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Summary
In the early 1990s, the U.S. Army War College created an acronym to describe the geopolitical situation after the Cold War: VUCA. It stands for volatility, uncertainty, complexity, and ambiguity, four characteristics they saw as defining the multilateral post-Cold War world. The rise of information technologies — and the internet in particular — has radically transformed our political, economic, and social reality. We are all now living in a generalized state of VUCA. We see signs of it everywhere — including the enterprise. Learn from Two Waves author Jorge Arango about how design can help organizations thrive by reducing volatility, uncertainty, complexity, and ambiguity.
Key Insights
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VUCA (volatility, uncertainty, complexity, ambiguity) is a useful framework to understand modern organizational challenges.
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Many institutions are still structured for the Industrial Age and are ill-equipped to handle the rapid changes and unpredictability of the network age.
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Design is not just about making usable or pretty things but is a third way of knowing that uses abductive reasoning and solution-focused strategies.
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Designers add greatest value when involved in foundational organizational layers such as purpose, strategy, and governance, not only at the surface UI level.
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Co-creation involving diverse stakeholders can break down silos and improve organizational responsiveness.
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Design artifacts can act as MacGuffins—catalysts that drive collaboration and change, even if the artifact itself is not the primary value.
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Language design is a powerful tool to reshape organizational thinking by clarifying or redefining terms across different groups.
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Design governance should be integrated into overall organizational governance rather than treated as a separate design team activity.
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The prevalent perception of design as primarily a craft or decorative discipline limits its strategic potential in organizations.
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An effective design practice in large enterprises acts as a sensing and responding organ, helping institutions test assumptions and adapt quickly.
Notable Quotes
"Our appliances are attacking us somehow and bringing down major parts of our infrastructure."
"VUCA stands for volatility, uncertainty, complexity, and ambiguity."
"Designers set out to resolve ill-defined problems using abductive thinking — making things that we know are kind of wrong to test solutions."
"Design is a third way of knowing, different from science and humanities, involving making and artifice."
"The challenge for us is how might we act more skillfully under conditions of VUCA."
"Co-creation brings other stakeholders into the design process, not just for requirements but to actually do the design work."
"MacGuffins are design artifacts that catalyze collaboration and new ways of working rather than being valuable in themselves."
"Language itself can be a powerful design object, shaping social roles and organizational interactions."
"Design governance needs to be part of the governance of the entire organization, not segregated to design teams."
"Design thinking has helped raise awareness but often lacks the depth of design practice which requires dedicated craft."
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