VUCA - hearing this for the first time?

For most of us, the answer will be NO.

Thought it is relevant in the present scenario and good to refresh our memory. And for those who do not know about it, this can be an eye-opener.

What is VUCA ?

We talk about CHANGE day in and day out, but if we want to undergo CHANGE we find it a lot more difficult as it requires an effort that is slightly away from our comfort zone. But the present scenario demands the change within us due to the below

Volatility, Uncertainty, Complexity, Ambiguity

Now let's understand each of them as simply as possible. We all more or less know the meaning of VUCA to some extent, let's understand exactly the same to discover to way to manage them.

Volatility

We live in a world that’s constantly changing, becoming more unstable each day, where changes big and small are becoming more unpredictable – and they’re getting more and more dramatic and happening faster and faster. As events unfold in completely unexpected ways, it’s becoming impossible to determine cause and effect.

Example- Price fluctuation after a natural disaster (Raw material price increase- cotton and yarn market situation from past 2 years)

Uncertainty

It’s becoming more difficult to anticipate events or predict how they’ll unfold; historical forecasts and past experiences are losing their relevance and are rarely applicable as a basis for predicting the shape of things to come. It’s becoming nearly impossible to plan for investment, development, and growth as it becomes increasingly uncertain where the route is heading.

Example- Competitor's product launch muddies the future of the business and the market.   (Reliance JIO)

Complexity

Our modern world is more complex than ever. What are the reasons? What are the effects? – Problems and their repercussions are more multi-layered, harder to understand. The different layers intermingle, making it impossible to get an overview of how things are related. Decisions are reduced to a tangled mesh of reaction and counter-reaction – and choosing the single correct path is almost impossible.

Example-Running business in various countries, all with unique regulatory environments, tariffs, and cultural values. ( International brands like H&M, ZARA – brands aligning to the needs of the government & consumers of respective countries )

Ambiguity

In today's world, it's rare for things to be completely clear or precisely determinable. Not everything is black and white – a grey is also an option. The demands on modern organizations and management are more contradictory and paradoxical than ever, challenging our value systems to the core. In a world where what takes a back seat to the why? And the how? Making decisions requires courage, awareness, and a willingness to make mistakes.

For example- you decide to move into an emerging market to launch products away from your core competencies (Footwear brand Woodland entering to apparel)

Hope we got to know exactly on VUCA now, 

Clue

It is always easier to find ways if we know the challenges exactly than working under assumptions, based on our model of work, business & various functions we occupy us should list down the VUCA of us then we will be able to find ways to manage & overcome them. If you think the scenarios and the challenges are the same for everyone it is not true, am sure you all agree to this.

We always expect someone to come and save us from the challenges and troubles which we are in at various stages of life. But what really happens is we are left with no choice but to find ways to overcome it ourselves with some sort of knowledge, tools & the experience what have gained from the past. The solution for the VUCA that we have seen above is again VUCA only…. 

Is this confusing? If yes then your understanding is right, here is the solution of VUCA what we are talking about 

Vision, Understanding, Clarity, Agility

Vision 

If we are clear with our vision and the path through which we should sail then we easily find ways to manage the challenge of volatility. 

VISION+AGILITY=GROWTH

Example- Forward booking & covering the raw material (yarns) with better rates by signing an MOU & with the right closure on projections to the mills. 

Understanding

Understand interconnections; make them transparent. Reflect on the context. Start from the result and work backward. This will help to overcome Uncertainty.

VISION+UNDERSTANDING=GROWTH

Example- find ways to compete and conquer with new ideas and concepts in terms of service & delight to bring the customers back on track. (Airtel)

Clarity

Simplicity. Focus on what counts and what it's really about. Trust, transparent connections, and processes. Apply energy and force exactly where they will be most effective. Clarity cuts complexity.

UNDERSTANDING+CLARITY=INSIGHT

Example - Fast fashion at attractive pricing strategy of Indi tex (Zara).

Agility 

Ability to think and understand, move quickly & easily. Agility helps to overcome ambiguity easily.

AGILITY+CLARITY=INNOVATION

Example-Service providers like Swiggy, Uber, etc., 

Hope you like this article & you could get a sense of VUCA – the challenge and the Clue to manage & sustain in this unpredictable world. Looking forward to your views and thoughts on this.

RELATED TOPICS:#Apparel,Ramesh Gunasekaran