July 27, 2020

What is VUCA and how does it affect your organization?


"Change is not a threat, it's an opportunity. Survival is not the goal, transformative success is." Seth Godin.

The complexity of the constant change to which we must adapt is due to globalization and technological revolutions, which lead us to dismiss the traditional strategy of the industrial age of centrally controlling an organization. These complex environments have the ability to vary from one state to another very quickly and constantly, requiring a strategy that does not resist this evolution, but works with it.

Many phenomenons with non-linear relationships and the ability to adapt to other local elements while they co-evolve over time, make us incapable of knowing everything in advance, which is why it is essential to create environments in which organizations have the power of operating under multiple outcomes, increasing diversity and not defining what could be the most probable future, creating a single optimal strategy for a given scenario.

When environments become complex and everything is open to more than one interpretation, confusion or an erroneous reading of the facts can be generated, which is why systematic mentality is needed which is able to interpret the interconnections and thus be able to form a complete environment where any phenomenon can be adequately understood.

Have you ever heard the acronym VUCA or VICA? Do you know what it means? Don't you know how to fight it?

The VUCA environment is about that scenario that is in constant change, hence the concept forged in the 90s by the US army that characterized the world that emerged after the end of the Cold War and later generalized in the field of strategy. business, which brings together the following concepts:

V) Volatility

It refers to the very nature of the change and the speed at which it occurs.

U) Uncertainty

It is the term that defines the lack of predictability of future events.

C) Complexity

It is the difficulty of the issues to be dealt with due to their interrelated multiplicity and the breaking of causality on many occasions.

A) Ambiguity

The distortion of reality generates different opinions which, if not managed, can lead to confusion.

The ability to adapt to this new panorama of constant evolution will be essential to achieve a successful organization, however, it can have a very negative impact on the less flexible ones.
To deal with this environment we must approach it in the following way:

  • Volatility. Renew or die, with an adequate way of looking at the future. This is when flexibility in the face of changes is essential to move forward and face obstacles, getting the organization to reach a superior position.

  • Uncertainty. Being prepared through a formal and informal process of constant learning and training that allows all members of the organization to know what is happening in their sector and how it could affect the organization.

  • Complexity. Provide the opposite, that is: clarity, simplicity and simplicity. To achieve this, emotional management is necessary that allows individuals to have good self-control, perseverance, empathy and enthusiasm.

  • Ambiguity. Using an agile method that allows unforeseen events to be tackled as quickly as possible and thus ensures the strategic planning of the organization's objectives.

A VUCA environment is found in most of the sectors that make up the business market, such as services, industry, technology or banking, and it is affecting the way people interact with their environment (customers, employees and collaborators). What if we help you get started?

From HRider, we propose this Competence Model for a VUCA environment with which to assess the adaptation to the new circumstances. But remember that with our agile Talent Assessment and Development platform you can create your own competency models to measure in real time the level at which each team member develops these capabilities. In addition, you will be able to define Action Plans for individual improvement that will take your organization to the next level!