Article originally published in the American City Business Journals on June 8, 2020.
The acronym VUCA, meaning volatility, uncertainty, complexity and ambiguity, was coined in the 1990s by the military to describe the ever-shifting geo-political landscape in which it had to operate. VUCA now describes the environment that business leaders face in the war against the COVID-19 pandemic.
In a VUCA world, business leadership skills are critical. Business leaders face unprecedented challenges as they navigate uncharted waters in this environment of volatility, uncertainty, complexity and ambiguity. How well they do could spell the difference between their company’s survival and demise.
They face an economic disruption unprecedented in our history as unemployment has skyrocketed. Consumers will think twice about spending on non-necessities, especially from those who have lost their jobs. These are challenging times for businesses, but also an opportunity to examine new business models.
Those businesses that manufacture items needed in the war against Covid-19 have seen demand for their products significantly increase. Enterprising business leaders recognized an opportunity to convert their manufacturing facilities to the production of these products. Some restaurants who have been ordered to close their dining room service have pivoted to curbside takeout and delivery services. Many other businesses may need to pivot to survive. Unfortunately, many businesses that were forced to close may never open again.
What are the key personal traits that business leaders must possess? They need great communication skills and the ability to engender trust. They need to recognize that their credibility is crucial to their success. They need good critical judgment as they make decisions which hopefully will position their business for success in the post-pandemic world.
Business leaders need empathy for not only the employees that are laid off or furloughed, but also for those who are critical to the operation of their business and are asked to work many more hours than usual. Over time, this will take a toll, and their extra effort needs to be recognized.
As governors across the country reopen their economies, business leaders will need to examine and change their business models to accommodate social distancing until a vaccine has been developed and rapid-result Covid-19 testing is widely available. This will adversely impact a wide swath of the economy, especially where people are in close proximity – such as our K-12 schools, universities, restaurants and airlines, to name a few.
This is a time for resilience, perseverance and innovation. Business leaders and their teams should take advantage of what they are learning due to changes brought on by the pandemic. Break long-held paradigms. Perhaps you now have the impetus to re-envision your business. Adopt what works and discard what doesn’t. Volatility, uncertainty, complexity and ambiguity present opportunities. For some business leaders, when they look down into the deep dark abyss, it becomes their finest hour and their businesses emerge stronger than before.
We will not bounce back when the pandemic is over, but spring forward and adopt many of the new things we have learned. There is opportunity in disruption, and this is the most disruptive time any of us have ever experienced. Take advantage of it.
Stan Silverman is founder and CEO of Silverman Leadership and author of “Be Different! The Key to Business and Career Success.” He is also a speaker, advisor and widely read nationally syndicated columnist on leadership, entrepreneurship and corporate governance. He can be reached at Stan@SilvermanLeadership.com.
