The Link Between Organizational Agility And VUCA – An Agile Assessment Model

Abstract

This paper summarizes the elements of agility listed in contemporary scientific literature and aligns them to the four different forces described by the acronym VUCA. There is a general consensus that organizational resilience and agility are crucial elements to gain sustainable competitive advantage especially since the arresting economic changes during the pandemic year 2020. There is little agreement though how precisely organizational agility responds to volatility, uncertainty, complexity, and ambiguity (VUCA). By systemization of frameworks and models from the literary sources the aim is to create a combined model. Consequently, the purpose of this paper is to develop a model that can practically be employed to evaluate the agile status quo of an organization. It should support practitioners to distinguish between the different requirements each part of the VUCA acronym requires. The design of this study is a conceptual paper which proposes a new corporate agility model with direct linkages to the requirements of VUCA forces. It derives from, and builds on, existing scientific literature while integrating a comprehensive set of existing agile frameworks. The result of this research is a model which defines distinct enablers, sensing capabilities, agile practices, and responses as answers to VUCA forces. It highlights that certain elements reinforce and link to each other to transform an entire organization agile. Surprisingly, leadership and strategy are not incorporated as elements but rather seen as conditions that subordinate the iterative learning approach of this model. Originality is given as the created model provides a set of elements leaders can implement or use to assess organizational agility. Furthermore, it supports how to deal with strategy and leadership in the transitional process. Relevance is given as during the worlds COVID-19 crises the economic and governments changes in terms of volatility and uncertainty were especially challenging for organizations.