An exercise to test your readiness for the next unforeseen disruption

The last couple of years have proven the need to be agile and ready for anything, but are you properly prepared?

There’s not an executive on the globe who hasn’t realized the important of navigating a volatile, uncertain, complex, and ambiguous (VUCA) business environment. But are you ready to respond to the next big disruption?

Sit down and ask yourself the following questions – they make up the basics of the LACE framework for navigating times of uncertainty. LACE stands for four pillars of action: learn, adapt, collaborate, and experiment. These are the questions you should be asking to test your readiness.

Learn

How do you embrace new ways of thinking and doing?
How do you train your curiosity muscle to identify and act on opportunities?
What systems are in place for active and continuous learning?

Adapt

Can you transform at the speed of change?
How does your organization engage in rapid adaptation and increase its flexibility?
How focused are you on customer centricity?

Collaborate

How are you striving to be a partner of choice?
How do you foster a common purpose within your organization?
Do you co-create with partners in a way that offers shared value?

Experiment

Does your organization learn by doing?
How often do you rethink your value creation strategy?
Do you engage in “sense-making” – interpreting and seeing potential in innovative ideas, trends, and technology?

If you regularly revisit these questions with your team and work on building the four pillars, you will become ready to handle whatever is around the next corner.

Further reading:

The LACE framework: How to effectively respond to a rapidly changing environment by Louise Muhdi

Authors

Louise Muhdi

Affiliate Professor of Innovation and Strategy at IMD

Louise Muhdi is Affiliate Professor of Innovation and Strategy. She helps organizations adapt to uncertain and fast-changing business environments, drive innovation and growth, and sustain value creation for the long term. She has an MSc in biology and a PhD in technology and innovation management from ETH Zürich, Switzerland. Prior to joining IMD in 2019, Muhdi was Head of Innovation Strategy and Portfolio for Global Science and Technology at Givaudan International where she developed the global innovation strategy and implemented multiple strategic initiatives to drive short, mid, and long-term growth. She also spent several years in the pharmaceutical industry.