Perhaps there is some silver bullet which will help to create just a little bit more certainty, a little less volatility? Would the introduction of the latest software or the successful execution of a transformation initiative do the trick? BUSINESS' REACTION TO A V.U.C.A. WORLD Businesses are frantically trying to find ways to reduce ambiguity. The prevailing belief is that if the rampant ocean of turbulence can be traversed, solid ground will be eventually reached on the other side.
This belief is misguided.
Habits and ways of thinking which have been enormously successful - not only for decades but for centuries - are certainly the cause for having this belief. When faced with such a major challenge such as V.U.C.A., the knee-jerk reflex is to analyze the situation by breaking it up into parts, look for the root causes and then fix it.
But what happens when the root cause of the V.U.C.A challenge is our own way of thinking?
The world has strikingly demonstrated that it does not obey the rules of linear causality. In an interconnected world causality is multi-directional. Feedback loops have revealed that seemingly minor unrelated disturbances can have major system-changing ripple effects. One example of multi-directional causality is the seemingly innocent looking financial instrument CDO which was created in 2002. CDO (or collateralized debt obligations) were used for refinancing mortgages in the US and as a result, became one of the contributors to the Great Recession of 2008. Who would have thought that the CDO would have partially contributed to the Euro crisis in 2011?
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