Leadership in actionin a VUCA world

“Suppliers are falling over by the dozen” or “Uncertainty due to supply bottlenecks”These are the headlines we have been reading everywhere recently

Here is an example from the machinery sector:

A special machine manufacturer with a two-digit million turnover receives delivery date commitments from a large German pneumatic valve manufacturer that are postponed from weeks to months. The large machine manufacturers secure the products as A-customers, while the “small ones” are left to starve on a long leash. That is the reality at the moment. The customer often stipulates in their specifications that they want exactly this one valve – alternatives are not possible. As a result, systems can no longer be assembled and are left half-finished in the assembly halls. The customer continues to insist on his FAT date (Factory Acceptance Test).

These are new challenges in the supply chain that have not been seen in this form for a long time. Over the next few months, one or two mechanical engineering companies will have to go back to short-time working as the supply of parts threatens to run out.

The business environment has changed radically and conventional management methods are reaching their limits. Companies can and must adapt to this new world. VUCA therefore aims to make the ungraspable graspable.

VUCA stands for the description of the changed framework conditions under which decisions have to be made today.

It is an environment in which information no longer has any predictive value because framework conditions change very quickly, coalitions of interests become increasingly complex and motivations are constantly changing.

The fact is that, in contrast to the last century, leadership today has become more challenging in a VUCA world and conventional leadership styles no longer fit into our world. Leadership has to cope with faster changes (volatility), greater uncertainty (uncertainty), greater complexity (complexity) and ambiguity (ambiguity). In VUCA worlds, however, tasks, working methods, processes and therefore also employee requirement profiles often change in leaps and bounds. The distribution of work must be reorganized more frequently and adapted to new IT tools, which requires successful learning processes.

In a VUCA world, situational leadership is the sure way to a bad leadership climate. It is difficult to trust a manager who can take it upon themselves to switch their behavior between authoritarian and cooperative. Unpredictable managers cause considerable stress among employees.

When the world becomes more uncertain, complex and contradictory, trust becomes more important. Managers who are to be trusted must be authentic and predictable. Trust reduces complexity. Treat your employees with respect and appreciation. If your employees feel that they are seen and valued as individuals and as service providers, trust will grow. A trust that works in two directions. Self-confidence and confidence in the manager.

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