A better response to volatile market conditions is to mitigate the impact of constant unpredictability. The New Normal requests new ways of managing costs of product development, migrations or R&D. To manage cost control and product priorities new ways of adaptivity must be introduced. There are no simultaneous experiences in any of the companies independently of their size. Simply pushing harder within the old boundaries will not do however they can mitigate some actual market effects by better coordinating their organization’s response. However, rapidly adapt to the New Normal of constant environmental uncertainness.
These circumstances pushed most enterprises effectively into a kind of survival mode and forces them to increase their elasticity and recovery mechanism. The unbroken condition for speed to market is key and hence, companies need now the fastest and shortest way to adapt in parallel to changing organizational conditions. The New Normal is driven by economic uncertainty which is leading many C-level and D-level managers to replant and rethink their organisational structures to be able to deliver greater reliability to their experts, processes, and technical systems.
Organisational elasticity to adapt hyperdynamic changes in a productive and cost-efficient way is the steady state variable of the New Normal. In addition, increasing experts’ productivity and reducing transaction costs in product development are further windows of opportunities in the so-called creative destruction. The New Normal is constant creative destruction. It calls that the old is constantly replaced by the new.
Ensuring success in a permanently changing environment is one solution to avoid the straitjackets of yesterday’s logic. Yesterday’s logic grows if the same thinking is what creates the change. To tide over yesterday’s logic hierarchical structures must become permeable. Nowadays, there is more decision-making on the operational level than on the strategic level. Thence, permeable hierarchical structures are a prerequisite to coordinating an organization’s response in another manner. That means the ability of adaptive change systems to absorb variety in changing environments necessitates coping with variety and yet scale variety. Regarding this purpose, an exemplification is that getting enough work through is dramatically more resilient in times of turbulence than insisting all the work gets through.
Dealing with variety is about ensuring that the capabilities of the systems which regulate are sufficient to deal with the complexity of the problems which need to be solved. Operating with variety is about ensuring that the regulated capabilities of the organizational systems are sufficient to deal with the complexity of the problems which they must deal with. If an organization can deal adaptively with the diversity of challenges that its environment produces, then it needs to have a repertoire of responses to the impact thrown up by the environment. To tackle the amount of environmental variety the organization must become an adaptive system and the variety within the systems must be increased.
