McKinsey:: strategy for the turbulent world of complexity and uncertainty


Click on image for report link

Globalization and technology are sweeping away the market and industry structures that have historically defined the nature of competition. Although the pace of change continues to accelerate, the fundamental transformations under way in the global economy have only just started. The variables that can profoundly influence success and failure are too numerous to count. That makes it impossible to predict, with any confidence, which markets a company will be serving or how its industry will be structured—even a few years hence.

The result is an economic environment that is rich in opportunity but also marked by a substantial increase in awareness of risk and aversion to it— a phenomenon reflected in the rise of risk premiums throughout the world even while the risk-free cost of capital remains low.

This is a very interesting report and, although more in-depth and from slightly different perspective, carries a broadly similar message to that, contained in a report from Boston Consulting Group, that I wrote about recently:

Adaptability: The New Competitive Advantage

Of course it is much easier to glibly talk about managing complexity and building resilience than it is to “do it”…especially without tools from Ontonix! We can also assist with identifying areas of weakness and strength within the organisation and its ecosystem.

It is vital that the operational and financial structure; IT; commitment, capacity and capabilities are aligned; sufficiently robust to underpin “sustainable transformation” and a resilient strategy, capable of creating opportunities from threats.

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