Forward Intelligence Group :: VUCA



VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity.

It was developed by the US military and describes and explains the increasingly chaotic world that has developed after the end of the Second World War when the US military found itself in situations like the Korea and Vietnam wars that challenged the concepts of traditional warfare.

Since then, VUCA has become increasingly popular in the business world as a concept to understand and manage erratic market, political and economic conditions.

VUCA aims at understanding situations and the impact of the actions to take.


The four VUCA elements are grouped along these two dimension:

  • How well do we understand the situation?
  • How well can we predict the impact of your actions?


The following table describes each element from a business perspective:


Managing in a VUCA world requires

  • additional/excess resources (information, money, inventory and talent)
  • new leadership styles like situational and outside-in leadership
  • new organizational capabilities including:

Important organizational VUCA capabilities include:

  • Strategic Foresight
  • Risk Management
  • Systems Thinking
  • Fast Decision Making
  • Edge Execution


Related concepts: OODA, edge-execution

Explore further: Wikipedia