How are you dealing with VUCA?
This is an acronym you should become familiar with if you are tasked with protecting the assets and financial statement of your company.
Volatility, Uncertainty, Complexity and Ambiguity can be destructive to company goals and bottom lines for all businesses. While insurance is a great risk financing tool, it is purely reactive.
We’ve seen businesses pummeled by cyber-attacks, supply chain disruptions, staffing concerns, reduction in revenue, and the ongoing effects of a persistent global pandemic, to name a few.
Too many small to medium sized business owners use insurance as a crutch. The problem is that insurance doesn’t cover everything and even in best case scenarios will hamper operations and performance by up to 60% because everyone is distracted. The only way to properly deal with VUCA is to be prepared in advance with a game plan.
You may not believe in New Year’s Resolutions, but if you must have one, creating a game plan to protect the value of your business might be a pretty good place to start!
Here is a quick 3-step start to get you rolling with that game plan…
First, identify what you have that is exposed to damage or loss. That means property, people, revenue, information, and reputation.
Second, determine what calamities most concerns you. That means physical perils like fire, theft (including cyber), and water damage. It means human perils like employee injuries and lawsuits. It means third-party liability perils that cause lawsuits and reputation damage. And finally it means those bad things that hurt your revenue generation and profit, including an economic downturn, competition, lack of staffing, supply chain disruption, and the effects of an ongoing global pandemic.
Third, insert to components of VUCA into the equation. As you assess 2022, how do volatility, uncertainty, complexity, and ambiguity impact your plans? What hidden perils can each of them cause?
Fear may be one of them. Fear can keep you from investing in people, resources, or equipment needed to meet your goals. Fear can mask talent in yourself and your people. And fear will keep you from unleashing the power of your business.
Bottom line, VUCA is real, but not an impediment unless you don’t plan for it. Investing in the planning, implementation, and monitoring of a plan will keep you moving full speed ahead.
I want to personally thank you for following my work, through newsletter, books, videos, and LinkedIn Learning courses.
Best wishes to you for next year. Here’s hoping you keep VUCA at bay and slide in ahead of the tag!
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Need help with planning for VUCA? Contact me at [email protected] for a complimentary 15-minute discovery meeting.
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