What the VUCA environment is and how it affects companies

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Volatility, constant changes, new challenges. Sound familiar? Surely the concept known as VUCA environment will be most useful to you.

What is the VUCA environment?

In the 1990s, American soldiers implemented a concept that, over time, would move into the business world to explain the vital need to adapt to a rapidly and flexibly changing global environment and to adopt new methodologies at the speed of light.

VUCA environment: a set of measures to be implemented in companies undergoing change that must be based on challenges Click To Tweet

By the concept of VUCA environment, we are talking about a set of measures to be implemented in companies subject to constant change and which must be based on the challenges that, in themselves, make up the acronym V.U.C.A:

  • Volatility: Those changes that take place within a company at a constant pace.
  • Uncertainty: Inability to predict different situations or events that happen.
  • Complexity: Difficulty in understanding and managing the context formed by the laws of cause and effect.
  • Ambiguity: Difficulty factor thrown by the relationships between the different elements or individuals that make up a business environment.

Once assimilated these difficulties, present in any competitive organization, the plan is to use them as a basis for making changes in a given environment.

How to survive a VUCA environment

The implementation of the VUCA environment requires a series of steps in which aspects such as leadership and constancy are vital to guarantee results. These would be the main processes:

  • Choosing leaders: We already know that leadership skills are more vital than ever in today’s companies, so you must carefully choose those people with the capacity to lead a team back to its objectives.
  • Understand the team: As it has been in recent years, involving your team in change processes requires a full understanding of their aspirations, skills and commitment to the company.
  • Digital transformation: New technologies and globalization have forever changed the way of conceiving the skeleton of a company. Betting on digital transformation and on a qualified team are key factors in laying the foundations.
  • Constant training: Today, the world of work, especially in terms of technological environments, requires continuous training for your employees.

The importance of the VUCA environment for EMPLOYEES

The VUCA environment becomes of great importance in the Human Resources department and more specifically in the design of the employee’s experience. The needs and challenges to be taken into account would be:

  • Volatility: The department must identify talents with the necessary skills to face the new changes and achieve the objectives.
  • Uncertainty: The need to implement a learning culture in the team when it comes to being prepared for new changes.
  • Complexity: Reviewing the organizational structure of the company and taking the necessary actions.
  • Ambiguity: Create a commitment in the team as the best way to reduce risks.

Adapting to the constant changes in our environment, not only local but also global, is essential to ensure the long-term sustainability of the company and the ability to meet the challenges with maximum preparation and resources.


This post is also available in: Spanish