Why Should I Care About VUCA?
There is no doubt that the emergence of new mega tends as a result of the disruptions caused by a major global crisis like COVID-19, create drastic changes and make us stop and ask the question: Will we ever go back to business as usual, or will we see long lasting changes and its implications at the individual, community, organizational and government levels?
A study conducted by KPMG, “Our New Reality: Predictions after COVID-19” predicts four stages that outline the path to recovery:
Reaction - Professional and personal lives are disrupted. Volatility and uncertainty permeate society as the primary focus is on limiting damage to lives and livelihoods as we weather the unprecedented storm.
Resilience - Controls looses as virus spread is contained and/or a vaccination or cure is available. Consumer demand begins to return but it is constrained by lost wages, investment losses and recession fears.
Recovery - Anxiety passes and hiring, investment and consumer sentiment cautiously improve. Recovery paths for organizations will vary based on ability to limit damage from the Reaction stage, length and severity of recession, post COVID-19 industry demand and willingness to adapt.
New Reality - A number of enduring shifts will remain post recovery as many learnt behaviors born out of the crisis will become central to the new normal.
These are some of the myths that are shifting.
Everything will go back to normal
Heavy in-person interactions are required to do work
Remote work will slowly be reduced
Regular 9 to 5 workdays will come back
Leaders manage team workplace engagement, effectiveness and team integration
Long professional career with one company
Luxury and big name brands are what consumers want
This is a summary of what the new reality is predicted to look like, post COVID-19.
The VUCA World is the new normal
Interactions can take place from anywhere and virtually and still be effective
Enduring increase in volume of remote working
The 9 to 5 workday will be regarded as a thing you do, rather than a place you go. Measurement of ‘work"‘ will increasingly become about outcomes rather than the input, regardless of where it was done.
Leaders will play an active role in managing mental health and connection to the purpose - which are critical to sustain performance and retention.
Emergence of task-oriented jobs, passion projects and the emergence of the knowledge broker industry
Consumers now want “boutique” services like hotels, specialized consulting firms, temps/gig workers, contractors, coaches, etc.
Regardless of the impact of all the shifts that will continue to happen, to survive, to cope & to heal – will be a function of the truest, the most centered, the super authentic version of our own self that we can possibly be.
Everyone on the planet was affected in one way or another by the COVID-19 pandemic. It was an example of what a VUCA storm looks like at its worst. The world was unprepared for this storm. Economic systems were in turmoil, government and medical officials around the world struggled to understand the crisis and what mitigation strategies to put in place. No one seemed to have all the information or the right information. Officials had to examine many factors in order to make decisions. Also, it seemed difficult for officials to interpret the information they had. This created a many confusing and contradicting guidelines. This crisis had high levels of all VUCA factors: volatility, uncertainty, complexity, and ambiguity. COVID-19 taught us a number of lessons and we have seen both devastation and triumph. Many of us have focused on surviving the challenges presented by the situation with the hope of getting back to normal soon. Others have thrived during this crisis and have recognized that things will not “go back to normal”, instead, they will find a way to excel as the world reemerges into a “new normal” state.
Are you ready for this new reality? What actions do you need to take to effectively adapt to this new normal? How will you prepare for future VUCA storms? Our upcoming book will provide you with helpful and practical tips for thriving in a VUCA state.
Adapted from: KPMG Study: “Our New Reality: Predictions after COVID-19” https://home.kpmg/au/en/home/insights/2020/05/predictions-after-covid-19.html