Risk Management - What is VUCA? ...and VUCA' (VUCA Prime)

VUCA. It's a VUCA world. You've heard it a lot. Have you ever wondered what it means? If you don't know and have wondered, well now's your chance to find out. I'll answer the questions: What is VUCA, and What is VUCA' (VUCA Prime) VUCA stands for Volatility, Uncertainty, Complexity, Ambiguity. The VUCA acronym VUCA was coined in the 1990s, in the military. But it sums up much of what the modern world feels like. Never more so than in 2020! Project managers need to deal with the impacts of: • Constant change • Shifting priorities • Immense interdependency • Flexible allegiances VUCA extends from the battlefield to business. We all live in a VUCA world. Let's see what the four components of VUCA mean. Volatility Volatility is about the rapid pace of change. The term suggests the sense that things can suddenly change state, rather than evolve. Uncertainty Rapid changes make it hard to see what’s coming around the next bend. Your inability to foresee what’s next is unsettling. Complexity Our modern societies are far more interconnected than ever before. Your organization is a part of a huge web of interdependent players, processes, and technology. And we are moving towards connecting every device that has a switch into a vast internet of things (IOT). This means we have replaced simple cause and effect with intermeshed feedback loops. The product of one small action is now inherently unpredictable. Ambiguity What does this mean? There are many possible answers and an infinity of potential futures. One event might have multiple meanings. None is ‘true’ nor are they ‘false’. They are part of a network of meanings. You need to adapt to a fuzzy reality. The Antidote to VUCA: VUCA Prime (VUCA') Bob Johanson coined the terms ‘VUCA prime’. It is an alternative acronym with four counterpoints to Volatility, Uncertainty, Complexity, Ambiguity. Johanson first articulated VUCA Prime in his 2007 book, ‘Get There Early: Sensing the Future to Compete in the Present’ (https://geni.us/sEPUuQ). ‘VUCA Prime’ is a reversal of the VUCA elements to form a new acronym: Vision Ability to see through the turbulence of volatility, towards your end-goal. Understanding An antidote to uncertainty. Invest your time to get to grips with the patterns. Clarity Cut through the complexity to find simple underlying patterns. These are what drive the whole complex structure. Agility Select from many ambiguous alternatives… and then to switch again if your last choice is not ideal. Subsequently, Bill George, at Harvard Business School, has put forward a similar (too similar?) VUCA 2.0 framework of: Vision, Understanding, Courage, and Adaptability. _ Carefully selected recommendations for you: - Risk Management - 5 Tips to do it right ... https://youtu.be/Q6JHsVEOVhM - Handling Contradictions - How Well do you Cope with Uncertainty? ... https://youtu.be/pKUNvfdm22w - What is the Cone of Uncertainty? ... https://youtu.be/QZHQv88kYgw - Project Risk Management - How to Manage Project Risk ... https://youtu.be/xXV_gjtXMSk For more great Project Management videos, please subscribe to this channel: https://www.youtube.com/channel/UCMZfp1_wquyegVY9SoER0Nw?sub_confirmation=1 For all our great Project Management articles and resources, please check out the OnlinePMCourses website: https://onlinepmcourses.com/ For basic Management Courses - free training hosted on YouTube, with 2 new management lessons a week, check out our sister channel, Management Courses: http://youtube.com/c/managementcourses For more of our Project Management videos in themed collections, join our Free Academy of Project Management: https://onlinepmcourses.com/free-academy-of-project-management/ #VUCA #VUCAprime #VUCA'