VUCA-Environment Flashcards

1
Q

Describe Karl Weick’s idea of “sensemaking” as a core activity of a manager in the 1990s.

A

Management is seen as a permanent “interpretation service.”

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2
Q

Why is it necessary to constantly use interpretation in management?

A

Because events, actions, communication and decisions are generally not “self-evident,” neither in the current operative situation nor in their historical and contextual embedding. Interpretation can be through the manager, classification, evaluation or weighting.

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3
Q

What is the phenomenon of a dynamic environment in need of interpretation?

A

It is called by its acronym “VUCA-environement.”

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4
Q

What does VUCA-[Environment] stand for?

A

V - Volatility
U - Uncertainty
C - Complexity
A - Ambiguity

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5
Q

Explain ‘Volatility’ (VUCA-).

A

Ephemeral (lasting a very short time) nature of events caused by acceleration dynamics.

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6
Q

Explain ‘Uncertainty’ (VUCA-).

A

Frequent and extensive future developments; past does not serve as a ‘benchmark’ for the future

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7
Q

Explain ‘Complexity’ (VUCA-).

A

Multiple, interdependent causes

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8
Q

Explain ‘Ambiguity’ (VUCA-).

A

Need for interpretation; little clarity about what is “right” and “wrong”

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9
Q

List 5 ways today’s (Western) concept of a “multi-option society” (aka VUCA-Environment Concept) has impacted management.

A
  1. Significant increase of information transparency, volatility of decision parameters and the complexity and pressure to make decisions
  2. Need for decisions, with simultaneous “de-selection” of alternative options
  3. The need for accelerated decision-making
  4. Simultaneity and “unpredictability” of events
  5. Making decisions on an uncertain “factual basis”; decisions based on great uncertainty
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10
Q

What are the 4 elements of the action model of the “new Sankt Gallen Management Model” in the VUCA world?

A
  1. Value creation
  2. Continuous Assessment of Status Quo
  3. Approach to environmental complexity
  4. Consistent exploration of attractive alternatives of value creation
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