The VUCA Report 2016

The world your business faces is changing
… continuously.
Do you know what’s ahead?
www.strategicagilityinstitute.com© 2016 The Strategic Agility Institute. All Rights Reserved. 1

With The VUCA Report™, we’re helping you
with that question.
By collecting
insights from
business leaders
around the world. More than
400total
Our original analysis included 280
responses; more people participate
every day.
Join us!
Visit: www.strategicagilityinstitute.com

Here’s a
snapshot of our
most recent
analysis.

VUCA = volatility, uncertainty, complexity, ambiguity.
69.57Is the 2016 VUCA Index™. This means that leaders we
surveyed predict turbulence will INCREASE in the next
three years.
The VUCA Index™ is an estimation from 0 (much less) to 100 (much more) regarding
the expected level of future VUCA. It’s an average based upon how respondents
answered this question for each of the four components of VUCA: “Compared with
the LAST three years, what do you expect the NEXT three years to be like for your
organization in the following areas?”

Part of that turbulence is due to a number
of disruptive trends.
Here are the top

10 Cyber security

10 Cyber security
9 Big data

10 Cyber security
9 Big data
8 Accessing high-quality talent in new geographies

10 Cyber security
9 Big data
7 Changes in expectations between work and non-work life

10 Cyber security
9 Big data
6 Changes in hiring practices

10 Cyber security
9 Big data
5 Differences in working styles across generations

10 Cyber security
9 Big data
4 Use of social media

10 Cyber security
9 Big data
4 Use of social media (e.g., Facebook, LinkedIn, Twitter, blogging, etc.)
3 Increasing demands upon leaders

10 Cyber security
9 Big data
2 Tools for helping people collaborate across dispersed locations

10 Cyber security
9 Big data
2 Tools for helping people collaborate across dispersed locations
1 Economic cycles/recession

of the top 10
disruptive trends are
in the category of
workforce
dynamics

Technological advances are also highly
disruptive. Looking ahead to 2017, we see 3
areas to watch in particular:
1
2
3
Internet of things (the networking of physical objects
embedded with electronics, software, sensors and
connectivity)
3D printing/additive manufacturing
Automation (e.g., advanced robotics,
driverless vehicles, etc.)

Dealing with DISRUPTION—with VUCA—requires
AGILITY

The AGILE Model®
Key Drivers & Capabilities
Anticipate
Change
 Visioning
 Sensing
 Monitoring
Generate
Confidence
 Connecting
 Aligning
 Engaging
Initiate
Action
 Bias for Action
 Decision-Making
 Collaborating
Liberate
Thinking
 Bias for Innovation
 Customer Focus
 Idea Diversity
Evaluate
Results
 Creating Expectations
 Real Time Feedback
 Fact- Based Measures
Agility is the capability to sense and respond
to the forces of change.
Agility has five drivers and 15 capabilities.

When asked to rate critical agile capabilities within their organizations on a scale from 1 (strongly disagree) to 6
(strongly agree), respondents on average rated Decision Making (3.54) and Real-time Feedback (3.70) as the
lowest. Despite higher scores on Customer Focus (4.67) and Bias for Action (4.52), none of the average scores
were 5.00 (indicating an average of “agree”) or higher.
Strongly agree
Agree
Somewhat agree
Somewhat disagree
Disagree
Strongly disagree
How agile are most organizations?

We also asked directly:
What is the biggest
OBSTACLE
keeping your organization from becoming more
agile?

The most common answer?
Behavior and culture.
• “Relying on adherence to traditional
practices because of their comfort level
and ‘proven’ track record”
• “Reacting to one-off messages that are
not based on real facts and create a lot
of unnecessary work”
• “Each level of the organization is not
empowered to make decisions that are
appropriate to that level.”
• “Executive leadership’s resistance to
change and a culture that doesn’t hold
people accountable”
• “Micro-managing folks, resistance to
change”

So, what is the most important practice that your
organization is
CURRENTLY DOING
that is helping you become more agile?

Effective communication and frequent,
productive meetings.
• “Having more and better
conversations”
• “Daily manager standup
meetings”
• “Meeting weekly and regularly”
• “Communication about changes”
• “Open forums for conversations,
leadership training”

And what is the most important practice that
your organization
SHOULD DO
in the future to become more agile?

Build the team by understanding perceptions and
hiring, training and developing for agility.
• “Constant skill development and
learning across the organization at all
levels”
• “Training for leaders so they are aware
how to manage through change and
uncertainty”
• “Hiring talent that have a growth
mindset and willingness to change”
• “Recruit and retain top talent”
• “Focus groups for real time feedback”

So, how will YOU
cope with VUCA in
2017?

1
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to learn more.

1
2
to learn more.
While you’re there, take The
VUCA Report™ survey and
download the full report.

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to learn more.
While you’re there, take The
VUCA Report™ survey and
download the full report.
Become a continual student of
agility!

The VUCA Report 2016

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The VUCA Report 2016