VUCA

A US military term for an increasingly challenging environment. Applies to the corporate context in that markets are not as linear as previously thought.

Here’s a summary of each component of VUCA:

  • Volatility – instability caused by ups and downs in available resources
  • Uncertainty – lack of information leading to poor data for decision-making
  • Complexity – many moving parts all affecting the issue in varying degrees
  • Ambiguity – hard to find causality between actions and outcomes