Page 45 - Banking Finance November 2025

ARTICLE

To bring the Cynefin Framework into daily decision-making,
pause and consider:
What type of environment am I dealing with - clear,
complicated, complex, chaotic, or confused?
Am I going in default to the same approach in every
situation, regardless of context?
Am I clinging to established procedures when discov-
ery or experimentation might serve better?
Have I taken a moment to sense the dynamics before
responding?
Would a small, low risk experiment help reveal insights
before committing to a full solution?

Should I act, analyze, or experiment?
These questions help shift decision making and enables you
Do I need to lead from the front, or create space for to move from reflex to reflection, which is an essential shift
solutions to emerge? required in today's dynamic banking environment.

This approach promotes humility, adaptability, and inclusive- Conclusion:
ness- the traits that are crucial for the bankers as their in- The Cynefin Framework is more than a model. For Indian
stitutions transform at a faster pace.
banking professionals, it offers a lens to engage with the
Key Takeaways for Bankers world more wisely, especially when challenges seem uncer-
tain or fast moving.
Present day banking sector in India is a blend of legacy
processes and emerging fintech innovation. We deal
The better we understand the nature of a problem, the bet-
with deeply diverse customer segments, evolving technolo- ter we can choose how to respond. And when we choose our
gies, and regulatory shifts that can reshape business over-
responses wisely, we build systems that are not only more
night. efficient but are more resilient, human, and forward looking.

Cynefin gives us guidance to navigate that complexity. In-
stead of trying to replace compliance or technical rigor, it References:
complements them by encouraging smart sense-making 1. https://thecynefin.co/about-us/about-cynefin-frame-
work/
before action. It helps every professional to ask better ques-
tions and choose more appropriate responses. Remember, 2. https://www.researchgate.net/publication/
it is important to 281345229_Exploring_the_Use_of_the_Cynefin_Framework_
1. Resist the urge to oversimplify. Not every challenge is to_Inform_Software_Development_Approach_Decisions
clear. Avoid applying fixed processes in situations that 3. https://hbr.org/2007/11/a-leaders-framework-for-deci-
demand flexibility and nuance. sion-making
2. Value expertise. At the same time, embrace experi- 4. https://whatfix.com/blog/cynefin-framework/
mentation. Complex issues often require safe-to-fail
pilots rather than predefined solutions.
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3. Act swiftly in times of chaos but be clear about intent.
When stability is at risk, speed matters which has to Online Certificate Course on
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4. Foster reflective leadership. Encourage teams to pause,
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rather than rushing to respond.

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