Thriving in a VUCA World

Can you cope with Volatility, Uncertainty, Complexity & Ambiguity?

Mr. Spock once said: “Change is the essential process of all existence.” As the world shifts and grows all around us, this quote seems all the more relevant.

As technology rapidly advances and changes the threads of society, it can feel as though we have to be prepared for anything. To be ready for this, HP turns to Megatrends to invest and innovate for the future. But, how can leaders prepare themselves for the constantly changing needs of their employees and customers?

In our world of rapid change and uncertainty, it can be unnerving to discover that your skills are outdated. Yet, many leaders are still using tools from decades ago, and they are unsure of how to evolve to meet current needs. So, how can leaders learn to manage today’s ever-changing environment?

Existing in a VUCA world

First, we must accept that we are living in a VUCA world. Not to be confused with Vulcan, like Mr. Spock, VUCA stands for the following:

• Volatility: The scale, speed, volume, and type of change that we deal with today is increasing and evolving exponentially.
• Uncertainty: It’s becoming more and more difficult to make predictions, and world issues and events are contributing to this confusion.
• Complexity: There is not always an obvious connection between cause and effect, which is causing major confusion for most organizations.
• Ambiguity: Very little is clear-cut, and there can be multiple and mixed meanings all around us.

The concept of VUCA was introduced during the Cold War in the early 90s. While it was originally intended for use by the Army, its teachings have also been applied to business and leadership, particularly following the global financial crisis in 2008. Because we are living in a world of constant, unpredictable change, leaders must evolve to make rapid decisions based on ever-changing circumstances. In order to do this, leaders must learn to be agile.

This may sound scary (and it can be), but it’s only because our brains love to find patterns and cling to these discoveries in order to predict a secure future. This habit has helped our species survive in the past, but now it is limiting our growth. Instead of predicting what is likely to happen, we need to instead focus on all the potential future possibilities.

Thriving in a VUCA world

To thrive in a VUCA world, leaders need to be ready to disrupt and be disrupted. This requires flexibility and an ability to adapt to new circumstances.

In this interview, organizational psychologist Dr. David Smith, PhD, discusses the types of individuals who are best suited to a VUCA world. He calls them the “learning agile”. These people are flexible, adaptable, and love new experiences and opportunities. They are quick to learn and value new ideas. To recognize such individuals, Dr. Smith identified nine behaviors that contribute to learning agility, as discovered by Dr. Warner Burke and colleagues at Columbia University. These behaviors are:

1. Flexibility: Open to new experiences and adaptable to new processes
2. Speed: Quick on their feet when learning new ideas or methods
3. Experimenting: Open to trying out new methods or ideas
4. Performance Risk Taking: Enjoys challenges
5. Interpersonal Risk Taking: Unafraid to ask for assistance when needed
6. Collaborating: Works well with others and delegates tasks to those with the proper skills
7. Information Gathering: Always looking to learn and grow
8. Feedback Seeking: Requests feedback in order to improve
9. Reflecting: Reflects on their work to understand effectiveness and identify ways to improve

While some people are naturally equipped with these tools, it is also entirely possible to learn to be “learning agile”.

Leadership in a VUCA world also requires an understanding of Megatrends. While it’s impossible to fully predict the future, we can rely on major trends to inform our decisions. At HP, we focus on four major Megatrends:

• Rapid Urbanization: Our population is only increasing, and the majority are flocking to cities. This will create major economic growth, but will also take a huge toll on the environment. What can we do to improve cities and reduce impact on our natural resources?
• Changing Demographics: Younger generations are becoming the majority in the workforce and will soon be the target for new products and services. Also, older generations are contributing to a rapidly growing aging population, which will both increase strain on healthcare and open up new market opportunities, as they presently have greater purchasing power.
• Hyper Globalization: The Internet began the process of “flattening” the world, and now we are globally connected. Scaling a business has become easier than ever, and technology is spreading rapidly. Unfortunately, this also comes with an increased threat to cybersecurity.
• Accelerated Innovation: Everything is happening faster, including innovation. Emerging technologies like automation, AI, 3D printing, and the Internet of Things are improving at an unfathomable rate.

Lastly, leaders need to have a growth mindset. By embracing change and striving to be a lifelong learner, anyone can gain the ability to adapt to evolving circumstances. At HP, we believe that people can always keep growing and learning, and this is an essential perspective to succeed a VUCA world.