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VUCA to VACINE

Most organizations build models to understand how things work and to develop better business strategies; however, it is impossible to predict every possible outcome and incorporate them into a model. The world can change instantly, and organizations must be ready to respond. To describe today’s business environment, Hinssen uses the acronym VUCA: • Volatility: The world is changing faster than ever and when stability occurs, it is short-lived. • Uncertainty: In a volatile world, uncertainty is the norm. • Complexity: Business is more complex than ever before, and even small changes can have a major effect. • Ambiguity: Many things that occur in the business environment can be interpreted in multiple ways. In light of these factors, business strategies must become more fluid. This is essential if companies are going to respond more rapidly to situations and be more agile than ever before. The “antidote” to VUCA is another acronym— VACINE: • Velocity: Companies must move swiftly. • Agility: Companies must be able to transform in response to changes in the market. • Creativity: Organizations that do not cultivate creativity will fail. • Innovation: Solving problems in new ways is the key to differentiation. • Network: As markets become networks of information, companies must become networks of innovation. • Experimentation: In order to succeed, companies must be willing to try new and different approaches to the ways they have done business in the past.

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