What can we learn from Stoic philosophers asks Apiramy Jeyarajah

23 August 2021 • 4 min read

‘Train my mind to adapt to any circumstance.' In this way, if circumstances take you off script, you won't be desperate for a new prompting."

These words belong to Epictetus, a Stoic philosopher of the first century AD. But they are strikingly relevant to life in a modern, globalised economy. When faced with the irreducible complexity and uncertainty of the world, the Stoics teach us it is better to be adaptable and flexible; or 'agile' in business management speak.

From hierarchy to squads

Organisations are relearning this ancient wisdom.

A recent McKinsey study found agile businesses have a 70% chance of being in the top quartile for organisational health, one of the best indicators of long-term performance.

But for companies in more established industries, including finance, it can be difficult to put agility into practice. In fact, while 83% of large businesses have sought to implement agile structures in recent years, only 23% have succeeded.

These companies may be hampered by a mode of organisational thinking that dates back more than a century. Historically, employees have been based in departmental silos and functioned as little more than cogs in a machine.

Uniformity and efficiency took precedence over diversity and flexibility.

The Skills Workshop: empowering young people to choose asset management

In comparison, some technology companies have incorporated agile principles into their business structures quite successfully.

Take music streaming giant Spotify: the firm is split into small, interdisciplinary teams, known as ‘squads', which operate as part as larger ‘tribes'. Individuals maintain connections with members of other squads who share their areas of expertise, forming ‘chapters' and ‘guilds'.

Agility in asset management: A deal team approach

There are lessons for companies struggling to break free of their own organisational constraints.

Take finance for example.

In recent years, some asset managers have recognised the need to do away with strict asset-class silos among their investment teams to respond quicker to market shifts.

The rise of responsible investment has played a role in this: environmental, social and governance (ESG) factors cut across asset classes, necessitating better information-sharing between specialists.

But when it comes to client engagement, many firms remain wedded to old-fashioned methods of communication and divisions of labour - even as clients begin to demand intuitive technology and responsive, customised services.

To give an example, asset managers would traditionally allocate clients a single point of contact within the organisation.

We recently implemented a more agile, teams-based approach, reorganising sales and client-relations employees into small, flexible groups comprising both front-office and back-office personnel. We have found these deal teams are better able to determine clients' needs, respond quickly and effectively to their requests with personalised solutions, and identify problems before they arise.

Meanwhile, a collective focus on customer outcomes lends coherence to the agile structure, freeing teams to solve problems as they see fit while keeping this principal objective in mind.

Diversity and inclusion: 'We need to get middle managers onside - they are going to have to get on board at some point'

Diversity of thought is another crucial aspect of any agile approach.

It makes no sense to assemble teams whose members look and think alike - far better to identify talent that spans the spectrum of race, gender, social class, sexual orientation and neurodiversity. The presence of different skills and perspectives fosters creative thinking and productive discussion. Diverse teams are also better placed to recognise and satisfy the needs and expectations of an increasingly diverse client base.

Agile approaches require a different kind of leader.

One cause of frustration throughout my career is the way I have observed executives practice a one-size-fits-all management style.

Everyone is different, each an individual with contrasting backstories and motivations, varying strengths and weaknesses; we are all the sum of our parts. Managers need to understand this if they are to retain talented people and encourage them to give their best.

The key concept here is ‘add', rather than ‘fit': managers need to encourage the interplay of different points of view if they are to build happy, productive teams.

This change in style can, in turn, help bring about a wider shift in mindset across the organisation, so that we begin to reject hierarchies and embrace inclusive, flexible networks.

Like a Stoic philosopher, an agile organisation will be primed and ready to adapt to any circumstance.

Apiramy Jeyarajah is head of UK wholesale at Aviva Investors

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