How to Benefit From the VUCA World - theLivingCore

The potential to foster a positive VUCA world – one based on Vision, Understanding, Clarity, and Agility rather than on the negative, reactive ... HowtoBenefitFromtheVUCAWorldtheLivingCore2.June20212.June2021Authors:MarkusPeschl,MichalMatlonAttheheartofthetraditionalapproachtostrategyliestheassumptionthatbyapplyingasetofpowerfulanalytictools,executivescanpredictthefutureofanybusinessaccuratelyenoughtoallowthemtochooseaclearstrategicdirection.Inrelativelystablebusinesses,thatapproachcontinuestoworkwell.Butittendstobreakdownwhentheenvironmentissouncertainthatnoamountofgoodanalysiswillallowthemtopredictthefuture.Courtney,Kirkland,andViguerie,1997Inthepreviousblogpost,wehavelookedatthedefinitionofVUCAWorldandwhatitmeansforourorganizations.Wehaveexplainedhowvolatility,uncertainty,complexity,andambiguousnesscharacterizetheeconomytodayandwhatawrongreactiontoitcancause.Thistimearound,wewilltakealookatthepositivepotentialoftheVUCAworldandsuggesthowtobenefitfromit.QuestionsforaVUCAauditFirst,weneedtocreateanassessmentofourenvironment.BaranandWoznyjhavedevelopedasetofquestions,makingupa“VUCAaudit”.Thesequestionsshouldbeasked,discussed,andworkedonbyleadersandemployeesallacrosstheorganizationregularlyinvariousformats,suchasteamdiscussions,focusgroups,informalconversations,orperiodicsurveys.Togetasenseofanticipatedvolatility,uncertainty,complexity,andambiguityWhatmightchangequicklyabouttheorganization,industry,ormarket?Whichchangesinvaluesystems,user/clientpreferences,oruserbehaviorscanbeobserved?Whichaspectsoftheorganizationorindustryareunpredictable?Areweawareofitandhowdowedealwiththisunpredictability?Howisourworkinterconnectedwithordependentuponotherstakeholders?Whatarethenetworksweareengagedin?Whatareourrolesand(causal)functionsinthesenetworks?Inwhichwaysdowedependonand/orcanweinfluencethedynamicsinthesenetworks? Whereandhowdoesourorganizationorindustrylackclarity?Why?Howcouldwechangethat?TogetasenseofyoursensingandmonitoringbehaviorsHowmightIstayintouchwithtrendsinmyorganization,industry,orfunction?HowoftenamIsurprisedbydecisionsorevents,andwhy?DoIquestionandreflectonourorganization’sstrategy,premises,andpurpose?WhatresourcesorrelationshipsdoIhaveorneedtokeepabreastofongoingchanges?HowmuchtimedoIspendlisteningtoothers,insideandoutsideofmyorganization?TogetasenseofchangesandtrendsinsidetheorganizationWhatdopeopletalkaboutthemostinmeetings?Whatarethemostdisputedtopicsinourorganization?Whatarethemostimportanttrendswithinourorganizationorworkforce?Whatarethemostcommontopicsininformalconversationsamongcoworkers?Whatarethekeyfocalareasofourstrategydocumentsandpolicies?DotheymakesensetomeandcanIidentifymyselfwiththem?Whatdothekeyleaders,bothformalandinformal,talkaboutthemost?TogetasenseofchangesandtrendsoutsidetheorganizationWhatregulationsorlawsinfluencewhatwedoandhowlikelyaretheytochange? Whataspectsofourclientsorcustomersarechangingconcerningwhatwedoandwithwhatischanginginthemarket/environment?Whatareourcompetitorsdoingthatwearenotdoing,andwhy?Whichaspectsoftheindustrycouldfundamentallyinfluenceoursuccess?CreatingapositiveversionofVUCATocreateorganizationsthatcanthriveinaVUCAworld,weneedtostartlookingatitasanopportunityanddevelopthenecessarymindsetsandskillstouseit.Veryoften,whetherascompaniesorasociety,wearestillinamodeofpreparingourselvesfortheworldofyesterday,insteadofappreciatingtheopportunitiesforabloomingfutureofferedbyaVUCAenvironment.Todothis,weneedtoturnVUCAonitsheadandreframeitinapositivelight,sothat:VolatilitybecomesVisionUncertaintybecomesUnderstandingComplexitybecomesClarityAmbiguitybecomesAgilityThepotentialtofosterapositiveVUCAworld–onebasedonVision,Understanding,Clarity,andAgilityratherthanonthenegative,reactiveframeoftheacronym,canbestbereachedthroughsystemsunderstandingthatseekstocuratefavorableconditionsofliving.SohowcouldapositiveversionoftheVUCAworldlooklike?Howcoulditguideustowardsathrivingfuture?LetvisiontaketheplaceofvolatilityInsteadoftryingtofightvolatilityandbringitundercontrol,weshouldembracetheopportunitiesthatareconcealedinvolatiledynamics.Whenchangeisaconstant,thenoveltyliesintheseunpredictableevents.Identifyingtheseelementsofnoveltyandmakingsenseofthemleadstocreatingavisionasanimageofthedesiredfuture.Ifourvisionisclearandcoherentitcanbecommunicatedandshared.Laszlosuggestsdevelopingwhathecalls“protopianframes”.Theyarerealisticallyoptimisticscenariosbasedonthecreationofdesirable,feasible,andrealizableimagesofthefuture,aswellassolutionsthatleadtothem. Suchvisionsdonotincludeprecisegoalsbutprovidedirectionandorientationforanorganizationorsociety.Therehastobesomelevelofflexibilityingoalstoaccommodateunforeseenchanges.However,aclearvisionequipsanorganizationwithatoolfornavigatingunchartedandroughterrain.AnsweruncertaintywithunderstandingOneofthereasonswhywefearuncertaintyisthatwelackknowledgeandunderstandingofacertainsituationorphenomenon.Asaconsequence,wecannotpredictthefutureandtheimplicationsofouractions.Observingcloselyandlisteningcarefullydoesnotonlybringaboutamoreprofoundunderstandingofthecurrentsituationbutalsopreparesusforthefuture.Weneedtotakeextratimetolistenmoreclosely.Weshouldlookbeyondwhatisdirectlyaccessibleinourenvironment,userbehaviorsandvalues,oursocialsystems,industry,andtechnology.Tryingtomakesenseofwhatishappeningaroundusonadeeperlevelandreflectingonourpatternsofperceptionareallinstrumentsleadingtoadeeperlevelofunderstanding.Inmostcases,thisunderstandingwillreducethelevelofuncertaintyandanxiety.Itwillbringforthalternativeperspectivesopeningnewwaysofdealingwithuncertaintimes.ReacttoComplexityWithClarityComplexityisafactoftoday’sworld.Wecanneithercloseoureyestoitnorcanwedenyit.Thewaywecancopewithcomplexityisclarity.Whendealingwithacomplexsituation,aleaderdoesn’thavetohaveaclearplanabouthowtodosomething,buttheyshouldbeclearabouttheintent,thewhy,andthepurpose.Asinmostcases,acomplexsituationsurpassesthecognitivecapacitiesofasingleperson.It’snecessarytocollaborateinteamsformeetingthechallengesofcomplexity.Therefore,aleaderneedstobeveryclearincommunicatingandgivingdirectiontoenableefficientcollaboration.Ifateamhasaclearunderstandingoftheintentorpurpose,itsmemberswillbeabletodevelopsolutionstoacomplexsituation.FightAmbiguityWithAgilityIfasituationisambiguous,unclear,orcanbeinterpretedinmultipleways,twocapacitiesturnouttobecentral:agilityandadaptability.AgilityisanecessaryindividualandorganizationalcapabilityfordealingwithaVUCAworld.Itmeanstheabilitytosense,reflect,respondflexibly,makecourageousdecisions,andadapttorapidchange.Agilitycanbebuiltonafoundationofsmartexperimentation,leadingtothereductionofambiguity.TwocanbeusedtofosteragilityanddealwithaVUCAenvironment:Getthebeatandlistentothewisdomofthesystem.Listenandobservethesystem,beforeintervening.Trytounderstandtheunderlyingpatternsleadingtothesystem’sbehaviorsandvalueits“innerintelligence”.Thisway,it’spossibletomakeuseoftheinnerdynamicsandforcesthathelpthesystemtorunitselfsustainably.Communicatetransparently.Providefrequentupdatesregardingstrategyanditsimplications.Listenactivelytoteammembersandfollowupontheirideas.Discusswhyandhowdecisionsaremadeandmakeplansvisible.PhotobyBenjaminDaviesonUnsplashSubscribetoournewsletterGetspecialinsightsonthelatestdevelopmentsfromus.Leavethisfieldemptyifyou’rehuman:RelatedArticles2.November2020OpennessandPrivacy:Whatdoesthismeaninhowwework?31.March2020Howsustainableise-mobility?4.October20216KeyQualitiesofaSustainableLeader