Tolerance of ambiguity: Staying capable of acting in ambiguous situations.

Ambiguity Tolerance: Staying Capable in Ambiguous Situations.

August 22, 2024 — In the modern (work) world, leaders and their employees often face questions and challenges for which there are no clear answers. They should not panic, but rather try to remain calm. This makes it easier to find a goal-oriented solution. This is something that can be learned.

In the so-called VUCA world, changes occur due to

• the advancing digitalization and rapid technological progress, as well as

• political and societal events

that feel like they are constantly causing changes — and not infrequently fundamental ones. Therefore, leaders are increasingly confronted with situations that are not clear but ambiguous, which makes decision-making and planning more difficult; for example, because it is not yet foreseeable,

• how the (labor, financial) market will develop,

• what technical solutions will be available in the near future,

• what strategic fundamental decisions the board will make due to the changed framework conditions,

• what resources will be available to the area in the future,

• and, and, and ……

In such a situation, where leaders can often only base their decisions on more or less justified assumptions, the so-called ambiguity tolerance — the ability to deal with uncertainties, contradictions, and ambiguities — becomes a crucial competence for success.

What is Ambiguity Tolerance?

The term ambiguity tolerance refers to a person's ability to accept and handle ambiguities and uncertainties, even though there are no clear answers or crystal-clear and secure solutions yet. This competence enables people to stay

• calm and relaxed in complex, dynamic, or contradictory situations and

• to make decisions and take action despite all uncertainties.

People with a high level of ambiguity tolerance react less often or less quickly with nervousness, stress, and overwhelm in such situations than those with less of this competence, because they are able to

• view the current situation from different perspectives,

• find (tentative) solutions for emerging or already existing problems alone or with the support of others, and

• respond quickly and flexibly to the unforeseen when necessary.

• Additionally, they have a basic trust in "Somehow I will manage ..." or "... we will manage it," which allows them to see not only the resulting problems and dangers from ambiguities but also the (potential) opportunities.

Ambiguity Tolerance in the Digital Age

Having this ability or competence is becoming increasingly important for leaders in the VUCA world and the digital age, as it often fundamentally changes professional requirements as well as the ways we work (and live). These changes always come with uncertainties that also challenge traditional structures and processes as well as problem-solving in companies. This can be illustrated with three examples:

1. Agile Working Methods and Digital Transformation: In many companies or areas of businesses, agile working methods are replacing traditional hierarchies and rigid processes today. This flexibility also leads to uncertainty, as roles and responsibilities are not always clearly defined. Leaders must be able to handle this uncertainty and guide their teams through the change without being unsettled by the ambiguity.

2. Artificial Intelligence and Automation: The increased use of AI and automation technologies raises numerous questions about the future of work and the role of people in the economy. The answers to these are often contradictory and unclear. Leaders must be able to live with such uncertainties and prepare their teams to be professionally successful in a constantly changing working environment.

3. Globalization and Cultural Diversity: Due to increasing global interconnections, there are more and more work and project teams in companies comprised of people from various cultural backgrounds. Different values, communication styles, and expectations often lead to misunderstandings and uncertainties that can hinder collaboration. However, leaders with a pronounced ambiguity tolerance primarily see the opportunity in diversity to find new, more creative solutions and to make the company fit for the future.

Tips for Leaders in Dealing with Ambiguity

The good news for you as a leader is: Ambiguity tolerance is a skill that can be developed and strengthened. When you need to make decisions in ambiguous situations and provide your employees with support and orientation, you can apply the following strategies:

1. Acceptance of Uncertainty: The first step to effectively dealing with ambiguity is to accept uncertainty. As a leader, accept that not all questions can be immediately resolved (once and for all), and do not force hastily to show action by providing any answers or solutions prematurely. This acceptance creates the necessary space for creative and innovative approaches to solutions.

2. Encouraging Critical Thinking and Diversity of Perspectives: As a leader, you should involve different perspectives in decision-making processes and encourage your teams to think critically and outside the box. By exchanging different opinions and ideas, complex problems can be understood better and more creative solutions can be developed.

3. Communication and Transparency: In ambiguous situations, open and transparent communication is important. Speak as a leader — as far as possible due to your position and function in the organization — honestly about existing uncertainties and provide your employees the opportunity to ask questions and express their viewpoints and concerns. This openness fosters trust and strengthens team spirit.

4. Flexibility and Adaptability: The willingness to adapt flexibly to new circumstances is a key competence in dealing with ambiguity. As a leader, be willing to set aside your previous plans if necessary to achieve the overarching goals. Explain the course change to your employees. This way, they will not view your flexibility as a weakness but as a necessary reaction to the conditions.

5. Strengthening Mental Resilience: Ambiguity often causes stress. Therefore, leaders should master and apply stress management techniques and promote mental resilience to remain capable of acting, even in difficult situations. For example, continuously remind yourself and your employees of the problems you or your employees have already solved, of which you initially thought: "Oh dear, what's coming my way (or our way). I'm afraid I can't manage it (or we can't manage it)."

Diligently Promoting and Increasing Ambiguity Tolerance

Such so-called "mastery experiences" foster not only a person's self-efficacy but also their ambiguity tolerance, as it grows out of the confidence that "Somehow I will handle it — even if I don't know how yet." The same applies to teams.

Therefore, consciously promote the self-efficacy and ambiguity tolerance of your employees and teams who have the corresponding development potential in your personnel management and development. How? Quite simply, by continually assigning them tasks where they initially think, "This is something I or we might fail at" .... (and then providing them with the necessary professional and emotional support when needed). In this way, you essentially push your employees into a learning spiral, leading them to become personalities who possess the competencies that good employees increasingly need in the VUCA world.

Author: Barbara Liebermeister