Taking the “U” Out of VUCA

It was 25 years ago that the term VUCA entered our business vocabulary, and the authors of that book identified a new reality rather than a simple change.

In situations that are characterized by volatile, uncertain, complex, and ambiguous (VUCA) conditions, it becomes necessary to structure organizations in such a way that will meet the challenges presented by the environment.

Their term certainly described the world of the early 1990s, and it seems even more accurate today. This is the reality for businesses, so we have to expect those conditions…and, if possible, do something about them to make our lives easier. One step is to address uncertainty.

When we talk about uncertainty in the workplace, it can come from many places. Sometimes it’s the business environment, with economic shifts, changing technologies, or the rise of new and unexpected competitors. It may also come about internally, with reorganizations or a merger that leaves people wondering whether they will keep their jobs. It can extend beyond the company to your clients, who have questions but who may not be getting answers from your people. Whatever the source, uncertainty can be very disruptive.

Uncertainty leads to performance problems throughout your organization. Employees become hesitant to take any action, because they don’t know if what they do today will matter next week. Innovation grinds to a halt because taking a chance on something new is risky enough even in a stable situation; in an uncertain environment, potential innovators may feel they are taking on too big a risk. Clients might hesitate to sign contracts if they don’t know what changes you are facing, and may be unwilling to buy products with no guarantee you will still be servicing them in a year.

An uncertain environment is also damaging for retention. Employees who are unsure about their future in the company may choose to leave for a more stable environment. If they hear about changes from the media rather than from you, don’t be surprised if you start to see CVs popping out of the printers. Considering the cost involved in replacing employees, you will be seriously hurting your bottom line if you have people leaving simply because they are unsure what is happening.

You cannot eliminate uncertainty, but you can reduce it, and doing so can really pay off. What can you do? Well…

SET SPECIFIC GOALS
Avoid vague goals for your team like “we will improve performance,” and instead define specific results you want to achieve. Nobody should be uncertain about their goals. Too many companies undergo the M&A process, for example, without a clear idea of what they want the resulting firm to look like and how they want it to perform. What should everyone be aiming for? Plenty of people dismiss the idea of specificity because they think things will change, but without some idea of what you’re trying to achieve, you cannot have a plan for achieving it, nor can you adapt easily when things inevitably DO change. If you don’t know where the Finish Line is, it’s hard to know how to get there.

IDENTIFY WHAT YOU CONTROL, AND WHAT YOU DON’T
One reason uncertainty is so damaging is because we get frustrated when we try to control things, but can’t. What we need to realize is that some things truly are out of our control, whereas others can be changed by us. The trick is to know the difference. You do not control the economy or the decisions of government agencies, for instance, but you do control how you respond to change. Rather than worrying about the fact that something outside your control is happening, focus instead on how you will overcome the challenge it creates or find opportunities that it presents. You have a finite amount of time, so help your employees identify the things they can affect; not only will they feel more in control, they will also be spending their time more wisely.

OPEN UP COMMUNICATION
One of the worst feelings is thinking you’re the only person affected by something. If you think you’re on your own, you make decisions with only yourself in mind, and you often do so with limited information. Don’t let your employees feel alone or feed their own fears; instead, encourage them to talk about their concerns. Have regular town halls or email updates to share what’s going on , especially if changes are happening. Create ways for people from different functions to talk with each other, so they can share ideas or knowledge or connections that might help each other. Also be open with your customers, so they are confident about your future. In some cultures, people hesitate to talk about their concerns, so you should put processes into place that facilitate those conversations and help people be comfortable having them.

CONTROL THE PACE OF CHANGE
When you make a plan for change, give yourself time to make it happen. Try not to rush through changes, especially if they are complex. People often need time to get used to one new way of working before you introduce the next. If you go too fast, your employees may hesitate to take any action because they don’t know if it will be relevant tomorrow. If you are reorganizing divisions this week, do not introduce a new performance review system next week. Change is a marathon, not a sprint, and you will reduce uncertainty by going slowly and deliberately.

ANSWER QUESTIONS
As a leader you may not feel like you are required to answer your employees’ questions, but you really should. Your job is to create an environment where your people can do their best work, and you can help that by providing information and addressing the concerns they raise. Be honest with them about the challenges the organization faces, share with them the new direction you are going in, and let them know if expectations will be changing. If there are issues that are not yet finalized and you aren’t ready to discuss them, let your employees know that rather than denying that the issues even exist. If you are regularly open with your employees, they will trust that you are not hiding things from them. They may not like all of your answers, but they can do a better job once they have them.

Uncertainty hurts your business. You cannot escape it, but you can take steps to minimize it.