VUCA World

BY -Kunal Basin
Volatile
Uncertain "the new

Complex normal”

Ambiguous
 Where did VUCA come from?

US Military started using this term in late

90s for the post-Cold War world

Reflects a fast-paced,
increasingly unstable and
rapidly changing world
To deal with a
changing
battlescape

Business leaders face a similar,

challenging,
dynamic
landscape
Volatile

Unstable
Hard to predict

Be prepared
Match investment to risk
The challenge is
• Exponentially accelerating change
• Unexpected
• Unstable
• May be of unknown duration
• Requires accelerated decision making
• Require an urgent response
But
• Its not necessarily hard to understand
• Knowledge about it is often available
Example
Prices fluctuate after a natural disaster
How Does it impact?
• Causes fear
• Risk Aversion
Leadership Lessons
• Translate date into information
• Communicate early
• Ensure your intent is understood
We can use
• Rapid advances in computing power
• Unprecedented access to knowledge
• 24hr news
• Viral stories
• Expanding social networks & media
Uncertain

The inability to know everything,the lack

of predictability and likelihood of
“surprise” events
 Uncertainty
Leadership Challenges
• Abstruse to
situation
• Insufficient
information
• More
information
• Abstruse to
understand
out come
event
The VUCA prime

The VUCA prime can be

seen as a continuum of
skill leader can develop
to help make sense
Of leading in VUCA world
 VUCA : UNCERTAINTY
Victim of Uncertainty
• See the only one out come and
does not think beyond the
immediate
• See only problem with potential
outcomes
• Clings to existing processes even
when they are inadequate
• Rely on past solution to solve
today issues
• Concerned with the here and
now
Master of Uncertainty
• Able to see a range of outcomes
and think in terms of confidence
intervals
• See uncertain time as
opportunities make bold moves
• Recognize issue with current
state and seeks to adapt
• Looks for flaws in the past
solution to today problem
• Concerned with the future,
looking for the weak signals
which are the harbingers of
change
Complexity
 Leadership challenges
• Driver
• Where to start
• Quick wins
• lack the time
• Mitigating actions
• Stuck
 Ambiguity
The haziness of reality, the potential for misreads,
and the mixed meanings of conditions; cause-and-
effect confusion.
 Ambiguity
–
Leadership Challenges
Failure to understand the significance of an event

High risk of miss-interpreting events and

responding inappropriately in ineffective ways

Leaders are too far removed from the source

and context of the events

Leaders act based on a limited understanding of

events and their meaning

Source: http://www.georgeambler.com/vuca-leading-in-
How to lead effectively in an
Ambiguous environment?

Set up
Think
Listen well incremental
divergently
dividends

Source: https://hbr.org/2011/01/leading-
Ready for a VUCA
World?
The Antidote
(Solution)
Bob Johansen

VUCA Prime
 Example
Need for
Specialized LAUNCHED
Leadership 2001, New
Programs Leadership
Development
Programme

Adapting
VUCA&VUCA Expectations &
Prime Challenges
Change-Decade
 Create a vision and “make sense of the world.”

Battle Against

 Things Changing Rapidly.

 Clear Vision- Focused People. Right Direction
Informed Choices.

Communicate Belief Focus

see things from a more strategic & long-term perspective

 Battle Against

CURIOSITY - ask questions (coach) that challenge the status

quo in your organization every day

EMPATHY - get where people are coming from – their hopes,

fears and desires

OPEN MIND - explore new ideas, reflect and seek

constructive criticism
SIMPLIFY - chop the fat, cut through the complexity and distill
the core down to its essence

INTUITION - use the gift of knowing without reasoning, trust

your gut and your experience

SYSTEMS THINKING - approach problems from a holistic

perspective (a system of dynamic, interacting, interdependent
parts)
 Ambiguity Agility

DECISIVENESS - adapt quickly to changing circumstances and

make decisions with confidence

INNOVATE OR DIE - learn from your mistakes and

continuously seek new ways to get better at what you do

EMPOWER - value networks over hierarchy, collaboration over

control and set people free to do great work
 References
• What VUCA Really Means For You by Nathan Bennett and
G.James Leoine, Harvard Business Review, January 2014
(Kindle edition)
• Winning a SuperVUCA World –
saatchikevin.com/Winning_in_a_SuperVUCA_World/
• VUCA -
http://en.wikipedia.org/wiki/Volatility,_uncertainty,_complexit
y_and_ambiguity