The VUCA leadership principle takes into consideration the Volatility, Uncertainty, Complexity, and Ambiguity which have to be dealt with in various conditions and circumstances.

Volatility recognises frequent and rapid change, Uncertainty is the unpredictability of events, Complexity highlights the multiple factors and issues to be considered, and Ambiguity draws attention to the fact that there is lack of clarity, understanding and precision due to multiple meanings and messages within a situation you are dealing with.

Origins behind the VUCA leadership principle

The “VUCA leadership” principle originally stems from an army and military term used after the Cold War, when the world became more complex due to a number of factors.

In recent years, it has been applied to a business context as “VUCA” also accurately describes the modern day terrain organisations are faced with as they deal with international markets, continuous restructuring, growth and/or downsizing, economic and global influences, technological change, cultural and societal shifts, and more. Not only that, the pace and frequency of these changes occur faster and more intense than ever before.

With that in consideration, VUCA leadership aims to help manage the rapid and unpredictable change, which is ultimately, the new norm for leaders in today’s modern era.

Why does knowing the Volatility, Uncertainty, Complexity and Ambiguity help leaders in the context of uncertainty?

VUCA leadership has been adopted in various organisations to assist with everything from leadership and strategy planning to crisis management and disaster recovery.

Leaders have more to deal with in a more uncertain world, make decisions faster, and manage large amounts of information and interconnected variables. A VUCA leadership approach can assist in shifting their mindset from relying on set outcomes to thinking of all possibilities in a challenging environment.

It helps leaders prepare for uncertainty and managing the associated risks.

It means that leaders are:

• Preparing for as many alternative realities, challenges, and issues as possible
• Anticipating market, technological, economic, and other trends, opportunities, events, and risks
• Increasing the level of preparedness for change
• The ability to adapt strategy for both expected and unexpected change
• A need to practice leadership agility and hiring employees who are capable of adapting to change
• Creating a corporate culture which is supportive and adaptive to change and uncertainty
• Practicing a non-linear approach to decision making and encouraging “out of the box” thinking

A leader who is able to manage uncertainty whilst still maintaining their vision and mission will be a true asset to an organisation.

How can this principle assist with team management?

Dealing with a volatile, uncertain, complex, and ambiguous environment leads to an important consideration for leaders and managers: guiding a team through this new norm. But how do you manage and lead a team through the unknown when there is no solution or perfect outcome?

The VUCA leadership principle can assist with this because it focuses on dealing with higher levels of complexity, and to manage these, VUCA leaders will:

• Focus on vision and values. Whilst the work, environment, and other factors may change, leaders can offer a reliable framework and reminder of the overall end goal to those around them, in order to continue moving forward.
• Be the communicator and the person who provides clarity in an unclear environment. They recognise the importance of communicating and collaborating with their team and keeping them in the loop.
• Be agile, and hire and encourage agile employees in their teams and corporate culture. When change is a constant, and there are constant shifts likely to occur, managing the human resources element to this will be critical.
• Embrace change, anticipate and prepare for multiple outcomes, and apply readiness and change management skills to everything that they do.
• Take on and manage different perspectives and be able to take a step back to consider the bigger picture.

VUCA leadership may be the best way to help your leaders in the context of uncertainty and assist in team management.

If you would like more information on staffing your organisation with leaders who adopt the VUCA leadership principle, contact us today to discuss how to incorporate this into your recruitment and interview process and staff training.