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The Cold War had just ended but, instead of slowing down, the world seemed to speed up.
Once the Berlin Wall came down, borders opened and free elections ousted Communist regimes all over Eastern Europe. The Soviet Union dissolved into more than a dozen independent republics. With stunning speed, the Iron Curtain was lifted and a new era began.
Meanwhile, the U.S. Army War College continued its mission to develop leaders in global battle strategies. And in order to describe the rapid changes in the post-Cold War world, they coined a new term: “VUCA.” Which stands for Volatility, Uncertainty, Complexity, and Ambiguity.
At the time, they didn’t know they were also describing the business—and personal—environment that would mark this new modern era. Because VUCA has now become the new normal.
But challenges often pose opportunities. In such times, the best companies will focus not only on surviving, but on thriving in a VUCA world.
VUCA at the Business Level
What does VUCA look like for a company?
- Volatility – Dealing with the speed of change in the market and fluctuations in demand.
- Uncertainty – Coping with the inability to predict the future with the confidence desired.
- Complexity – The multiplying effects of a wide variety of factors to be taken into account.
- Ambiguity – Lack of clarity interpreting circumstances when there is limited information.
Operating in an environment marked by turbulence and change can have a cumulative effect on a company, and on its people. What does VUCA feel like at the business level?
- An ongoing struggle to stay ahead of nimble competitors.
- Losses stemming from an unpredictable economy and marketplace.
- Dealing with the intricacies and problems of managing people effectively.
- A relentless fight to maximize profit while fighting fires at the same time.
In hectic times, it’s disarmingly easy for a business to lose sight of what’s important in the long run. Unfortunately, what often suffers is the most critical asset a company possesses: its people.
VUCA at the Employee Level
Employees feel the strain of VUCA because business pressures flow downhill from executives to managers to everyone else. This impact is magnified—or lessened—by how leaders and managers deal with their people and by company programs to enhance the well-being of workers.
What business leaders often forget to take into account is that people—employees, managers, themselves—have additional pressures when they are not at work. There is VUCA at home as well!
This can be a destructive cycle as problems at work add to issues at home which, in turn, make the situation on the job even worse. With all this going on, what can VUCA feel like for workers?
- Debilitating stress and anxiety – 44% of employees feel stress frequently and 80% are stressed at times (American Psychological Association).
- Lack of engagement in their jobs – 15% are actively disengaged from their work and an additional 50% are disengaged (Gallup).
- Destructive habits and addictions – 10-15% of people struggle with substance abuse and twice that many have at-risk behaviors (U.S. Surgeon General).
- Decreased productivity at work – The loss of productivity from addiction can be 30%, and there are similar negative effects from stress and lack of engagement.
Taken together, these issues pose hidden but debilitating costs to unsuspecting businesses. In a VUCA world, recognizing them can mean the difference between surviving and thriving.
Thriving in a VUCA World
But many companies miss seeing the “elephant in the room.”
Stress, engagement, addiction, and productivity are people issues. And they need to be addressed by people solutions. But the good news is that proactive investment in the development and well-being of employees is one of the best strategies for operating effectively in a VUCA environment.
Because there are attributes which can be learned—taught and coached—that prepare workers for thriving in a VUCA world. Executives, managers, and all employees can become better both professionally and personally by developing core skills such as:
- Awareness and resilience – Openness to input, ability to reflect, and perseverance to effectively deal with rapid change and negative circumstances.
- Connection and purpose – Collaborating, seeking help when needed, and staying focused on higher-level values and meaning even in a world in chaos.
- Intentionality and self-improvement – Remaining focused on what’s most important and utilizing personal strengths to continue to get better.
With the right development program, companies can lower employee stress, drive up engagement, prevent addiction, and grow productivity. Without being costly, complicated, or time-consuming!
The next wave of business wellness programs must provide easy-to-access online training and confidential coaching that prepare employees and organizations for thriving in a VUCA world.
When companies are fighting to survive or struggling to keep up, VUCA poses an opportunity for some businesses to prosper. It can happen when leaders recognize the elephant in the room, and make the choice to invest in their people.
Question: Is your company developing its people for thriving in a VUCA world?
Action: Investigate how STEPS Business Wellness can help you help your people.
