VUCA- The managerial acronym for Volatility, Uncertainty, Complexity & Ambiguity

A managerial acronym that is becoming increasingly trendy: VUCA. It stands for Volatility, Uncertainty, Complexity, and Ambiguity, and is a catchall for “Hey, it’s crazy out there!”

The 4 VUCA Categories

-Volatility is defined as the quality of being subject to frequently occurring, quick and significant change. In a Volatile market, say for example, the prices of commodities can increase or decrease considerably in a short span of time, and the direction of a particular trend may suddenly reverse.

-Uncertainty is a component of a situation wherein, both the events and outcomes cannot be predicted.

-Complexity involves a multiplicity of factors and issues, some of which can be interconnected. (Some models also include the term ‘chaotic’, changing the acronym to VUCCA)

-Ambiguity is manifested in difficulty of understanding exactly what the situation is and a lack of clarity.



Psychological self-awareness

Physical and psychological Self-awareness is important as we should know and understand,

 What makes you sad? What makes you anxious? What makes you energetic?

It is important for maximum wellbeing.

Curiosity and fast learning

Thriving in VUCA in world today is possible if we assume that changes are constant and our knowledge is finite. It follows that being able to learn new skills and knowledge quickly is also a prerequisite for thriving in the VUCA.

Comfortable with change

As we know changes are inevitable so there is no need to run from the changes. We should embrace them and go with the flow. In VUCA, changes happen very quickly and we should be prepared for it. It can happen anywhere from technological progress to cultural development and etc.

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