How to be resilient and successful in a VUCA world

 

Introduction  

 

“Turbulence, volatility, uncertainty”: global news headlines throughout April have been littered with these nouns following President Trump’s ‘Liberation Day’ on the 2nd.  

Our inability to guess what the world’s most powerful man might do next or to predict the outcome of Trump’s whims (which swing more than his golf club) has rendered us in a state of flux, made more acute through concurrent crises such as wars, political polarisation, economic instability and climate change. 

But living in a VUCA world is nothing new. Humans have always lived with volatility, uncertainty, complexity, and ambiguity: globally, nationally, locally, across all sectors and industries, it’s par for the course of being part of the human race. 

In an uncertain world, the only thing we can be certain of is uncertainty! This means, to survive and be successful, businesses must learn how to navigate VUCA. Do so well, and the reward could be a competitive advantage. 

In this article we’ll outline some of the key VUCA challenges facing businesses today and how Splash Projects deliberately include VUCA challenges to hone the essential skills including resilience and flexibility, to overcome them. 

 

Key VUCA challenges facing business 

 

1. Volatility (rapid and unpredictable change) 

 

• Market fluctuations: sudden shifts in demand, supply chain disruptions, or economic downturns. 

• Technological advancements: emerging tech, for example AI, disrupting industries overnight. 

• Geopolitical instability: wars, trade wars, or sanctions impacting global business. 

• Pandemics and natural disasters. 

 

2. Uncertainty (lack of predictability) 

 

• Regulatory changes: for example, government policies and compliance requirements. 

• Consumer behavior shifts: changing customer expectations and brand loyalties. 

• Economic downturns: recession risks and inflation unpredictability. 

• Competitive landscape: startups and disruptors entering markets unexpectedly. 

 

3. Complexity (multiple interconnected factors) 

 

• Global supply chains: managing logistics, tariffs, and production across multiple countries. 

• Multi-stakeholder environments: dealing with investors, regulators, employees and customers. 

• Big data management: handling vast amounts of data for decision-making. 

• Workforce dynamics: managing remote teams, diverse cultures, and new work models. 

 

4. Ambiguity (lack of clarity and certainty) 

 

• New business models: the rise of the gig economy, subscription models, and digital platforms. 

• Disruptive innovation: unclear future of industries like fintech, edtech, or the metaverse. 

• Crisis response: difficulty in making quick decisions with incomplete information. 

• Leadership challenges: balancing short-term agility with long-term strategy. 

 

How Splash Projects challenge teams to tackle VUCA 

 

Our projects involve teams building infrastructure out of timber, such as gardens or play equipment, for charities. For most participants, more used to office environments than a construction site, a Splash Project is a VUCA challenge the minute they arrive. 

 

A a planning exercise the day before, we hand them the plans, containing only the slimmest details about what the build entails.  

 

Out of their comfort zones and in at the deep end, the next morning, participants have to employ many strategies, outlined below, including effective collaboration, communication, adaptability and agility, to be successful, knowing that the charity is depending on them! 

 

Ultimately, business professionals and business students who take part in a Splash Project will experience and overcome VUCA firsthand, taking the experience and the skills away with them to use in their future careers. 

 

How Splash Projects incorporate VUCA 

  

Volatility  

 

• Self-generated change by the participants through reviewing their progress and processes during the pitstops. 

 

• Engineered by us feeding in information from the charity liaison on site; providing a change request once the build is underway, causing a rapid reassessment and adjustment to the plan. 

 

• Unexpected changes forced upon the participants through equipment failure, resource issues (timber shortages), adjusting deadlines, or by reallocating leadership personnel and team members into other task groups. 

 

Uncertainty  

 

• Providing a minimum amount of information during the planning sessions allow participants to formulate a plan that must be flexible enough to deal with the situation that they will find on the ground on arrival. 

 

• Limiting the time available for planning. 

 

• Allowing self-appointment of leadership roles. 

 

Complexity 

 

• Created through thoughtful project design, developing a concept that will stress the participants by having to share resources, time and space. 

 

• Participants work in split teams against conflicting priorities. 

 

• Sometimes a silo may need to sacrifice its objective to deliver the overall team objective, or deliver another silo’s higher priority objective.  

 

Ambiguity 

 

• Leaving certain dimensions or angles off design drawings make participants problem solve or test by trial and error. 

 

• Providing too much detail and several options to achieve the same outcome. 

 

Strategies to thrive in a VUCA world (and a Splash Project!) 

 

Dealing with Volatility 

 

 

• Build agility in operations: create flexible supply chains, diversify revenue streams, and develop contingency plans. 

 

• Invest in real-time data and analytics: use AI and predictive analytics to anticipate changes and respond quickly. 

 

• Develop a crisis management plan: prepare for sudden disruptions with clear protocols and rapid response teams. 

 

• Foster a culture of adaptability: encourage employees to embrace change and innovate proactively. 

 

Managing Uncertainty

 

• Scenario planning: prepare for multiple future scenarios with adaptable strategies. 

 

• Enhance market intelligence: use trend analysis, customer insights, and competitor monitoring to stay ahead. 

 

• Strengthen decision-making processes: use cross-functional teams to evaluate risks and opportunities from different perspectives. 

 

• Encourage continuous learning: train employees in critical thinking, problem-solving, and innovation. 

 

Navigating complexity

 

• Simplify decision-making: break down complex problems into smaller, manageable components. 

 

• Use technology to manage complexity: automate processes, use AI-driven insights, and implement digital collaboration tools. 

 

• Build strong cross-functional teams: foster collaboration between departments to improve problem-solving. 

 

• Establish clear priorities: focus on what truly matters to avoid getting lost in unnecessary complexity. 

 

Addressing ambiguity 

 

• Encourage experimentation: adopt a ‘fail fast, learn fast’ approach to test new ideas. 

 

• Improve leadership adaptability: train leaders to make decisions with incomplete information. 

 

• Strengthen communication and transparency: keep teams informed to reduce uncertainty and confusion. 

 

• Develop strategic partnerships: collaborate with other businesses, startups, and research institutions to gain new perspectives. 

 

Conclusion 

 

We live in a VUCA world, so the better we are at navigating challenges the more successful we will be.  

There are multiple strategies that can be employed for businesses to thrive, even in uncertain times. 

 

Splash Projects purposefully incorporate VUCA giving participants the chance to develop essential skills to successfully navigate future challenges.