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So far, we have only seen immediately visible, short-term effects, such as the fall in the value of the pound, and the diversion of the majority of UK Government time and energy into the legislation required to leave the EU. We all have our own opinions on the likely longer term political and macro-economic repercussions of Brexit, but in fact for our clients the most pressing concerns are closer to home, with the decision likely to influence all elements of their business, from strategy and talent through to finance and regulation.
Of course with the process of exiting the EU being ongoing, largely confidential and subject to a great degree of uncertainty, our clients have more questions than answers right now. But asking the right questions is always an excellent place to start when tackling complex challenges. We would love to write a blog post that provided all the answers, but the truth is that none of us has them today, and at Innovation Arts we certainly don’t have off the peg solutions for you and your organisation. However, we do have some broad responses that may be useful as you consider the risks, opportunities and uncertainty that Brexit presents:
Brexit is a supply side shock and, depending on how policies are managed at a national level, its effects could be felt positively or negatively on individual businesses, nationally and throughout the even more complex global system. One of the reasons our clients feel overwhelmed by this is that it seems impossible to separate the disruptive effects on their organisation with the wider (as yet unknown) effects. But putting focus on the smaller system of your organisation or industry where you are the experts can have major benefits at this stage. The best way to tackle complexity, in our experience, is to break it down into its constituent parts and their interdependencies before attempting to define solutions, so we advise starting there.
When disruption strikes, looking for ways to exploit opportunities should go hand in hand with risk mitigation. Because the implications of Brexit will touch many parts of your organisation, as well as your supply chain, we would suggest the best way to be in a position to strike while the iron is hot when the opportunity arises is to put action plans in place now, and review them regularly as the situation evolves. To ensure your plans are as good as you can get them, and watertight, use collaborative processes both within your organisation and with your trusted extended enterprise.
At a corporate level, you still have access to the specific knowledge and insights of your own organisation that with the right kind of design thinking will enable you to consider possible future scenarios, assess them and plan knowledgeably for them.
Right now there is a lot of speculation on what might happen. There are those that hold out hope that Article 50 could be reversed, others that demand that the Brexit process is seen through no matter if it happens without a deal, and others still who think the negotiation period could be extended through to 2021 or beyond. Is the most likely outcome somewhere in the middle? Perhaps. What we know is that although there is uncertainty, there are only a limited number of broad possible outcomes. But whatever that outcome eventually is, your response to it will still require you to leverage the expertise within your own organisation. By establishing and addressing your fitness to respond now, and by using scenario planning to develop detailed responses to the scenarios you can envisage, your business will be in the best shape to respond when more is known.
Traditional ways of doing this would consume a lot of FTE hours yes, but there are ways to effectively condense this work into short focused bursts, allowing you to accelerate your understanding and strategic planning whilst still staying focused on your day to day business and other initiatives. By bringing together the key stakeholders, leaders and decision-makers from across your business, having them rapidly explore and refine the scenarios of both the future and the transition to it, collaboratively, we can quickly help you define the key imperatives together and settle upon a course of action.