Do your strategies take into account the variables of the new world?
Understanding how the world we live in works is the first step to rethinking your business strategy.
VUCA is the acronym for four variables that any company can use to navigate the new world and take full advantage: Volatility (V), Uncertainty (U), Complexity (C) and Ambiguity (A).
Volatility. This word expresses the essence of change and the dynamic way it presents. Changes are unpredictable and appear without warning. They can be easy to understand, but although we can determine the variables involved, it is often difficult to determine the degree and duration of their impact.
Uncertainty. This word describes the lack of information about change. When we cannot understand what is happening and the course events will take over time, it is hard to develop strategies to deal with them.
Complexity. This word signals a large number of variables that are interconnected to such an extent that it is often difficult to establish their cause-effect relationship. In this confusing environment, it is difficult for a company to know where to begin to resolve its set of problems. This weakness can drag out its response times or stop it from taking effective decisions.
Ambiguity. This word refers to the distortion of reality that prevents us from seeing the connection between the variables present in a crisis. While we are aware of a cause-effect relationship, it can be hard to determine which element causes the other. The reason may be that we can find no precedents or that changes in context make the causal relationship between two similar variables entirely different to that we knew before.
In the VUCA world, maintaining current and relevant links with consumers requires brands to adopt contemporary values, such as empathy, authenticity, and even lovingness.
So, are your strategies taking these variables into account? Our new regional study of Empathetic Brands could be a big help.
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