Today we will talk a little about the VUCA environment and the space that this environment now has and how the everyday is reflected in the day to day business life.
As is the case with some concepts, the concept of VUCA environment began to be used in a very different context to the business one, as it was born in the military environment, to be later applied to the business environment. It is an English acronym composed of four terms: Volatilily, Uncertainty, Complexity and Ambiguity. Let’s see what each of these words refers to:
Volatility
It refers to the speed at which changes occur and when taken to the business world, it means that a company must be in constant movement, it must not stop its evolution.
It is also related to instability in the commercial and economic environment, which is often altered by specific factors such as armed conflicts and recently the Covid 19 pandemic which affected the entire commercial scenario in the world.
Uncertainty
Uncertainty in the VUCA environment has to do with the predictability with which companies can face unforeseen situations and reduces the certainty of building long-term strategic plans. This factor directly affects each of the planning processes within the company,
Complexity
With the globalization of the industry, problems have also become globalized, which means that companies are facing more and more complicated problems. This makes it difficult to understand the relationships between different components of the company, as a consequence, is the absence of leaders to drive decision making.
Ambiguity
It is the general lack of clarity caused by all the above factors, which is a chain that affects the decisions taken, which could have a series of unknown and uncontrollable effects.
What we can learn from this is that there is no single formula for solving problems, as each one is the product of special elements and circumstances, and therefore, must be studied and contextualized individually to provide a timely solution.
The importance of innovation
Although the VUCA environment seems to have more complications than benefits, the reality is that its correct application will help to focus strategies from the angle of knowledge and predictability. In addition, it will help in the selection of profiles and people who will make the best contribution to the organization.
It is essential to keep our knowledge adapted and updated, especially in the IT and digital environment, and to be prepared to deal with new developments or difficulties in order to solve them in a timely and effective manner. The company must be able to react to unexpected challenges, to take the bull by the horns.
The VUCA environment is a reality in the business environment and forces organizations to renew themselves at a very accelerated pace, so management should seek the acquisition of everything necessary to achieve the best results in the company, which includes personnel and tools that respond to a complicated environment but that can be of great benefit to your company.
