38 THE NAFCU JOURNAL NOVEMBER–DECEMBER 2022 Turbulent and unpredictable forces of change are impacting every organization. Economic factors are creating an incredibly challenging time for credit unions. This type of environment can be described using the “VUCA” acronym, which stands for volatility, uncertainty, complexity and ambiguity. Authors Gavin Wright and Ivy Wigmore define the elements this way: “Volatility is the quality of being subject to frequent, rapid, and significant change. Small triggers may result in large changes. “Uncertainty occurs when events and outcomes are unpredictable. The cause and effect are not well understood, and previous experience may not apply to the situation. It is unclear which direction events will go. “Complexity involves multiple issues and factors, some of which may be intricately interconnected. The relationships between items and people are difficult to understand. A change in one place may cause unintended changes to other things. Many layers obscure cause and effect, and it is unclear which factors are essential in decision-making. LEADERSHIP DOWNLOAD NAVIGATING A TURBULENT OPERATING ENVIRONMENT By John Spence “Ambiguity is shaped by a lack of clarity and difficulty understanding precisely the situation. Information may be misread or misinterpreted. During ambiguous situations, all the facts are not clear. The goal or intended outcome may not be evident to all parties involved.” Some people use VUCA as an excuse not to plan. This is a mistake. Planning is still critical, although time frames may be shorter, and more flexibility is required. I have recently assisted several credit unions on reviewing and adjusting their strategies. Here are some of my major takeaways. 1. Create a vivid, compelling and well-communicated vision and strategy. Show your people that you are focused on the future and have a plan to successfully get there. Meet often to adjust the plan when necessary. Involve all the key players. Get everyone pulling in the same direction. 2. Expand the diversity of the information you gather. Continue to look carefully at the credit union industry, but don’t be myopic. Make investing in, analyzing and interpreting business and competitive intelligence a priority. Listen carefully to your members to find out what they want. A good strategy is a result of good strategic thinking. Good strategic thinking results from looking broadly for ideas and examples. A strong strategic thinker invests 10 to 15% of their time exploring. They look for trends, anomalies, best practices, and patterns that can apply to their business. They belong to industry organizations, have a strong network of colleagues they ask for advice, and use coaches and mentors to sharpen their thinking. 3. Speed matters in today’s volatile environment. The hard part is balancing speed with thoughtfulness. Drive as fast as you can without being reckless. Create a fast, flat, flexible “Create a vivid, compelling and wellcommunicated vision and strategy. Show your people that you are focused on the future and have a plan to successfully get there.”
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