As leaders face unprecedented levels of uncertainty and complexity, traditional models of sense -making become increasingly inadequate, a new approach to sensemaking is emerging: future-oriented sensemaking.
Traditionally, leadership scholars have discussed sensemaking as a retrospective process. The suggestion is that leaders and their teams would look back at past events to understand and respond to changes, drawing lessons from their experiences to inform current and future actions. The discussion of this process has been instrumental in helping us understand how organisations maintain coherence and adapt to evolving environments.
However, as the pace of change accelerates, a purely backward-looking approach is no longer sufficient. Today’s leaders are making decisions about a future they cannot know and therefore need to embrace future-oriented sensemaking, a proactive process that involves anticipating potential futures and preparing for them. This shift is like setting an organisational clock not just by the hours that have passed but by the hours yet to come. It involves constructing forward-looking narratives that connect past experiences and present realities to potential future outcomes.
The following notes outline some core aspects of this skill that has been noted as one of future proof leaders and their team from disruption.
Integrating Temporal Structures and Cultural Frames
Effective sensemaking requires a deep understanding of temporal structures—how an organisation perceives and utilises time and cultural frames—the shared beliefs and assumptions that shape its worldview. Leaders navigate these dimensions to align their strategies with both the organisation’s capabilities and market expectations. For example, during the COVID-19 pandemic, organisations with a culture of agility and innovation were better positioned to adapt to rapid changes, shifting their temporal focus from long-term planning to immediate crisis management.
Harnessing Technological Advancements
Emerging technologies, particularly artificial intelligence (AI) and machine learning (ML), are transforming sensemaking processes. These technologies enable leaders to process vast amounts of data, identify patterns, and predict future scenarios with unprecedented speed and accuracy. AI and ML can automate the detection of weak signals—subtle hints that could indicate important trends—empowering organisations to respond swiftly and effectively. It is crucial to balance technological inputs with human judgement, ensuring that strategic decisions are informed by both data-driven insights and nuanced human understanding.
Navigating Institutional Complexity
In complex institutional environments, leaders must navigate multiple, often conflicting, institutional logics. These logics represent the socially constructed patterns of practices, assumptions, and values that guide organisational behaviour. Successfully blending diverse logics enhances organisational resilience and adaptability. For instance, the Italian design company Alessi has integrated the logics of art and industry, creating unique products that are both aesthetically pleasing and commercially viable. This blending not only differentiates the brand but also enhances its ability to navigate market pressures and consumer expectations.
Cultivating a Sensemaking Culture
A culture that supports continuous sensemaking is vital for organisational agility and responsiveness. Leaders can foster such a culture by promoting open communication, encouraging collaboration, supporting continuous learning, and implementing reflective practices. Rewarding flexibility and innovation further motivates employees to adapt to new situations effectively. Organisations that cultivate these qualities are better equipped to handle the ambiguities and uncertainties of the modern business environment, making informed decisions and implementing changes swiftly.
Leveraging Storytelling as a Strategic Tool
Narratives and storytelling are powerful tools in sensemaking, particularly in crafting and communicating a vision for the future. Effective storytelling helps align organisational efforts by embedding complex strategic intents into relatable stories. This approach simplifies complex information, making it accessible and engaging for all levels of the organisation. For example, when IBM shifted its focus from hardware to services, the transformation was driven by a compelling narrative that redefined the company’s future, helping employees and clients visualise and align with the new strategic direction.
The Power of Collective Sensemaking
Collective sensemaking leverages diverse perspectives to forge robust strategic insights. When individuals from varied backgrounds collaborate to interpret complex situations, the depth and breadth of understanding are greatly enhanced. This collaborative approach fosters innovative solutions and fortifies the organisation’s strategic direction, making it more resilient to future challenges. The power of collective sensemaking in navigating high-stakes environments are highlighted by examples such as NASA’s Mission Control during the Apollo 13 crisis, and those of multinational corporations which are integrating local insights into global strategies.
Future-oriented sensemaking helps us navigate the complexities and uncertainties of modern business environments. The approach requires a mind that is stable enough to integrate past insights, with current experience and future scenario planning.For leaders looking to develop these capabilities, our “Navigating Futures” workshops, coaching, and presentations offer support. These programs empower leaders to respond to changes while actively shaping the future of their organisations, ensuring sustained success in a dynamic world
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References:
Weick, K. E. (1995). Sensemaking in Organizations. Thousand Oaks, CA: SAGE Publications.
Maitlis, S., & Christianson, M. (2014). “Sensemaking in Organizations: Taking Stock and Moving Forward.” Academy of Management Annals, 8(1), 57-125.
Kaplan, S., & Orlikowski, W. J. (2013). “Temporal Work in Strategy Making.” Organization Science, 24(4), 965-995.
Dalpiaz, E., & Di Stefano, G. (2018). “A Universe of Stories: Mobilizing Narrative Practices During Transformative Change.” Strategic Management Journal, 39(3), 664-696.