Navigating complex business environments requires a shift from traditional strategic planning to sense-making. Traditional strategy, based on predictability and control, is increasingly inadequate in a volatile, uncertain, complex, and ambiguous (VUCA) world. Instead, sense-making, the process of creating situational awareness and understanding in situations of high complexity or uncertainty, is crucial.
Sense-making involves recognising patterns and using them to inform decisions. It’s about being open to emerging realities, rather than being constrained by preconceived notions. It requires humility to admit when we don’t know and the curiosity to explore new possibilities.
There are three key elements to sense-making: scanning, interpreting, and responding. Scanning involves looking for signals in the noise of information overload. Interpreting is about making sense of these signals, understanding what they mean in context. Responding, the final element, involves deciding what action to take based on this understanding.
Leaders can foster a sense-making culture by encouraging diversity of thought, promoting psychological safety, and rewarding curiosity and learning. This shift from strategy to sense-making is not just a change in approach, but a fundamental transformation in how we think about and respond to the business environment.
Go to source article: https://geoffmarlow.substack.com/p/from-strategy-to-sense-making