Economics/Business

VUCA world meaning its Impact and Behavioral management

What is VUCA World

While describing the meaning of VUCA world, It is an acronym composed of the initial letters of four English words:

  • Volatility
  • Uncertainty
  • Complexity
  • Ambiguity

This expression emerged in the 1990s, when introduced by the US Army War College (USAWC) in the post-Cold War context. At that time, the world was facing a somewhat cloudy period with regard to the future and this was characterized by the adjectives mentioned above.

Analogously, this definition has been incorporated by the corporate world nowadays, to describe the moment in which we live. Just as the world faced a time of insecurity due to the post-war tension, today, due to the digital evolution, a similar sensation is also perceived, but in the organizational context.

Then, check the description of each topic and what each one refers to.

1-Volatility

The word volatile refers to unstable situations , which undergo frequent changes. This attribute is very present in the current context, as information has a large geographic reach and at an incalculable speed.

As a result, there is ample probability that a circumstance will change completely in a short period of time. Still, we have no control over what can happen or what can be transformed.

2-Uncertainty

The volatile scenario consequently generates an imprecise, doubtful market environment . When you don’t have control over what happens or how quickly they happen, you’re unlikely to be sure how best to proceed.

Therefore, uncertainty is also a trait that brings unpredictability, despite the wealth of information we have.

3-Complexity

In addition to being volatile and uncertain, the VUCA world includes a very important attribute: complexity .

The corporate world is made up of numerous factors that relate to each other at different levels and properties. In other words, events at global levels cannot be ignored, as they directly or indirectly influence the development of your organizational activity.

Therefore, political, cultural, economic or even religious elements are examples that can influence your market strategy and even create impediments for your company.

4-Ambiguity

Finally, the ambiguity mentions the different interpretations caused, precisely due to the volatility of events, which bring uncertainty in this complex world .

The large amount of information we have access to and the need to aggregate it all into our plans can sometimes be excessive and harmful.

Impact of the VUCA world

This multifaceted universe provokes a series of reactions in companies, such as uncertainty about the future, tensions in decision-making, the need for changes in planning, etc. Therefore, in each organizational area — inserted in this environment bombarded with data — VUCA will influence individually and in general.

Furthermore, the Human Resources sector is no different, as it is also impacted by the VUCA effects. But with all these points detected and realizing the influence in business, it is necessary to mold yourself to this reality and find ways to deal with it .

Behavioral management in the VUCA context

After this list of complications that the VUCA world causes, one of the solutions in facing this reality is behavioral management. As we know, people with different behavioral profiles react in different ways to current challenges.

But each of them has characteristics that can be used to overcome these obstacles. A communicator , for example, tends to be optimistic and is comfortable with new projects. In addition, he gets along well with people and is often persuasive. Also, your skills are very relevant, as one of the most necessary things in this world of uncertainty is to remain optimistic and receptive to the new.

In fact, a person with a dominant executive profile can also act efficiently in this context, as it is a profile that carries traits of self-confidence and that does well with the challenges that are imposed on them. Therefore, even in a complex environment, he is dedicated to solving a problem with intensity and competence.

The planner, on the other hand, is considered to be more stable, he is unlikely to panic, even if the situation is tense. These people are essential to keeping things organized and balanced, always looking for plans so that the strategy is maintained.

Finally, a person with an analyst profile has great capacity for observation and investigation. Thus, in the VUCA context, it is a completely strategic profile to understand the issues around you and find suitable solutions for different situations.

In addition to these behavioral skills, other skills also contribute to respond to the difficulties of that moment.

1-Multidisciplinary

Preservation of multiple conduct, which is not just within the market in which your business operates. Expanding your knowledge and seeing different areas helps to improve your overall perception of the world around us.

Therefore, seeking to have a diverse team , with people from different backgrounds, enriches its staff and makes solutions for the changes and complexities of the VUCA universe easier to find.

2-Speed

Having speed in adapting to new realities is one of the main points. Therefore, it is necessary to quickly adjust to respond to changes in the environment in an agile manner. Therefore, one cannot lose sight of internal and external events. Still, it is essential to always be ready to adapt to the needs of the moment.

3-Creativity

Another skill that makes a difference is creativity. We know that it doesn’t come from nowhere, but that it is the result of lived experiences and the ability to connect ideas to find intelligent solutions.

In this sense, pressure from the VUCA world cannot paralyze the development of creative processes, on the contrary, companies that persist in the search for a creative plan grow and innovate even amid pressure and uncertainty.

4-digital mindset

Digital technologies exist to facilitate and optimize our work . So make use of them. The more activities are automated, the fewer operational tasks are done by people, so they can focus on strategic duties. In other words, artificial intelligence working alongside human intelligence.

Mundo VUCA: these are some of the many capabilities that can be employed in this complex scenario of uncertainty, ambiguity and volatility.

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