Critical Thinking and Action
Introduction
VUCA is an acronym that means Volatility, Uncertainty, Complexity, and Ambiguity. The US military commonly used VUCA in response to the USSR collapse in the early 1990s. Today, the use of VUCA in business situations have gained significance as it is used to portray y the leadership needed in steering the business. VUCA was used in the decision-making process of numerous companies globally. One such company is Panera Bread, which successfully applied VUCA to solve its ‘Mosh Pit’ problem. Panera Bread was faced with several issues leading to customers’ dissatisfaction. Panera customers waited for over eight minutes to place an order, which resulted in a ‘mosh pit’ experience. The problem was resolved through a critical thinking framework. The CEO had to think and come up with a lasting solution critically. The framework helped the CEO develop solutions such as online orders, delivery options, technological upgrades, and delivery options. The critical thinking skills enabled the CEO to understand the organization’s capabilities and minimize its weaknesses clearly. The paper will describe the problem facing Starbucks Mobile Order and Pay and analyze how a critical thinking framework will derive solutions for the problems.
Problem
The critical thinking framework can be applied to organizations in a VUCA environment. According to CNN Business news, Starbucks had a history of long lines problems. The introduction of online payment and online orders in 2015 saw the problem shifted to the counter where the drinks are served. Starbucks customers are using the mobile order and pay app in advance, and it is now causing long order lines for the baristas. Mobile ordering has caused a huge challenge for numerous stores that feel the pressure of increased demands.
Thinking Critically
Starbucks customers’ satisfaction scores had decreased significantly, owing to the increase in customers’ wait time. An increase in wait time was brought by the company’s launch of the Mobile Order and Pay App. The launch of the mobile order and pay app caused congestion, incorrect order, and longer wait times. After deliberations, the Starbucks management made a few changes that included fixing the pick-up layout, trying new technology, increasing driving-thru lanes, and notifying customers when their orders are ready*. Starbucks’ loyalty and strong digital program is a great advantage for Starbucks. The program has ensured that the company continues to receive customers and ensure steady revenues. Besides, the coffee chain has increased pick-up shelves to reduce customers’ wait times. Starbucks has incorporated a program where baristas call out names once the orders are ready and add notifications on customers’ online orders. Starbucks management knows that return customers will only be attracted by improving customer services. Customer satisfaction should always be the guiding force in business service improvement.
Applying VUCA
VUCA (volatility, uncertainty, complexity, and ambiguity) can be seen in every area reviewing the Starbucks situation. The time lost during long wait times represents volatility, which may lead to weakened markets. Secondly, Starbucks faces uncertainty as it tries to fix its mobile order and pay application, which leads to an increase in waiting time during its launch. The organizations could be forced to make decisions out of fear or emotions. Third, the company is facing complexity since, despite launching the application to solve the wait time issues, the problem remains to affect Starbucks sales and profitability. Lastly, the organization was not prepared for online orders’ success, which shows the ambiguity of the environment.
Conclusion
We can see that both Panera Bread and Starbucks utilized a critical thinking framework to implement solutions favorable in solving their respective organization’s problem. Both the organization have embraced the forward-thinking strategy, and the ‘Mosh-Pit’ issues found a lasting solution. VUCA environment required organizations to change the way of thinking and embrace a more complex way of thinking. Organizations must keep up with the speed of change in the ever-changing business environment. For the organization to succeed, it must adopt a different way of thinking and problem-solving.