I talked about the volatility, uncertainty, and complexity in previous posts. In this post I discuss ambiguity, the fourth element of VUCA. In my executive coaching practice, I have encountered business leaders who have varying degrees of comfort with ambiguity. When things are ambiguous, they are not clear. Sometimes the situation itself is unclear. Sometimes the problem and/or solution are both unclear. Often, the very business environment itself is ambiguous. When leaders are not clear about what a particular event or situation means, they become frozen and cannot make decisions. For instance, in our current financial environment, we know that the Federal government has released funds to banks. What is unclear right now is how those funds will be disbursed, or if they will be disbursed, the level of risk, and if the stimulus packages will even work.