What is VUCA?
Five reasons why every Indian Tech Startup must survive in the VUCA world of today.
VUCA is an old acronym that was first used in 1987 and it was based on the leadership theories stated by Warren Bennis and Burt Nanus.
VUCA stands for Volatility, Uncertainty, Complexity, and Ambiguity. It has us a new way of thinking seeing and reacting towards things. This is the era of constant changes and undergoing development. VUCA provides us the basic assumptions for designing any business model and strategic plans. Cost structures, supply chains, customer expectation, availability of information, and various other factors are changing unpredictably for management processes.
A very common saying for the VUCA world is –
“Every Business is Start-up now; long term planning should be done after considering the complex changes”.
Let us understand the word VUCA:
Volatility: In the present world it is very hard to find equilibrium as it is unstable
changing continuously. The changes are complex and happening very fast. These
unpredictable changes have made it very difficult to determine the cause and effect
relationship.
Uncertainty: It is very difficult to predict and unfold changes. Past experiences are no helping in designing new strategies and are losing their relevance. Planning an
investment, development, and growth associated with it is the complex problem
considering the current scenario.
Complexity: Problems becoming multi-layered and hard to understand, making it
almost impossible to make deductions and design solutions. Choosing the correct path is an issue as blind turns are waiting for us throughout the way.
Ambiguity: Not everything is black neither they are while. The modern demands are challenging the core values of management as grey is also an option now. The
willingness to make mistakes, take risks, and then making them appropriate should be the new strategy.
Every Business is Startup
Traditional management strategies have been stretched and they are broken now, a new framework is the need of the time. Startup models are designed considering the high risk and uncertainty of the environment. Established businesses are also supposed to act more like start-ups and continuously discover and experiment with fresh ways to adapt to the changes to scale the business. A startup keeps on amending the plan to ensure their survival in the market even after attaining a perfect business model they always try to check and update it.
Hence it is said that every business should learn and adapt the changes like start-ups. Indian Tech Start-ups and their survival India has seen rapid growth in start-up culture. Some of the Indian Startups are doing extraordinarily well and have created a presence in the international market like OYO, BYJU’s, Paytm, and many more. They have different success stories but there is on similarity among them. They all have taken the meaning of VUCA very seriously and amended the definition of the acronym.
The new VUCA is:
Vision: Clarity towards future goals will spark motivation and help in designing the business plans effectively.
Understanding: Analysis of the results and be ready to work backward, always
consider the behaviors and reactions of consumers.
Clarity: Put your efforts in the right direction and try to maintain transparently
relationships and connections.
Adaptability: Make your management techniques flexible and agile. Promote your
values and culture and facilitate innovation.
Five reasons which made the survival of Indian Tech startups
- Schedule Busines Audits: There should be a proper audit schedule to check the
progress and drawbacks of current procedures. In COVID times we have the
opportunity to check the completeness, reliability, and validity of the strategies. Try to gather feedback from the team and work upon it. - Update business Plans: The business plan should be updated according to the present scenario. Since startups are always experimenting, they knowingly or unknowingly practice these measures to become successful. Cross-training the employees and updating of success plan should be the foremost concern.
- Workout the Financial issues: Consult people who can guide and help you plan
financial strategies. Always consider your personal financial situation while designing the overall picture of the organization. - Crisis Management Plan: Be ready and aware of the crisis that may arise in the
coming future. Be ready with a crisis management plan for natural and predictable disasters. COVID 19 has already trained and taught us the need for changes and improved strategies. - Innovative and Tech-Friendly workstyle: Information systems should be used to maintain and forecast company position. Data Analysis is one of the driving factors for the success of companies. The numbers and data are very valuable these days.
Conclusion
Success can be achieved by just changing the thinking process and taking advantage of the available opportunities. In simple language, you just have to convert Volatility into vision, uncertainty into understanding, complexity into clarity, and ambiguity into adaptability. Similarly, for students seeking to transform their academic challenges into accomplishments, services like ghostwriter offer assistance in crafting detailed academic papers, turning complex ideas into clear, well-structured documents.
Just be prepared and you are good to go!
