It’s a VUCA World – Now What?

VUCA (which stands for Volatility, Uncertainty, Complexity, and Ambiguity) was coined as an acronym first described by Warren Bennis and Burt Nanus in their 1985 book, Leaders: Strategies for Taking Charge (link to the 2007 second edition). It gained fame through its use by the US Army War College in the 1990’s after the collapse of the Soviet Union and the end of the Cold War. VUCA made sense then, and perhaps today it is a VUCA World more than ever.

The four descriptors of VUCA sound like an apt description of our world today, don’t they?

• Volatile. The speed of change.
• Uncertainty. The unpredictability of the future.
• Complexity. The interconnectedness of nearly everything.
• Ambiguity. The lack of clear-cut answers.

I’m guessing you feel like that is the world you live, work and lead in. Understanding and acknowledging that is great. But what do we do about it?

Because VUCA can be scary, people often try to avoid or deny the VUCA components, or they use procrastination as their tool. While understanding coping mechanisms, none of these are viable approaches to dealing with volatility, uncertainty, complexity and ambiguity. 

Your FICO Score?

When dealing with the factors of a VUCA world, there are four different factors, that make up the acronym FICO (no, not your credit score!) that form a basis for the actions you can take to lead more effectively in a VUCA world. Here are those actions, and how to use them in a VUCA world.

• Flexible. When we are stressed, as we often are when experiencing VUCA, we typically respond with our natural or learned responses. While our experience and habits may be helpful, they are based on a world with more known factors, and situations that might be quite different. Existing or past approaches might not apply now. That means that you will likely need to flex or adapt your approaches when things are volatile, uncertain, and complex.
• Intentional. We can’t be flexible until we decide we will consider something beyond our auto-responses. Intentionality is the necessary starting point for action in a VUCA world. Choose to be more intentional about your responses.
• Contextual. VUCA is best considered as a context for our situation. The more of each of the VUCA factors we see or are experiencing, the more we need to consider that context in our responses, choices and actions as a leader. Look at the context of the situation and try to understand it as best you can (even though you can’t know everything). When you do, you have a better chance of responding and leading more effectively.
• Opportunistic. Ambiguity and complexity provide opportunities if we look for them. Opportunities to try new things, to look at things in new ways, to advance while others retreat. The most effective leaders look at a VUCA world and look for opportunities.

I talk much more about these ideas in this version of FICO throughout my book, Flexible Leadership: Navigate Uncertainty and Lead with Confidence. It can be a playbook to help you and the leaders in your organization to navigate uncertainty (and every part of the VUCA World) and lead with greater confidence and effectiveness.