology.
In fact, the government estimates that an additional 1.2 manufacturing jobs will disappear by 2018. In this economic downturn, many people are just happy to have a job. Yet, the hectic work environment creates severe consequences to today’s workers as well. In our discussion, we will focus on market turbulence and how to leverage against it.
Market turbulence is transforming businesses across the globe. International markets have been shaken. It’s like riding first class on a cruise ship during a terrible hurricane. You have plenty of the creature comforts.
Yet, it doesn’t change your situation. You are in for a rough ride. Today, American businesses, like other nations, are on this rough ride. The hurricane is market turbulence. Stanley Gryskiewicz, author of Positive Turbulence, stresses the dangers of this rocky ride: “Turbulence is energic, forceful, catalytic, and unpredictable.”
Many organizations do not understand what to do or how to survive it. Stan Davis, author of Future Perfect, declares, “The external environment-technology, economy, society and so on—is changing so fast that businesses scurry to keep up. Organizations, however, simply cannot run that fast. So our organizations don’t change as fast as do the businesses that they are managing.”
Charles Handy, author of The Age of Unreason, argues “Discontinuous changes require discontinuous thinking. If the new way of doing things is going to be different from the old, not just an improvement on it, then we shall need to look at everything in a new way.” Many managers brag about their extensive experience.
Many managers brag about their extensive experience. However, in a market plagued by uncertainty, this experience works against traditionalists. Today change is rapid and unpredicted. Loaded with their vast experience, managers can lead organizations into business despair. Given the large degree of uncertainty and unknowns, some organizations continue on the same path…to nowhere!
Innovative managers can leverage market turbulence to their advantage. Everywhere we look we see this disruptive change breaking down traditional thinking. What worked yesterday, will fail today. The best companies know how to adapt to turbulence. While others downsize and contract their market efforts, great companies infuse their organizations with creativity and expand their operations, competing on their strengths.
Management strategist Stanley Gryskiewicz argues that turbulence associated with change can be a positive force for innovation. He recommendations four elements in taking advantage of turbulence, which are (a) difference (breaking out from the status quo, (b) multiple perspectives (inviting divergent viewpoints and nontraditional interpretations, (c) intensity (keeping the speed, volume, and force at an optimal level for change, and (d) receptivity (providing mechanisms for individuals to be able to thrive in turbulence.
Gary Hamel, author of Leading the Revolution, suggests “In the new industrial order, the battle lines don’t run between regions and countries…In a nonlinear world, only nonlinear ideas will create wealth.” Creative expert Michael Michalko argues that creativity: is the answer for surviving market turbulence: “It is not a result of some easily learned magic trick or secret but a consequence of your intention to be creative and your determination to learn and use creativity.” Yet, succeeding during market turbulence is no accident. In fact, organizations must be deliberate in creating sustainable performance during market turbulence.
How do organizations effectively implement nonlinear thinking to be successful during market turbulence?
© 2010 by Daryl D. Green