{"id":7707,"date":"2017-12-18T18:11:31","date_gmt":"2017-12-18T17:11:31","guid":{"rendered":"http:\/\/www.ie.edu\/exponential-learning\/blog\/?p=7707"},"modified":"2018-11-06T15:07:43","modified_gmt":"2018-11-06T14:07:43","slug":"vuca-and-brexit","status":"publish","type":"post","link":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/business\/vuca-and-brexit\/","title":{"rendered":"VUCA and Brexit"},"content":{"rendered":"<h4>We know Brexit\u2019s a major event on the world stage, but here\u2019s some food for thought<\/h4>\n<p><span style=\"font-weight: 400;\">Brexit is poised to make sweeping changes to the British economy and to the way of life of British people. Where that could most impact the day-to-day of the British consumer is <strong>at the cash register of grocery stores across the UK in the form of fresh produce<\/strong>. Why? A Bloomberg video report <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=IJbnG6KDaF0\" target=\"_blank\" rel=\"noopener\"><b>puts it bluntly<\/b><\/a><span style=\"font-weight: 400;\">: either there&#8217;s labor to pick the crops, or there are no crops. <strong>If there aren&#8217;t enough migrant workers to meet the demands to pick the supply, as one British farmer they interviewed put it, &#8220;We will have to start importing large quantities of fresh food.&#8221;<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<h4>Before we go any further, what\u2019s VUCA anyway?<\/h4>\n<p><span style=\"font-weight: 400;\">The term VUCA first appeared in 1998 in a <\/span><a href=\"https:\/\/www.forbes.com\/sites\/hbsworkingknowledge\/2017\/02\/17\/vuca-2-0-a-strategy-for-steady-leadership-in-an-unsteady-world\/#42dbab4a13d8\" target=\"_blank\" rel=\"noopener\"><b>report<\/b><\/a><span style=\"font-weight: 400;\"> from the United States War College. The report, aimed at training military officers for the 21<\/span><span style=\"font-weight: 400;\">st<\/span><span style=\"font-weight: 400;\"> Century, included the acronym we know and love:<\/span><\/p>\n<p>&nbsp;<\/p>\n<blockquote><p><b>V<\/b><span style=\"font-weight: 400;\">olatility<\/span><\/p>\n<p><b>U<\/b><span style=\"font-weight: 400;\">ncertainty<\/span><\/p>\n<p><b>C<\/b><span style=\"font-weight: 400;\">omplexity<\/span><\/p>\n<p><b>A<\/b><span style=\"font-weight: 400;\">mbiguity<\/span><\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">However, there\u2019s more to VUCA that business leaders of today and the future need to consider as they steadfastly guide their teams, departments, and firms. In a recent article in Forbes, Bill George proposed <\/span><b>VUCA 2.0<\/b><span style=\"font-weight: 400;\">, which takes this acronym to update it to emphasize the leadership traits that managers<\/span><a href=\"https:\/\/www.ie.edu\/lifelong-learning\/blog\/bootcamps\/ie-data-science-bootcamp-demo-day-2017\/\" target=\"_blank\" rel=\"noopener\"><b> need to take into consideration to deal with the<\/b><\/a> <span style=\"font-weight: 400;\">\u201c\u2026volume of change we are seeing.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">George believes that the VUCA manager needs to possess the following <\/span><a href=\"https:\/\/www.forbes.com\/sites\/hbsworkingknowledge\/2017\/02\/17\/vuca-2-0-a-strategy-for-steady-leadership-in-an-unsteady-world\/#42dbab4a13d8\" target=\"_blank\" rel=\"noopener\"><b>traits<\/b><\/a><span style=\"font-weight: 400;\">:<\/span><\/p>\n<blockquote><p><b>V<\/b><span style=\"font-weight: 400;\">ision<\/span><\/p>\n<p><b>U<\/b><span style=\"font-weight: 400;\">nderstanding<\/span><\/p>\n<p><b>C<\/b><span style=\"font-weight: 400;\">ourage<\/span><\/p>\n<p><b>A<\/b><span style=\"font-weight: 400;\">daptability<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">Why these four? According to <\/span><a href=\"https:\/\/www.forbes.com\/sites\/hbsworkingknowledge\/2017\/02\/17\/vuca-2-0-a-strategy-for-steady-leadership-in-an-unsteady-world\/#42dbab4a13d8\" target=\"_blank\" rel=\"noopener\"><b>George<\/b><\/a><span style=\"font-weight: 400;\">, \u201c<\/span><span style=\"font-weight: 400;\">[w]ith external volatility the prevalent characteristic these days, business leaders who stay focused on their mission and values and have the courage to deploy bold strategies building on their strengths will be the winners.\u201d And how about those that don\u2019t stick with their core principles nor adapt? <\/span><a href=\"https:\/\/www.forbes.com\/sites\/hbsworkingknowledge\/2017\/02\/17\/vuca-2-0-a-strategy-for-steady-leadership-in-an-unsteady-world\/#42dbab4a13d8\" target=\"_blank\" rel=\"noopener\"><b>They<\/b><\/a> <span style=\"font-weight: 400;\">\u201c\u2026will wind up the losers.\u201d <\/span><\/p>\n<p>&nbsp;<\/p>\n<h4>What does agriculture have to do with VUCA?<\/h4>\n<p><span style=\"font-weight: 400;\">While Britain&#8217;s farming sector only constitutes one percent of the United Kingdom&#8217;s economy, Brexit could be more devastating for British agriculture than for other industries. The <\/span><a href=\"https:\/\/www.ft.com\/content\/1301d1be-b995-11e7-8c12-5661783e5589\" target=\"_blank\" rel=\"noopener\"><b><i>Financial Times<\/i><\/b><\/a> <span style=\"font-weight: 400;\">tells us that \u00a0this segment of the British economy, like all the country&#8217;s industries, needs to make a decision &#8220;\u2026whether to concentrate on retaining ties with Europe or to focus on markets farther afield, as many Brexiters urge.\u201d <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Plus, the dangers of the UK not reaching a divorce deal with the European Union could be much more adversely consequential for this sector <\/span><a href=\"https:\/\/www.ft.com\/content\/1301d1be-b995-11e7-8c12-5661783e5589\" target=\"_blank\" rel=\"noopener\"><b>because<\/b><\/a><span style=\"font-weight: 400;\"> \u201c<strong>[i]n the absence of a transition, the alternative of a so-called hard Brexit when Britain leaves the EU in March 2019 could be more <\/strong><\/span><a href=\"https:\/\/www.ft.com\/content\/cd9323b8-ad0e-11e7-beba-5521c713abf4\" target=\"_blank\" rel=\"noopener\"><b>dramatic<\/b><\/a><span style=\"font-weight: 400;\"><strong> for agriculture than for many other sectors of the economy<\/strong>.\u201d <\/span><\/p>\n<p>&nbsp;<\/p>\n<h4>Why could this be so devastating?<\/h4>\n<p><span style=\"font-weight: 400;\">There are two principle realities to this sector that show how British agriculture has dramatically benefited from unfettered trade with the EU. First is the <\/span><a href=\"https:\/\/www.ft.com\/content\/1301d1be-b995-11e7-8c12-5661783e5589\" target=\"_blank\" rel=\"noopener\"><b>fact<\/b><\/a><span style=\"font-weight: 400;\"> that out of the annual \u00a313.8 billion in British food exports, seventy percent goes to European Union countries. When we look at the <\/span><a href=\"https:\/\/www.ft.com\/content\/1301d1be-b995-11e7-8c12-5661783e5589\"><b>imports side<\/b><\/a> <span style=\"font-weight: 400;\">of the equation, <strong>nearly eighty percent of the \u00a332.6 billion in food imports entering the UK are from the EU<\/strong>. Thus, <\/span><a href=\"https:\/\/www.ft.com\/content\/1301d1be-b995-11e7-8c12-5661783e5589\" target=\"_blank\" rel=\"noopener\"><b>while many farmers in the UK voted for Brexit<\/b><\/a><span style=\"font-weight: 400;\"> due to their frustrations, there are deep ties on both sides of the English Channel. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Not only that, the consequence on the labor side is already being felt even in this pre-Brexit grace period: the sector is already seeing <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=IJbnG6KDaF0\" target=\"_blank\" rel=\"noopener\"><b>labor shortages<\/b><\/a><span style=\"font-weight: 400;\">. In September of 2017, the <\/span><a href=\"https:\/\/www.ft.com\/content\/9dc58ad8-c93b-11e7-aa33-c63fdc9b8c6c\" target=\"_blank\" rel=\"noopener\"><b>National Farmers\u2019 Union\u2019s monthly labor survey<\/b><\/a><span style=\"font-weight: 400;\"> reported a 29% seasonal worker shortfall, up from a 17% shortage in May of that same year. <\/span><i><span style=\"font-weight: 400;\">Why a lack? <\/span><\/i><span style=\"font-weight: 400;\">While some farmers have received hate mail claiming that they are taking away jobs from <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=IJbnG6KDaF0\" target=\"_blank\" rel=\"noopener\"><b>domestic workers<\/b><span style=\"font-weight: 400;\">,<\/span><\/a> <span style=\"font-weight: 400;\">the truth is that <\/span><a href=\"https:\/\/www.ft.com\/content\/9dc58ad8-c93b-11e7-aa33-c63fdc9b8c6c\" target=\"_blank\" rel=\"noopener\"><b>farmers cannot find enough local workers<\/b><\/a><span style=\"font-weight: 400;\"> \u201c\u2026because of low unemployment and that those looking for work want permanent contracts, not seasonal work.\u201d Currently, <\/span><a href=\"https:\/\/www.ft.com\/content\/9dc58ad8-c93b-11e7-aa33-c63fdc9b8c6c\" target=\"_blank\" rel=\"noopener\"><b>three-quarters<\/b><\/a><span style=\"font-weight: 400;\"> of seasonal workers in the British farming sector come from Romania and Bulgaria, two EU countries. The National Farmers Union also reported that from January to May, <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=IJbnG6KDaF0\" target=\"_blank\" rel=\"noopener\"><b>only 14<\/b><\/a> <span style=\"font-weight: 400;\">of the 13,400 seasonal farming workers recruited were British. Not only that, one of the farmers interviewed in the Bloomberg video, <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=IJbnG6KDaF0\" target=\"_blank\" rel=\"noopener\"><b>Nick Ottewell,<\/b><\/a><span style=\"font-weight: 400;\"> exclusively relies on visa-free EU labor. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The end of free movement of EU citizens to Britain <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=IJbnG6KDaF0\" target=\"_blank\" rel=\"noopener\"><b>would spell trouble<\/b><\/a><span style=\"font-weight: 400;\">. Not only were some areas like Cornwall, Herefordshire, Scotland, and Kent already unable to meet the harvest demands and left produce to rot from not having enough hands to pick it in time, but previous seasonal farming worker visa schemes did not allocate enough visas. The previous <\/span><a href=\"https:\/\/www.ft.com\/content\/9dc58ad8-c93b-11e7-aa33-c63fdc9b8c6c\" target=\"_blank\" rel=\"noopener\"><b>Seasonal Agricultural Workers Scheme<\/b><\/a><span style=\"font-weight: 400;\"> had been capped at 21,000 to go along with EU free-movement requirements, but the National Farmers Union notes that they cannot merely update that scheme that got abolished in 2012. \u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4>Farming doesn\u2019t like uncertainty<\/h4>\n<p><span style=\"font-weight: 400;\">Planning is important; the <\/span><a href=\"https:\/\/www.npr.org\/2017\/12\/10\/569412082\/this-years-christmas-tree-shortage-has-roots-in-the-recession\" target=\"_blank\" rel=\"noopener\"><b>current shortage of Christmas trees in the United States<\/b><\/a> <span style=\"font-weight: 400;\">due to less planting during the Great Recession demonstrates how economic malaise can cause problems in the future. For <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=IJbnG6KDaF0\" target=\"_blank\" rel=\"noopener\"><b>British farmers and the farm workers<\/b><\/a><span style=\"font-weight: 400;\"> themselves, they need to know at least a year in advance what the British government plans to do. The Vice President of the National Farmers Union, Guy Smith, <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=IJbnG6KDaF0\" target=\"_blank\" rel=\"noopener\"><b>puts it like this<\/b><\/a><span style=\"font-weight: 400;\">: \u201c<\/span><b>Farmers need certainty for years ahead<\/b><span style=\"font-weight: 400;\">.\u201d They don\u2019t want to have to sacrifice tons of crops because they don\u2019t have labor. <\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Otherwise, as Bloomberg titled this <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=IJbnG6KDaF0\"><b>video<\/b><\/a><span style=\"font-weight: 400;\">, food prices will skyrocket: <\/span><\/p>\n<p><iframe loading=\"lazy\" src=\"\/\/www.youtube.com\/embed\/IJbnG6KDaF0\" width=\"560\" height=\"314\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<h5>Ready to feel more confident in an era of increasing uncertainty?<\/h5>\n<p><span style=\"font-weight: 400;\">If you\u2019re ready to mold yourself into a leader prepared to take on a VUCA-filled future, you can learn more about\u00a0<\/span><a href=\"https:\/\/www.ie.edu\/exponential-learning\/high-impact-online-programs\/leadership-volatile-times\/\" target=\"_blank\" rel=\"noopener\"><b>Leadership and Strategy in the Age of Disruption<\/b><\/a><span style=\"font-weight: 400;\">\u00a0by downloading a copy of our informational booklet. If you\u2019re ready to join our next intake,\u00a0<\/span><a href=\"https:\/\/secure.ie.edu\/exedu-app\/?locale=en-US&amp;program=IEXL-ENG-LVT\" target=\"_blank\" rel=\"noopener\"><b>get started on your application<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We know Brexit\u2019s a major event on the world stage, but here\u2019s some food for thought Brexit is poised to make sweeping changes to the British<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":2,"featured_media":7693,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[377],"tags":[388],"_links":{"self":[{"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/posts\/7707"}],"collection":[{"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/comments?post=7707"}],"version-history":[{"count":3,"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/posts\/7707\/revisions"}],"predecessor-version":[{"id":8058,"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/posts\/7707\/revisions\/8058"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/media\/7693"}],"wp:attachment":[{"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/media?parent=7707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/categories?post=7707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ie.edu\/lifelong-learning\/blog\/wp-json\/wp\/v2\/tags?post=7707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}