CR020: Making sense of digital complexity with Dave Snowden, The Cynefin Centre
Apr 13, 2023
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Dave Snowden, Director and Founder of the Cynefin Centre, discusses making sense of digital complexity and the importance of experimentation in digitalization. Topics include the Cynefin Framework, tips for CEOs leading digital transformations, dangers of generative AI, strategies for organizational resilience, and personal excitement for upcoming trips and professional projects.
Leadership in digital transformation is crucial and often overlooked, requiring agility and adaptability in decision-making.
The Kinefin Framework provides a perspective on understanding and navigating complex systems, emphasizing flexibility and adaptive decision-making based on context.
Deep dives
Leadership in Digital Transformation
Leadership in digital transformation is a critical but often overlooked element. The Kinefin Centre, led by Professor Dave Snowden, applies natural science as a constraint on social systems to develop practical tools for companies worldwide. The Kinefin Framework, a key component, helps decision-making in complex situations. A specific example is the application of the framework in a leadership team meeting at BP during a Cloud Transformation Program. The team faced challenges due to lack of time, budget, and differing perspectives on cloud usage. A coach's insight led to a breakthrough by recognizing the need for a different approach. The Kinefin Framework supports decision-making in complex problems, emphasizing the importance of staying agile, making assessments in the moment, and testing what works. The framework identifies different states of nature (ordered, complex, chaotic) and allows for a dynamic approach to decision-making based on context.
The Kinefin Framework: Understanding Complexity
The Kinefin Framework, developed by Dave Snowden, provides a perspective on understanding and navigating complex systems. It categorizes systems into ordered, complex, and chaotic states, similar to solid, liquid, and gas in physics. The framework recognizes phase shifts between states and the unique dynamics between order and chaos. It challenges the notion of clear plans and instead emphasizes the need for flexibility and adaptive decision-making based on the context. Additionally, the framework introduces the notion of liminal space, representing questions that require different approaches. By using the Kinefin Framework, organizations can identify constraints and potential pathways to navigate complexity effectively.
The Importance of Context and Resilience in Digital Transformation
Digital transformation is a fundamental strategy for organizations to stay competitive and meet evolving customer expectations. However, it is essential to approach it with a deep understanding of context and resilience. Clear strategies and goals can limit an organization's ability to adapt in uncertain and complex environments. Instead, organizations should focus on reducing energy costs and increasing flexibility as they navigate digital transformation. Emphasizing adaptability and exploring multiple pathways while evaluating return on investment can lead to more effective and sustainable transformations. It is also crucial to recognize that digitization should complement human decision-making rather than replacing it completely.
Moving Beyond Traditional Approaches to Digital Transformation
Traditional approaches to digital transformation, such as clear planning and rigid strategies, may not be suitable in the face of complex and uncertain environments. Instead, organizations should embrace approaches that prioritize exploratory actions, continuous mapping of constraints and opportunities, and evolving strategies based on real-time feedback. Agile decision-making, reducing energy costs, and focusing on emergent properties can help organizations adapt to changing circumstances and increase resilience. Additionally, recognizing the limitations of AI and embracing the unique decision-making capabilities of humans are crucial for successful digital transformations. By shifting the focus from fixed plans to adaptable processes, organizations can navigate digital transformations more effectively.
Digitalisation in an inherently complex activity, with unknowns being very high and experimentation required on an ongoing basis - there is no 'once and done'. The changes in leadership framing, decision making and ways of working required are hugely under estimated in discussions and planning of 'transformation' and failure to engage with that could risk your success.
Dave, Sjoukje & Rob talk with Dave Snowden, Director and Founder of the Cynefin Centre about his work on making sense of complexity, they discuss Dave's seminal work, the Cynefin Framework, how he has subsequently built on that thinking and how you apply that it in the digitalisation process of your organisation. His insights are not to be missed.
Finally, in this weeksTrend, we set out some perceived wisdom of what is required in digital leadership and see what stacks up.
TLDR: 00:43 Intros 01:21 Cloud conversation with Dave Snowden 24:53 Six Tips For CEOs for Leading Digital Transformations 40:31 Wainwright walks!
Further Reading: https://thecynefin.co/
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