What is a VUCA environment?

The globalized world we live in increasingly affects our daily lives, and knowing how to ride different currents is becoming key to surviving the stress and anxiety that uncertainty brings. That is why we are sharing this article, because if you have not read anything about VUCA, it is about time, because we will continue to talk about it for a long time.

The expression VUCA was created by the United States Army War College to describe the world after the end of the Cold War. The term began to be widely used in the 90s. Later it was used in the fields of business strategy, applying to all types of organizations. VUCA stands for: Volatility, Uncertainty, Complexity, Ambiguity.

When we talk about VOLATILITY, we are referring to continuous and constant change, the speed with which situations develop and the catalysts for modification that are present today.

When we refer to UNCERTAINTY, we are talking about a lack of predictability, the surprises and ups and downs of the market. Perhaps without knowing it, it refers to the theory of relativity, where everything is relative and has to do with other variables.

COMPLEXITY refers to the multiplicity of forces and the mix of issues that break the cause-effect concept and general organizational confusion, giving rise to complex environments and relationships.

Finally, we are left with AMBIGUITY, which refers to the distortion of reality and is the breeding ground for organizational misunderstandings and the different meanings of working conditions.

All companies, even without being aware of it, live according to these four premises that give meaning to the acronym VUCA.

Even lately, there are not a few sources where you can see how the VUCA environment was complemented with an “H” that refers to HYPERCONNECTIVITY.

Business hyperconnectivity is nothing more than the new era of communication, where technology changed almost everything and where digital capabilities became popular, ceasing to be a field only for experts. Today, anyone can be connected to information and knowledge. Either in a reactive way (connecting only to look) or in a proactive way (they connect, look and contribute their vision).

Is it possible to be ready for VUCAH?

In 2020 with the arrival of the unpredictable Covid-19, we saw and continue to see firsthand the importance of being prepared for the unimaginable. Perhaps today with all the guides, like this one from Wolters Kluwer, that were written compiling the empirical data of this experience, we will be closer to knowing what to do in the future if a similar case were to happen.

But the future will not be the same, we will not be the same.

It must be said, the war in Russia was something that we in the West did not expect. It is increasingly necessary to redouble efforts to reduce, recycle, reuse and digitize. And having initiated a process of minimizing the use of resources and within the framework that is possible for each country, they will have to do everything possible to be self-sufficient both energetically and in terms of food. Dependence takes a moral toll.

And if you want to discover and train your team on innovation, resilience and adaptability in your company, discover our customized trainings.