VUCA is an acronym that stands for volatility, uncertainty, complexity, and ambiguity. It’s a framework used to describe situations that are unpredictable and rapidly changing. Well, doesn’t that sound like the times we are living in! It is how Musk ran his companies and how our federal government is being run today.
The volatility and uncertainty is already affecting the stock market, consumer spending and of course the lives of thousands of federal workers, contractors, and anyone who receives grants. Industries that are favored by Trump like oil and gas will benefit from his Executive Orders. Some of the tariffs may drive some business back to the US, but where there is complexity like auto manufacturing there is no getting Bessie back in the barn.
If Social Programs get cut as promised, there will be fewer dollars spent in communities across the country. Plan for higher inflation. Be ready if consumers pull back on spending due to the uncertainty and higher costs. Don’t forget that consumer spending is 70% of the economy. Don’t be surprised if the stock market continues to drop.
Run scenarios now about how your business can survive with all this VUCA. Fasten your seatbelts. VUCA is our new reality. The way to counter VUCA is through VUCA Prime. Leadership expert Bob Johansen proposed this antidote.
Vision – maintain a clear and compelling focus on a purpose or a goal.
Understanding – assess the dynamics driving the changes and uncertainty.
Clarity – break down the complex into simple and actionable steps.
Agility -adapt quickly and effectively to achieve the goal.
This is called VUCA prime. I call it a successful game plan for these times.
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