VUCA definitionVUCA stands for volatility, uncertainty, complexity and ambiguity
The word VUCA originally comes from the American military. It describes new conditions in war zones that involve unknown conditions and is an acronym for Volatility, Uncertainty, Complexity and Ambiguity.
These terms can also be used to describe the current world of work. People often talk about the VUCA world. It describes our constantly changing business world, which is becoming increasingly fast, unpredictable, uncertain and complex and therefore poses major challenges for companies. Digitalization and globalization are making processes in working life faster and faster and spreading across national borders. Fixed rules no longer apply, the future is uncertain and countless factors have to be taken into account.
Complexity is increasing due to globally networked systems that are so closely interlinked that cause-and-effect relationships are difficult to explain and feedback from the systems or changes to components have unpredictable consequences. The sensitive working network is extremely volatile, and even a change in a single factor can have a major impact. In addition, old theories and patterns are no longer valid due to the fast-moving nature of the markets. The probability of events is becoming increasingly difficult to assess and companies can only develop long-term action strategies with uncertainty. In addition, situations are becoming increasingly ambiguous, as the reliability of data and information is becoming less and less clear due to the huge flood of data and information. Organizations must find a way to deal with these circumstances and face the challenge of making decisions for the future on a volatile basis.
“The term VUCA aptly describes the changing challenges facing companies in the 21st century. If companies do not adapt flexibly to these challenges, there is a risk that they will lose touch with the future.” (Onpulson)
