The document discusses the concept of VUCA (Volatile, Uncertain, Complex, Ambiguous) which was originally used by the US military to describe the complex modern world. It notes that business leaders now face a similarly dynamic landscape. Each element of VUCA poses unique challenges for leadership, such as the inability to predict events, insufficient information, and mixed or confusing messages. However, the document argues leaders can develop skills to better navigate uncertainty, complexity, and ambiguity. These include developing vision and strategic thinking, listening, empowering others, and continually innovating. Overall, the document analyzes how VUCA impacts the modern world and provides lessons for effective leadership in a complex, fast-changing environment.
3. Where did VUCA come from?
US Military started using this term in
late 90s for the post-Cold War world
Reflects a fast-paced,
increasingly unstable and
rapidly changing world
4. To deal with a
changing
battlescape
Business leaders face a similar,
challenging,
dynamic
landscape
6. The challenge is
• Exponentially accelerating change
• Unexpected
• Unstable
• May be of unknown duration
• Requires accelerated decision making
• Require an urgent response
But
• Its not necessarily hard to understand
• Knowledge about it is often available
Example
Prices fluctuate after a natural disaster
7. How Does it impact?
• Causes fear
• Risk Aversion
Leadership Lessons
• Translate date into information
• Communicate early
• Ensure your intent is understood
We can use
• Rapid advances in computing power
• Unprecedented access to knowledge
• 24hr news
• Viral stories
• Expanding social networks & media
8. Uncertain
The inability to know everything,the lack
of predictability and likelihood of
“surprise” events
10. The VUCA prime
The VUCA prime can be
seen as a continuum of
skill leader can develop
to help make sense
Of leading in VUCA world
11. VUCA : UNCERTAINTY
Victim of Uncertainty Master of Uncertainty
• See the only one out come and
does not think beyond the
immediate
• See only problem with potential
outcomes
• Clings to existing processes even
when they are inadequate
• Rely on past solution to solve
today issues
• Concerned with the here and
now
• Able to see a range of outcomes
and think in terms of confidence
intervals
• See uncertain time as
opportunities make bold moves
• Recognize issue with current
state and seeks to adapt
• Looks for flaws in the past
solution to today problem
• Concerned with the future,
looking for the weak signals
which are the harbingers of
change
14. Ambiguity
The haziness of reality, the potential for misreads,
and the mixed meanings of conditions; cause-and-
effect confusion.
15. Ambiguity – Leadership
Challenges
Failure to understand the significance of an event
High risk of miss-interpreting events and
responding inappropriately in ineffective ways
Leaders are too far removed from the source
and context of the events
Leaders act based on a limited understanding of
events and their meaning
Source: http://www.georgeambler.com/vuca-leading-in-
16.
17. How to lead effectively in an Ambiguous
environment?
Listen well
Think
divergently
Set up
incremental
dividends
Source: https://hbr.org/2011/01/leading-
22. Battle
Against
Create a vision and “make sense of the world.”
Things Changing Rapidly.
Clear Vision- Focused People. Right Direction
Informed Choices.
Communic
ate
Belief
see things from a more strategic & long-term perspect
Focus
23. Battle Against
CURIOSITY - ask questions (coach) that
challenge the status quo in your organization
every day
EMPATHY - get where people are coming
from – their hopes, fears and desires
OPEN MIND - explore new ideas, reflect and
seek constructive criticism
24. SIMPLIFY - chop the fat, cut through the
complexity and distill the core down to its
essence
INTUITION - use the gift of knowing without
reasoning, trust your gut and your experience
SYSTEMS THINKING - approach problems
from a holistic perspective (a system of
dynamic, interacting, interdependent parts)
25. DECISIVENESS - adapt quickly to changing
circumstances and make decisions with
confidence
INNOVATE OR DIE - learn from your mistakes
and continuously seek new ways to get better at
what you do
EMPOWER - value networks over hierarchy,
collaboration over control and set people free to
do great work
Ambiguity Agility
26.
27.
28.
29.
30.
31.
32.
33. References
• What VUCA Really Means For You by Nathan Bennett
and G.James Leoine, Harvard Business Review, January
2014 (Kindle edition)
• Winning a SuperVUCA World –
saatchikevin.com/Winning_in_a_SuperVUCA_World/
• VUCA -
http://en.wikipedia.org/wiki/Volatility,_uncertainty,_co
mplexity_and_ambiguity