The novel corona virus has put global business sectors into a great crisis. With major sectors slowing down, the global economy is under the threat of an impending recession as recently conveyed by the International Monetary Fund. What is the current situation of the Indian startup ecosystem? MSA Kumar, former president of TiE Kerala Group, explains.
Black Swan events
Currently, the world is enduring a crisis, commonly referred to as ‘Black Swan’ event. The ‘Black Swan’ theory is a metaphor that describes events that come as a surprise. COVID- 19 is such an event, says MSA Kumar. Black Swan events can be defined like this: they are unprecedented, extremely rare and have a severe effect.
Behavioral & Business aspects
Following the coronavirus, we are in a high ‘VUCA’ intensity situation, says MSA Kumar. VUCA expands as volatility, uncertainty, complexity and ambiguity. Volatility can be handled with a compelling vision. The central and state governments’ vision of feeding the poor during the lockdown period is such a move. Uncertainty, like the term suggests, is a situation where people are unsure of what would happen next. One way to counter uncertainty is to assess the situation thoroughly. A proper understanding of the current situation will give a clear picture of the future. In fact, a deep scientific and economic assessment will help in overcoming the current crisis.
The complexity of the situation determines the gravity of negative impact. To deal with the complexity, one should react with clarity. For example, clarity is important while taking steps like locking down a country of 130 crore people. Such measures cannot be carried out in one shot. Finally, ambiguity has to be fought with agility or quick thinking. Thoughtful and fast decision making is necessary in these times. When the lockdown was announced, many decisions needed to be taken at once. Industries had to adapt quickly to the situation.
There are a few sites that explain how to be ready to face this situation. An instance is the VUCA stress test checklist at www.phoenixstrategicperformance.com
Enter there, create an account and find out how to be prepared to face the situation.
