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Ep.28 VUCA: Volatile, Uncertain, Complex and Ambiguous

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The acronym VUCA was first introduced in 1991 by the U.S. Army as a result of the extreme conditions in Afghanistan and Iraq. These conditions were totally new and totally changed the nature of warfare.

The 4 VUCA elements represent that what makes our environment

(world/market/industry) harder to grasp and control.

VUCA can be seen as 4 elements in a matrix with 2 dimensions:

– how much you know about the situation?

– how much you can predict the results of your actions?

By working to overcome the inevitable consequences of a VUCA environment, we try to control that which may have appeared uncontrollable

VOLATILITY: The nature, dynamics and speed of change & change catalysts. The more volatile the world, the more & faster things change. Counter Volatility with Vision.

UNCERTAINTY: Lack of predictability, surprises, the sense of awareness and understanding of issues and events. The more uncertain the world is, the harder it's to predict. Meet Uncertainty with Understanding.

COMPLEXITY: the number of factors we need to consider, their variety and relationships between them. The more complex the world, the harder it's to analyse. React to Complexity with Clarity.

AMBIGUITY: The haziness of reality, potential for misreads, cause-and-effect confusion. The more ambiguous the world, the harder it's to interpret. Fight Ambiguity with Agility.

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First posted here.


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