VUCA is an acronym used to describe or reflect on the volatility, uncertainty, complexity and ambiguity……………… a scenario witnessed in India………rather worldwide
VUCA probably originated as a concept in the 1990s and derives from military vocabulary and has been subsequently used in emerging ideas in strategic leadership that apply in a wide range of organizations and business scenarios.
| V = Nature and dynamics of change, and the nature and speed of change forces and change catalysts. | U =Lack of predictability, the prospects for surprise, and the sense of awareness and understanding of issues and events. |
| C = Multiplex of forces, the confounding of issues and the chaos and confusion that surround an organization | A = Haziness of reality, the potential for misreads, and the mixed meanings of conditions; cause-and-effect confusion |
The deeper meaning of each element of VUCA serves to enhance the strategic significance of VUCA foresight and insight
- V = Nature and dynamics of change, and the nature and speed of change forces and change catalysts.
- U = Lack of predictability, the prospects for surprise, and the sense of awareness and understanding of issues and events.
- C = Multiplex of forces, the confounding of issues and the chaos and confusion that surround an organization.
- A = Haziness of reality, the potential for misreads, and the mixed meanings of conditions; cause-and-effect confusion.
At some level, the capacity for VUCA management and leadership hinges on enterprise value systems, assumptions and natural goals. A “prepared and resolved” enterprise is engaged with a strategic agenda that is aware of and empowered by VUCA forces.
The capacity for VUCA leadership in strategic and operating terms depends on a well-developed mindset of the technical, social, political, market and economic realities of the environment in which people work. Working with deeper elements of VUCA is essential for survival and sustainability in an otherwise complicated world.
India is one of the fastest growing economies inthe world. However, India’s position in the ‘Doing Business’ annual reports published by the World Bank continues to be less than favourable.
The latest rankings place India 142th among 189 countries; lower than its BRICS (Brazil, Russia, India, China, South Africa) counterparts.
To foster the growth and the concept of Ease of Doing Business, the Entrepreneur needs to get into a constructive dialogue and engagement with the Government. The areas could be vast and diverse, though the focused attention on the key areas can rejuvenate the investment culture.
Taxation
Taxation world-wide works on 2 dynamics “Canon of Certainty” and “PAYE – Pay As You Earn”
Companies believe that reduction in corporate taxes could provide an impetus to the growth of business.
Reduction has never been the key …..especially in the growing economics.
The Canon of Certainty characterizes the combination of the rate, amount and method of levy and collection of a tax and includes the Horizontal and Vertical Equity.
Addressing and redressal of the issues like tax disputes,availing tax incentives and obtaining timely service tax refund itself will boost up.
Though the bigger reforms namely the implementation of Direct Taxes Code, Goods and Services Tax (GST), Transfer Pricing Regulations with the Certainty will infuse the necessary confidence in the Industrial belt.
Land acquisition
Investors and manufacturers need timely acquisition of land to contain project cost escalation and project timelines.
Thus restructuring of the provisions on the prices and the censuses provisions as per new law, will make it conducive to acquire the land and will spur infrastructure development in India. The land development would necessarily include the land conversion use.
Equally the complexity around title generating uncertainty, construction-related permits and NOCs and Obtaining approvals like Environment Clearance needs to administered and not regulated, thereby reflecting the collaborative approach and Public-Private Partnering in the growth of the economy.
Contract enforcement
The process of filing and servicing court proceedings is often complicated and time – consuming. A Fair and Speedy trials would be essential for small enterprises embroiled in disputes, especially as the market is gearing up for the Start-up Companies.
The effective implementation of e-courts for improving court efficiency will be an appreciable move to address the long time in resolving such disputes, especially serving the opposite party.
A relook in the antiquated laws namely the Indian Contract Act, 1872,Transfer of Property Act, 1882, Indian Evidence Act, 1872, Indian Trusts Act, 1882, Indian Penal Code, 1860,etc. will help and equally make them relevant to the changing times we live in.
Starting a business …………..should therefore not be focused on the technicalities of law or VUCA, but an congenial environment to synergize operations and growth oriented efforts and development with stability& certainty ………..which will create sufficient enthusiasm to sustain the dynamics of VUCA – Volatility, Uncertainty, Complexity and Ambiguity.
About the Author: Author Vikas Goyal is a Corporate Lawyer – equipped with a Professional degree of Law and Master of Business Law from NLS, Bangalore and having enriching experience of 19 years as In-House Counsel.
