The first time I read about uncertainty was from the Nobel Prize winner Herbert Simon who highlighted the role of uncertainty in organisational strategy. At the time, Simon was working at the American Carnegie School which was melting pot of brilliance through the 1950's and 1960's, including esteemed names such as Richard Cyert and James March.
It was here that psychology, sociology and economics came together, resulting in the realisation that firms are not rational as they are led, after all, by humans.
Leaders only act rationally within certain parameters, a concept labelled as 'bounded-rationality'.
Moreover a critical role of the CEO is to buffer the organisation from the uncertainty of the environment. In today's world this role is expanded to all leaders. It is a leaders' responsibility to act as a buffer of the negative impact of uncertainty. It is their job to make sense of what is going on and lead through uncertainty.
This video builds on these ideas and provides some pragmatic advice for leaders.