VUCA may already sound like a cliché for some, but many professionals have still never heard of it. It does however continue to provide a useful umbrella term which describes a modern workplace and the challenges that come from that.

If you’re wondering what we’re talking about, let’s go back to basics first. What does VUCA mean?

VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity.

The terms originates in the late 1980s in an American war college to reflect a new type of warfare. From the early 2000s however, the acronym was adapted to the business context to describe a turbulent environment, most recently in reference to after the financial crash of 2008 and since the outbreak of the global COVID-19 pandemic in 2020.

Thanks to these global events, some might think that terms like VUCA are now redundant. Monumental change has occurred and there’s seemingly no going back to the old ‘normal’ of office days and the long accepted 9-5.

Volatility and uncertainty are the new normal.

After all, we no longer talk about ‘colour TV’, it’s just ‘TV’. The same can be said for the business world. What’s different is that the ‘reshaping’ of the international business environment is still taking place and we are still learning to adapt. The only constant currently is unpredictability. So, to have a reliable framework to refer to in leadership training is useful.

Cultural backgrounds

When we think of an ‘international business environment’ we often picture companies targeting world markets, outsourcing, international joint ventures, or remote team working through different time zones and language barriers. But it’s also about managing and/or working in international teams and serving culturally diverse clients locally.

In some countries such as in the UK, it’s become the norm to work with people from different cultural backgrounds. Since it’s all happening in western Europe and in English, we tend to believe that communication will be smooth. When things go wrong, employees are sent to generic training such as ‘good leadership,’ ‘good communication’ or ‘good teamwork’ hoping that the acquired knowledge and skills will be applicable to diverse English-speaking environments.

Often it isn’t.

It’s a paradox – we tend to prepare better for cross-national interactions. But very often, the reality of such a rich diversity of cultures within national borders hits companies hard and people fail to get on which can result in failure. Throw in the unpredictable business environment conditions such as remote working and online communication making the probability of things going wrong or the likelihood of repair even higher. Failed projects, poor staff retention = low sales.

For the immediate future, we need to carry on building trust with our networks online.

How to develop a VUCA strategy

In order to use the volatile business environment to our advantage, organisations (and their leaders) have to become agile. Agility means being able to respond to change: quickly adapt, reinvent oneself, and succeed in a turbulent environment.

The strategy for succeeding in VUCA involves:

1. Identifying your own VUCA environment: what are the disruptive trends? Workforce dynamics, connectivity, collaboration.

2. Defining obstacles for agility. Perhaps the fear of change or outdated processes.

3. Implementing agility enhancing practices, communication and transparency.

When it comes to implementation, communication is key.

Organisations across the world are starting to recognise the need for their leaders and employees to become effective communicators. Thereby reinforcing their agility. Intercultural competence, having a global mindset or cultural intelligence, enables real change. It allows people to influence but also provides direction, motivation and communication regarding business solutions, inclusive bottom-up communication, effective meetings and constant learning through personal development plans or managing talent.

The future is and will remain challenging but also exciting. Leaders are seen as change agents in the VUCA environment. They have to inspire people to reach their potential and thrive. And the best way to learn to do this, practice.

Learn the skills to become a powerful leader in the VUCA environment with Cambridge Advance Online(Opens in a new window)‘s course ‘Intercultural Communication for Global Business.’ Start your learning here: http://bit.ly/3n6Q783

References Baran, Benjamin E, and Haley M Woznyj. “Managing VUCA.” Organizational Dynamics 50.2 (2021): 100787. Web.