VUCA in Financial Crisis

Running Head: VUCA IN FINANCIAL CRISIS 1
VUCA IN TERMS OF FINANCIAL CRISIS

VUCA IN FINANCIAL CRISIS 2
Introduction
In current age of globalisation and technical advent organisation operate in more volatile
conditions (Lemoine, Hackett & Richardson, 2017). A business that is facing financial crisis
needs to re-design and re-arrange quickly without undertaking major structural change. In the
current paper the business situation where it faces financial crisis is evaluated to understand ways
in which VUCA could impact the situation and solution.
Analysis
The business situation that is being evaluated is a human resource firm that faces
challenge from online human resource websites. Incapacity of the organisation to transform itself
into a technical firm has led to serious implications for its business. The business has gradually
lost its clients to online businesses. Hence, the business has gone into a state of serious financial
crisis. The VUCA (volatility, uncertainty, complexity and ambiguity) framework can enable
diagnosing the position at which the business currently is situated and way it can transform itself
(Bennett & Lemoine, 2014). In the current situation the business is facing multiple factors related
to decision making. The propensity to change from this current physical state into website state
has to be visible and clear.
Under the current situation the volatility materials can explode transforming from the
stable state to becoming disordered. These volatility materials in the current situation include
finances of the organisation. Though the finances of the organisation represents significant
dangers, once the website is established it can represent significant opportunities as well. The
uncertainty in the current situation primarily includes lack of specific information. It includes the
number of customers who will be ready to return back to the business and re-establish business
relationship in case the business went on to becoming digital (Bill Pasmore & CMC, 2010). The
probability of uncertainty factor is essential to be determined for the business to be transformed
into digital one. The complexity factor includes the number of components and the relation
between them. The practical problems facing leaders in the organisation includes when to initiate
transformation, what type of employees to hire and how much finances should be expended.
These are important factors that need to be determined through analysis and investigation

VUCA IN FINANCIAL CRISIS 3
beforehand. The tariffs of digital mode, regulatory environment for the business needs to be
ascertained along with the cultural values. The organisation should restructure in a manner that
allows it to address complex environmental challenges.
Ambiguity includes the use of ambience and ambidextrous. Ambiguity can cause stress
for a number of people and people generally tend to minimize, reduce or avoid ambiguity.
Ambiguity in the current situation refers to the environment in which the business will transform
into a digital business (Bolman & Deal, 2015). It includes factors from the macro-environment
and includes compliance risk, governance risks and so on. A business needs to ascertain these
factors while transforming its business. As the business is trying to undertake new type of
business launch, it becomes impertinent to evaluate the various ambiguous factors.
Figure 1: VUCA Framework
Source: Bennett & Lemoine, 2014
When the business implements the solution, the VUCA framework will enable it to
identify the challenges effectively and then implement solution. In implementing the solution,
the VUCA framework will enable appropriate strategy and leadership planning. This would help