Nitin Seth

Speaker notes from recent set of talks

Sharing my experiences of leading in a VUCA (Volatile, Uncertain, Complex, Ambiguous) world and 7 paradigms leaders can use to create breakthrough opportunities from disruption.

Context setting

• It is crazy out there. Velocity of change is unprecedented
  • Tech Megatrends – Digital, Big Data, Automation,
  • Rapidly changing customer preferences
  • Shift of growth – West to East
  • Hypercompetition
  • Geopolitical shifts – Trump Presidency!!, Brexit, ISIS
  • Resulting in shortening Product and Business cycles
• This realization of disruptive power of change happened when I was in Fidelity
  • Very profitable business and a great company, but industry going through many significant disruptions
  • Shift in market structures – rise of Passive/Index funds (vs.actively managed), increasing regulation, aging population and plateauing of growth in core markets
  • Blink moment for me happened in an Agile Training (Key insights from my first Agile Training) – management rules that were developed for a more structured, stable environment will almost certainly not work. This is a great challenge for managers (especially those of us above the age of 40!!) as we probably need to unlearn what has made us successful so far. In short, I saw risk of becoming a dinosaur!!
  • This in part prompted my decision to join a new age company like Flipkart and expose myself to new learning
• Flipkart – absolutely at the cutting edge of VUCA
  • My role – Chief People Officer & Head of Strategy and now Chief Operating Officer has given me a ring side view of dynamics of a disruptive industry like Ecommerce and the challenges of building a hi-growth company in such an environment
  • Learnt the concept of VUCA in an Offsite. Another Blink moment. We are applying approaches and mindsets from a more traditional, linear world. No wonder, we struggle in a VUCA world!!
  • And, Ecommerce in India is totally VUCA
    • Volatile – Traffic
    • Uncertain – Demand & Growth
    • Complex – value chain – many different industries coming together
    • Ambiguous – regulations – how it will evolve

Complication – Organizations are not ready

• Traditional organisations – struggle to adapt to the pace of change
  • “Innovator’s dilemma” (seminal book by Clayton Christensen) – new technologies cause great firms to fail
  • Inertia
  • “Risk averse” culture
• Newage companies – not mature, learning on the go
  • Constant war mode – not building for the long term
  • Lack of experienced talent
  • Foundational capabilities and practices not strong (e.g., enabling functions like HR and Finance not kept pace with the business)

However, disruption also presents breakthrough opportunities

• It is not all doom and gloom. Companies that master the art of leading in a VUCA world can create breakthrough businesses (and significant value) through disruption.
• For example, growth of Tech driven companies like Facebook, Uber and Tesla over the past 10 years
• Closer home, the rise of Flipkart and the Ecommerce industry in India. Both are truly children of Tech led disruption that is happening in India.

7 paradigms that are essential to lead in a VUCA world and realise breakthrough opportunities

• Innovate and shape the future

• • Steve Jobs famously said, “people who are crazy enough to believe they can change the world are the ones who do so”
  • Instead of being on the defensive, play on the front foot and shape the market through innovations
  • A fundamental view that Flipkart has had – When Ecommerce penetration in India is still 2% of retail market, market growth rate does not mean anything. It can be shaped
  • For example, growth of Ecommerce in India has been driven by innovations that Flipkart introduced – Cash on Delivery, BBD, Mobile Exclusives. Each of these innovations shaped the market and shifted the baseline

• Execution speed & Agility

• • • In a VUCA world, carefully laid plans often don’t survive contact with hard reality.
    • Therefore Strategy has to be light & agile
    • Focus on execution – get wins on the board, Fail Fast. Successful execution often leads to clarity on strategy (by connecting the dots) rather than the other way around
    • To ensure speed and agility,
      • Stay close to the customer
      • Build org with hi-quality talent – who can adapt quickly

• Anchors – North Stars

• • • Strategy might not be a constant in a VUCA world
    • However, you do need some “North Stars” that will keep you anchored. Three “North Stars”:
      • Mission/Purpose – For Flipkart, it is to Transform Commerce in India using Technology. Our Strategy has changed but Mission has remained constant
      • Values – which bind the organisation together
      • Core Team – while personnel might change because of changing business needs and fast speed, it is important to have a core team at the center that stays constant through the journey

• Simplicity – to counter complexity

• • • Many managers can identify the comprehensive list of things to be done. True test of a leader is to simplify and generate focus. Three areas:
      • Org Structure – simple, flat, easy to change. Complex structures will not survive for long in a VUCA world
      • Processes – e.g., Performance Management system (PMS) – trade-off between comprehensive vs. scalable design
      • Key metrics – focus on select few that will move the needle

• Collaboration – nobody can do it alone

• • • Empowerment – death of top-down management
    • Encourage interactions across levels and functions
    • Communication – over invest on communication, make it personal to the extent possible
    • External Ecosystem – build partnerships, M&A

• Learning – keep on evolving

• • • Hubris Vs. Humility. Success breeds Hubris/Arrogance, which can be the death-knell for the individual and the organisation. Humility is key for ensuring learning and long-term success
    • Encourage Experimentation & Innovation. Reward failure
    • Build Peer networks – both within and outside the organisation

• Resilience – bounce back

• • It is inevitable that you will face some knocks. Have to strengthen both self and the organisation to take the punches and bounce back
  • Awareness of Duality – seeming contradictions like short-term and long-term, growth and profitability have to be managed at the same time in a VUCA world
  • Change management – role for HR
  • Personal anchors are critical – For me, it is Family, Sports, Spirituality

We are living in a roller coaster world. Hope the above thoughts help you both enjoy and make the best of this VUCA ride!!