VUCA redefined

Open, honest and clear-cut communication cultures breed trust and team spirit. Beyond a certain point money stops being a motivator. It is the shared values and objectives across the organisation which sparks passion and drives performance

Much has been said about the modern society and the business climate we live in today. The business professionals and entrepreneurs, gurus of management have aptly termed the current business and economic atmosphere we live in as ‘VUCA’ or a Volatile, Uncertain, Complex and Ambiguous world.

True to the acronym and definition, the business world today indeed is VUCA. More so at present with the raging pandemic across the world and its adverse socio-economic and environmental consequences. 

The business and economic climate today is highly volatile with everchanging market and financial turbulences from both national and international perspectives. Pre-COVID phenomena was mostly on the international politico legal context with the EU and Brexit saga coupled with the global market dominance battle between China and India bringing in a multitude of diverse pressures on cross-border trade, currency fluctuations and market demand supply mechanisms resulting in financial/economic chaos and rapid changes in market dynamics. 

Now with COVID being a reality to recon with and live with for the uncertain future the uncertainty has become the norm and businesses and societies are forced to virtually live by the day with no hint of what brings tomorrow. In the immediate present context, the social and economic fabric of the world is stretched to its limits with health and wellbeing becoming the priority above all.

Complexity and ambiguity evolved with world trade and political wars. Although we thrived on and viewed businesses as borderless with consumer dominance, advent of technology and innovation being the key to expansion and growth the reality is that businesses are restricted by some explicit barriers in the form of protectionism, cross border trade laws and regulations, geopolitics plus unseen yet prevalent social and cultural market norms threatening the ‘free enterprise’ paradigm. VUCA indeed!

What is the way out? How do we get out and look for growth and sustainability in this climate and context?

While the truth may be far from it, arguably given all things are equal and all nations and markets face the same realities equally what is the survival formula to break out of the VUCA? Although the effect of negative factors or realities of this VUCA world may differ from region to region or country-wise, one hard fact is that volatility, uncertainty, complexity and ambiguity is the common enemy and the force to overcome.

The writer proposes here that the way of redemption and survival leading to the path of sustainability is a management philosophy and approach based on yet again VUCA! The approach suggested is that organisational leadership redefines VUCA as follows:

• Vision, Values and Valour
• Unlearn, Understand and Underpin
• Communicate, Command and Control
• Attitude, Approach and Action

V: The progressive journey of a business originates and flows from its leadership. The leadership approach then trickles down and gets absorbed to the entire culture of the organisation. Therefore, let us examine each of the above from a management philosophy standpoint.

If you don’t know where you are going any road will take you there. So said Lewis Carol of ‘Alice in Wonderland’ fame. This is absolute true to any aspect of life. From a business standpoint one must have a strategic direction. Where you want to be. This emanates from a strong vision. An inspiring dream which propels action. Although business visions are broad and abstract those are the stimulus and basis for strong defined strategy. Without envisioning the nature and path of a business it cannot be driven forward. Success stories the world over and entrepreneurs behind have had strong visions and been visionaries. Therefore, every business must have a shared vision as its bedrock of stability and existence flowing from which the goals and strategies would flourish. Often changing or wavering business visions lack honesty commitment and passion. Therefore, it is argued here that vision fuels passion, innovation and visibility which are essential to maintain your onward journey whilst ‘trimming the sails’ to suit and overcome the winds. ‘The Singapore story’ with Lee Kuan Yew comes to mind.

Values are what is dear to us. What we believe in and what shapes our conduct. The philosophy of life! While in business or life one size doesn’t fit all every enterprise must have an established value system embracing the entire cycle and framework of conducting business. Money making values, customer values, people values, and social and environmental values are essential ingredients that guides the management of an enterprise as much as individual lives. 

A clearly understood, shared and accepted value system becomes the business and work ethic in an organisation facilitating ‘ethical’ business in all aspects. The ethics school primarily speak of three moral principles – virtue, consequential and deontological ethics (Aristotle, Hume, Locke et al: BC to 20th century) and more modern definitions and discussions are primarily based on the above schools of thought by sociologists and psychologists. These address personal conduct, action bound result conscious conduct and duty-bound conduct. Such an organisational and social savvy value system would ensure social recognition, employee engagement and above all market acceptance – which are the main ingredients for sustainability amidst intense competition and customer driven market climates.

Brave are the risk takers and the ‘faint heart never won fair lady’. True in life, proven in war and a reality in love. One must have the courage to face risks overcome obstacles and above all the boldness to see threats as opportunities and face it all with conviction. Absence of ‘management mettle’ in business have resulted in mediocre performance or sure decline in business organisations. 

Relentless search for excellence

The relentless search for excellence in management by businesses is a misguided exercise. What is excellence? Too broad and fluid a term. In the final analysis it is results that matter and making things happen that count. However little or few understand that this competence comes from a person’s ability to face adversity and lead his/flock to the desired destination. Leadership yes. Valour more! A brave heart – try Branson.

U: We learn every day in life. Something that adds to the knowledge repositories within us. So, it is in business. New knowledge piles on top of the old knowledge. New knowledge challenges the old knowledge, beliefs and theories. Confusion and chaos results in perception and acceptance if we are not careful. Furthermore, it is inevitable that with advances in technology, research and day to day experiences what we believe to be true is proven wrong. The entire thought process in life and business affecting decision making will be challenged as a result. 

The ancient ‘world is flat’ notion to connecting the world through technology and ‘internet of things’ on the one hand; and hard currencies to crypto currency, E-commerce, virtual business, and market dynamics in international trade not to mention other spheres as medicine are some examples of evolution of knowledge and ways of living and conducting business. If the everchanging knowledge was not accepted, we would still be in the stone age of snail mail. Those who were fast to embrace and adopt have achieved advantages in every aspect. 

However, there is a human tendency of resistance to change and accepting new knowledge which permeates to organisations as well. This is very disruptive. To learn new, you need to ‘unlearn’ the old and that’s a mindset. Unlearning is shedding obsolete knowledge and embracing acceptable and proven new knowledge. Adaptability is the key. When Senge (1990) spoke of ‘learning organisations’ he drove home this point. Learning organisations are those which are aware of the body knowledge in the organisation, which scan the environment, capturers new knowledge and sheds old knowledge while aligning the organisation towards same. 

They unlearn and learn objectively. With unlearning comes new understanding and comprehension. Your approach should change for the better. This new understanding and adaptiveness must be underpinned to the platform on which you conduct business and shared amongst the entire organisation. Thus, you become updated, equipped and competitive by becoming an early adapter and change leader.

C: Communication is the most powerful tool to transform vision into action. Not only effective communication is paramount to motivation; it is the only way in which management can make people receive and understand what is expected of them to achieve organisational objectives. Lack of or unfocussed or bad communication destroy human relations, give rise to conflict and kills engagement and passion. Yet how many organisations can boast of clear organisation wide communication channels to, from and across each level? How many business leaders lack communication skill? 

Open, honest and clear-cut communication cultures breed trust and team spirit. Beyond a certain point money stops being a motivator. It is the shared values and objectives across the organisation which sparks passion and drives performance. On the external element communication with the society and business environment whether its marketing strategy or pure corporate communications help to build the right image for the organisations. Great entrepreneurs are effective communicators is more than a rule of thumb if one studies personalities such as Welch, Branson, Buffett and Jobs. 

They communicated so forcefully and effectively their vision to the organisation, markets and the world that the products and services they offered and the brand promises projected were accepted by the rest of the world! Although communication must happen at each level essentially an effective leader communicator can tip the balance favourably. He becomes the voice of the organisation. ‘CEO is the most effective tool in a company’s communication arsenal to differentiate itself with customers, employees and investors’ (Ron Ricci – VP corporate positioning: Cisco systems Inc.)

Command and control complement each other. One who commands controls and vice versa. In the military ‘C2’ as it is known refer to the authority an officer has over men and other resources to accomplish a mission! However, the command and control referred to here is not one of designated (or demanded) command and control. The command referred here is all about commanding trust, acceptance, loyalty and respect. Every leader and management team member must be an individual who can win the trust and respect of the rest of the organisation. 

Similarly, every individual in the organisation must be able to command the respect of co-workers and leadership. We are talking about a management and workforce which is enriched with the necessary skills and competence, knowledge and attitudes who can value add to the organisation. Such people command attention and respect and it is through such people only proper leaders evolve and can be developed. Control is identified here beyond ‘span of control’ and authority. 

While clearly defied authority and control parameters are important more corporate performance and leverage can be achieved by having people with emotional control (high EQ), a superior spiritual quotient (SQ) as leaders who will not be swayed by the many surprises, tumbles and whirlwinds of the business world. Such leaders can forge ahead without losing focus and hope with organisational acceptance while people with high command and control attributes in the lower level of the organisation can be empowered and trusted to do the right thing at the right time and shoulder accountability.

Soldiers win wars! Concepts of task ownership, action group leadership, internal peer development coaching and mentoring can be practiced with ease in this climate. A high degree of command and control facilitates a disciplined march towards the destination and corporate discipline is key a fundamental contributor to success.

A: Attitude determines the altitude it is said. Attitudes are frames of mind, beliefs and ways of thinking which dictates or influences behaviour in people. Tons have been written about positive attitude over negative and building positive attitudes. It is a reckoner. The writer proposes that every person whether in leadership or not can change his/her attitude with reason and will. Whether to help or hinder, win or lose, run or fight, cooperate or disrupt will be a function of the mentality that we have.

‘Thinking and feeling’ of a person is another way to understand attitudes. The need to change the attitudes if necessary, for corporate success is essential and is a must do. This responsibility rests on the management commencing from that level. To change attitude of people there must be strong reasons given and shown and always a ‘what’s in it for you’ approach brings better results. In other words, a sense of purpose to the organisation must exist and a sense of purpose being part of the organisation and its success have to be understood and appreciated by the work force. 

A purpose-driven organisation is the need of the hour. A purpose which should have individual meaning and collective attraction wins the day. So, change attitudes through strong sense of purpose. ‘The force behind google magic is their strong purpose – they all want to be a part of changing the world!’ Therefore, appeal to people’s self-interest.

Approach and action

Approach and action are strategy and execution. Strategy is the game plan, and action is sticking to the game plan and playing the game. Lack of focused strategy has been the root-cause of many a corporate failure. Strategies must be focused yet flexible, comprehensive but simple to comprehend. Strategy formulation has many theories and techniques. But going back to the basics is the key. Strategy is all about knowing what you want and where you want to go, understanding the obstacles in going there and finding the ‘best’ course of action to get there. 

Tsung Tzu in Art of War said, “Know your enemy, know his weaknesses, know the terrain and plan the attack!” Same with corporate warfare in today’s context. Identify your goal posts, identify your market, identify the challenges and plan your approach. Sounds familiar. The difference is the goal posts and playing conditions are constantly changing. Therefore, the approach must be one of – defined goals, study principles of cause and effect, compassion – customer solution oriented, impermanent or adaptive and ethical – respect yourself, team and the consumer. This is based on Buddha’s teachings from the author, s perspective without any religious bias.

Action or execution in today’s world calls for specific task allocation with defined key result areas and measurements established. Individual accountabilities are a must. This calls for delegation, monitoring and corrective action. Rewards and recognition for performance have to be real-time and not post-action. Continuous performance assessment/evaluation and performance related rewards must replace the archaic annual or biannual performance appraisal; and rewards of people need to be strictly tied to results. 

Management themselves must be dynamic result oriented and those with a spine to venture out and lead by example not meek mouse who hide behind policy, procedures and are team averse. In a nutshell a proactive approach with situational leadership and action.

This is but only a thought-provoking exercise. To stimulate the mind and engage in soul searching. As the famous coach Vincent Lombardi said, “Winning is not everything – it’s the only thing!”

(The writer is a senior management professional, HRD practitioner and a corporate thought provoker.)