VUCA is a leadership development framework that identifies Volatility, Uncertainty, Complexity and Ambiguity as elements that businesses must engage with and adapt to.
Thanks to a global pandemic reaping devastation and destruction on our health, welfare and economic systems, we are reacting to unprecedented change. However, a nineteenth-century edition of Scientific American gives some clue as to why the times we live in aren’t so unusual:
“We are living in the most complex and rapid-changing of times. The pace of technological innovation, like never before, is challenging the way we operate’’.
So, perhaps, let’s not go overboard in thinking that things are more complex than ever before.
Our challenge now is getting to grips with practical ways of dealing with this complex and dynamic environment.
How can we turn VUCA into strategy?
There is a really straightforward and accessible article that examines how organisations can thrive in VUCA worlds. Written by Paul J. H. Schoemaker, Sohvi Heaton and David Teece and published in the California Management Review 2018 Vol 61 (1) 16-42, it presents practical ideas that can be adopted whatever the size or scope of your business.
There are some key principles it establishes straight away:
Traditional ways of operating will hamper you in your ability to succeed.
On the other hand, organisations that focus on new product and process developments coupled with business model innovation will leverage their dynamic capabilities.
It notes that an essential overlay is entrepreneurial leadership from top management teams because strong dynamic capabilities are impossible without it.
Sceptics have been known to question whether businesses can really be transformed in this way, particularly those in more traditional industries and sectors. So many businesses operate using a traditional model where the philosophy seems to be:
“We pay you, therefore we own you. We decide when you must arrive in the office, when you can leave and when you can go on holiday. We bill for your work and demand your attention to detail and productivity.”
This is an effective, profitable model, otherwise it wouldn’t dominate our working culture. However, can this continue when new, disruptive models are emerging and showing that they work?
Happiness by design
Consider Keystone Law. A great article published on Clic.co.uk in March 2019 highlights the development of this legal firm:
“No unnecessary meetings. Zero office politics. Is this professional-services nirvana?’
A complete restructure of the traditional professional services firm. Everyone has the same job title, everyone is on the same deal. There are no office politics.
As James Knight, Founder and CEO shares: “We don’t own our people. Everyone could leave tomorrow if they wanted to. But they don’t and we’re growing faster now than ever before. Keystone Law is the happiest law firm in the world. This is happiness by design.”
A similar story emerges in the accountancy world. PKF Cooper Parry was named the best company to work for in Europe in January 2019 as reported in an article in Love Business East Midlands.
Ade Cheatham, CEO Copper Party, shares
“We’re tearing up the rulebook when it comes to culture. Our unique culture and philosophy on engaging our teams keep getting us recognised. And importantly, our growth, client advocacy scores and regular testimonials show it’s working for clients. Doubling in size since 2015, we’re ahead of the curve in our bold ambition to become a ¬£150m+ business..”
Explore your options, stick to your choices
Playing to Win: How strategy really works
Both the organisations above have made choices and have stuck with them. As A. G. Lafley, Roger L Martin in Playing to Win: How Strategy Really Works have pointed out:
“Ultimately, this is a story about choices, including the choice to create a discipline of strategic thinking and strategic practice within an organisation.”
How do you design your happy place? What can you include in your strategic decision making to improve your chances of thriving in a VUCA world? Why not book a complimentary, one to one session with Steve Hobbs to explore how you can ask better questions, provide clarity and initiate action within your business?