Check out the summary of a white paper, written by Kirk Lawrence:
In The World Is Flat, Thomas Friedman notes that the rate of change today is much different than in the past. “Whenever civilization has gone through one of these disruptive, dislocating technical revolutions—like Gutenberg’s introduction of the printing press—the whole world has changed in profound ways,” he writes. “But there is something different about the flattening of the world that is going to be qualitatively different from other such profound changes: the speed and breadth with which it is taking hold….This flattening process is happening at warp speed and directly or indirectly touching a lot more people on the planet at once. The faster and broader this transition to a new era, the more likely is the potential of disruption.”
This flattening is creating a new environment that strategic business leaders are increasingly calling a “VUCA” environment. Coined in the late 1990’s, the military-derived acronym stands for volatility, uncertainty, complexity, and ambiguity—terms strategic business leaders use to describe the chaotic, turbulent, and rapidly changing business environment that has become the “new normal.”
By all accounts, the chaotic “new normal” in business is real. The financial crisis of 2008-2009, for example, rendered many business models obsolete, as organizations throughout the world were plunged into turbulent environments similar to those faced by the military. At the same time, rapid changes marched forward as technological developments like social media exploded, the world’s population continued to simultaneously grow and age, and global disasters disrupted lives, economies, and businesses.
This new VUCA environment is taxing even the most able of leaders who may find their skills growing obsolete as quickly as their organizations change in this volatile, unpredictable landscape. Leadership agility and adaptability are now required skills if organizations are to succeed in this VUCA world.