VUCA-Environment

Question 1

Describe Karl Weick’s idea of “sensemaking” as a core activity of a manager in the 1990s.

Answer 1

Management is seen as a permanent “interpretation service.”

Question 2

Why is it necessary to constantly use interpretation in management?

Answer 2

Because events, actions, communication and decisions are generally not “self-evident,” neither in the current operative situation nor in their historical and contextual embedding. Interpretation can be through the manager, classification, evaluation or weighting.

Question 3

What is the phenomenon of a dynamic environment in need of interpretation?

Answer 3

It is called by its acronym “VUCA-environement.”

Question 4

What does VUCA-[Environment] stand for?

Answer 4

V - Volatility
U - Uncertainty
C - Complexity
A - Ambiguity

Question 5

Explain ‘Volatility’ (VUCA-).

Answer 5

Ephemeral (lasting a very short time) nature of events caused by acceleration dynamics.

Question 6

Explain ‘Uncertainty’ (VUCA-).

Answer 6

Frequent and extensive future developments; past does not serve as a ‘benchmark’ for the future

Question 7

Explain ‘Complexity’ (VUCA-).

Answer 7

Multiple, interdependent causes

Question 8

Explain ‘Ambiguity’ (VUCA-).

Answer 8

Need for interpretation; little clarity about what is “right” and “wrong”

Question 9

List 5 ways today’s (Western) concept of a “multi-option society” (aka VUCA-Environment Concept) has impacted management.

Answer 9

1. Significant increase of information transparency, volatility of decision parameters and the complexity and pressure to make decisions
2. Need for decisions, with simultaneous “de-selection” of alternative options
3. The need for accelerated decision-making
4. Simultaneity and “unpredictability” of events
5. Making decisions on an uncertain “factual basis”; decisions based on great uncertainty

Question 10

What are the 4 elements of the action model of the “new Sankt Gallen Management Model” in the VUCA world?

Answer 10

1. Value creation
2. Continuous Assessment of Status Quo
3. Approach to environmental complexity
4. Consistent exploration of attractive alternatives of value creation