Livin La Vida VUCA: A Mindset Change

(a play on the song by Ricky Martin, Livin Lavida Loca)

VUCA is a term that has its origin in the US Army, but the business/risk fraternity has begun using this trendy acronym to describe the environment that we now all find ourselves working and living in.

VUCA stands for Volatile, Uncertain, Complex, Ambiguous.

VUCA conflates four distinct types of challenges that demand four distinct types of responses. We are also experiencing extreme levels of volatility, and complexity around the risks that organizations and households are facing. Therefore, your response to any one of these challenges cannot be codified or hardcoded.

And why? Because risk is not static. Furthermore, addressing these challenges will not work by simply changing processes, systems, or regulations. There must be a commensurate change in the “thinking” of leaders, decision-makers, and employees.

Neither an organization’s leadership nor its strategies are spared in today’s VUCA world. Experiences, existing processes, and existing policies must all come under scrutiny. But WHO will do the scrutinizing?

Harvard Business Review (HBR) has shared the below chart as a guide to identifying, getting ready for, and responding to events in each of the four VUCA.