Leading in a VUCA (Volatility, Uncertainty, Complexity, Ambiguous) Environment
High stakes leadership is about leading in times of crisis – when the interests of many are threatened; when the potential for significant loss is great; when there is no clear path to resolution, when the need for leadership is greatest. As new leaders, you are likely to face these types of challenging environments at some point in your career.
With the world changing faster than ever before, with customer expectations shifting, and with competitive pressures mounting, it is essential that you are prepared to lead your team, unit, or organization through the turbulent and dangerous waters of a crisis. Being able to navigate these high-stakes scenarios requires a unique set of skills and knowledge, and the ability to make quick, informed decisions.
The business environment of today can be daunting to navigate. To best understand it, we can look to a term introduced by the United States Army in the early 1990s to describe the battlefield of the 21st century: VUCA. This acronym stands for Volatile, Uncertain, Complex, and Ambiguous – four unique characteristics of all future combat environments that military leaders should expect to encounter.
As a business leader in the 21st century, you will face the same VUCA environment in the competitive battlefield. To succeed, you must be prepared to make decisions in a volatile, uncertain, complex, and ambiguous environment. It is essential that you develop the skills and strategies necessary to navigate this ever-changing landscape.
As a leader/manager, you have an opportunity to hone these skills and gain a better understanding of the VUCA environment. By doing so, you will be better prepared to make informed decisions and thrive in the 21st century business world.
In this SIM, you are the CEO of a start-up app development company. In the two years it has taken you to raise the funds to begin production the market has changed immensely, and your company has had to adapt to changing customer needs and emerging successful competitors. Despite your team working long and stressful hours, it’s unclear if your profits this year will be as forecasted and it’s apparent that the uncertainty is having a negative effect on your small team. You are meeting with your lead developer/manager, Ben, and will need to use your knowledge of leadership skills to coach him through leading his team through this VUCA environment.