VUCA is not just a managerial jargon but it defines the corporate world in the big picture.
Large corporations are dealing with technology disruption, increasing competition and ever-growing consumer expectations. Apart from that, the changing geopolitical stances with changing leaders has made increasingly difficult for the corporations to assess the business policies. Changing in business policies increase the uncertainty and businesses generally require a stable environment.
To tackle these problems, we suggest the following ways to dominate in this VUCA world:
- When some stock is volatile, we essentially follow two things- Diversification and Effective Risk Management. The same applies here as well. It is evident for companies in the last century that diversification has helped them sustain in the market. Not only just sustain, but some of the market leaders are also large conglomerates who have businesses in different sectors. Risk management has increasingly become important especially after the 2008 recession. These 2 strategies effectively tackle the volatile part of VUCA
- Goal clarity and Big Picture analysis are two effective ways of tackling the uncertainty. Many companies fail to analyse the big picture and get trapped. Lots of companies which are small and medium scale, don’t have defined goals, they move towards just one sole part of money-making. This can be hazardous especially in the times of uncertainty. Recently, more than 180 CEOs of top corporations agreed that the purpose of business is more important than anything else and purpose won’t be defined until and unless goal clarity is there.
- A classical approach to solve the complexity of the problem is to structure it well. This is the typical approach followed by the top management consulting firms like McKinsey &Co., BCG etc. It has worked for them for a long time, it works for other companies who follow this approach as well and it will work in real-life problems too. When given a complex problem, the most difficult part is the starting part. It essentially looks like a messed up room with seemingly no possible solutions. But, breaking it into parts and structuring it helps in the beginning as well as gives a push to solve the problem effectively.
- Playing on your own strengths is an effective strategy to tackle ambiguity. But, before doing that a company must do its deep introspection via knowing its own strengths, weaknesses, its threat to existence and possible opportunities. Basically, a company requires an effective SWOT analysis. Playing on your own strengths not only gives a competitive advantage, but it also gives a strong Brand Uniqueness to the company.