The future is VUCA
Do you know what VUCA means? I didn’t until recently. VUCA is an acronym for volatility, uncertainty, complexity and ambiguity.
Drawing on the leadership theories of Warren Bennis and Burt Nanus, VUCA explains where the business world is currently situated. It also describes the future.
The truth is, the future will be more volatile, uncertain, complex and ambiguous than ever before.
However, are we turning this to our competitive advantage? Are we aware of how VUCA impacts our businesses? And are we using it to increase our performance, profitability and productivity?
We live in a volatile world. Changes and events are happening around us at a rapid, unpredictable and dramatic pace. Are our businesses ready for the volatile dynamics of the future? Are we doing everything we can to minimise volatility in the market?
The future is uncertain. We live in an era where it’s difficult to anticipate events. The world is unpredictable, and we lack an understanding of the issues and events affecting us.
The world is increasingly complex. Problems are multi-layered and difficult to understand. There’s no cause and effect to change, and confusion abounds in many organisations. What are we doing to minimise the impacts of complexity in our organisations?
Reality is shrouded in ambiguity. Nothing is definite or determinable. This will only lead to greater confusion in the future, full of paradoxes and mixed messages.
Businesses face these issues now, and they will only become more profound in the future.
So, what are you doing about VUCA?
Be proactive – start planning now
An advisor can help you mitigate and minimise the consequences of VUCA. They will help you anticipate issues, prepare for alternative realities, evaluate relevant opportunities and equip you to deal with disruption.
Bill George, a senior fellow at Harvard, believes an unpredictable world requires a new way of leading. He calls for business to adopt a strategic leadership approach called VUCA 2.0, which stands for vision, understanding, courage and adaptability.
What’s your vision? Do you understand future issues? How courageous is your business? And how adaptable are you?
One of our clients recently evaluated the volatility, uncertainty, complexity and ambiguity of their market. After some market research, they decided to discontinue in an international market. This was the business owner’s passion, pride and joy. However, because of VUCA, the business made the difficult yet courageous decision to discontinue. The result? The business minimised its risk and maximised its potential for profit and sustainability.
From our point of view, the business successfully met its VUCA 2.0 goal of vision, understanding, courage and adaptability.
Are you taking a VUCA 2.0 approach to your business’s future?