The VUCA approach has also forecast today’s complexity. Everything seems more complicated to our clients, whether they are trying to figure out their newly updated phones, effectively use Zoom videoconferencing or other meeting applications, determine what places they are physically allowed into, or determine whether they will still have a place in a changing workforce. There are an increasing number of things people have to think about and analyze as they make decisions.
The ambiguity part of the model helps us deal with the fact that it’s getting harder and harder to sort out what’s right and wrong. The black and white world that many of our clients grew up in doesn’t seem to exist anymore, and that adds to their stress and anxiety.
Everyone deals with the new reality with greater and lesser success. Some people may in fact feel stable in their health, income or relationships. Others may have adopted the new technology with confidence. The goal is to highlight how people are thinking and feeling and then help them develop strategies to cope.
I’m not suggesting you call all your clients and ask them if they are familiar with VUCA and launch into a dissertation on it. I think it’s something that can be put into a blog, newsletter or podcast and then used as a reference point for further discussions.
In addition to laying out the problems clients may be facing, advisors will also want to provide some strategies for dealing with them. One thing advisors can do to help their clients cope with volatility is force them to keep their values in mind. This starts by asking a client to write down their top five values, which ought to be the basis of any decisions they make. They might be losing track of those values in times of turmoil. But when their decisions support their values, it feels good to them and instills confidence.
Additionally, advisors should ask clients to look ahead at best-case scenarios, which will offer some stability in their thinking and future goals.
To deal with uncertain times and time frames, clients must focus on what they know and can control—namely, their attitude and personal well-being. By being open-minded and flexible, by focusing on keeping their bodies and minds healthy, the clients will find that the uncertainty takes a back seat because they are giving less time and attention to it.
It seems tough to tackle or eliminate the world’s complexity. That’s why clients need to look at adding people and resources to their teams. They may need to talk to a therapist to help process things, find a personal trainer or nutritionist to help them get healthy, or join an online club that meets regularly to eliminate boredom. By adding people to support and guide them, they won’t have to figure out all the moving parts on their own.
In our ambiguous world, many competing ideas and opinions can skew a client’s thoughts and feelings, and that means they can’t take things at face value. They need to be lifelong learners and identify places and people (like you the advisor) they can turn to when they need to re-center their moral compass. This includes being open to new ideas and exploring emerging topics.
The idea of VUCA won’t necessarily be used by game developers to create that next virtual reality game, but advisors can use the topic to help clients deal with our rapidly evolving and ever-changing world. It will not only help them understand the way they are thinking and feeling, but also get them back on track to make the most of their time and life in retirement.
Robert Laura is a best-selling author, nationally syndicated columnist, and president of Wealth & Wellness Group. He is a seasoned conference speaker, corporate trainer, and pioneer in “The New Era of Retirement,” which focuses on the non-financial aspects of life after work. He can be reached at [email protected].