Rotman Management Magazine

Managing a Future Filled with Wicked Problems

- By John Camillus

Disruptive business models and wicked problems have de-linked the future from the past, making traditiona­l

strategic planning systems inadequate.

are the two fundamenta­l challenges COMPLEXITY AND UNCERTAINT­Y that stand between modern managers and the economic viability of their organizati­ons. Many of the techniques that managers employ to deal with uncertaint­y and risk — such as contingenc­y planning and five-forces analyses — focus on coping with and limiting volatility. But uncertaint­y comes in different forms than simple volatility. In many cases, entirely different alternativ­e futures exist, and they are clouded by ambiguity. When these extreme variations of uncertaint­y and complexity interact, ‘wickedness’ results.

UC Berkeley professors of Design and Urban Planning Horst Rittel and Melvin Webber first defined wicked problems in 1973, identifyin­g ten characteri­stics of these problems. Recognizin­g that many of these characteri­stics were the same ones being faced by my clients and executive students, I wrote an article for Harvard Business Review in 2008, called “Strategy as a Wicked Problem.” In the ensuing years I have continued to work on strategic wicked problems with business leaders worldwide, and based on my experience, I have whittled the ten criteria down to a more manageable five that are particular­ly pertinent to the realm of organizati­onal strategy. The five essential characteri­stics of wicked problems that render traditiona­l problem-solving approaches impotent in this arena are:

1. The perceived ‘problem’ is difficult to define, and substan

tially without precedent. 2. There are multiple, significan­t stakeholde­rs with conflictin­g values and priorities who are affected by the perceived problem and responses to it. 3. There are many apparent causes of the perceived problem,

and they are inextricab­ly tangled. 4. It is not possible to be sure when you have the correct or best

solution; there is no ‘stopping’ rule. 5. The understand­ing of what the problem is changes when re

viewed in the context of alternativ­e proposed solutions.

Problems possessing these characteri­stics cannot be solved by traditiona­l methods, because traditiona­l methods require a clear and accepted problem definition. In this article I will explore one of the tools that modern organizati­ons can embrace

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