Get to know the history of vuca and its importance in today's business
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  • 04 Oktober 2022
    Author : priyadi s. kom, m. kom 1405 Views

    VUCA stands for Volatility, Uncertainty, Complexity, Ambiguity which refers to the increasingly volatile, complex and increasingly uncertain business environment that has become commonplace in the last decade. The term VUCA was first used in the military in the 1990s to describe paramedic combat situations, where field information is very limited.


    Fighting with limited information is like walking in blindness and can cause confusion and cause chaos or can be called a fog war or fog war. Business schools in the 1980s and 90s taught us a lot about dealing with relatively predictable business situations. Routine and stability form the basis of assumptions.
    Analyze the secrets of past success, look for formulas and use them as a reference for planning. Performance goals are set by corporate strategists using tools such as PDCA. So far, the organization has focused on managing resources efficiently to achieve performance goals.


    It is difficult to swim in the fast-paced VUCA environment unless their knowledge and experience is retrained and reconsidered. The new team needed a leader who could break through. People who were part of successful teams in the past may not be accepted for future leadership promotions.

    Five-year budgets quickly become obsolete. Annual budgets and work objectives are also irrelevant if they are not constantly revised. In a VUCA situation, leaders need to have a clear long-term vision, but they are flexible and adaptable with fast response times. Values and outcomes guide decision making.


    The long-term vision is still held as a guide by managers. However, the adaptive and agile approach is the real approach. This pattern of relying on the precision and certainty of organizational management makes it difficult for local stakeholders to act quickly and prevents companies from taking advantage of growth opportunities.

    It is difficult for executives or bureaucratic leaders to act quickly. The phenomenon of corporate distress due to VUCA disruption occurs in various industries. But unfortunately, many economic actors do not realize that they are already at the forefront of the critical point of survival. Not surprisingly, if awareness of the complications of VUCA has just been seen, it is usually too late to respond and damage is unavoidable.



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