Vuca,Vuca.Hey

The word “Vuca” means “wake up” in Zulu language. But the acronym VUCA is originally a military term which became popular at the end of the cold war. Today it has become a widely used description of the current global economic situation. VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity

Volatility is turbulence and refers to the nature, speed and magnitude of change that is unpredictable. Volatility creates uncertainty where past events cannot be used to predict the future outcomes which make decision making difficult. Numerous and difficult to understand causes adds layers of complexity to the process which may lead to chaos and utter confusion. This leads to the last acronym Ambiguity. The end result of VUCA is the inability to capitalize opportunities and identify threats before it becomes lethal.

Companies worldwide are spending billions of dollars to train their managers to operate in VUCA environment. They mainly focus on another VUCA for this. Managers should have a clear Vision about the future of their institutions to counter volatility. Leaders must learn to look and listen to make sense of the volatility and to lead with vision. They must have proper Understanding of the big picture. Managers should have Clarity to counter chaos and take effective decisions. Ambiguity can only be countered by Agility, the ability to apply solutions quickly.

As day traders, we are operating in a VUCA environment from open to close everyday. We are taking countless decisions on a day today basis. How many crucial decisions a CEO or manager has to take during his tenure?, I wonder. In my humble opinion day trading must be included in the business school syllabi. Let them learn something from us.

Anyway, learn to navigate through the VUCA environment with Vision, Understanding, Clarity and Agility.

Remember the song Vuca,Vuca hey hey. Wake up, Wake up.