Managing Change in a VUCA World

The business world is facing daily a complex set of problems in a constantly changing environment. We now live in a connected society where change can be fast-paced, constant and unpredictable. The pressure on Managers and Leaders running a business can be intense and is now often described as leading and managing VUCA situations.

What is VUCA?

Volatility, Uncertainty, Complexity, Ambiguity

The best way to manage VUCA is for Managers & Leaders to view VUCA as a challenge and turn it into an opportunity to make their teams more effective. Managers and Leaders need to be supported by training and development to feel confident to manage VUCA situations. 

VUCA Complexity – example of a VUCA Situation

Characteristics: The situation has many interconnected parts and variables.  Some information is available and can be predicted, but the volume and nature of it can be overwhelming to process. 

Example: You are doing business in many countries, all with unique regulatory environments and tariffs. 

What is your approach? Restructure or bring on or develop specialists and build up resources adequate to address the complexity. 

The focus should be on the following areas to upskill employees:

• Work with your people to address VUCA at a team level

• Work harder on decision making to avoid being overwhelmed by complexity and uncertainty

• Innovate workflow processes by harnessing the creativity of your people

• Search for more opportunities and negotiate better business deals

• Encourage team building activities 

Change is the one constant that business is going through as we adapt to new technologies, e.g. AI which is flowing daily into the software processes we currently use. 

Managers and Leaders will need strong networking and influencing skills to identify and get buy-in from key stakeholders to manage VUCA and Change. Once the Change Leader has support from senior management they have a responsibility to communicate that message across the organisation. A further skill Leaders will require is the ability to negotiate with key people e.g. department heads or budget holders for the resources to make the Change happen and resolve any conflicts. 

Motivating and inspiring your team to buy in to Change can be a challenge, which is where modelling your Change plans on Kotter’s 8 Point Change Model can be helpful. Leaders and Managers must listen to the messages from their teams, be a good listener themselves and an effective delegator. Goal setting is required to maintain enthusiasm for the Change and constantly visioning the bigger picture of how beneficial the Change will be, is vitally important. 

Leaders and Managers can overcome VUCA situations as they have the skills and ability to persevere and overcome obstacles. A tolerance of ambiguity is also essential, which allows the Change Leader to function comfortably, patiently and effectively in uncertain environments. 

Rosemary Parr, Founder Global Management.Training, CIPD L&D Practitioner, Business Skills Trainer.