What VUCA means for you?

Making strategic decisions in a world of flux is one of the biggest challenges facing organizations today

Our world is moving at an unprecedented rate of change. The average life span of an S&P 500 Company has decreased from 67 years in the 1920’s to a mere 15 years today, and only 11% of the Fortune 500 Companies from 1955 are still on the list today. That, in a nutshell, epitomizes VUCA (Volatility, Uncertainty, Complexity, and Ambiguity).

As Peter Drucker once said, “The greatest danger in times of turbulence is not the turbulence. It is to act with yesterday’s logic.” New business models are emerging almost overnight that disrupt, redefine norms and upend conventional logic. The pace of technological change is relentless and the pressure to innovate and keep one step ahead of the competition is intense.

In this reality, the best-laid plans are being trashed as new opportunities and challenges spring forth. Businesses are fire-fighting, making decisions in the here and now, striving to maintain operational excellence, while at the same time keeping an eye on the future. As such, two year strategies are not as crazy a concept as it might have been a decade ago.

Failing to plan can often equate to planning to fail, and without a clear vision of what lies ahead, organizations are putting their very survival at risk. Look around you and several companies will be ample evidence of this. Tomorrow might be uncertain, but to ensure a sustainable future, organizations need to be planning for it now, or risk getting left behind in the wake of competitors.


Source:https://et-ilc.com/vuca1/