Importance of Quality Transformations in VUCA World
- 2. 2 Ankur Tyagi Mechanical Engineer 17 Years of Professional Experience ASQ LSSBB Trained Alteryx Designer Core Certified ISO 9001 / 14001 /45001 Current Association PROFILE HOBBIES Deputy General Manager – EDU Operations Expertise Previous Association Problem Solving Customer Experience Supplier Development Business Process Improvement Risk Management LinkedIn
- 3. 3 Blockchain 5G Technology Virtual Reality AI & ML Cloud Services Nanotechnolo gy Big Data 3D Printing Cyber Security Quantum Computing Hyper- Personalizatio n Chat Bots Smart Cities Digital Fingerprints
- 4. 4 Disruption is the only constant…. 1G VOICE CALLING 2.4 KBPS 1979 2G SMS 64 KBPS 1991 3G INTERNET 2 MBPS 2000 4G INTERNET OF APPLICATIONS 100-1000 MBPS 2009 5G BROADBAND & IOT 1 – 10 GBPS 2018 6G FULLY DIGITAL & CONNECTED WORLD 2025
- 5. 5 Industry 1.0 Mechanization First Industrial Revolution 1760 Industry 2.0 Mass Production First Technology Revolution 1870 Industry 3.0 Automation First Electronics & IT Revolution 1970 Industry 4.0 Digitalization Internet of Things, Cloud Storage 2015 Industry 5.0 Personalization Man-Machine Coordination 2023 110 Years The Speed of Disruption 100 Years 45 Years 8 Years
- 6. 6 Credits: ev-volumes.com The Speed of Disruption
- 7. 7 The Speed of Disruption
- 9. 9 The VUCA Impact • Shortages – or scarcity in specific products because of material insufficiency • Inflation – the rise in demand can cause price increases • Factory/store closures – a decrease in production or output can result in business closures • Unemployment – like a domino effect, all these factors can result to increase in unemployment • Threat to national security – this is broadly defined as the nation’s ability to protect the well-being of its citizens and this is one of the hidden impacts of the supply chain disruption.
- 11. 11
- 12. 12 Volatility • Volatility is the tendency of a material to change its state suddenly and unexpectedly. • In business, Volatility relates to the speed of change in an industry, market, or the world in general. • It is associated with rapid fluctuations in demand, turbulence, and short time to markets. • Things change at an unwantedly faster rate in a Volatile World. • Examples of Volatile World include - Rapid Fluctuations in Commodity Prices, Frequent Trend shifts in the share markets.
- 13. 13 Uncertainty • In the past, it was easier to predict the future using statistical tools and past knowledge and experience. However, the VUCA environment makes it difficult to predict future events and outcomes. • Uncertainty is the lack of knowledge about what will happen in the future. • Uncertainty is perceived as people's inability to understand what is going on. • Results of any action are not very clear or predictable. • Today Uncertainty exists everywhere – in Economics, Technology, Competition, Supply Chain, Environment, Legal & Regulations, and the most recent one is Health & Pandemic Situations. In fact, these all situations also brought in Uncertainty in consumer behavior.
- 14. 14 Complexity • Ever created a scatter plot to find the correlation between the two variables. How many times do you find a direct correlation between two variables? Probably very less. • Complexity originates when there is a multiplicity of issues and factors that can affect an outcome • Difficult to understand how various factors interact. • Very difficult to fully analyze the environment and come to rational conclusions & decision making. • The more complex the world is, the harder it is to analyze. • The mobility revolution across the world is the best example of Complexity.
- 15. 15 Ambiguity • Ambiguity refers to the lack of clarity or the existence of multiple possible interpretations and outcomes for a given situation. • It is the condition in which information is often incomplete, contradictory, or difficult to interpret, making it challenging to make well-informed decisions. • The presence of various factors, including rapid changes, complex interconnections, and the presence of conflicting information or perspectives give birth to Ambiguity. • With a lot of Data and Information, we are already living an ambiguous life, be it personal or professional.
- 16. 16 Some Other Terms… RUPT • Rapid • Unpredictable • Paradoxical • Tangled TUNA • Turbulent • Uncertain • Novel • Ambiguous BANI • Brittle • Anxious • Non-Linear • Incomprehensible
- 17. 17 Challenges Presented by VUCA Uncertain situations that can arise out of nowhere Paralyzed Decision-Making Process due to nonavailability of adequate initial information Unavailability of strategies to address the challenges of unreliability Need for continuous Learning and Unlearning Process Destabilize people and organizations and make them anxious about the future V U C A
- 18. 18 VUCA vs VUCA
- 19. 19 VUCA vs VUCA ✍️ Convert Volatility into Vision A transformation or transition from a state of unpredictability and instability to a state of clarity, foresight, and long-term planning. ✍️ Move from Uncertainty to Understanding With Probabilistic Thinking, Expert Inputs, Iterative Learning (Continuously updating the learning & development models), and well-devised Risk Management processes, the Uncertainties can be transformed into understanding. ✍️ Breakdown the Complexity into Clarity Start working on simplifying complex ideas, concepts, or information to make them easier to understand and communicate. ✍️ Be Agile and not Ambiguous The transition from ambiguity to agility often involves promoting a growth mindset, fostering open communication, empowering individuals, or teams to make decisions, and embracing continuous learning and improvement.
- 20. 20 Hyper Competition Technology Disruptions Changing Consumer Behavior Digital Disruptions What is Transforming in VUCA???
- 21. 21 1 3 4 2 Collaboration Adaptability Agility Creativity 4 Pillars of VUCA Transformation
- 22. 22 Adaptability The ability of an individual, organization, or system to adjust to new conditions, changes, or challenges. Transformation comes with many new changes in policies, technologies, quality management & quality service. Adopt the culture of adaptability & continuous learning to master the complexities of the VUCA world. Think through different potential scenarios and plan for various outcomes. Assess new situations quickly and find effective solutions to emerging challenges. Those who are adaptable are more likely to embrace continuous learning and personal development.
- 23. 23 Collaboration Collaboration in a VUCA world is not just an option but a necessity. Individuals and organizations can pool their diverse knowledge, skills, and perspectives, enabling them to respond more effectively to dynamic challenges. Collaborative model helps in Risk Distribution through Responsibility sharing. Limited available resources can be utilized better allocated and utilized, avoiding duplication of efforts and ensuring higher efficiency. Collaboration, when combined with technology, can amplify its benefits. Use Virtual collaboration tools and platforms for better communication and cooperation across the globe.
- 24. 24 Agility In a rapidly changing, volatile environment, the importance of agility becomes paramount. Take a significant competitive advantage by being the first to respond to market demands or change. Be agile, understand the situation fast, and change the course immediately if required. Fail fast to reduce the potential negative impact of failures by catching them early in the development process. Utilize advanced technologies to gather and analyze data, identify trends, and make informed decisions faster
- 25. 25 Creativity The best way to navigate through a VUCA environment and thrive is by using creativity and innovative thinking. Traditional approaches to problem-solving may not be effective in VUCA. Creative thinking allows for the exploration of unconventional and out-of-the-box solutions to complex problems. Encourage inventive solutions to unexpected challenges and flexible strategies as circumstances change. Creativity is a crucial mindset and approach for individuals and organizations to not only survive but also thrive and remain relevant in an ever-changing landscape.
- 26. 26 Future Skill Of Quality Professionals Risk Management Digitalization & Automation Critical Thinking Change Management
- 27. 27 Risk Management Risk Management is by far the most important skill of a Quality Professional in the VUCA world. Risk management helps in identifying potential risks, analyzing their potential impact, and devising strategies to respond promptly and effectively when uncertainties arise. Address potential challenges early to avoid costly disruptions and create a stable foundation for future growth. Focus on “Possibilities” instead of “Probabilities”. Ask different Questions and take multiple perspectives. Look for the whole picture and take a step back to think about the overall possibilities Identify and capitalize on opportunities that align with their risk appetite and strategic objectives.
- 28. 28 Digitalization & Automation Use the technology to leverage Digitalization and streamline processes, make better data-driven decisions, and drive innovation and creativity in the Organization’s Quality System. Be a Risk Taker and experimenter and reduce Human dependency on manual & redundant tasks. Automate the processes & Reports to make the system more agile. Focus on the development of self-diagnosing and self-healing systems using Artificial Intelligence & Automation. Collect real-time data, analyze trends, and make informed decisions quickly using Digitalization & Automation. Automation streamlines processes, enabling businesses to adapt swiftly to changing circumstances and market demands.
- 29. 29 Critical Thinking Critical thinking involves questioning, analyzing, interpreting, and evaluating, to make the decision. Critical Thinkers will prevail in the VUCA world. Critical thinking helps individuals and teams make better decisions despite limited information and unpredictable conditions. Critical thinkers are open-minded and willing to consider alternative perspectives, which enables them to adjust their strategies and plans swiftly when new information emerges. Critical thinking allows people to look at various sides of an issue so they can produce more solid conclusions
- 30. 30 Change Management In this VUCA environment, change for betterment & survival is a necessity both at the individual and organization level. The purpose of the Change is to stay relevant all the time and to avoid becoming obsolete Adopting an agile and adaptive change management approach can help organizations navigate complexity and uncertainty Develop contingency plans for various potential scenarios. Break down complex changes into smaller, manageable increments in order to reduce the risk and faster time to market. Leverage data and analytics to monitor and anticipate changes in the business landscape.
- 31. 31 Key Take Aways Use technology to leverage digitization, streamline processes, make better data- driven decision-making, and drive innovation. Adopt a culture of adaptability and continuous learning to master the complexities of the VUCA world and lead a successful digital transformation. Adopt a quality-oriented mindset and focus on continuous learning, adaptability, and customer-centricity to meet the challenges of the VUCA world. Think Critically, considering all aspects & Possibilities before making a decision. Keep on upgrading yourself at a faster pace than the Volatile environment.
- 32. Don’t Be That Frog
- 33. 33 Conclusion The world of VUCA requires a proactive approach to quality that emphasizes agility, innovation, and the ability to quickly adapt to changing customer needs. Quality transformation enables companies to proactively respond to market changes, reduce risk, and deliver superior products and services. Effective quality transformation requires leadership commitment, employee engagement, and a culture of continuous improvement to ensure long-term success in a volatile business environment. Digitalization has a major impact on our VUCA world, allowing for more efficient communication, faster decision-making processes, and effective collaboration.
- 34. 34 Suggested Courses • Certified Enterprise Risk Management (CERM) • https://www.theirmindia.org/ • Udemy Course - https://www.udemy.com/course/the-complete-enterprise-risk-management-erm- course • https://www.koenig-solutions.com/cermp-training • European Foundation of Quality Management (EFQM) • https://efqm.org/ • https://www.grantthornton.in/services/growth/business-excellence/global-benchmarking/efqm/ What Next? Suggested Books:
- 35. Thank You Data used in presentation is not actual, its just for representation
Editor's Notes
- #2: Back in Sep 2020, I was enjoying my holidays with friends when the news suddenly disrupted my life in a big way. The organization, I was working with decided to lift their operations from India. We were surrounded by a lot of Questions about the future. What will happen now? What we will do? This was the moment when I first realized the impact of VUCA. We are dealing with a world where change is ever greater, where the future is less predictable and that is making us put in harder efforts.
- #5: The first commercial 1G network was launched in Japan in 1979 (NTT), followed by the launch of the Advanced Mobile Phone System (AMPS) in the United States in 1983. The Global System for Mobile Communications (GSM) standard was introduced in 1991, and the first GSM network was launched in Finland. The International Telecommunication Union (ITU) specified the first 3G standard (IMT-2000) in 2000. The Long-Term Evolution (LTE) standard was introduced, and the first commercial LTE network was launched in Scandinavia in 2009. The first standardized 5G specification (3GPP Release 15) was completed in 2018.
- #6: 1 – Mechanization with Water & Steam powered; 2 – Mass Production using assembly lines; Industry 5.0 – VR / Virtual simulations / Digital Twins robot and smart machines working alongside people with added resilience and sustainability goals included
- #9: Do you remember the story of the Frog Hot Water.. The term VUCA originated in the 1990s and was first used by the U.S. Army for describing extreme conditions during warfare. Today, it’s frequently used in the context of the global business environment. The term gained popularity in management and leadership circles as a way to describe the challenging and unpredictable nature of the business and organizational environment.
- #10: Remember the Toilet paper shortage in the US back in March’2020 due to a sudden spike in demand (213% higher compared to the previous year). One example of this happened in 1973 when The Tonight Show host Johnny Carson made a joke that it was
- #11: Ask for other examples of VUCA – Uber, Ola, AirBNB, etc
- #13: If you remember your chemistry lectures, Volatility is the tendency of a material to change its state suddenly and unexpectedly during exposure to an external environment.
- #14: Covid 19 is the latest example of Uncertainty where we were bound to lock inside homes with an uncertain future and no information regarding - when the situation will return to normal.
- #15: Do you remember the equations like PV=nRT, F = MA. And do you remember those complicated two-page theorems? Mobility Revolution - The industry was already working on various strategies like Electric Vehicles, Hydrogen Powered Engines etc, whereas the demand for autonomous vehicles, and the Vehicle to Everything (V2X) connectivity made the situation even more complex.
- #16: We still do not know whether Hen came first or Egg
- #17: But either way, its all about External environment changing rapidly & unpredictably, challenging companies & their stockholders that what worked yesterday will not work today and tomorrow. While rest all are the “Properties of the Environment”, BANI is more about the “Effects of the environment” Paradox – Contradictory
- #18: Our brain loves to categorize and learn from the past to secure our future. This has worked well for thousands of years. Without this ability to predict the future based on the past, and to identify risks, we would have disappeared as a species. This complex internal evolutionary system has done an incredible job of protecting us and allowing us to prosper for millennia, but right now, it is beginning to fail and limit us. Our general pattern is to cut, reduce and simplify information. To achieve this change, we need to create new habits and new patterns. We need to talk to each other differently, collect information differently, and develop different strategies and plans for the future.
- #23: We adapted to use Mask and Sanitizers during Covid. TV Directors and Producers adapted the OTT. Rishabh Pant was a 20-20 specialist but he adapted the Test Matches even better. staying up-to-date with the latest developments is essential for adapting successfully.
- #24: It empowers individuals and organizations to navigate uncertainty, adapt to change, and find innovative solutions to the most pressing problems of our tim By sharing responsibilities, the burden of managing risks can be distributed among multiple stakeholders, making it easier to identify and mitigate potential threats. Even at the organizations like Maruti & Toyota collaborated to jointly produce the engine and Vehicles
- #25: A culture of Accountability & Adaptability in a rapidly changing world can be a significant advantage Agility is also about failing fast, learn and timing the market Examples –Tesla and Ola got the first mover advantage in World.
- #26: Have you heard about TRIZ and the Theory of Constraints? Example – Eraser behind the pencil, Trolleys parked inside the malls, multicolour lights with single switch
- #28: In old times, the best way was to “Avoid Risks”. This is not possible at the current time. Now we need to access the risks and take the necessary actions. We have to live with Risk. Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.
- #29: Become Tech Savy. By increasing transparency and collaboration, digitalization can help organizations navigate the ever-changing landscape and make better decisions. Digital literacy: Proficiency in using digital tools, technologies, and data analysis is essential as technology continues to play an increasing role in every aspect of life.
- #30: When faced with a complex problem, critical thinkers break it down into smaller parts, identify possible solutions, weigh the pros and cons of each option, and select the most effective approach. I still remember when we were facing an issue of missing caps which are used to protect the parts from scratches while screw tightening. People tried many things but solutions were not able to eliminate the issue. Then one of the operators did a kaizen of tying the cap with a spring-loaded rope at the station itself.
- #31: If we will not change then we will perish. Change is the only constant. Traditional linear change management models may not suffice, as they are often designed for more stable environments
- #32: With VUCA, we need to continuously keep on updating ourselves. To achieve this change, we need to create new habits and new patterns. We need to talk to each other differently, collect information differently, and develop different strategies and plans for the future.
- #33: Change is the Only Constant but Change is not easy We all know the story of a frog. First, the frog was put in a hot water pot and it jumped out of it immediately. But when the frog was put in a pot of cold water and slowly start heating it up. As the water temperature rises gradually, the frog adjusts to the changing conditions rather than taking action and doesn't perceive the danger. It remains in the water, seemingly comfortable with the rising temperature.
- #34: We are moving from a world of problems, which demand speed, analysis, and elimination of uncertainty to solve, to a world of dilemmas, which demand patience, sense-making, and an engagement of uncertainty. Our brain loves to categorise and learn from the past to secure our future. This has worked well for thousands of years. Without this ability to predict the future based on the past, to identify risks, we would have disappeared as a species. This complex internal evolutionary system has done an incredible job of protecting us and allowing us to prosper for millennia, but right now, it is beginning to fail and limit us.
- #37: Covid 19 has taught us the Adaptability