How to successfully manage your business in a Vuca World and thrive in Turbulent Times

How to successfully manage your business in a Vuca World and thrive in Turbulent Times

Any astute and successful business owner will tell you that in today’s business environment, success is greatly dependent on taking calculated risks and managing uncertainties and turbulence.

Technological advances, such as the use of artificial intelligence tools are now simplifying the way we do business and communicate with others.?Constant regulatory changes, such as the Fair Work Act updates require that business owners to become informed and up-to-date with their compliance.?

Having the appropriate security measures to protect your intellectual property and your database against cybercrime are just a few of the important changes that business owners must manage.

The business world has changed dramatically over the past few years, and we now live in a society with a different tempo.? A world where change can be fast-paced, constant and unpredictable.

Global events such as the 2008 financial crisis, the COVID pandemic and most recently the conflict in Ukraine are impacting everything from supply chains to petrol prices and the cost of living creating a world that is increasingly more turbulent, risky and unpredictable.?

These constant changes are creating a state of flux that has replaced the sense of certainty, familiarity and stability of past years that people were used to.?

This type of environment can be described as the VUCA, which stands for Volatile, Uncertain, Complex and Ambiguous.?

So, where did the term VUCA come from and how can we best manage our lives and businesses in a VUCA world?

The birth of VUCA

The term VUCA as an acronym was first birthed following the aftermath of the 9/11 terrorist attacks in 2001.?

Military planners were worried about the radically different and unfamiliar international security environment that had emerged, so they used VUCA to describe it which stands for volatile, uncertain, complex and ambiguous environment.

In his book Leaders Make the Future, Bob Johansen of the Institute of the Future adapted the VUCA concept and solutions for the business world.

He argues that even though volatility, uncertainty, complexity and ambiguity are now a standard part of our business world and in fact, life in general, there are steps that we can take to help us rise above these challenges.?

Johansen argues that despite its challenges, VUCA may not pose the same threat to all industries or businesses.?

For example, certain business areas may be more stable, protected or regulated.? And, when you or your organisation are proactive and set the agenda for change, you are less like to experience the full extent of its threats.

Here are some strategies that you can adopt to manage the risks associated with a VUCA world:?

  • Counter volatility with vision

Accept and be open to change as a constant and unpredictable feature of your working environment.? Don’t resist it.? You will need to lead in establishing this mindset you will need to introduce a strong, compelling statement of team objectives and values, and develop a clear, shared vision of the future.

Make sure that you set your team members flexible goals that you can amend when necessary.? This allows them to navigate unsettled, unfamiliar situations and react quickly to changes.?

???????????? Meet uncertainty with understanding

Pause to listen and look around in your work environment and evaluate what you see with an objective eye.? This can help you understand and develop new ways of thinking and acting in response to VUCA’s elements.

As part of your strategy, you should analyse and assess competitive intelligence.?This will involve your ability to gather and assess information that you collect on competitors, as well as feedback from your own clients.?

Stay up to date with industry news and listen carefully to identify key changes that you will need to make to enhance your exposure and competitive advantage as a forward-thinking business.

Review and evaluate your performance. Consider what you are doing well and what you are considering doing differently next time.

Aim to anticipate possible future threats and devise likely responses. Use useful tools for generating foresight. Consider client reviews, feedback forms, and industry conferences that deliver updates on how to step up your current offerings and methods of engagement.

???????????? React to complexity with clarity

Review your direction and define your strategic plan, then communicate this clearly with your people.?In complex situations, clearly expressed communication will help your team understand your organisational direction.

Develop your team and promote collaboration. VUCA situations are often too complicated for one person to handle, so build a team that can work effectively in a fast-paced unpredictable environment.

  • Fight ambiguity with adaptability and agility

Both you and your team need to become comfortable with both flexibility and adaptability that creates agility. This means that you will have to change your perception of change as an “adventure in creativity and improvement”, rather than an unsettling threat.?

  • While you should plan, make sure to build in contingency time and be prepared to alter your plans as events unfold.

  • Hire people who can thrive in a VUCA environment.?These people are likely, more collaborative, comfortable with ambiguity and change and have complex thinking skills.

  • Encourage your people to think and work outside their usual functional areas to increase their knowledge and experience.? Job rotation and cross-training can be an excellent way of improving agility.

  • Embrace an ideas culture and don’t be quick to dictate to your team a new idea but rather feed them with suggestions and allow them to innovate an outcome through collaborative interactions.?

  • Reward team members who demonstrate vision, understanding, clarity and agility.? Let people see what kind of behaviour you value by highlighting innovations and calculated risk-taking.

Working on your own?? Don’t allow VUCA to overwhelm you

If you are a sole practitioner or a contractor who does not work or oversee staff or a team, and you are finding that your VUCA environment is inhibiting your ability to achieve your action plan, then this is the time to turn to an expert.

You can either book a time with APAN to discuss your challenges and seek to bounce some of your options with an industry expert, or it may be time to also access a business coach who is skilled and up to date with both the current threats as well as skilled and knowledgeable in proven solutions that they can mentor you in.?

Contact APAN as we are happy to put you in touch with the best of the best. Contact us on our hotline

We would love to help you!

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