vuca environment with bottom up approach
Answers
VUCA is a management concept which stands for volatility, uncertainty, complexity and ambiquity. The agility and decision-making required to respond to VUCA has an impact on the outcomes of programs and projects and thereby influences the direction of the organization.
There is a difference between planned and implemented strategy. This gap can be viewed as a 'strategic non-alignment' and assumed to be bad. Or else, the gap can be considered to be a strategy that emerges from the changes in the environment and work of the organization. Its effect can be actively managed to acquire as much value as possible.
This concept aims to create a framework which can identify and act on emerging strategies. It is an incremental approach to strategy formulation which involves the development of strategy from the bottom up. It helps to maximize the value created and influences the next formal strategic planning.
This concept involves:
1. A staged, adaptive approach to planning.
2. Need to be agile.
3. Need to be adaptive and flexible.
4. Expect the unexpected.
5. Use of unexpected opportunities to one's advantage.
VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity. It is a term originated by a US Military College to describe the new challenges that confront the business leaders. VUCA paradigm is an apt comparison for leaders who have lead from the front and have to steer their companies through rough time.
Here volatility means that the business leaders have to channelize their energies and efforts so that they know the future to compete in the present.
Uncertainty means that the business leaders should adopt a non- linear approach to solving problems and must think out of the box.
The complexity of the business world is more, and so the business leaders should ensure that they take into account the laws, regulations and policies as well as socio-economic costs of doing business.
Ambiguity means the leaders will have problems and dilemmas that cannot be reduced to simple solutions like yes or no, black and white approach to problem-solving.