VUCA is a term from the US military that is being used more and more as it summarizes the basic conditions that apply to business management today.

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How a company is affected by VUCA differs from company to company, but one thing is common and that is that we are all in the eye of the hurricane where change is rushing at us.

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Let's see what the letters in VUCA stand for, what it means and what counterplay you should focus on.

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Volatility

-Something that happens quickly and that trends can be shifting and unpredictable.

-A clear vision can act as a counter to volatility. 

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Uncertainty

-The moment you feel confident in your knowledge, it's already changing. It creates an uncertainty.

-Involvement, insight and understanding can counteract uncertainty.

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Complexity

-The reality we live in is more complex than ever before and conditions interact to create a reality that cannot be formalized or predicted.

-Shared perception and clarity creates a foundation for informed decisions and actions, and therefore there is great feedback.

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Ambiguity

-Covers the duplicity that exists. For example, communication is easier/quicker with team meetings and emails, rather than faxes, letters and traveling for personal meetings. But the ease/speed of communication can also lead to misunderstandings, create stress or disrupt an already busy workday.

-Agility or adaptability works against ambiguity.

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Efficiency is key - 80% of strategy work is digitized

Kasper Witt

Business Development & Investment Director

Witt A/S