by Robyn Bolton | Feb 8, 2026 | AI, Leadership, Leading Through Uncertainty, Strategic Foresight, Strategy
In 2023, Klarna’s CEO proudly announced it had replaced 700 customer service workers with AI and that the chatbot was handling two-thirds of customer queries. Labor costs dropped and victory was declared.
By 2025, Klarna was rehiring. Customer satisfaction had tanked. The CEO admitted they “went too far,” focusing on efficiency over quality.
Like Captain Robert Scott, Klarna misjudged the circumstance it was in, applied the wrong playbook, and lost. It thought it had facts but all it has was technical specs. It made tons of assumptions about chatbots’ ability to replace human judgment and how customers would respond.
Calibrated Decision Design, a process for diagnosing your circumstances before picking a playbook, consistently proves to be a quick and necessary step to ensure success.
When you have the facts and need results ASAP: Go NOW!
General Mills, like its competitors, had been digitizing its supply chain for years and so facts based on experience and a list of the facts it needed.
To close the gap and achieve end-to-end visibility in its supply chain, it worked with Palantir to develop a digital twin of its entire supply chain. Results: 30% waste reduction, $300 million in savings, decisions that took weeks now takes hours. It proves that you don’t need all the answers to make a move, but you need to know more than you don’t.
When you have hypotheses but can’t wait for results: Discovery Planning
Morgan Stanley Wealth Management’s (MSWM) clients expect advisors to bring them bespoke advice based on mountains of analysis, and insights. But it’s impossible for any advisor to process all that data. Confident that AI could help but uncertain whether its would improve relationships or create friction, MSWM partnered with OpenAI.
Within six months, they debuted a GenAI chatbot to help Financial Advisors quickly access the firm’s IP. Document retrieval jumped from 20% to 80% and 98% now use it daily. Two years later, MSWM expanded into a meeting summary tool to summarize meetings into actionable outputs and update the CRM with notes and follow-ups. A perfect example of how a series of experiments leads to a series of successes.
When you have facts and time to achieve results: Patient Planning
Drug discovery requires patience and, while the process may be predictable, the results aren’t. That’s why pharma companies need strategies that are thoughtfully planned as they are responsive.
Lilly is doing just that by investing in its own capabilities and building an ecosystem of partners. It started by launching TuneLab, a platform offering access to AI-enabled drug discovery models based on data that Lilly spent over $1 billion developing. A month later, the pharma giant announced a partnership with NVIDIA to build the pharmaceutical industry’s most powerful AI supercomputer. Two months later, it committed over $6 billion to a new manufacturing facility in Alabama. These aren’t billion-dollar bets, they’re thoughtful investments in a long-term future that allows Lilly to learn now and stay flexible as needs and technology evolve.
When you’re making assumptions and have time to learn: Resilient Strategy
There’s no way of knowing what the global energy system will look like in 40 years. That’s why Shell’s latest scenario planning efforts resulted in three distinct scenarios, Surge, Archipelagos, and Horizon. Multiple scenarios allows the company to “explore trade-offs between energy security, economic growth and addressing carbon emissions” and build resilient strategies to recognize which one is unfolding and pivot before competitors even spot what’s happening.
Stop benchmarking. Start diagnosing.
It’s easy to feel like you’re behind when it comes to AI. But the rush to act before you know the problem and the circumstances is far more likely to make you a cautionary tale than a poster child for success.
So, stop benchmarking what competitors do and start diagnosing the circumstances you’re in, so you use the playbook you need.
by Robyn Bolton | Feb 2, 2026 | AI, Leadership, Strategic Foresight, Strategy
It was a race. And the whole world was watching.
In 1911, Captain Robert Scott set out to reach the South Pole. He’d been to Antarctica before and because of his past success, he had more funding, more expertise, and more experience. He had all the equipment needed.
Racing him to fame, fortune and glory was Norwegian Roald Amundsen. Originally heading to the North Pole, he turned around when he learned that Robert Peary had beaten him there. He had dogs and skis, equipment perfect for the Arctic but unproven in Antarctica.
Amundsen won the race, by over a month.
Scott and his crew died 11 miles from the South Pole.
When the Playbook Stops Working
Scott wasn’t guessing. He’d tested motor sledges in the Alps. He’d seen ponies work on a previous Antarctic expedition. He built a plan around the best available equipment and the general playbook that had served British expeditions for decades: horses and motors move heavy loads, so use horses and motors.
It just wasn’t right for Antarctica. The motors broke down in the cold. The ponies sank through the ice. The plan that looked solid on paper fell apart the moment it met the actual environment it had to operate in.
The same thing is happening today with AI.
For decades, when new technologies emerge, executives have followed a similarly familiar playbook: assess the opportunity, build a business case, plan the rollout, execute.
And for decades it worked. Cloud migrations and ERP implementations were architectural changes to known processes with predictable outcomes. As time went on, information grew more solid, timelines became better understood, and the playbook solidified.
AI is different. Executives are so focused on picking the right AI tools and building the right infrastructure that they aren’t thinking about what happens when they hit the ice. Even if the technology works as designed, you have no idea whether it will deliver the intended results or create a ripple of unintended consequences that paralyze your business and put egg on your face.
Diagnose Before You Prescribe
The circumstances of AI are different too, and that requires a new playbook. Make that playbooks. Picking the right playbook requires something my clients and I call Calibrated Decision Design.
We start by asking how long it will take to realize the ultimate goals of the investment. Do we need to break even this year, or is this a multi-year bet where results slowly roll in? Most teams have a sense of this, so it allows us to move quickly to the next, much harder question.
What do we know and what do we believe? This is where most teams and AI implementations fail. To seem confident and indispensable, people present hypotheses as if they are facts resulting in decisions based on a single data points or best guesses. The result is a confident decision destined to crumble.
Where you land on these two axes determines your playbook. Apply the wrong one and you’ll either waste money on over-analysis or burn through budget on premature action.
Pick from the Four Playbooks
Go NOW!: You have the facts and need results now. Stop deliberating. Execute.
Predictable Planning: You have confidence in the outcome, but the payoff takes patience. Build a flexible strategy and operational plan to stay responsive as things progress.
Discovery Planning: You need results fast, but you don’t have proof your plan will work. Run small, fast experiments before scaling anything.
Resilient Strategy: The time horizon is long and you’re short on facts. The worst thing you can do is go all in. Instead, envision multiple futures, identify early warning signs, find commonalities and prepare a strategy that can pivot.
Apply it
Which playbook are you using and which one is best for your circumstance?
by Robyn Bolton | Oct 13, 2025 | Innovation, Leading Through Uncertainty
As a kid, you’re taught that when you’re lost, stay put and wait for rescue. Most executives are following that advice right now—sitting tight amid uncertainty, hoping someone saves them from having to make hard choices and take innovation risk.
This year’s Nobel Prize winners in Economics have bad news: there is no rescue coming. Joel Mokyr, Philippe Aghion, and Peter Howitt demonstrated that disruption happens whether you participate or not. Freezing innovation investments doesn’t reduce innovation risk. It guarantees competitors destroy you while you stand still.
They also have good news: innovation follows predictable patterns based on competitive dynamics, offering a framework for making smarter investment decisions.
How We Turned Stagnation into a System for Growth
For 99.9% of human history, economic growth was essentially zero. There were occasional bursts of innovation, like the printing press, windmills, and mechanical clocks, but growth always stopped.
200 years ago, that changed. Mokyr identified that the Industrial Revolution created systems connecting two types of knowledge: Propositional knowledge (understanding why things work) and Prescriptive knowledge (practical instructions for how to execute).
Before the Industrial Revolution, these existed separately. Philosophers theorized. Artisans tinkered. Neither could build on the other’s work. But the Enlightenment created feedback loops between theory and practice allowing countries like Britain to thrive because they had people who could translate theory into commercial products.
Innovation became a system, not an accident.
Why We Need Creative Destruction
Every year in the US, 10% of companies go out of business and nearly as many are created. This phenomenon of creative destruction, where companies and jobs constantly disappear and are replaced, was identified in 1942. Fifty years later, Aghion and Howitt built a mathematical model proving its required for growth.
Their research also lays bare some hard truths:
- Creative destruction is constant and unavoidable. Cutting your innovation budget does not pause the game. It forfeits your position. Competitors are investing in R&D right now and their innovations will disrupt yours whether you participate or not.
- Competitive position predicts innovation investments. Neck-to-neck competitors invest heavily in innovation because it’s their only path to the top. Market leaders cut back and coast while laggards don’t have the funds to catch-up. Both under-invest and lose.
- Innovation creates winners and losers. Creative destruction leads to job destruction as work shifts from old products and skills to new ones. You can’t innovate and protect every job but you can (and should) help the people affected.
Ultimately, creative destruction drives sustained growth. It is painful and scary, but without it, economies and society stagnate. Ignore it at your peril. Work with it and prosper.
From Prize-winning to Revenue-generating
Even though you’re not collecting the one million Euro prize, these insights can still boost your bottom line if you:
- Connect your Why teams with your How teams. Too often, Why teams like Strategy, Innovation, and R&D, chuck the ball over the wall to the How teams in Operations, Sales, Supply Chain, and front-line operations. Instead, connect them early and often and ensure the feedback loop that drives growth
- Check your R&D and innovation investments. Are your R&D and innovation investments consistent with your strategic priorities or your competitive position? What are your investments communicating to your competitors? It’s likely that that “conserving cash” is actually coasting and ceding share.
- Invest in your people and be honest with them. Your employees aren’t dumb. They know that new technologies are going to change and eliminate jobs. Pretending that won’t happen destroys trust and creates resistance that kills innovation. Tell employees the truth early, then support them generously through transitions.
What’s Your Choice?
Playing it safe guarantees the historical default: stagnation. The 2025 Nobel Prize winners proved sustained growth requires building innovation systems and embracing creative destruction.
The only question is whether you will participate or stagnate.
by Robyn Bolton | Sep 30, 2025 | Leading Through Uncertainty, Strategy, Tips, Tricks, & Tools
Just as we got used to VUCA (volatile, uncertain, complex, ambiguous) futurists now claim “the world is BANI now.” BANI (brittle, anxious, nonlinear, incomprehensible) is much worse than VUCA and reflects “the fractured, unpredictable state of the modern world.”
Not to get too Gen X on the futurists who coined and are spreading this term but…shut up.
Is the world fractured and unpredictable? Yes.
Does it feel brittle? Are we more anxious than ever? Are things changing at exponential speed, requiring nonlinear responses? Does the world feel incomprehensible? Yes, to all.
Naming a problem is the first step in solving it. The second step is falling in love with the problem so that we become laser focused on solving it. BANI does the first but fails at the second. It wallows in the problem without proposing a path forward. And as the sign says, “Ain’t nobody got time for this.”
(Re)Introducing the Cynefin Framework
The Cynefin framework recognizes that leadership and problem-solving must be contextual to be effective. Using the Welsh word for “habitat,” the framework is a tool to understand and name the context of a situation and identify the approaches best suited for managing or solving the situation.
It’s grounded in the idea that every context – situation, challenge, problem, opportunity – exists somewhere on a spectrum between Ordered and Unordered. At the Ordered end of the spectrum, cause and affect are obvious and immediate and the path forward is based on objective, immutable facts. Unordered contexts, however, have no obvious or immediate relationship between cause and effect and moving forward requires people to recognize patterns as they emerge.
Both VUCA and BANI point out the obvious – we’re spending more time on the Unordered end of the spectrum than ever. Unlike the acronyms, Cynefin helps leaders decide and act.
5 Contexts. 5 Ways Forward
The Cynefin framework identifies five contexts, each with its own best practices for making decisions and progress.
On the Ordered end of the spectrum:
- Simple contexts are characterized by stability and obvious and undisputed right answers. Here, patterns repeat, and events are consistent. This is where leaders rely on best practices to inform decisions and delegation, and direct communication to move their teams forward.
- Complicated contexts have many possible right answers and the relationship between cause and effect isn’t known but can be discovered. Here, leaders need to rely on diverse expertise and be particularly attuned to conflicting advice and novel ideas to avoid making decisions based on outdated experience.
On the Unordered end of the spectrum:
- Complex contexts are filled with unknown unknowns, many competing ideas, and unpredictable cause and effects. The most effective leadership approach in this context is one that is deeply uncomfortable for most leaders but familiar to innovators – letting patterns emerge. Using small-scale experiments and high levels of collaboration, diversity, and dissent, leaders can accelerate pattern-recognition and place smart bets.
- Chaos are contexts fraught with tension. There are no right answers or clear cause and effect. There are too many decisions to make and not enough time. Here, leaders often freeze or make big bold decisions. Neither is wise. Instead, leaders need to think like emergency responders and rapidly response to re-establish order where possible to bring the situation into a Complex state, rather than trying to solve everything at once.
The final context is Disorder. Here leaders argue, multiple perspectives fight for dominance, and the organization is divided into fractions. Resolution requires breaking the context down into smaller parts that fit one of the four previous contexts and addressing them accordingly.
The Only Way Out is Through
Our VUCA/BANI world isn’t going to get any simpler or easier. And fighting it, freezing, or fleeing isn’t going to solve anything. Organizations need leaders with the courage to move forward and the wisdom and flexibility to do so in a way that is contextually appropriate. Cynefin is their map.
by Robyn Bolton | Sep 16, 2025 | Leading Through Uncertainty, Tips, Tricks, & Tools
When a project is stuck and your team is trying to manage uncertainty, what do you hear most often:
- “We’re so afraid of making the wrong decision that we don’t make any decisions.”
- “We don’t have time to explore a bunch of stuff. We need to make decisions and go.”
- “The problem is so multi-faceted, and everything affects everything else that we don’t know where to start.”
I’ve heard all three this week, each spoken by teams leads who cared deeply about their projects and teams.
Differentiating between risk and uncertainty and accepting that uncertainty would never go away, just change focus helped relieve their overwhelm and self-doubt.
But without a way to resolve the fear, time-pressure, and complexity, the project would stay stuck with little change of progressing to success.
Turn uncertainty into an asset
It’s a truism in the field of innovation that you must fall in love with the problem, not the solution. Falling in love with the problem ensures that you remain focused on creating value and agnostic about the solution.
While this sounds great and logically makes sense, most struggle to do it. As a result, it takes incredible strength and leadership to wrestle with the problem long enough to find a solution.
Uncertainty requires the same strength and leadership because the only way out of it is through it. And, research shows, the process of getting through it, turns it into an asset.
3 Steps to turn uncertainty into an asset
Research in the music and pharmaceutical industries reveals that teams that embraced uncertainty engaged in three specific practices:
- Embrace It: Start by acknowledging the uncertainty and that things will change, go wrong, and maybe even fail. Then stay open to surprise and unpredictability, delving into the unknown “by being playful, explorative, and purposefully engaging in ventures with indeterminate outcome.”
- Fix It: Especially when dealing with Unknowable Uncertainty, which occurs when more info supports several different meanings rather than pointing to one conclusion, teams that succeed make provisional decisions to “fix” an uncertain dimension so they can move forward while also documenting the rationale for the fix, setting a date to revisit it, and criteria for changing it.
- Ignore It: It’s impossible to embrace every uncertainty at once and unwise to fix too many uncertainties at the same time. As a result, some uncertainties, you just need to ignore. Successful teams adopt “strategic ignorance” “not primarily for purposes of avoiding responsibility [but to] allow postponing decisions until better ideas emerge during the collaborative process.
This practice is iterative, often leading to new knowledge, re-examined fixes, and fresh uncertainties. It sounds overwhelming but the teams that are explicit and intentional about what they’re embracing, fixing, and ignoring are not only more likely to be successful, but they also tend to move faster.
Put it into practice
Let’s return to NatureComp, a pharmaceutical company developing natural treatments for heart disease.
Throughout the drug development process, they oscillated between addressing What, Who, How, and Where Uncertainties. They did that by changing whether they embraced, fixed, or ignored each type of uncertainty at a given point:
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As you can see, they embraced only one type of uncertainty to ensure focus and rapid progress. To avoid the fear of making mistakes, they fixed uncertainties throughout the process and returned to them as more information came available, either changing or reaffirming the fix. Ignoring uncertainties helped relieve feelings of being overwhelmed because the team had a plan and timeframe for when they would shift from ignoring to embracing or fixing.
Uncertainty is dynamic. You need to be dynamic, too.
You’ll never eliminate uncertainty. It’s too dynamic to every fully resolve. But by dynamically embracing, fixing, and ignore it in all its dimensions, you can accelerate your path to success.
