Volatility is a Critical Part of Change

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12/12/2023
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Bert Shlensky

We all recognize the importance of change, but also need to consider volatility in affecting change.

Take the stock market, for example – it’s like a rollercoaster influenced by economic twists, social vibes, and market moods. Recently, in 2023, the S&P 500 went up 17% from January to July, then down 11% from July to October, only to bounce back up by 11% from October to November. Minimally, you should evaluate investing for short-term change or simply investing for the longer term.

Rapid Evolution in Our World

Our world is evolving fast. Technology, our tastes, and what’s considered normal are flipping markets on their heads. Leisure, travel, and entertainment are booming unexpectedly. Even the diet industry is getting a facelift thanks to new drugs helping people shed pounds. It’s a game-changer.    

Social, political, and economic events are regularly disrupting our environment. From weather havoc to terrorism, it seems like endless crises. 

Managing Unpredictability

How do we handle all this unpredictability? First, we’ve got to understand volatility and figure out how to manage it. When bridges suddenly collapsed in Philadelphia and Los Angeles, they were fixed in record time – thanks to clear goals, teamwork, and innovative solutions. We need the same approach for everything, from health issues as we age to dealing with climate events and political shake-ups.

Take our health, for instance. As the years pile on, it’s a good idea to play offense. Waiting for a health crisis to hit is like playing catch-up. Hitting the gym, eating a bit healthier, and throwing in regular checkups are like the MVPs in the game of avoiding health rollercoasters. Same goes for other bumpy rides, like dealing with the economy, wild weather, or political shake-ups.

Cartoon of someone making a presentation to a boardroom meeting, with a chart showing downward trends.  He says "Well, no wonder!  Instead of Robert's Rules of Order, we've been following Murphy's Law!"  Volatility can be bad, but doesn't have to be.

Look at how we’ve been stepping up our game in handling weather drama like fires and hurricanes. It’s all about staying on top of things, being ready, and finding solutions. That’s the playbook we can follow for other curveballs that life throws our way.

Emphasizing Communication and Cooperation

Communication, coordination, and cooperation should be our priorities. Fire departments focus on safety and prevention rather than just enforcing laws. Why can’t we do the same for issues like crime, making things better between police and communities?  

Rethinking Progress and Success While Being Aware of Bias and Risk

It’s time to rethink progress and success. We’ve made huge strides in areas like reducing smoking and drunk driving. Reviewing plans is important, but we need to do it together and be open to expert advice for better problem-solving.

Don’t forget about bias and risk: Bias is, perhaps, the biggest culprit in unreliable results. “It won’t happen to me” may be the greatest cause of unexpected volatility.  Here’s the thing. We love to be right. We hate to be wrong. So, we will go to extraordinary lengths to make sure that we’re proven correct. And we won’t even know we’re doing it. Our brain, working surreptitiously in the background, doesn’t alert us too how biased we actually are.

Creating a Supportive Environment and Setting Specific Goals

Creating a supportive environment, both physically and socially, can help us deal with crises better. This includes a safe, productive and supportive physical space, along with social and businesses practices that are fair, consistent and understood can significantly add to the capability to deal with crises.

Getting specific with goals and solutions is key. We all get the importance of goals, but sometimes we spend too much time pointing fingers instead of finding solutions. Take a cue from success stories like fire safety and emergency highway repairs.

It’s all about staying open and analytical. Businesses need to understand their environment, learn from both wins and losses, and be open to new ideas. In other words, don’t be like Jack Nicholson saying, “You can’t handle the truth.”

"You can't handle the truth!"

Embracing Change for Better Solutions

In a nutshell, recognizing that change and ups and downs happen is the first step to tackling problems. We need tools to understand and predict change – just like we do with things like COVID and flu shots. Being prepared and understanding volatility will lead us to better solutions and alternatives.

Dr. Bert Shlensky, President of www.startupconnection.net, offers experience, skills, and a team devoted to developing and executing winning strategies. We guide your plans for business success and unlock your profits. Our strategy includes clear steps, and over 150 free articles and templates to facilitate your efforts and guide your process. We’re here to help you get on track and stay there as you move forward.

We welcome comments, suggestions, and questions. You can write us at: bshlensky@startupconnection.net or call at 914-632-6977.

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Volatility is a Critical Part of Change
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We all recognize the importance of change, but also need to consider volatility in affecting change.
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www.StartupConnection.net

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