VUCA to BANI: Transition in the business world

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The world around us is dynamic. Some time ago we discussed being in VUCA world and strategizing the sustenance accordingly. VUCA is the acronym for  Volatile, Uncertain, complex, and ambiguous.  This was related to the concept ' Change is the only permanent aspect in the world' and we witness that the one who can unlearn and relearn quickly to adapt to the changing environment is the one who survives. Oh!! that looks like Charles Darwin's theory of the 'survival of the fittest'. Very true!!! why did dinosaurs extinct? We all know the answer- the dinosaurs could not adapt to the changing environment.....  That remains true for us today.  Adapt or perish!!! So, the VUCA world pointed towards these uncertainties, ambiguities, volatility and complexity.

The term VUCA was popular in 1980's when the cold war stuck the world and it referred to the conditions of the planet in those times and later it was swiftly adopted by business philosophers in 2000s for the formulation and implementation of strategy in times of uncertainties.

VUCA

Volatile refers to the speed with which change happens. Before the individual picks the momentum by adapting to the change, change changes again, making it challenging for an individual to cope up with the speed of change.

Uncertain means unpredictability of the future. In such a situation 'long term business strategy' is difficult to be drawn. Long-term planning becomes challenging.

Complex indicates the interconnectedness of the variables to be considered for decision-making. The decisions need to be made with a broader perspective and tracing the connections of the variables important for the decision-making.


Ambiguous refers to non clarity. Owing to the above three aspects, the business issues are not clear, making it difficult to plan and solve problems. 

Pandemic affected the globe recently and the virus infected many causing casualties. One of the casualities is of 'VUCA'. The changing environment along with the pandemics' effect lead the way to the new normal where 'VUCA' was replaced by 'BANI'- Brittle, Anxious, Non-Linear, and Incomprehensible. The term BANI was coined by  Jamais Cascio, an American futurologist. This is focussed on facilitating the ways to manage the chaotic situations effectively. 

Brittle indicates the fragility of the world. The competitive advantage of yesterday might not work today or tomorrow. Product life cycles have reduced, employee burntout and stress has quadrupled and the organizations are focussing on mental well being of the employee more than ever. 

Anxious defines the state of mind that individual are into. The uncertainities and darkness of the world has increased the anxiety of people and they are reluctant to make futuristic plans and decisions.The tech layoffs have added to the anxiety of the employees. 

Non-Linear is the indication of the fact that the predictability of happening of event is bleak. There is no cause-effect relationship rather there are surprises in store. New ways need to be discovered to solve the problems. Physical presence of employee is one such example. The research prior to covid19 was flooded with the employee engagement and satisfaction and what not, all variables positively correlated to the physical settings and presence of employee. However, covid turned this to Work from home, and organizations had to redefine all policies from talent acquisition to talent retention. Employee experience nad not engagement alone, became the key. 

Incomprehensible refers to inability to comprehend the situation owing to lack of cause-effect relationship. 

The changing world needs critical thinkers and agile workforce.

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