The world has changed drastically over the past decades from advances in technology to a global pandemic, all of which have impacted businesses. With the rapid speed at which we see change happen, it’s been up to leaders to keep pace and innovate.
The COVID-19 pandemic is the best example of this. Great change, at unbelievable speed. Companies and governments had to immediately pivot the way they work to tackle new challenges.
With talk of a global recession looming, leaders will again be tasked with tackling new challenges head-on. Leaders must be dynamic to adjust to an evolving business environment, show determination and patience, and develop strategies to adapt to an ever-changing landscape. So, what measurable process can leaders implement to ensure they are keeping pace?
The current state of instability the world finds itself in can be described using the term ‘VUCA’, an acronym that stands for ‘Volatile’, ‘Uncertain’, ‘Complex’, and ‘Ambiguous’. An early adopter of this term was The United States Army War College after the 9/11 attacks. These attacks were unprecedented, and military planners used the VUCA concept to describe the unfamiliar territory they found themselves in. VUCA is also a concept that can be used across many industries today.
VUCA represents the difficulties and challenges individuals, teams and organizations face and looks at how to overcome them. Combined, these challenges may be difficult to overcome, so VUCA was created to simplify situations and to treat them as individual elements that can each be tackled.
How can leaders implement VUCA?
VUCA is expected to become more prevalent, taking into consideration the impact of the pandemic, the Ukraine crisis, and the looming economic recession. Organizations must prepare for all eventualities and should already be looking to implement VUCA. Although a crisis can be unprecedented, leaders can prepare, predict and respond based on the 4 VUCA categories.
This is a short guide to VUCA to help leaders, teams, and organizations prepare:
Volatility
A volatile problem: This is an unexpected problem that will last for an undetermined period, but there is information available about the challenge.
Deal with it: Devote time and invest in your preparedness to minimize risk. This might be expensive, but your investment should match the risk.
Complexity
A complex problem: This problem has a mix of variables with no obvious solution. The nature of this problem can be overwhelming.
Deal with it: Restructure. Employ specialists and develop a new approach to address the complexity of the situation.
Ambiguity
An ambiguous problem: You face an ‘unknown’, with no precedent to solve the problem.
Deal with it: Experiment. Implement a trial and test method, with the aim that successful concepts can be applied broadly.
Uncertainty
The uncertain problem: The cause of the challenge is known, but the information surrounding it is not clear.
Deal with it: Invest in learning and share that information. For example, adding information analysis networks can reduce uncertainty.
A key challenge to VUCA are team members who resist change. They may want to stick to old methods rather than adapt and implement the new process. Teams may be slow to implement action, or the organizational structure of the business doesn't allow for fast change. Remember, inflexible leadership styles don’t work. If you want to implement VUCA, leaders should encourage collaboration, participation, debate, and group thinking. Techniques that allow for flexibility and quick action - the core of VUCA.
It’s also important for leaders to realize how uncertainty and volatility can impact a workforce. The emotional welfare of staff and keeping teams motivated and productive are key attributes in tackling challenges head-on.
When managing in a VUCA world, remember that no problem is insurmountable, and recognize that each situation has its own cause and resolution. Where each component can be broken down into manageable challenges.
