The environment we live and work in is constantly changing, and it can be difficult to predict what the future holds. Technological advances, globalization, and changing customer expectations are all creating a more volatile, uncertain, complex, and ambiguous (VUCA) environment.
VUCA has since been adopted in the business world to describe the rapidly changing and unpredictable environment that organizations must navigate. In this environment, traditional approaches to quality management which are designed for a more stable and predictable environment, are no longer enough. By transforming their approach to quality, organizations can position themselves for success in the VUCA world.
Volatility
If you remember your chemistry lectures, Volatility is the tendency of a material to change its state suddenly and unexpectedly during exposure to an external environment.
In business, Volatility relates to the speed of change in an industry, market, or the world in general. It is associated with rapid fluctuations in demand, turbulence, and short time to markets. Things change at an unwantedly faster rate in a Volatile World.
Examples of Volatile World include – Rapid Fluctuations in Commodity Prices, Frequent Trend shifts in the share markets.
Uncertainty
In the past, it was easier to predict the future using statistical tools and past knowledge and experience. However, the VUCA environment makes it difficult to predict future events and outcomes.
Uncertainty is the lack of knowledge about what will happen in the future. Uncertainty is perceived as people’s inability to understand what is going on. The cause and effect of events are not well understood, and the output is not directly related to the input. This can be caused by a number of factors, such as the complexity of the world, the interconnectedness of events, and the lack of data.
Today Uncertainty exists everywhere – in Economics, Technology, Competition, Supply Chain, Environment, Legal & Regulations, and the most recent one is Health & Pandemic Situations. In fact, these all situations also brought in Uncertainty in consumer behavior.
Covid 19 is the latest example of Uncertainty where we were bound to lock inside homes with an uncertain future and no information regarding – when the situation will return to normal.
Complexity
Ever created a scatter plot to find the correlation between the two variables. How many times do you find a direct correlation between two variables? Probably very less.
This happens due to the multiplicity of issues and factors that can affect an outcome, and it can be difficult to understand how all of these factors interact. Under high complexity, it is very difficult to fully analyze the environment and come to rational conclusions & decision making. The more complex the world is, the harder it is to analyze.
The mobility revolution across the world is the best example of Complexity. The industry was already working on various strategies like Electric Vehicles, Hydrogen Powered Engines etc, whereas the demand for autonomous vehicles, and the Vehicle to Everything (V2X) connectivity made the situation even more complex.
Ambiguity
Ambiguity refers to the lack of clarity or the existence of multiple possible interpretations and outcomes for a given situation. It is the condition in which information is often incomplete, contradictory, or difficult to interpret, making it challenging to make well-informed decisions.
The presence of various factors, including rapid changes, complex interconnections, and the presence of conflicting information or perspectives give birth to Ambiguity.
With a lot of Data and Information, we are already living an ambiguous life, be it personal or professional.
Challenges in VUCA Environment:
With its Volatile, Uncertain, Complex & Ambiguous nature, the VUCA environment presents various challenges. Some of these challenges include:
👉 In a Complex environment, there are often no easy answers, and problems can be difficult to define.
👉 Availability of an abundance of information and the rise of misinformation, poses challenges in making well-informed decisions.
👉 With constantly changing consumer sentiments and behavior, Products & services are facing the threat of shorter lifecycles.
👉 Constantly changing demographic, social, and cultural norms are impacting market demands which in turn, is making it difficult to predict future trends accurately.
What could be a good strategy to work in VUCA Environment:
✍️ Convert Volatility into Vision
A transformation or transition from a state of unpredictability and instability to a state of clarity, foresight, and long-term planning. It might imply the process of moving from a situation where things are uncertain, chaotic, or changing rapidly, to a more stable, focused, and strategic outlook.
✍️ Move from Uncertainty to Understanding
With Probabilistic Thinking, Expert Inputs, Iterative Learning (Continuously updating the learning & development models), and well-devised Risk Management processes, the Uncertainties can be transformed into understanding. Focus on “Possibilities” instead of just “Probabilities”.
✍️ Breakdown the Complexity into Clarity
Start working on simplifying complex ideas, concepts, or information to make them easier to understand and communicate. Break down the bigger and more complex problems and issues into smaller, logical, easily understandable, and manageable pieces.
✍️ Be Agile and not Ambiguous
The transition from ambiguity to agility often involves promoting a growth mindset, fostering open communication, empowering individuals, or teams to make decisions, and embracing continuous learning and improvement. A culture of Accountability & Adaptability in a rapidly changing world can be a significant advantage for individuals, organizations, and projects alike. This will promote Agility and will minimize (if not eliminate), the Ambiguity.
Skills that will be helpful for Problem Solvers to swim through the VUCA:
✍️ 𝗙𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 – Remain flexible in utilizing problem-solving techniques, as per the need of the situation and availability of data. Approaches like 8D, Six Sigma, A3, RedX, and TRIZ are to be used on a situation basis.
✍️ 𝗔𝗱𝗮𝗽𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 – Solutions that worked in the past may not work now. One needs to be adaptable to the situation to overcome the challenges of Volatility & Uncertainty.
✍️ 𝗖𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗧𝗵𝗶𝗻𝗸𝗶𝗻𝗴 – The time calls to be more critical and find out all possibilities where the system can go wrong. It’s time to work on “Possibilities” rather than just “Probabilities”.
✍️ 𝗖𝗿𝗲𝗮𝘁𝗶𝘃𝗶𝘁𝘆 – There can be many solutions to a problem. In the VUCA world, it is important to be creative in finding the optimum and flexible solutions.
✍️ 𝗗𝗶𝘀𝗲𝗰𝘁𝗶𝗼𝗻 – Good problem-solvers can break down complex problems into smaller, more manageable pieces.
✍️ 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝗰𝗮𝘁𝗶𝗼𝗻 – Good problem-solvers can communicate effectively and work well with others.
✍️ 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻 – Problems are complex in VUCA and hence it is essential to work and collaborate with others to find the root cause and establish the action.
Conclusion:
👉 The VUCA environment is a challenge, but it also presents an opportunity for those who can adapt and thrive in it.
👉 The world of VUCA requires a proactive approach that emphasizes agility, innovation, and the ability to quickly adapt to changing customer needs.
👉 Business transformation enables companies to proactively respond to market changes, reduce risk, and deliver superior products and services.
👉 Effective business transformation requires leadership commitment, employee engagement, and a culture of continuous improvement to ensure long-term success in a volatile business environment.
Bio:
Ankur has had the privilege to serve as an ASQ Lean Six Sigma BB Trained Mechanical Engineer for the past 17 years, providing expertise in identifying, structuring, and implementing business process improvement, reengineering projects, and other framework-based methods for delivering targeted results.
He has worked with Auto OEMs like Tata Motors, Honda, and Ford along with the leading Tier 1 suppliers like Exide & BorgWarner, and has a deep understanding of the industry and its challenges.
Ankur is currently the DGM Operations for Greenfield E-Bike Project at Hero Motors Limited. In this role, he is responsible for leading the team that is responsible for the development and launch of a new line of components for electric cycles. He is also responsible for ensuring that the product meets the highest quality standards.
Ankur is an expert in problem-solving and quality transformations. He is recognized by LinkedIn as a “Top Problem-Solving Voice” for his contribution. He has a proven track record of identifying and resolving complex problems, and of leading teams to achieve significant improvements in quality. He played a lead role in Digitalization Drive at Ford and BorgWarner to automate and synchronize the processes.
Ankur is a highly motivated and results-oriented individual. He is passionate about the automotive industry and is committed to making a positive impact on the industry.
A strong networker easily contacted via
- tyagi.ankur4u@gmail.com
- LinkedIn: https://www.linkedin.com/in/ankurtyagi12