Parikalpana: KIIT Journal of Management

Monica Nayyar Patnaik ¹, Shikta Singh ², S. N. Misra ³

Affiliations
1 Research Scholar, School of Management, KIIT University, Bhubaneswar-751024, Odisha, IN
2 Associate Professor, School of Management, KIIT University, Bhubaneswar-751024, Odisha, IN
3 Professor Emeritus, School of Management, KIIT University, Bhubaneswar-751024, Odisha, IN

Abstract

The concept of VUCA was introduced or brought into forefront post 9/11, when the businesses and their respective models were questioned, their existence, their profitability was uncertain. The growth, globally in various industries was facing a slowdown, however when the financial crisis was almost getting over, the ‘new normal’ emerged. VUCA circumstances undermine any efforts to understand the future and to plan for response. There is a change that is witnessed in the global business climate, the companies that have been doing well now thrive in this business environment in developed countries, the volatile situation in the industries continue to pose economic challenges for the businesses and where decision regarding technology and innovation is questioned. An important understanding of operational leadership in the context of VUCA is to identify the issues embedded in it. Unlike the problems that need to be solved, the issues are the unresolved, unexpected, complex - issues and challenges that every leader faces. Size and volume are no longer the keys to business success. Cash flow rather than profit helps an organization to cope with difficult times. Transforming a rapidly changing foreign environment into a onesize- fits-all approach requires a major overhaul of the way we develop, implement and deliver business plans and objectives as evidenced by numerous companies such as Ford Motors, Capital One Bank, Philips NV, Panasonic Corp, South West, The airline, Rio Tinto, Halliburton to name a few. This paper seeks to emphasize how important it is for leaders to enjoy the promotion and use of financial resources, maintain financial viability at all costs, master the art of budgeting, maintain and improve organizational performance.

Keywords

VUCA, Value creation, Divestiture, Financial Agility, Operational Hedging.

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