Volatility
We live in a world that is constantly changing, becoming more unstable and in which small or serious changes are becoming more unpredictable – ever more drastic and ever faster. Events happen completely unexpectedly. Understanding cause and effect sometimes becomes impossible.
Uncertainty
Predictability and calculability of events are rapidly decreasing, forecasts and experiences from the past as a basis for shaping the future are losing their validity and relevance. Planning investments, developments and growth is becoming almost impossible. It is less and less clear where the journey is heading.
Complexity
Our world is more complex than ever. What is the cause? What is the effect? – Problems and their effects are becoming more complex and more difficult to understand. The different levels are intermingling and making connections more confusing. Decisions are becoming an uncontrollable web of reaction and counter-reaction. It is almost impossible to decide on the right path.
Ambiguity
One fits all and best practice are a thing of the past – something is rarely completely unambiguous or precisely definable. Not only black and white, but also colorful is an option. Today’s demands on organizations and leadership are more contradictory and paradoxical than ever and put personal value systems to the test. The “what” is taking a back seat to the “why” and the “how”.
“VUCA is more than a buzzword! It is a way of thinking and approaching solutions
to the problems of our digital and dynamic world.”
Luckily it’s only VUCA
VUCA thinking is a method for recognizing and understanding the complexity and dynamics of a rapidly changing world. VUCA stands for volatility, uncertainty, complexity and ambiguity and is used to help teams and organizations to be better prepared for uncertain situations and to manage the associated risks.
VUCA thinking means developing the ability to quickly anticipate and adapt to change, think strategically and develop creative solutions.
It also encourages managers to think beyond the boundaries of their own organization and consider the broader context in which their decisions are made.
Painting a picture of a desirable future. Together. As a compass and for orientation. To create meaning and trigger motivation. And to gain identification and impact both internally and externally.
Understand connections and make them comprehensible. Take context into account. Think and plan meta-strategically. Derive from the result and look backwards. Align competencies. Accepting and using behavior and reactions. Transforming fear and resistance into productive energy.
Clarity. Simplicity. Focus on what counts and what really matters. Trust, transparent relationships and processes. Using power and energy exactly where their effect unfolds best.
Adaptability. Agility. Liveliness. Questioning hierarchical management methods. Promote a consistent decision-making and error culture. Dealing transparently with contradictions. Enabling innovation and strengthening resilience.
„Whereas the heroic manager of the past knew all, could do all, and could solve every problem, the postheroic manager asks how every problem can be solved in a way that develops other people´s capacity to handle it.“
Charles Handy
Irischer Wirtschafts- und Sozialphilosoph
(Photo by Liz Handy)
VUCA, BANI and RUPT: In this time of multiple crises, there is a need for any kind of translation and creation that provides orientation and allows organisations and management to do more of what is appropriate!
The terms VUCA, BANI and RUPT and the concepts behind them are used to describe the challenges and dynamics that organisations and societies face in a world characterised by uncertainty and constant change. Organisations that are aware of this reality can be better prepared to adapt and operate successfully in a complex environment.
It would be wrong and unwise to send these concepts and ideas into competition with each other. Rather, it is more valuable to think about the respective statements and positions together and to understand them as further support for a world that is moving forwards and no longer signifies an “exception to a rule”. That would be very naive and more wishful thinking than realism.
If VUCA helps to grasp the phenomena of volatility, uncertainty, complexity and ambiguity and relate them to one’s own context, BANI helps to better understand and locate their effects and what they do to individuals and organisations. RUPT makes it clear that organisations can be confronted with profound, non-linear changes that appear paradoxical and are difficult to predict.
Overall, these concepts have in common that they point to the uncertainty, complexity and dynamics of world events. Organisations and managers must be aware that traditional approaches are no longer sufficient to be successful and stable under such conditions. Flexibility and adaptability are more important than ever.
Deciding and connecting are success factors for shaping the future!
People are generally willing to achieve great things and go the much-vaunted “extra mile” when necessary. They are open to new ideas and participate if the purpose and benefits are clear. This requires the right framework conditions such as confidence, trust, psychological security and practical implementation options that enable experiences, skills and preferences to be transformed into performance and results. This is all the more true under the conditions of multi-crises and the necessity of digitalisation, which can no longer be ignored.
The human-centred design approach is gaining in importance for good reason. After all, the most effective form of corporate development is one that can be actively and autonomously co-designed by those involved. In a digitalised world, it is all about thinking ahead to the future and strengthening cooperation within the company with contemporary solutions.
People determine the success of every company, but they need the right framework conditions!
As a manager, you play a key role in determining the framework conditions that enable your organisation to operate. The increase in volatility, uncertainty, complexity and ambiguity requires you and your company to realign yourselves and ensure the right results with new leadership behaviour under changed conditions.
Dealing with multi-crises requires you to find your own way, to understand the psycho-logic and system logic when it comes to working with and among people, and to develop empathetic behaviour. In short: to engage more with people and their needs in order to develop and derive effective strategies together with them.