The acronym VUCA stands for volatility, uncertainty, complexity and ambiguity, which represents the potentially high speed and turbulent times which a business or company may face. Managing personnel issues, HR takes part in mastering these challenges.
How VUCA manifests itself
Volatility happens when a business is subjected to rapid, frequent and significant change such as the rise or fall of prices in a short period of time. This results in uncertainty since a business may not be able to predict what will happen next. This further leads to complexity or chaotic situations as the business grapples with the effects and tries to come up with changes. The last stage is ambiguity, which is a result of the business not understanding the situation and its underlying causes. It is estimated that 69% of organisations will see an increase in volatility, 54% will face uncertainty, 71% will be at the complexity stage, while 47% will face ambiguity.
What is the role of HR in change management?
Over the past 2 years, 85% of major changes did not yield success and fewer than one in three change management initiatives were not received well. According to the Human Capital Institute (HCI), HR is responsible for developing change competencies and capabilities in the organization. When change is initiated in-house, it will most likely result in a higher success rate. HCI has developed 3 persona types for effecting in-house change:
- The Architect: This type is responsible for designing change. Some of the functions they may carry out may include design thinking, experiment, identifying resources and making decisions among others.
- The Broadcaster: They will be responsible for communicating change to the other employees. They should be honest and communicate what the change aims to achieve.
- The Coach: This persona will be tasked in encouraging the employees to adapt the changes. They should identify potential areas of resistance and come up with ways to motivate employees accept the changes.