Developing leaders for a world of
increased complexity and
uncertainty
www.mdvconsulting.co/research/white-papers
Continuing
development of an
adult’s capacity to
think, relate and act
in more expansive,
complex ways, or
more popularly
known as ‘Vertical
Development’
Why vertical? Collision of megatrends
Organisations can no longer rely on ‘steady state’ realities – but much leadership development
activity is based on the assumption that we know what type of leaders are needed in the future.
These 5 megatrends are not new - it’s the speed with which they are colliding which is creating
complexity, uncertainty and volatility.
Demographic and
social change
Shift in global
economic power
Rapid
urbanisation
Climate change and
resource scarcity
Technological
breakthroughs
“ If we can’t predict the challenges that our leaders are going to face,
what makes us think we can predict the skills they will need in order to
face them?”
Why Vertical? Volatile. Uncertain. Complex. Ambiguous.
(VUCA)
Are we ready to be less steady?
25% of global organisations doubted the
VUCA capability of their leaders.
18% thought their leaders were very capable.
DDI 2015 Global Leadership Forecast Report
“Particular need is also seen .... for a new
type of senior manager who will
successfully steer companies through the
upcoming change and disruption.” World
Economic Forum Future of Jobs Report
Complexity and leadership practice
Chaotic
No cause-effect relationship
can be perceived
Act-Learn-Respond
Stabilize the system
Novel practice
The cause and effect relationship does
not repeat and is unpredictable
Scan-Experiment-Learn
Experimenting at the edges
Emergent practice
Complex
Unpredictableworld
Cause and effect are separated in
time and space and can be
researched
See-Analyse-Decide
Deep expertise
Good practice
Complicated
Obvious
The cause-effect relationship is
repeatable and predictable
See-Categorize-Decide
Standardised procedures, checklists
Best practice
Predictableworld
Adapted from David Snowden
Responses during complex times are counter-intuitive through a wish to try and impose
order.
Often challenges are miscategorised and therefore the wrong approach is applied
Complexity requires new capacitiesUnpredictableworld
Predictableworld
Chaotic
• Make sure the ‘commander’
assumes command
• Conduct rapid risk assessment
• Make ‘least worst’ decisions
• Act to stabilize system
• Provide reassurance and
support
• Demonstrate new ways of
thinking, acting, and collaborating
• Exhibit flexible thinking and
actions
• Support safe-to-fail experiments
• Shift system dispositions rather
than promise outcomes
• Encourage questions, challenge
and radical rethinks
Complex
• Get expert advice and support
their work
• Rely on experts to reliably
predict outcomes that flow from
advice
• Trust that an intervention that
works in one place will mostly
work elsewhere
Complicated
Obvious
• Make sure everyone agrees about
what needs to be done
• Use traditional ‘Vision-Strategy-Plan-
Implement’ approach
• Gather and organise resources
• Flick a switch to implement
Understanding the situation helps to assess the correct
leadership response. Using approaches suitable for the
predictable world in the unpredictable makes the situation
worse.
Wiser ways for an emerging world
“The ability to do business with dynamics labelled as VUCA goes
beyond subject area expertise or general cleverness… to align with
wise judgment.”
“In theory and in practice, what people regard as wise behaviour
brings together a number of elements that include cognition,
emotion and practical knowhow.”
“…it concerns increasing people’s capacity – taking a more
fundamental approach to development…”
Vertical development
Vertical development refers to advancement in the way a person thinks,
relates and acts.
‘Arising from attention to adult development theories, it concerns not just the
content of our thinking – the what - but the options we have available for how
we go about considering things.’
A person’s meaning making can develop over time in a predictable,
coherent way
– a series of stages, punctuated by (sometimes discombobulating)
transitions.
People at different stages of development operate differently in similar
situations because the logic that underpins their action is different.
How vertical complements horizontal
Horizontal development = adding
more knowledge, skills and
competencies.
(Filling the glass with more content)
Vertical approaches = grows the internal
capacities to think in more complex, systemic,
strategic and interdependent ways.
Expands an individual’s ability to handle
complexity and ‘sense make’ in ambiguous and
uncertain situations.
(Increases the glass size or leader’s mindset)
Petrie. N Vertical Leadership Development Part 1 Developing
Leaders for a Complex World. Center for Creative Leadership
Three key underlying capacities
Conceptual - how one
relates to the world of ideas,
models, frameworks as well
as the contexts and systems
within which they operate.
Personal - how one relates
to their own thoughts,
feelings and internal senses
of the
world and their responses to
the world.
Interpersonal - how one
relates to others’
perspectives and ways of
operating as well as the
wider social environment.
How one’s actions affect
their social environment and
the results created.
The MDV ‘VUCA capabilities’ – ‘enacted
capacities’
• Volatility requires sudden and unexpected
changes in direction and so calls for
leaders who can promote inquiry and
create a culture of experimentation.
• Ambiguity calls for leaders who pay
attention to relationships and political
signals in order to surface dilemmas and
work with the conflicts that arise.
• Uncertainty calls for leaders can help
people build relationships that connect the
organisation and help disparate groups
connect creatively.
• Complexity calls for leaders who can
notice dynamic changes and relationships
in their environments and nudge systems
in response.
• And, because the VUCA-ness creates
anxiety, frustration and overload, this calls
for leaders who can continually cultivate
resilience in themselves and others.
Underlying
sense making
capacities
Capabilities Practices
Working with practices to develop underlying
capacities
“For vertical
development purposes,
a practice is a
consciously chosen
and regular ‘habit of
action’ that we select to
help us build our
capacity.”
“We work with people
where they are at,
helping them deploy
practices
that someone later in
their development
might naturally use.”
Integrating framework
The Three Capacities and Five
Capabilities sit within MDV’s
Integrating Framework.
This acknowledges the extent
of Predictability vs
Unpredictability.
“The VUCA world doesn’t
eradicate the need for
‘steady state’ approaches.
But it is also clear that
steady state
approaches have some
limits
to their effectiveness.”
VUCA practices for daily use
The concept of practices is well established as part of adult
development – the view that ‘we are what we repeatedly do’.
The White Paper provides five VUCA practices in a panel.
The following is an example:
Further information
Download the White Paper:
What in the world is going on?
Mapping Vertical and VUCA beyond the bandwagon
http://mdvconsulting.co/whitepapers/
Read related content:
http://mdvconsulting.co/experience/articles/
Get in touch:
E: info@mdvconsulting.co
T: +44 (0)20 7323 2104
Try capacity building exercises on your challenges:
http://mdvconsulting.co/thinking/
Workshops on:
27th September 2017
24th January 2018

Using Vertical Development in a complex and unpredictable world

  • 1.
    Developing leaders fora world of increased complexity and uncertainty www.mdvconsulting.co/research/white-papers Continuing development of an adult’s capacity to think, relate and act in more expansive, complex ways, or more popularly known as ‘Vertical Development’
  • 2.
    Why vertical? Collisionof megatrends Organisations can no longer rely on ‘steady state’ realities – but much leadership development activity is based on the assumption that we know what type of leaders are needed in the future. These 5 megatrends are not new - it’s the speed with which they are colliding which is creating complexity, uncertainty and volatility. Demographic and social change Shift in global economic power Rapid urbanisation Climate change and resource scarcity Technological breakthroughs “ If we can’t predict the challenges that our leaders are going to face, what makes us think we can predict the skills they will need in order to face them?”
  • 3.
    Why Vertical? Volatile.Uncertain. Complex. Ambiguous. (VUCA)
  • 4.
    Are we readyto be less steady? 25% of global organisations doubted the VUCA capability of their leaders. 18% thought their leaders were very capable. DDI 2015 Global Leadership Forecast Report “Particular need is also seen .... for a new type of senior manager who will successfully steer companies through the upcoming change and disruption.” World Economic Forum Future of Jobs Report
  • 5.
    Complexity and leadershippractice Chaotic No cause-effect relationship can be perceived Act-Learn-Respond Stabilize the system Novel practice The cause and effect relationship does not repeat and is unpredictable Scan-Experiment-Learn Experimenting at the edges Emergent practice Complex Unpredictableworld Cause and effect are separated in time and space and can be researched See-Analyse-Decide Deep expertise Good practice Complicated Obvious The cause-effect relationship is repeatable and predictable See-Categorize-Decide Standardised procedures, checklists Best practice Predictableworld Adapted from David Snowden Responses during complex times are counter-intuitive through a wish to try and impose order. Often challenges are miscategorised and therefore the wrong approach is applied
  • 6.
    Complexity requires newcapacitiesUnpredictableworld Predictableworld Chaotic • Make sure the ‘commander’ assumes command • Conduct rapid risk assessment • Make ‘least worst’ decisions • Act to stabilize system • Provide reassurance and support • Demonstrate new ways of thinking, acting, and collaborating • Exhibit flexible thinking and actions • Support safe-to-fail experiments • Shift system dispositions rather than promise outcomes • Encourage questions, challenge and radical rethinks Complex • Get expert advice and support their work • Rely on experts to reliably predict outcomes that flow from advice • Trust that an intervention that works in one place will mostly work elsewhere Complicated Obvious • Make sure everyone agrees about what needs to be done • Use traditional ‘Vision-Strategy-Plan- Implement’ approach • Gather and organise resources • Flick a switch to implement Understanding the situation helps to assess the correct leadership response. Using approaches suitable for the predictable world in the unpredictable makes the situation worse.
  • 7.
    Wiser ways foran emerging world “The ability to do business with dynamics labelled as VUCA goes beyond subject area expertise or general cleverness… to align with wise judgment.” “In theory and in practice, what people regard as wise behaviour brings together a number of elements that include cognition, emotion and practical knowhow.” “…it concerns increasing people’s capacity – taking a more fundamental approach to development…”
  • 8.
    Vertical development Vertical developmentrefers to advancement in the way a person thinks, relates and acts. ‘Arising from attention to adult development theories, it concerns not just the content of our thinking – the what - but the options we have available for how we go about considering things.’ A person’s meaning making can develop over time in a predictable, coherent way – a series of stages, punctuated by (sometimes discombobulating) transitions. People at different stages of development operate differently in similar situations because the logic that underpins their action is different.
  • 9.
    How vertical complementshorizontal Horizontal development = adding more knowledge, skills and competencies. (Filling the glass with more content) Vertical approaches = grows the internal capacities to think in more complex, systemic, strategic and interdependent ways. Expands an individual’s ability to handle complexity and ‘sense make’ in ambiguous and uncertain situations. (Increases the glass size or leader’s mindset) Petrie. N Vertical Leadership Development Part 1 Developing Leaders for a Complex World. Center for Creative Leadership
  • 10.
    Three key underlyingcapacities Conceptual - how one relates to the world of ideas, models, frameworks as well as the contexts and systems within which they operate. Personal - how one relates to their own thoughts, feelings and internal senses of the world and their responses to the world. Interpersonal - how one relates to others’ perspectives and ways of operating as well as the wider social environment. How one’s actions affect their social environment and the results created.
  • 11.
    The MDV ‘VUCAcapabilities’ – ‘enacted capacities’ • Volatility requires sudden and unexpected changes in direction and so calls for leaders who can promote inquiry and create a culture of experimentation. • Ambiguity calls for leaders who pay attention to relationships and political signals in order to surface dilemmas and work with the conflicts that arise. • Uncertainty calls for leaders can help people build relationships that connect the organisation and help disparate groups connect creatively. • Complexity calls for leaders who can notice dynamic changes and relationships in their environments and nudge systems in response. • And, because the VUCA-ness creates anxiety, frustration and overload, this calls for leaders who can continually cultivate resilience in themselves and others.
  • 12.
    Underlying sense making capacities Capabilities Practices Workingwith practices to develop underlying capacities “For vertical development purposes, a practice is a consciously chosen and regular ‘habit of action’ that we select to help us build our capacity.” “We work with people where they are at, helping them deploy practices that someone later in their development might naturally use.”
  • 13.
    Integrating framework The ThreeCapacities and Five Capabilities sit within MDV’s Integrating Framework. This acknowledges the extent of Predictability vs Unpredictability. “The VUCA world doesn’t eradicate the need for ‘steady state’ approaches. But it is also clear that steady state approaches have some limits to their effectiveness.”
  • 14.
    VUCA practices fordaily use The concept of practices is well established as part of adult development – the view that ‘we are what we repeatedly do’. The White Paper provides five VUCA practices in a panel. The following is an example:
  • 15.
    Further information Download theWhite Paper: What in the world is going on? Mapping Vertical and VUCA beyond the bandwagon http://mdvconsulting.co/whitepapers/ Read related content: http://mdvconsulting.co/experience/articles/ Get in touch: E: info@mdvconsulting.co T: +44 (0)20 7323 2104 Try capacity building exercises on your challenges: http://mdvconsulting.co/thinking/ Workshops on: 27th September 2017 24th January 2018