The VUCA Report 2016

The world your business faces is changing … continuously.

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With The VUCA Report™, we’re helping you with that question.

By collecting insights from business leaders around the world.

More than

400 total

Our original analysis included 280 responses; more people participate every day.

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Here’s a snapshot of

our most recent

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VUCA = volatility, uncertainty, complexity, ambiguity.

69.57Is the 2016 VUCA Index™. This means that leaders we surveyed predict turbulence will INCREASE in the next three years.

The VUCA Index™ is an estimation from 0 (much less) to 100 (much more) regarding the expected level of future VUCA. It’s an average based upon how respondents answered this question for each of the four components of VUCA: “Compared with the LAST three years, what do you expect the NEXT three years to be like for your organization in the following areas?”



Part of that turbulence is due to a number of disruptive trends.

Here are the top


10.


10 Cyber security



10 Cyber security9 Big data



10 Cyber security9 Big data8 Accessing high-quality talent in new geographies



10 Cyber security9 Big data8 Accessing high-quality talent in new geographies7 Changes in expectations between work and non-

work life



10 Cyber security9 Big data8 Accessing high-quality talent in new geographies7 Changes in expectations between work and non-work life6 Changes in hiring practices



10 Cyber security9 Big data8 Accessing high-quality talent in new geographies7 Changes in expectations between work and non-work life6 Changes in hiring practices5 Differences in working styles across generations



10 Cyber security9 Big data8 Accessing high-quality talent in new geographies7 Changes in expectations between work and non-work life6 Changes in hiring practices5 Differences in working styles across generations4 Use of social media



10 Cyber security9 Big data8 Accessing high-quality talent in new geographies7 Changes in expectations between work and non-work life6 Changes in hiring practices5 Differences in working styles across generations4 Use of social media (e.g., Facebook, LinkedIn, Twitter,

blogging, etc.)

3 Increasing demands upon leaders




blogging, etc.)

3 Increasing demands upon leaders2 Tools for helping people collaborate across dispersed

locations




blogging, etc.)

3 Increasing demands upon leaders2 Tools for helping people collaborate across dispersed

locations

1 Economic cycles/recession



of the top 10 disruptive trends are in the category of workforce dynamics5



Technological advances are also highly disruptive. Looking ahead to 2017, we see 3 areas to watch in particular:

123

Internet of things (the networking of physical objects embedded with electronics, software, sensors and connectivity)

3D printing/additive manufacturing

Automation (e.g., advanced robotics, driverless vehicles, etc.)



Dealing with DISRUPTION—with VUCA—

requires AGILITY



The AGILE Model®Key Drivers & Capabilities

Anticipate Change

Visioning Sensing Monitoring

Generate Confidence

Connecting Aligning Engaging

Initiate Action

Bias for Action Decision-Making Collaborating

Liberate Thinking

Bias for Innovation Customer Focus Idea Diversity

Evaluate Results

Creating Expectations Real Time Feedback Fact- Based Measures

Agility is the capability to sense and respond to the forces of change.


Agility has five drivers and 15 capabilities.


When asked to rate critical agile capabilities within their organizations on a scale from 1 (strongly disagree) to 6 (strongly agree), respondents on average rated Decision Making (3.54) and Real-time Feedback (3.70) as the lowest. Despite higher scores on Customer Focus (4.67) and Bias for Action (4.52), none of the average scores were 5.00 (indicating an average of “agree”) or higher.

Strongly agree

Agree

Somewhat agree

Somewhat disagree

Disagree

Strongly disagree

How agile are most organizations?



We also asked directly:

What is the biggest

OBSTACLE

keeping your organization from becoming more agile?



The most common answer?

Behavior and culture.

• “Relying on adherence to traditional practices because of their comfort level and ‘proven’ track record”

• “Reacting to one-off messages that are not based on real facts and create a lot of unnecessary work”

• “Each level of the organization is not empowered to make decisions that are appropriate to that level.”

• “Executive leadership’s resistance to change and a culture that doesn’t hold people accountable”

• “Micro-managing folks, resistance to change”



So, what is the most important practice that your organization is

CURRENTLY DOINGthat is helping you become more agile?




Effective communication and frequent, productive meetings.

• “Having more and better conversations”

• “Daily manager standup meetings”

• “Meeting weekly and regularly”• “Communication about changes”• “Open forums for conversations,

leadership training”



And what is the most important practice that your organization

SHOULD DOin the future to become more agile?




Build the team by understanding perceptions and hiring, training and developing for agility.

• “Constant skill development and learning across the organization at all levels”

• “Training for leaders so they are aware how to manage through change and uncertainty”

• “Hiring talent that have a growth mindset and willingness to change”

• “Recruit and retain top talent”• “Focus groups for real time

feedback”



So, how will YOU cope with VUCA in 2017?




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While you’re there, take The VUCA Report™ survey and download the full report.





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While you’re there, take The VUCA Report™ survey and download the full report.

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The VUCA Report 2016

Business

Transcript of The VUCA Report 2016