P UMB A

HOW TO FACE
VUCA WORLD?
GU IDED BY- PROF. S NEHAL SAR KAR

PRESENT ED BY ROLL NO.- 221 51 TO 22160

CONTENT
INDEX

• INT RODU CT ION • COM PLEXIT Y • EFFEC TS O F VU CA

• VO LATILIT Y • AM BIG U ITY • FR ES HER'S ADOPT ION
• U NCERTAIN IT Y • WAY TO TACK LE • CO NCLU SION
INTRODUCTION

V UCA
 WHAT IS VUCA?
•VU CA is an acro ny m coin e d in 19 87, based
o n t he leader ship t h e or ies of Warre n Ben n is
& Bur t Nan us – t o de scri be or t o refl ect on
t h e vo lati lit y, un cer t aint y, co mplex it y an d
ambiguit y of gen e ral con diti on s & sit uati on s.
•VU CA is a con cept t h at ori gin at e d wit h
st udent s at t h e U.S. Army War College t o
de scri be t h e vo lati lit y, un cert aint y,
complex it y, an d am bigui t y of t h e wo rld aft er
t h e Cold War.
 VUCA IN BUSINESS
WORLD
• B o b Jo ha n sen intro duced the t er m VUC A
i n th e busi n e ss wo rld in 2 009 in h i s boo k
‘Le a de rs Ma ke The Fu tu re. ’
• Th e VUC A co nce pt b eg an bei n g a ppli e d
t o b oardro om discussions w here i t
i nfl ue n ced de cisio n- ma king . It wa s u sed as
a met h od of und er stan ding w h ere t h e re
was a l ack of pre dict ability, he l pi n g
i mprove busine ss pe rfo rmance .
 1 • Volatility is the qua lity of being
su bjec t t o f r e qu ent, r apid and
si gnif icant c hange . S m all tr igge r s
m ay r es ult in large ch anges .
• I n a volat ile m ar ket, f or exam ple, the
VOLATILITY pr ice s of com m odities can r is e or f all
cons ider a bly in a s hor t per iod of
tim e, and the di re ction of a tr en d
m ay r ever s e s uddenly.
 CHALLENGES

E xponent ia lly acc elerating c hange

May be of unknow n duration

U nstable

U nexpect ed
MAJOR EVENTS

N atural D isaste rs

Pan demic

Wars

G lo bal R ece ssion

 HOW CAN WE
OVERCOME ?
B e tra nsparent and honest in
c omm unic ation

E xplore new opportu nities

D emonstrate empathy and emotion al

intelligenc e

Stay positive
 2 T he l ac k of predictability an d
information. It is the “ fog of w ar” w e
fa ce. While it would be nice to hav e

UNCERTAINTY clarity o n wha t to do, we rarely know

what our customers want and wha t our
competitors are d oing and how they will
re spond .
 EXAMPLE OF UNCERTAINTY
It describes the situation of constant,
unpredictable change that is now the norm in
certain industries and areas of the business
world. VUCA demands that you avoid
traditional, outdated approaches to management
and leadership, and day-to-day working.
Uncertainty occurs when events and outcomes
are unpredictable. The cause and effect are not
well understood, and previous experience may
not apply to the situation. It is unclear which
direction events will go; in an uncertain
market, for example, it is not clear if the price
will go up or down or by how much
 HOW TO COPE & TACKLE
WITH UNCERTAINTY ?
COPE TO UN C ERTAINT Y TAC KL E TO UNCE RTA INT Y
• Focus on controlling those things that are • Develop new skills, Take your own advice
under your control. • Engage in self-care Control what you can
• Challenge your need for certainty. • Ask for help
• Learn to better tolerate, even embrace, the
inevitable uncertainty of life.
• Reduce your anxiety and stress levels
 3
• CO MPL EXIT Y RE FE RS TO TH E
NUMBE R O F FA CTORS T HAT W E
NE E D TO TAKE INTO AC COUN T,
T HE IR VAR IET Y AN D TH E
RE L AT IONSHIPS B ET WE E N T HE M.

COMPLEXITY T HE MOR E VAR IE D T HE Y AR E,

T HE MOR E COMPLE X T HE
SIT UAT IO N.
• A situa tion that ha s many variables
and hence lea ds to complexity,
making it hard to make de cisions.
 EXAMPLE OF COMPLEXITY

Complex environments a re usua lly seen with businesse s that op era te interna tio nally or
over la rge geographical areas. different cultures, e nvironmen ts a nd regu lations can create
complexities that a manage r mu st be prepared for. o ne product ma y gene ra te huge re venue
through sales in a region but may be undesirable or heavily regulated and ta xed in
another. this c rea tes complexities in operations and logistics.
HOW TO TACKLE
COMPLEXITY ?

C ommunicate clearly

D evelop teams

D rill Down
 4 Something is unclear even when an
appropriate amount o f info rmation is
provided.
• T he haziness of reality

AMBIGUITY • T he potential for misrea ds

• T he mixe d mea nings of condi tions
• Not black and white, but grey
AMBIGUOUS IMAGES
 HOW TO TACKLE AMBIGUITY
?

• Ada pt quic kly to c ha nging cir c ums ta nce s

• Pla n a he ad, but be pre pa re d to a lte r y our pla ns
• C ontinuou sly se e k ne w w a ys to ge t be tte r
• Enco ura ge your te a m to think a nd w ork o utside of t heir f unc tiona l a re a s
 ESSENTIALS FOR
THE VUCA WORLD
Fo llow ing are the some must have skills to survive in this VU CA world:-

• A doptability and Flexibility

• Strong L ea dership
• R esilienc e
• C lear C ommunication
• Innovation
• D ig ita l Tra nsforma tion
• B uild ing Strong a nd D ive rse Network
 ESSENTIALS FOR THE VUCA
WORLD
FL E XIBILIT Y AND A DAPTABILIT Y ST RO NG LE AD ER SH IP

Being able to quickly and effectively respond Leaders must be able to navigate uncertainty
to changing conditions is essential in a VUCA and ambiguity while guiding their teams
world towards a common goal.
 ESSENTIALS FOR THE VUCA
WORLD
RE SIL IENC E EFFEC T IV E COMMU NICATION

The ability to bounce back from adversity is Clear and effective communication is critical in
important in a VUCA world, where change and a VUCA world, as it allows teams to stay on
uncertainty are constant. the same page and respond quickly to changes.
 ESSENTIALS FOR THE VUCA
WORLD
IN NOVAT IO N DIGITAL T R ANSFOR MATION

The ability to think outside of the box and As the world is becoming more digital and
come up with new and creative solutions is technology is advancing, it is important to
essential in a VUCA world, where the status embrace digital transformation and make use of
quo is constantly changing. technology to be more efficient and agile.
 ESSENTIALS FOR THE VUCA
WORLD
BUIL DING ST R ONG A ND DIV ER SE NE T WORK S

Building a strong network of allies and partners

can help organizations navigate the complex
and uncertain environment of a VUCA world
 EFFECTS OF VUCA IN
BUSINESS ENVIRONMENT

• Intensifies Existing Decision-Making

Problems.
• Elevates global skills shortages.
• Pose difficulty in adapting to changes.
• Cause difficulty in predicting future
changes.
• Reduces progress speed.
• Arises a need to adapt with the
technological advancements.
 CONCLUSION
• VU CA is t h e “ New n o rmal” in t o day ’s
busin ess wo rld.
• Bett er vision , un de rst an din g, clarit y, an d
agilit y could overcom e vuca Wo rld.
• Improvin g sk ills.
• Be in g fl ex ible an d adapt able.
• Have a po siti ve atti t ude .