VUCA environment: Fostering real transformation
Over the last 20 months, we’ve embraced a whole host of new words and phrases: from “coronavirus” to “ping-demic” and “socialdistancing.”
YET, the most famous catchphrase in management schools and boardrooms worldwide has been the rather ominous “VUCA.”
So What is VUCA?
VUCA stands for: volatile, uncertain, complex and ambiguous. Essentially the last 20 months in a nutshell. ◆ Volatility is characterised by quick changes that usually are violent and uncontrollable. Uncertainty embedded in changes prevents people from using past experiences and lessons learned. In such an environment, rules become quickly obsolete and impossible due to many unknowns.
Complexity interrupts the basic cycle of actions and their consequences since there is a tremendous amount of knowledge, variables and interconnected elements to sift through.
Ambiguity refers to the “unknown elements” we are currently battling. The unpredictability of our present situation means that it becomes challenging to predict or search for a tried and tested solution.
So if VUCA is, in essence, all about unpredictability, how exactly are we supposed to prepare for a VUCA World?
Change is changing and leaders need new mindsets, new approaches, and new models to drive positive change.
As businesses operate in an emergent change environment, clinging-on to ideals and traditions increases the risk of change fatigue. Interestingly, the concept of a VUCA environment and the dynamic operating environment is not new. In 1964, Bob Dylan released an album with the title track “The Times They Are a-Changin’”.
The lyrics of this track points to the volatility, uncertainty, complexity, and ambiguous nature of the environment we operate in.
As the ‘times they are a-changin’ business leaders need action that is inspired by imaginary beliefs and imaginary desires. Sadly, in this environment some business leaders rely on linear models, thereby failing in the realisation attempt.
There are a number of factors that manifest VUCA in the Zimbabwean context.
Broadly the VUCA context encompasses adaptive challenges, wicked problems, systems change, Diversity, Equity & Inclusion (DEI), civil and social unrests, inflation and more. Indeed, this is the context in which Zimbabwean businesses are operating. The most obvious factor today is Covid-19, which disrupted organisations’ operational and strategic roadmaps.
Even though most of our businesses are going back to the old ways of working, during the period 2019-2021, we saw a lot of shifts in the ways of work. Some people even referred to it as the ‘new normal’. As we businesses go back to the old ways of doing things, it confirms that in a VUCA environment, we have incidental and permanent disruptors.
Incidental disruptors shake the status quo for a while, causes some shock and trauma, and as the disruptor subside people revert to the usual ways of doing things. It’s more like a thunderstorm.
Some examples of incidental disruptors experienced in Zimbabwe recently are Cyclone Idai and the drought seasons. We are also experiencing effects of the Russia-Ukraine war. These incidental disruptors need a different mindset, an adaptive mindset. In organisations, such impermanent disruptors can emanate from people, systems, processes.
We are in an environment of complexity at the edge of chaos.
Interestingly, most of our businesses emerged stronger, despite the harsh economic environment experienced during the past few decades. Business leaders attest to the complexity and chaos in which their businesses are operating.
In a VUCA environment, acute leadership can be demonstrated when dealing with permanent disruptors.
These normally come from the external environment. When these disruptors occur, people and organisations radically shift their approaches.
Traditional ways of engaging are abandoned and people embrace new ways of doing and acting. Leaders need to focus on emergence, generativity, and awakening new narratives. In addition, leaders need approaches that support people to move into real generative space.
To emerge stronger, leaders engage into zones of
transition, learning & synthesis, group development, and possibility & courage.
We need you to reflect on this question, ‘How do we get leaders into those spaces and lead real transformation?’
The VUCA-Prime model is used in most change leadership conversations. VUCA-Prime encourages leaders to address volatility with vision, counter uncertainty with understanding, counter complexity with clarity, and counter ambiguity with agility. Easier said than done, right?
This makes perfect sense in leadership, but most importantly, we must encourage emergence, generativity, and new narratives.
This awakens transformational value and sets apart exceptional leadership from mediocre leadership. With this we get into transformative conversations around innovation and industrialisation.
As we reflect on the disruptive business environment, most ‘leadership experts’ make reference to transformational leadership. Indeed, transformational leadership is fundamental to addressing the traumatic disruptors that characterise a VUCA environment.
This is an interesting leadership model, that, unfortunately, has lost its real meaning and transformative value, due to abuse or superficiality by most of us in leadership development.
In a VUCA environment, leaders facilitate transformational change through gaining deeper insights about the context and fostering collective action.
This is based on understanding that beyond technical challenges, VUCA is characterised by adaptive challenges. Borrowing from Yabome Gilpin-Jackson and Richard H. Axelrod, colleagues in the OD & Change practice, the complexity of adaptive challenges is evident in that there are plenty of questions, there are no clear answers, and transformation is required in the way people work, think, and behave.
Furthermore, in an environment where the emerging future is undefined and unknowable, there are new things to consider regularly and many people are involved.
This is the environment that Zimbabwean businesses are operating in.
Therefore, as our businesses navigate this complex operating environment, leaders must appreciate the transformation thresholds and transformational leadership.
The Palgrave Handbook of Learning for Transformation, indicates thresholds of transformation as transformation-in-context, transformation-in-connection, transformation-in-action, and transformation-in transformation.
Isn’t this what our organizations and societies need? How will this help in addressing the challenges of a
VUCA environment?
In an edge of complexity and chaos, our view of transformational leadership should be stretched beyond inspirational motivation, idealised influence, intellectual stimulation, and individualised consideration. You might have heard these four severally in transformational leadership seminars.
Without downgrading their relevance, in the Zimbabwean context, we need to think more creatively beyond these popularized leadership concepts?
During disruptive times, leaders must demonstrate humble inquiry, co-creation, deep listening, skillful dialogue, contextual intelligence, collaborative working, strategic thinking, systems thinking, realism, and more of such mindsets.
Since people are involved, there is need to enhance humanistic perspectives and ensure evidence-informed practice. We must shun popularizing ideas that are academically interesting yet practically useless.
We must shun the mere focus on cultivating people’s capacity and efficiency, and seek real transformation.
We call upon leaders to start engaging in meaningful and generative conversations around VUCA and transformational growth and development.
We need more transformation-focused conversations with a view on emergence, generativity, and novel narratives.
Such conversations align with the language of business, particularly building resilient and sustainable businesses, even during disruptive times.
Without doubt, such generative dialogues fosters meaningful innovation and transformative industrialisation.
◆ Dr Proctor Nyemba is Certified Professional Director®-Pro.Dir specialising upon Governance and Strategy, Governance and Risk, Governance and People, Governance and Board Effectiveness, Governance and Resources, Governance Culture and Behaviour. Proctor helps board members and executives understand their role in governance so they can succeed in the boardroom.
Dr Justine Chinoperekweyi is an OD scholar-practitioner and gadfly corporate governance practitioner. He is CEO of Centre for Organisation Leadership and Development. Justine serves as Board member of International Society for Organization Development & Change (USA), and other regional organisations. He facilitates OD, leadership, and governance programs globally. He is also Advisor at Global Management and Business Group, Inc., Your feedback helps in broadening this topic and make the writings more generative. Share your thoughts and curiosities through: Email :boardroomtalk@icd.co.zw