Are you prepared for the HR VUCA world?
More than 50 percent of Fortune 500 companies from 2000 don’t exist anymore. A major cause of the failure is that the companies have missed the necessity to transform and adapt to the digital world. The required transformation is not often still not completed, and successful companies adapt constantly to a world that knows no standstill – a VUCA World.
VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity. The acronym represents the changed conditions under which decisions must be made today. It is an environment in which information has no prognostic value anymore. The conditions change too rapidly, interest coalitions are becoming increasingly complex and motivations are constantly changing.
The four variables determine the working life: The unpredictability comes from the considerable fluctuations and the growing rate of change. The prices vary continuously on the exchange. There are rapid market entries, but also losses. The uncertainty stems from the ignorance of the variables and the causal relationships between them. Disruptions and changes, seemingly out of nowhere, created new entire markets. The complexity arises from the many, partly unknown variables with multiple effects on each other. An action has effects on many variables and therefore projects cannot be calculated and pre-planned. And ultimately the ambivalence means that there is no ambiguity. The information is complex and ambiguous. Increasing misunderstanding of the plurality of rollers, contracts and interfaces, and interest coalitions are complex.
Volatility, uncertainty, complexity and ambiguity are realities in today’s multipolar world. Dealing with multiple HR systems, inefficient processes across the global markets and the lack of meaningful data are additional challenges that businesses face today. Less than two thirds of internationally active firms feel prepared for the challenges of the VUCA World.
Do you have your Human Capital Solutions under control and can you ensure compliance? Studies show that multinational companies can uncover patterns through a complete image of the operational activities and a detailed picture of their costs, which refer to uneconomical and inefficient processes. With easily accessible information on the workforce and predictive, future-proof analysis you can draw in volatile and uncertain times your business through the complex landscape. To have a future in this uncertain world, you need to make the right decisions and to succeed in the global marketplace. You cannot afford to make wrong decisions.