What is VUCA and Why it Matters

The acronym V.U.C.A. - volatility, uncertainty, complexity, and ambiguity - was originated decades ago by management authors Warren Bennis and Burt Nanus as a framework for describing the landscape modern leaders operate in due to the interplay of worldwide business, social, political, and cultural realities.1

This isn’t a new phenomenon. Think about VUCA faced by masses of people throughout history - the rise and fall of dynasties, the Renaissance, New World exploration, to name a few. And think about VUCA due to advances in science, from the invention of the printing press to the advent of TV and, now, emergence of widespread generative AI.2

Volatility and complexity are seen in how types and categories of jobs have fluctuated and expanded, especially in the last half-century.3 This has accelerated greatly due to the emergence of large language models (LLMs) from the world of artificial intelligence. Economist Rebecca Homkes notes that uncertainty and ambiguity have long been fundamental features of world events and markets. This reality has intensified significantly in recent years. The problem is that many organizational leaders tend to freeze, then panic, and increasingly falter in the face of VUCA.4

Building Adaptive Capacity for the VUCA World

We must build ‘adaptive capacity’ to survive and thrive in a VUCA world. The ever-changing VUCA landscape causes the need for adaptive capacity regardless of gender, age, ethnicity, and background.

It’s no surprise that leaders who foster adaptability and flexibility as core competencies fare better in this VUCA environment than those who don’t. The continued acceleration of VUCA means that adaptability and flexibility are not just important for leaders, but fundamental competencies for any worker to succeed in today’s world of work.5

Competency requires an interdependent triad of knowledge, skills, and attitudes that are measurable and changeable through learning and practice. Determining what knowledge and skills are relevant and having the desire to learn and apply these quickly is required for adaptability and flexibility.

Contributions from modern social and psychological science include the development of  self-determination theory (SDT) and the wealth of research generated through the Positive Psychology movement (PPM). According to SDT, well-being is achieved when human needs for autonomy, competence, and relatedness are fulfilled.6 Decades of Positive Psychology research demonstrate that working from personal strengths, finding purpose through our values, and mattering to others is essential to thriving at work.7

Building The Foundation for Adaptive Capacity: Three Steps

Step 1: Embrace work as a vocation and calling

Beliefs impact human behavior in significant ways. A key belief underpinning adaptive capacity is that work is both a vocation and a calling. As such, all work has dignity and is worthy of respect.

Reflection: Think deeply about these questions:

  • Do you believe the work you do is important and worthy of respect?
  • How does this belief impact the way you do your job?
  • How does this belief influence the way you treat others, especially at work?

Step 2: Do a ‘character inventory’

A survey of leaders, mentors, and practitioners in talent development functions asked this question: What qualities must workers (and Leaders) have to thrive in the workplace today?

Responses included a variety of skills, abilities, and traits such as technical skill, communication ability, teamwork, and self-discipline.  Highly rated were character traits of courage, humility, integrity, and empathy.8

Reflection: Apply a rating scale (1 - 10, low to high) to indicate your status on the important qualities of courage, humility, integrity, and empathy. Choose the one you rate as the lowest and create an action plan to improve.

Step 3: Establish your ‘purpose motive’

Author Daniel Pink notes that the ‘purpose motive’ is an inherent drive for mastery of a task or skill, which is in turn energized by the need for competency as proposed in self-determination theory SDT.9

Reflection: Discovering your purpose (answering your ‘Why’)  is required for fulfillment of your potential. For each pair of words, answer the question, “What do I value more?”

  • Cooperation or Competition
  • Achievement or Affiliation
  • Individuals or Groups
  • Developing Others or Doing Tasks
  • Immersion or Dabbling
  • Being in Charge or Following Others

To answer 'What’s My Why?’, write a paragraph that encapsulates what is important to you in your life and work, including the goals you have.

Assignment

Discuss how you would implement a Large Language Model (LLM) such as Chat GPT into the work you do. Be able to answer the following questions:

  • WHY implement the model?
  • WHO on your team would use it and be most impacted by its use?
  • HOW would you phase it into your workflow?

For Further Study:

Examine the role of Agentic AI (LLMs as personal assistants) as discussed in The Age of Invisible Machines by Robb Wilson and Josh Tyson. Corporations are increasingly using AI ‘agents’ to perform functions from automating predictable and repetitive tasks to aiding in deep research.