You may not be familiar with the acronym VUCA, although you likely have experienced this up-in-the-air feeling when faced with volatility, uncertainty, complexity, and ambiguity. We are living and working in a VUCA world. At nearly every turn, personally and professionally, at least one aspect of VUCA presents challenges in our lives.
While sometimes the best way to address a challenge is to approach it head-on, that concept might be easier said than done with VUCA. The very essence of the term indicates constant change, a fast pace, and unpredictability, which can hinder this approach. However, learning more about it will help show organizations what to expect and give some ideas for managing these challenges in the workplace.
The characteristics of VUCA
Introduced by the U.S. Army in the early 1990s, the term VUCA described war-torn Afghanistan and Iraq conditions. The new environment prompted a need for rapid flexibility and adaptability to remain ahead in their efforts. This approach also applies in business. The COVID-19 world, for example, was something most of us had never experienced before 2020.
It put organizations in situations that demanded operational change to remain effective. Here are the characteristics of each facet of VUCA as outlined by the Harvard Business Review for a better perspective:
- Volatility
Characteristics & Example:
Challenges are unexpected or unstable, although understood.
Ex: Supply chains get disrupted by weather or natural disasters.
Action:
Plan for extra inventory, buffer delivery times and devote resources to preparing in advance.
- Uncertainty
Characteristics & Example:
The primary cause of an event is known. However, other information is not available.
Ex: A new product hits the market in your industry, hindering the direction of your company.
Action:
Add an information analysis plan. Invest in and collect details for more profound insight into your market.
- Complexity
Characteristics & Example:
This characteristic includes situations with multiple moving parts and variables. Some information is available; however, the extent of the issue is overwhelming.
Ex: You operate a business in multiple countries with different regulatory requirements, tariffs, and cultural values.
Action:
Hire or develop specialists and provide the necessary resources to address complexities.
- Ambiguity
Characteristics & Example:
Cursory knowledge is unclear, and there is no precedent for the event.
Ex: You move into an emerging market or launch products outside your core competencies.
Action:
Experiment first. Gain an understanding of the cause and effect of concepts by testing theories.
A VUCA world is here for the near future. Knowing more about it while discovering how it affects your organization and employees can help you prepare for working through unprecedented times.
Three ways to lead in a VUCA world
Directing organizations and employees during times of turmoil means focusing quickly, adapting with agility, and remaining positive despite what is happening around you. Speaking about the role of leaders during turbulence, Microsoft CEO Satya Nadella says, “The role of leadership today is to bring clarity in uncertain times. The more uncertain things are, the more leadership is required. There is no job description for what you are facing, no rule book. Today’s leaders need to thrive in the face of this uncertainty.”
It is impossible to prepare for every possible scenario. However, building on these leadership skills provides a strong foundation for working through volatile events, uncertain periods, complex situations, and ambiguous endeavors:
- Prepare and share a vision. When things shift, you need a flagpole in the ground that keeps leaders, employees, and the organization aligned. That flagpole is your company vision. While industry trends might change, your company vision remains firm and solid.
- Remain flexible and ready to adapt. One of the best characteristics a leader has during volatility is shifting in the most needed direction. Today, leaders cannot get stuck in old ways or become rigid. Encourage leaders to remain ready to pivot as new information becomes available.
- Remain client-focused. Maintaining a focus on the client/end-user helps create solutions that will generate the most impact. Keeping clients happy eases the pains associated with VUCA, and the only way to do that is to provide them with your full attention before something changes.
Uncertainty in business is always going to be a given. The one certainty you can count on is your preparation when events shake things up. Your organization can meet the challenges and come out on top when prepared.
How to build a resilient team in a VUCA environment
“Houston, we have a problem.” This oft-spoken phrase now accounts for everything from the coffee maker spilling water everywhere to having audio issues on a critical video call. It originates from astronaut Jim Lovell. He communicated to the ground team about an oxygen tank explosion damaging the spacecraft during the Apollo 13 mission in 1970. This type of VUCA situation is one most of us cannot personally fathom. Yet, the management of this situation is nothing short of admirable. What did it take by those involved to turn a crisis into overwhelming success?
Action and Decision-Making
VUCA situations demand that teams make resolute decisions and act immediately. Such choices are difficult when information is limited or missing entirely, and the complexities of decisions are unknown. However, the ability of teams to reach a consensus, measure the results, and respond accordingly drives companies progressively forward during turmoil.
Collaboration and Teamwork
Innovative thinking and a wide range of ideas are necessary during extraordinary times. These occur by accessing resources across all functional levels of an organization. For example, during the Apollo 13 mission, the astronauts were not getting enough oxygen. To pump air from one part of the spacecraft to another required them to connect a hose with a square end to a round air portal. To figure out how to do it, the ground team at NASA brought everyone into one room and came up with any ideas they thought might work. This type of collaboration is essential to successfully working through a VUCA world.
If you or someone on your team is feeling overwhelmed or burned out from a VUCA event, stop, and take time to reconnect with the team on a personal level. Whether onsite or remote, bring the group together for an engaging team exercise to re-energize and take the load off for a time. Navigating a VUCA world is no easy task. Organizations that prioritize innovation and adaptability are better prepared to handle whatever challenges come their way. Support your leaders with learning that helps them foster inclusion and resiliency within their teams.
Creating a top-down corporate culture that fosters growth, collaboration, and pride helps generate buy-in and keeps problem-solving and futureproofing at the core of decision-making.
