By Mark Dembo
It seems there’s a new buzzword for our recessionary aftermath, as we return from the miasma, and step back from the precipice: VUCA. I came across this term just the other day, and literally stopped what I was doing to research this exotic sounding, yet surely important new word to enter the lexicon.
As Wikipdia tells it, VUCA is an acronym used to describe or reflect on the volatility, uncertainty, complexity and ambiguity of general conditions and situations. The underlying idea is more than just the words that make up the acronym; it’s about the process, thinking and strategy that go into assessing and dealing with each of the VUCA elements – think of it as a post-modern SWOT analysis.
Which brings me to the other term I keep hearing bandied about these days: “glocalization.” Where global meets local: the “portmanteau” of global and local. It’s more than just “think global, act local” – it’s about organizations striking the right balance between tight central management, and decentralized local autonomy.
While we can get fatigued on the fad words of the day, there is some real truth behind needing to glocalize in our current VUCA world! With the great recession showing signs of defeat, we cannot be complacent to the destruction and changes left in its wake. As the Economist newspaper points out, in the US: “…the economy emerging from recession on not the same as the one that went in.” They further point out – and here’s the real kicker - “With consumers forced to live within their means, American firms will have to sell more to the rest of the world."
This last point is profound; ignore its implications at your own peril! For US multi-nationals, looking for growth in emerging markets is certainly not new. But now, it’s more than just a growth strategy, it’s a do-or-die strategy. We cannot rely on domestic spending to shore up the coffers.
For true growth to come from the “rest of the world,” organizations must truly be a part of that world. Simply exporting talent will not provide the in-depth cultural and local knowledge that is needed. To innovate in India or China or Brazil or Thailand – organizations must be seen as a part of the fabric of local life.
To succeed in the new VUCA world, organizations must be able to define their culture, create the “leadership brand” they stand for on a global basis, while providing the latitude for local interpretation and adaptation. It’s a fine line, and not necessarily an easy one to draw – those who achieve long-term “glocal”success will be the ones that can achieve this balance.
How prepared are your leaders to take on these new challenges VUCA challenges in a glocal world?
Mark Dembo is a manager for Development Dimensions International (DDI).
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