Chaotics

In normal times, businesses compete with a mixture of offensive and defensive plays, but are not likely to win big. In runaway growth periods, they see new opportunities everywhere.

Business leaders must manage during times of greater turbulence through a system that enables them to make better decisions: a management framework and system dealing with chaos; they need “Chaotics Management System”.

An event or change in circumstances of one country -whether a bank failure, a stock market or real estate crash, a political assassination or a currency default -can spread to many other countries and create massive turbulence, spinning the whole system toward completely unforeseen outcomes.

If a company’s leaders fail to successfully navigate their way through the inflection point, the business declines.

Your instincts or maybe paranoia will tell you to remain ever vigilant because you don’t know when a sudden and strong wind will hurl your company or your whole industry into unwanted chaos.

The phrase “butterfly effect” refers to the idea that butterfly wings create tiny changes in the atmosphere that may ultimately alter the path of a storm system like a tornado in a certain location.

Business turbulence is defined as the unpredictable and swift changes in an organization external or internal environment that affect its performance.

The “butterfly effect” occurs because ours is an increasingly interconnected, interdependent globalizing world that is accelerating in its “globalness”.

All people, all governments and all businesses are now connected and interconnected at some level, and the impact of turbulence of each will be “felt” in some way by others in our globally connected environment.

Economic uncertainty is like an elixir that can lead even the most skilled of CEOs, when they fall under its influence to make serious mistakes.

Rather than having suppliers solely chosen by purchasing departments and distributors selected solely by sales departments, companies should base their selection on input from cross- functional teams within the company.

Companies should invest in and use various methods to improve communications with their suppliers and distributors, reduce miscommunications and provide feedback on issues of mutual interest.

Never lose sight of your company’s core values. Undermining the culture and reallocating resources can have long-term damaging effects.

Business leaders should visit places where change is happening. They need to feel the change personally, not just read about it in a business magazine or get it in a report.

Executive management must eliminate the filters; i.e. their access to unpleasant truths should not be blocked by anyone in their organizations who may be motivated to protect them.

Business leaders must accept the inevitability of strategy decay, for nothing lasts forever.