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26 August 2020 | Story Nitha Ramnath | Photo Supplied

A VUCA environment reflects a state of the external world, or external to the leader, community, or nation, as much as it seems to reflect an internal frame of mind. The constant pressure to lead, while being uncertain about the outcomes of your decisions and even fearful of not being in control all the time, are some of the hallmarks of a VUCA world. A good way of thinking about this concept is to view it as the ‘new narrative’ – the volatility, uncertainty, complexity, and ambiguity inherent in today’s world.

Leaders in the 21st century need to steer a country securely through unparalleled, challenging, and stormy circumstances such as food insecurity, political unrest, migration and refugee issues, unemployment, divided societies and prejudice, global warming, and others. Against this introduction, it unfortunately appears as if there is an increase in VUCA problems in the 21st century, and leaders often fail in their attempts to provide solutions to these demanding circumstances. Indeed, it appears as if leaders in the 21st century are actually contributing to VUCA environments. So-called ‘state capture’ and the ‘gangster state’ in South Africa, ‘make America great again’ and ‘America first’ , the Brexit no-deal option, ‘trade wars’, and ‘the deadly coronavirus’ are examples of when leaders did not appear to solve challenges, but rather to intensify them. 

This is the backdrop against which the book, Chaos is a Gift? Leading Oneself in Uncertain and Complex Environments, has been conceptualised – indeed to debate the opportunities that exist amid this chaos. 

Three UFS women academics contributed to this book.

Dr Martha Harunavamwe (Department of Industrial Psychology) has written a chapter on resilience and agility in Zimbabwean higher education.Dr Mareve Biljohn (Department of Public Administration and Management) has written a chapter on leading the self in South Africa’s VUCA local government environments. Prof Liezel Lues (Department of Public Administration and Management) has written a chapter on South Africa’s surviving VUCA environment. She is also one of the editors of the book.

The endorsement written by Prof Petersen, reads: There are various books on leadership, but this book, in navigating today’s volatile, uncertain, complex and ambiguous (VUCA) environment, presents chaos as both an opportunity and possibility in developing ‘selfcare practices’ in leading oneself. Leaders must have the cognitive flexibility to adapt to the unknown in the midst of chaos (and a crisis). Through making sense of leadership approaches in different environments, including the business, private, academic and public sectors, as well as in conflict/post-conflict situations, the book provides a deep insight into leading oneself effectively with innovation and empathy in a VUCA environment – an excellent contribution to self-leadership. (Francis Petersen, Rector and Vice-Chancellor: Top Management, University of the Free State)

The book, published by KR Publishers, will be launched on 27 August 2020. Prof Ebben van Zyl, together with Prof Lues, are the editors of this book: Van Zyl, E, Campbell, A and Lues, L. ed. Chaos is a Gift? Leading Oneself in Uncertain and Complex Environments. Randburg: KR Publishing. ISBN: 978-1-86922-860-6

News Archive

Producers to save thousands with routine marketing strategies, says UFS researcher
2014-09-01

 

Photo: en.wikipedia.org

Using derivative markets as a marketing strategy can be complicated for farmers. The producers tend to use high risk strategies which include the selling of the crop on the cash market after harvest; whilst the high market risks require innovative strategies including the use of futures and options as traded on the South African Futures Exchange (SAFEX).

Using these innovative strategies are mostly due to a lack of interest and knowledge of the market. The purpose of the research conducted by Dr Dirk Strydom and Manfred Venter from the Department of Agricultural Economics at the University of the Free State (UFS) is to examine whether the adoption of a basic routine strategy is better than adopting no strategy at all.

The research illustrates that by using a Stochastic Efficiency with Respect to a Function (SERF) and Cumulative Distribution Function (CDF) that the use of five basic routine marketing strategies can be more rewarding. These basic strategies are:
• Put (plant time)
• Twelve-segment pricing
• Three-segment pricing
• Put (pollination)(Critical Moment in production/marketing process), and
• Pricing during pollination phase.

These strategies can be adopted by farmers without an in-depth understanding of the market and market-signals. Farmers can save as much as R1.6 million per year on a 2000ha farm with an average yield.

The results obtained from the research illustrate that each strategy is different for each crop. Very important is that the hedging strategies are better than no hedging strategy at all.

This research can also be applicable to the procurement side of the supply chain.

Maize milling firms use complex procurement strategies to procure their raw materials, or sometimes no strategy at all. In this research, basic routine price hedging strategies were analysed as part of the procurement of white maize over a ten-year period ranging from 2002–2012. Part of the pricing strategies used to procure white maize over the period of ten years were a call and min/max strategy. These strategies were compared to the baseline spot market. The data was obtained from the Johannesburg Stock Exchange’s Agricultural Products Division better known as SAFEX.

The results obtained from the research prove that by using basic routine price-hedging strategies to procure white maize, it is more beneficial to do so than by procuring from the spot market (a difference of more than R100 mil).

Thus, it can be concluded that it is not always necessary to use a complex method of sourcing white maize through SAFEX, to be efficient. By implementing a basic routine price hedging strategy year on year it can be better than procuring from the spot market.

Understanding the Maize Maze by Dr Dirk Strydom and Manfred Venter (pdf) - The Dairy Mail


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