Page 43 - Banking Finance November 2025

ARTICLE

Applying the Cynefin

Framework in

Decision Making for

Bankers

Gokul Brindhaban GR
Chief Manager (Research),
Leadership Academy,
Union Bank of India.

Misjudging the domain can lead to costly errors viz. applying redundant practices in a complex
scenario or over analysing a situation that requires quick action. Cynefin offers a moment to reflect
before reacting.

Introduction: handle unpredictable challenges by forcing them into rigid
processes.
In a world where financial institutions are constantly navi-
gating regulatory changes, rapid technological shifts, and
Instead of trying to control uncertainty, Cynefin encourages
evolving customer expectations, decision making has be-
come more nuanced than ever. Traditional practices alone us to go through it. The Welsh word cynefin (pronounced
can no longer suffice, especially in the Indian banking sec- as "ku-nev-in") loosely translates to "habitat" or "a place
tor, where vast diversity and scale amplify the challenges. of belonging." It reminds us that all decisions are shaped
by layered contexts which something every banker work-
ing across varied customer, regulatory, and operational
The Cynefin Framework, developed by thought leader Dave
Snowden, is a powerful sense-making model rooted in sys- ecosystems, can relate to.
tems thinking and organizational behaviour. It equips bank-
ers whether they are on the frontlines or in strategic lead- Decoding the Five Decision-Making Con-
ership to understand the context of a situation and respond texts
with clarity. From customer escalations at a branch to the At the core of Cynefin framework, lie five domains: Clear,
rollout of digital strategies, Cynefin offers a practical com- Complicated, Complex, Chaotic, and Confused. These do-
pass for navigating uncertainty.
mains help us identify the type of situation we're in and
adapt our response accordingly.
Philosophy behind Cynefin Framework

Born out of Snowden's work at IBM in knowledge manage- The model is visualized as four quadrants-Clear, Compli-
ment and organizational strategy, the Cynefin Framework cated, Complex, and Chaotic-with Confused (also known as
draws from complexity science, anthropology, and cogni- Aporetic) at the center.
tive psychology. He observed that organizations often mis- On the left side are Complex and Chaotic: the unor-

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