Hypervariability: the organisational challenge of sudden and unpredictable change
How should CIOs respond to periods of macro-economic and political instability?
The world feels as if it's changing faster than ever. Sudden shifts in macro-economic and political factors — as well as conflicts — are having a stronger impact on day-to-day business because so many moving parts are now connected. In this climate, how can CIOs best enable their organisations to succeed?
We're experiencing exponential change in business today, driven by technical innovation, greater connectivity, and significant shifts in how people prefer to work and to be served. Accelerated by the pandemic, these changes have reached a point where many businesses across verticals now look more like IT companies than their old selves of a decade ago.
One word we might use to describe this phenomenon is "hypervariability". By this I mean that organisations are having to alter at speed while adopting highly responsive business models and practices so they can handle exponential change successfully.
Companies need to adapt quickly to hypervariability. But how is this possible and what role should CIOs play?
B2C-style experiences
Shifting customer expectations are driving change in a massive way — and this is a good example of hypervariability. People want the kind of B2C experiences, social interactions, and on-demand services that they enjoy in their personal lives to be replicated in the business world. This is true for employees too, especially the upcoming generation.
CIOs can respond effectively to challenges such as this by working with colleagues across the business who are facing sudden change. For example, marketing departments may be trying to figure out how to support new ways of working, or professional services teams might need new tools to serve customers better remotely.
The guidance and expertise offered by CIOs at this point is crucial. Having explored the business needs with teams, they can work in partnership with them to find the right tools and software-as-a-service (SaaS) solutions that meet the challenges of hypervariability.
CIOs will also recognise how new tools integrate with the plethora of other solutions in the technology stack — and how they can support data synchronisation to preserve value chains across the business. For example, a sales tool gathering leads must be linked with the CRM system to create trustworthy data. In turn, this will enable the faster decision-making demanded by hypervariability.
A changing role for CIOs
It's understandable when departments take the initiative themselves in exploring tech options when faced with the challenges of hypervariability. But CIOs must be involved in a company's response from the start. Here are three ways to improve outcomes:
1) CIOs must find their "business voice"
Often, CIOs come from a tech background such as programming or IT infrastructure; business may not be their natural forte. But today it's essential for CIOs to be part of the conversation with other department leaders about business needs and which tech is the best fit.
It's important for the C-suite to acknowledge that the CIO role is vital in tech-related business decisions — and that CIOs should help to guide strategy going forward. CIOs can provide valuable insight into agility, data, integration, cost, and security — so the business can maximse ROI while adapting to hypervariability.
2) The CIO's team needs greater agility
My own team has a skill set that's 50% different to three years ago, which seems radical. But this is because, like many companies, we use the cloud and depend on SaaS partners for much of our infrastructure. We can run many low-value tasks in the background, thanks to automation and self-driving tech. As a result, we can focus instead on what gives us the edge.
In a similar way, CIOs can do better at hypervariability by focusing on data analysis and a range of other areas of IT that impact business. Going forward, their teams must have the skills to not only understand the technology but also engage with the business by talking its language, whether that's a discussion about marketing leads or customer success.
3) Flatter hierarchies deliver flexibility
Traditionally, IT departments have been structured around seniority. But line management doesn't add much value in an environment where projects abound. While people's "grades" are largely invisible, it's someone's contribution to the business that is far more important.
Put simply, flatter structures give you greater agility. CIOs need people within their teams who can move fairly effortlessly between projects, taking on fresh roles and responsibilities — and relishing each opportunity. Again, an understanding of business requirements, as well as technology, is vital to success as people adjust quickly to new challenges created by hypervariability.
The rewards of getting it right
The current wave of change and disruption we're experiencing today will level out to some degree, most likely. But companies must become adept at hypervariability because we live in an unpredictable world.
The changes I've suggested are more about mindset than technology. This is where the focus needs to be — with CIOs playing an influential role. Make these changes to your company culture and you can expect to see a straight line from improved employee experience right through to greater customer satisfaction, revenue, profit, and growth.
Michel van Reeuwijk is CIO at Unit4