In today’s volatile, uncertain, complex, and ambiguous (VUCA) world, the traditional metrics of intelligence—IQ and EQ – are no longer sufficient to define effective leadership. Today, a new measure is rising in importance: AQ, or Adaptability Quotient. The term was popularized by Natalie Fratto, a venture capitalist at Goldman Sachs, during her 2017 TED Talk – so years before the spiral of turbulent change quickly began to spin.
AQ is more than just flexibility. Then what is AQ?
According to The Creative Thinking Institute, defines AQ as the capacity to:
Cope and thrive with change by demonstrating flexibility to self and others, remaining open and curious, unlearning and relearning, refocusing resilience to persist, delaying personal gratification for greater gain, applying problem-solving skills, and tolerating failure through to succeeding.
Overall, Natalie Fratto outlined AQ as encompassing three key capabilities: Ability to unlearn, Exploration and Resilience.
What does AQ mean for Organizations?
- Navigating Disruption: In industries impacted by AI, automation, and remote work, companies with high AQ adapt more quickly to change and sustain competitive advantage.
- Innovation Culture: Organizations that encourage adaptability foster environments where experimentation and learning are rewarded.
- Agility in Strategy: High-AQ companies pivot more effectively in response to market trends, customer needs, and global events (e.g., pandemics, geopolitical shifts).
What does AQ mean for Leaders / Employees?
- Career Longevity: Roles are evolving rapidly; employees with high AQ can learn new tools and stay relevant.
- Leadership Readiness: Leaders with high AQ can guide teams through uncertainty, foster change readiness, and cultivate psychological safety.
- Resilience in Uncertainty: AQ enables individuals to thrive amid ambiguity and frequent change — key traits in leadership and team performance.
How to become high-AQ Leader or Organization? It doesn’t happen from evening to morning, but you can do first steps today. Focus more on leadership with flexibility and agility, cultivate a growth mindset, create an environment where learning and adaptation are part of the process, not just the goal, stay open-minded and embrace diverse perspectives, and overall develop emotional resilience.
In conclusion, within the hierarchy of success, IQ might get you noticed, EQ might get you respected—but AQ will keep you relevant. For companies navigating the ever-shifting terrain of the modern economy, adaptability isn’t just a trait—it’s a strategy.
Article written by Katarina Radu, CFR Global Executive Search Slovakia
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