BANGALORE: Avinash Prasad, a senior manager at Wipro, recently signed up for an unusual in-house training class. He would learn how the word 'ambiguity' does not necessarily induce panic.
Prasad wanted to learn how to come to terms with the risks inherent in his job - he is required to work out terms of transformational business, wherein customers want the IT solutions provider to bring in changes that will impact their output a few years down the line. And for risk it takes, the IT firm receives a certain percentage of profits. In determining the returns, the estimation of risk is ambiguous, since markets are volatile.
"Things are changing at a faster-than-expected pace where nothing is clear. You will not know the cause or impact of your work, but you still need to work for the big picture," says Prasad, practice head for the security service line division.
After two weeks of training with Wipro's talent engagement team, Prasad can plunge headlong into big-ticket decisions.
Prasad wanted to learn how to come to terms with the risks inherent in his job - he is required to work out terms of transformational business, wherein customers want the IT solutions provider to bring in changes that will impact their output a few years down the line. And for risk it takes, the IT firm receives a certain percentage of profits. In determining the returns, the estimation of risk is ambiguous, since markets are volatile.
"Things are changing at a faster-than-expected pace where nothing is clear. You will not know the cause or impact of your work, but you still need to work for the big picture," says Prasad, practice head for the security service line division.
After two weeks of training with Wipro's talent engagement team, Prasad can plunge headlong into big-ticket decisions.
He joins the community of Wipro's senior managers trained in understanding the nuances of dealing with ambiguity and irrationality, and how it can help in decision-making.
Like any other IT service firm, Wipro has all along come up with service models without knowing the possibility of their success, market dynamics or how clients would perceive them. Trial and error was the only way to deal with the ambiguity. But now, lessons are being taken from military manuals and works of behavioural economists.
The rationale behind such training, which started four months ago, is that not all business decisions are taken from an analytical, data-driven approach; the idea is to optimise functioning in a situation of ambiguity and take decisions at a gut-level, if need be.
Although the immediate impact of these lessons hasn't been measured, the company is sure they will help executives unravel client negotiations, group behaviour and individual thinking. Ambiguity, particularly, can result in out-of-the box ideas.
"All decisions are not taken with checks and balances in place. The business environment is getting more complex, and one has to learn how to work with lesser operational clarity," says chief learning officer Abhijit Bhaduri.
The two-hour training sessions include role-plays and examples drawn from the works of well-known behavioural economists like Dan Ariely, Sendhil Mullaianathan and Daniel Kahneman, to explain how irrationality is very much a part of decision-making.
The training also focuses on ambiguity -- the 'unknown-result' zone surrounding most decisions. But a foggy picture of the future leads to innovation, says Subhash Khare, VP, talent engagement and development.
Wipro uses strategic planning methods like Scenario Planning and Monte Carlo Simulation, used mainly by military intelligence, to train managers. Scenario Planning helps managers paints different pictures -- they know only one of them will occur, but are prepared for all.
Like any other IT service firm, Wipro has all along come up with service models without knowing the possibility of their success, market dynamics or how clients would perceive them. Trial and error was the only way to deal with the ambiguity. But now, lessons are being taken from military manuals and works of behavioural economists.
The rationale behind such training, which started four months ago, is that not all business decisions are taken from an analytical, data-driven approach; the idea is to optimise functioning in a situation of ambiguity and take decisions at a gut-level, if need be.
Although the immediate impact of these lessons hasn't been measured, the company is sure they will help executives unravel client negotiations, group behaviour and individual thinking. Ambiguity, particularly, can result in out-of-the box ideas.
"All decisions are not taken with checks and balances in place. The business environment is getting more complex, and one has to learn how to work with lesser operational clarity," says chief learning officer Abhijit Bhaduri.
The two-hour training sessions include role-plays and examples drawn from the works of well-known behavioural economists like Dan Ariely, Sendhil Mullaianathan and Daniel Kahneman, to explain how irrationality is very much a part of decision-making.
The training also focuses on ambiguity -- the 'unknown-result' zone surrounding most decisions. But a foggy picture of the future leads to innovation, says Subhash Khare, VP, talent engagement and development.
Wipro uses strategic planning methods like Scenario Planning and Monte Carlo Simulation, used mainly by military intelligence, to train managers. Scenario Planning helps managers paints different pictures -- they know only one of them will occur, but are prepared for all.
