Managing in a VUCA World - Mind Tools

A state of flux replaced the sense of certainty, stability and familiarity that people were used to. This type of environment can be described using the "VUCA" ... MENU JointheClubFor$1! Login SkillAreas Back SkillAreas LeadershipSkills TeamManagement StrategyTools ProblemSolving DecisionMaking ProjectManagement TimeManagement StressManagement CommunicationSkills CreativityTools LearningSkills CareerSkills LearningFormats Back LearningFormats Bite-SizedTraining BookInsights(Audio) CareerCafe ExpertInterviews(Audio) Forums Infographics Learningstreams MindToolsApp MyLearningPlan Quizzes TemplatesandWorksheets Videos ForYourOrganization Newsletter Blog AboutUs HomeTeamManagementDifficultManagementSituationsManaginginaVUCAWorld BytheMindToolsContentTeam BytheMindToolsContentTeam (17) 17ratings 11MINREADManaginginaVUCAWorldThrivinginTurbulentTimes Businessisallaboutrisktakingandmanaginguncertaintiesandturbulence.–GautamAdani,Indianbusinessman. Thebusinessworldhaschangeddramaticallyoverthelastfewdecades,andwenowliveinaconnectedsocietywherechangecanbefast-paced,constantandunpredictable. Rapidadvancesintechnologyhavecreatedanenvironmentwheretheinternet,smartphones,andsocialmediaareubiquitous,andthe2008globalfinancialcrisishasincreasedthesenseofturbulence,dangerandunpredictabilityincertainareas. Asearlyasthe1970s,theU.S.stockmarketsbegantostruggle,the1973oilcrisiscausedarecession,andpersonalcomputingstartedtobecomemainstream.Astateoffluxreplacedthesenseofcertainty,stabilityandfamiliaritythatpeoplewereusedto.Thistypeofenvironmentcanbedescribedusingthe"VUCA"acronym,whichstandsfor"Volatile,""Uncertain,""Complex,"and"Ambiguous." Clickhere   toaccessatranscriptofthisvideo. Inthisarticle,we'llexplorewhatVUCAmeansinmoredetail,andwe'lllookathowyoucanprepareforanddealwitheachofitselements,sothatyoucanmanagesuccessfullyinanunpredictablebusinessworld. WhatIsVUCA? TheUnitedStatesArmyWarCollegewasoneofthefirstorganizationstousetheVUCAacronym,followingthe9/11terroristattacksin2001.Militaryplannerswereworriedabouttheradicallydifferentandunfamiliarinternationalsecurityenvironmentthathademerged,sotheyusedVUCAtodescribeit.VUCAstandsfor: Volatile–changeisrapidandunpredictable   initsnatureandextent. Uncertain–thepresentisunclearandthefutureisuncertain   . Complex–manydifferent,interconnectedfactors   comeintoplay,withthepotentialtocausechaosandconfusion. Ambiguous–thereisalackofclarityorawarenessaboutsituations. BobJohansen,oftheInstitutefortheFuture,adaptedVUCAforthebusinessworldinhis2009book,LeadersMaketheFuture.Heusedittoreflecttheturbulentandunpredictableforcesofchangethatcouldaffectorganizations,andhearguedthatyouneednewskills,approachesandbehaviorstomanageinthefaceofthefourVUCAthreats. VUCArepresentsasetofchallengesthatindividuals,teams,managers,andorganizationsinaffectedindustriesallhavetoface.Individually,thesechallengescanbesignificant,buttheycanbeformidablewhenthey'recombined. Note: Despiteitschallenges,VUCAmaynotposethesamethreattoallindustries.Forexample,certainbusinessareasmaybemorestable,protectedorregulated.And,whenyouoryourorganizationareproactiveandsettheagendaforchange,youarelesslikelytoexperiencethefullextentofitsthreats. WhyIsVUCAImportant? Manypeoplepredictthatvolatility,uncertainty,complexity,andambiguityaregoingtobecomemoreandmoreprevalentinthebusinessworld.TomanageteamsintheVUCAage,youshouldbeawareofthechangesthatthiskindofenvironmentcancause. AVUCAenvironmentcan: Destablizepeopleandmakethemanxious. Saptheirmotivation. Thwarttheircareermoves. Makeconstantretrainingandreshapinganecessity. Takehugeamountsoftimeandefforttofight. Increasethechancesofpeoplemakingbaddecisions. Paralyzedecision-makingprocesses. Jeopardizelong-termprojects,developmentsandinnovations. Overwhelmindividualsandorganizations. Takeitstolloninternalculture. "Bleed"inwardsandcreateVUCAenvironmentswithinorganizations. Ifyourindustryororganizationisaffectedbythisenvironment,youhavetoreconsiderthewayyouandyourbusinessoperate. HowtoManageinaVUCAWorld AlthoughVUCAmightseeminescapableincertainindustries,youcanmanageyourself,yourteamandyourorganizationtomitigateitseffects.Youcanevenuseittoyouradvantage. ThekeytomanaginginthisenvironmentistobreakVUCAdownintoitscomponentparts,andtoidentifyvolatile,uncertain,complex,orambiguoussituations.Eachtypeofsituationhasitsowncausesandresolutions,soyoushouldaimtodealwithoneatatime. Inhisbook,JohansenproposesaframeworkthatyoucanusetorespondtoVUCAthreats,calledVUCAPrime.Hesuggeststhatyoushoulddothefollowing: CounterVolatilityWithVision Acceptandembracechange   asaconstant,unpredictablefeatureofyourworkingenvironment.Don'tresistit. Createastrong,compellingstatementofteamobjectivesandvalues   ,anddevelopaclear,sharedvision   ofthefuture.Makesurethatyousetyourteammembersflexiblegoalsthatyoucanamendwhennecessary.Thisallowsthemtonavigateunsettled,unfamiliarsituations,andreactquicklytochanges. MeetUncertaintyWithUnderstanding Pausetolistenandlookaround.ThiscanhelpyouunderstandanddevelopnewwaysofthinkingandactinginresponsetoVUCA'selements. Makeinvestingin,analyzingandinterpretingbusinessandcompetitiveintelligence   apriority,sothatyoudon'tfallbehind.Stayuptodatewithindustrynews   ,andlistencarefullytoyourcustomers   tofindoutwhattheywant. Reviewandevaluate   yourperformance.Considerwhatyoudidwell,whatcameasasurprise,andwhatyoucoulddodifferentlynexttime. Simulateandexperimentwithsituations,sothatyoucanexplorehowtheymightplayout,andhowyoumightreacttotheminthefuture.Aimtoanticipatepossiblefuturethreatsanddeviselikelyresponses.Gaming   ,scenarioplanning   ,crisisplanning   ,androleplaying   areusefultoolsforgeneratingforesightandpreparingyourresponses. ReacttoComplexityWithClarity Communicateclearly   withyourpeople.Incomplexsituations,clearlyexpressedcommunications   helpthemtounderstandyourteam'sororganization'sdirection. Developteams   andpromotecollaboration   .VUCAsituationsareoftentoocomplicatedforonepersontohandle.So,buildteams   thatcanworkeffectivelyinafast-paced,unpredictableenvironment. FightAmbiguityWithAgility Promoteflexibility,adaptability   andagility   .Planahead,butbuildincontingencytimeandbepreparedtoalteryourplans   aseventsunfold. Hire   ,developandpromotepeoplewhothriveinVUCAenvironments.Thesepeoplearelikelycollaborative,comfortablewithambiguityandchange   ,andhavecomplexthinkingskills   . Encourageyourpeopletothinkandworkoutsideoftheirusualfunctionalareas,toincreasetheirknowledgeandexperience.Jobrotationandcrosstraining   canbeexcellentwaystoimproveteamagility. Lead   yourteammembersbutdon'tdictatetoorcontrolthem.Developacollaborative   environment,andworkhardtobuildconsensus   .Encouragedebate,dissentandparticipationfromeveryone. Embracean"ideasculture."   KevinRoberts,ofadvertisingagencySaatchiandSaatchi,coinedthisalternativeVUCAdefinition:"Vibrant,unreal,crazy,andastounding."Thisdescribesthekindofenergeticculturethatcangiveteamsandorganizationsacreative,agileedgeinuncertaintimes. Reward   teammemberswhodemonstratevision,understanding,clarity,andagility.Letyourpeopleseewhatkindofbehavioryouvaluebyhighlightinginnovationsandcalculatedrisk-taking   moves. From'LeadersMaketheFuture:TenNewLeadershipSkillsforanUncertainWorld,'byBobJohansen.Firstedition©2009.ReproducedwithpermissionfromBobJohansen. Warning: SomepeoplemightbetemptedtouseVUCAasanexcuseforalackofaction,planningordirectionintheirwork.Asamanager,it'simportanttobeawareofsloppywork   andtotakeappropriateactiontoresolvetheproblem. BenefitsofManaginginaVUCAWorld Inanindustryororganizationthat'saffectedbyVUCA,youhaveachoice.EitheryouallowVUCAto"manage,"overloadandoverwhelmyou,oryouacceptandmanageit,sothatyouandyourteamcanmitigateitseffects.WhenyoudecidetoacceptVUCA,youchoosetomakeyourselfandyourpeoplelessvulnerable,andyouempowereveryonetodealwithuncontrollable,unpredictableforces. FindingThisArticleUseful? Youcanlearnanother276teammanagementskills,likethis,byjoiningtheMindToolsClub. JointheMindToolsClub Today! GettheFreeNewsletter! Learn newcareerskillseveryweek,plus geta bonus BeaSuccessfulManagerChecklist,free! ReadourPrivacyPolicy YoucanviewVUCAasachallengetoimproveyourleadershipandmanagementskills,andyoucanturnitintoanopportunitytomakeyourteammoreeffectivebyfocusingonthefollowingareas: Implementation   :workwithyourpeopletoaddressVUCAthreatsatateamlevel. Decisionmaking   :seecomplexityanduncertaintyasdriversfordelvingdeeperbeforemakingdecisions   ,ratherthanasoverwhelmingforces. Innovation   andcreativity:considerprocessandworkflowinnovationasawaytotackleVUCA,ratherthanassomethingthatmightsufferbecauseofit. Searchingforopportunities   :lookforbetterdealsandopportunities,insteadofrelyingonyourusualvendorsandsuppliers.InaVUCAworld,theseopportunitiescanbefleeting,soyouhavetostayalertandseizethemwhentheyarise. Teambuilding   andorganizationalculture   :adversityandchallengecanunsettlepeople,buttheycanalsofocustheirattentionandencouragethemtoworktowardsacommongoal. Recruitment   :improveagilitybypromotingandrecruitingpeoplewhoarecomfortableinless-structuredandever-changingenvironments. BarrierstoManaginginaVUCAWorld OneofthebiggestchallengesofmanaginginaVUCAworldisteammemberswhoresistchange   .Theymayrefusetoacceptthattheworldhasevolved,wanttostickwith"triedandtested"methods,orsimplyfailtoseethefullpicture.Theymightevenbeparalyzedbyfearandfailtotakeaction. TheunpredictabilityofVUCAoftenrenderstraditional,top-downorganizationalstructuresobsolete,soavoidusinganinflexible,autocraticleadershipstyle   .InaVUCAworld,collaboration,participation,debate,andevendissentaremoreimportantthanobedience,commandandgroupthink   –theyallowyoutoremainflexibleandtotakeactionquickly. KeyPoints VUCAstandsforvolatility,uncertainty,complexity,andambiguity.Itdescribesthesituationofconstant,unpredictablechangethatisnowthenormincertainindustriesandareasofthebusinessworld. VUCAdemandsthatyouavoidtraditional,outdatedapproachestomanagementandleadership,andday-to-dayworking.Theseareusuallytoosluggishandlimitedtobeeffectiveinaturbulentenvironment. Newer,moreagileandpragmaticprocessesarethekeytomanagingintheVUCAworld.Makevision,understanding,clarity,andagilityyourguidingprinciplestocounteractthethreatsofVUCA,andtoturnthemtoyouradvantage. Thissiteteachesyoutheskillsyouneedforahappyandsuccessfulcareer;andthisisjustoneofmany toolsandresourcesthatyou'llfindhereatMindTools.Subscribetoour freenewsletter,or jointheMindToolsClubandreallysuperchargeyourcareer! AddthisarticletoMyLearningPlan MarkarticleasComplete ShowRatings HideRatings Ratings Ratethisresource Freeloginneeded. Login / CreateLogin. JointheMindToolsClubandGet4FreeWorkbooks! TheMindToolsClubgivesyouexclusive tipsand toolstoboostyourcareer-plusafriendlycommunityandsupportfromour careercoaches!  FindOutMore JointheMindToolsClub SignupforourFREEnewsletter Comments(13) Thismonth Sarah_Hwrote Hijonkohl, ThanksforyourconsideredcommentsaboutVUCAandforyourexplanationsaboutthealternativeheuristicsofDICEandPLUS.YoumakeasoundargumentfortheseandIcancertainlyseehowpeoplecouldfindthemuseful.Iparticularlylikethattheybothhavemeaningaswordsintheirownrightandwecanmakeuseoftheanalogiesthissuggests.Reallyuseful,thankyouforsharing. Sarah MindToolsTeam Thismonth jonkohlwrote Whileausefulconcept,VUCAisaninferiorheuristictoDICEandPLUS.Inthebook,TheFutureHasOtherPlans:PlanningHolisticallytoConserveNaturalandCulturalHeritage,theauthorsintroducetheDICEandPLUSWorlds.WhileDICEissimilartoVUCA,thewordactuallymeanssomethingrepresentativeoftheconcept.Whenyouthrowdice,youneverknowhowtheywillcomeup.ThisrepresentsthestochasticnatureofVUCA.BesideswhatisaVUCA?DICEstandsfordynamic,impossibletocompletelyunderstand,complex,andevolving(oreverchanging).WhatVUCAalsodoesnthaveisacounterpartthatrepresentsthestatusquoviewoftheworld,whichisPLUS.AgainPLUSrepresentsthesimplestmathematicaloperation,additionwhichissymbolicoftheworldthatisPredictable,Linear,Understandable,andStaticorStable.ThusPLUSandDICEaremorepowerfulheuristictoolsforboththeworldmostpeoplecurrentlyenvisionandtheworldweshouldreallybemanaging.AndtheydonothavethemilitaryhistorythatVUCAdoes,sinceitcameoutoftheUSWarCollege. Overamonthago Midgiewrote HiMamaari08, WelcometotheClub!IthasbeenquitechallengingforeveryonetomanagethingsinlightoftheCOVID-19situation.ThiswouldbeagreatquestiontoshareintheForumsandseewhatothermembershavetosay.Comeonoverandintroduceyourself. Welookforwardtomeetingyouandexchangingideasandthoughtsonthistopicandmore. Midgie MindToolsTeam ViewAllComments PreviousArticle Previous NextArticle Next GettheFreeNewsletter! Learn newcareerskillseveryweek,plus geta bonus BeaSuccessfulManagerChecklist,free! ReadourPrivacyPolicy GettheFreeNewsletter! Learn newcareerskillseveryweek,plus geta bonus BeaSuccessfulManagerChecklist,free! ReadourPrivacyPolicy Subscribeforunlimitedaccess TheMindToolsClubgivesyouexclusive tipsand toolstoboostyourcareer-plusafriendlycommunityandsupportfromour careercoaches!  JointheClub 1DaytoGo! AllowYourTeamtoLearnFromHome Discover MindToolsforBusiness-empoweringeveryoneinyourorganizationtothriveatworkwithaccesstolearningwhentheyneedit.  FindOutMore 1DaytoGo! RelatedResources FromMindTools TheFourPrinciplesofChangeManagement References Erasmus,J.(2015).'ManagingPeopleinaComplexandDisruptiveWorldofWork,'UniversityofStellenboschBusinessSchool[online].Availablehere.[AccessedOctober13,2015.] Johansen,R.(2009).'LeadersMaketheFuture.'SanFrancisco:Berrett-KoehlerPublishers. LancasterUniversityBusinessSchool.(2015).'KevinRobertsonthe"VUCA"WorldandCreativeLeaders|LancasterUniversity.'[online].Availablehere.[AccessedOctober19,2015.] YourViews ProvideYourFeedback WhatBugsYou Letusknowyoursuggestionsoranybugsonthesite,andyoucouldwina $50Amazonvoucher! Clickheretotellus. SponsoredLinks Toolkit LeadershipSkills(60) TeamManagement(310) StrategyTools(144) ProblemSolving(47) DecisionMaking(57) ProjectManagement(65) TimeManagement(64) StressManagement(76) CommunicationSkills(150) CreativityTools(29) LearningSkills(56) CareerSkills(212) MyLearningPlan AddArticletoMyPlan SaveMyPlan RecentlyAdded {{latestItems.length}} {{item.rm_title_short}} {{item.pgr_name}} MyLearningPlanPage FindOutMore GettheFreeNewsletter! Learn newcareerskillseveryweek,plus geta bonus BeaSuccessfulManagerChecklist,free! ReadourPrivacyPolicy GettheFreeNewsletter! Learn newcareerskillseveryweek,plus geta bonus BeaSuccessfulManagerChecklist,free! ReadourPrivacyPolicy Processing Pleasewait...