Displaying items by tag: Recovery

In the face of a crisis or economic slowdown, resilient organizations ride out uncertainty instead of being overpowered by it...

How Did Business Create Resilience During & After The 2008 Recession?

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In 2008 we went through a worldwide recession and companies that implemented the strategy of resilience came back faster and even leaped ahead of their competition. Now Covid has thrust us into an equally challenging time. Find out how adopting resilience can help you though these unprecedented times.quickly.  access the resilience resource centre »

Source: McKinsey & Company

Companies can structure their organizations and decision processes for resilience by embracing six principles of long-lasting systems:

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• Redundancy buffers systems against unexpected shocks, albeit at the expense of short-term efficiency. It can be created by duplicating elements (such as by having multiple factories that produce the same product) or by having different elements that achieve the same end (functional redundancy).

• Diversity of responses to a new stress helps ensure that systems do not fail catastrophically, albeit at the expense of the efficiencies obtainable through standardization. In business, this requires not only employing people from different backgrounds and with different cognitive profiles but also creating an environment that fosters multiple ways of thinking and doing things.

• Modularity allows individual elements to fail without the whole system collapsing, albeit while forgoing the efficiency of a tightly integrated organizational design. Because a modular organization can be divided into smaller chunks with well-defined interfaces, it is also more understandable and can be rewired more rapidly during a crisis.

• Adaptability is the ability to evolve through trial and error. It requires a certain level of variance or diversity, obtained through natural or planned experimentation, in combination with an iterative selection mechanism to scale up the ideas that work best. Processes and structures in adaptive organizations are designed for flexibility and learning rather than stability and minimal variance.

• Prudence involves operating on the precautionary principle that if something could plausibly happen, it eventually will. This calls for developing contingency plans and stress tests for plausible risks with significant consequences — which can be envisioned and prepared for through scenario planning, war games, monitoring early warning signals, analyzing system vulnerabilities, and other techniques.

• Embeddedness is the alignment of a company’s goals and activities with those of broader systems. It is critical to long-term success because companies are embedded in supply chains, business ecosystems, economies, societies, and natural ecosystems. Articulating a purpose — the way in which a corporation aims to serve important societal needs — is a good way to ensure that the company does not find itself in opposition to society and inviting resistance, restriction, and sanction.  read on »

Source: Harvard Business Review / Written By: Martin Reeves & Kevin Whitaker

The essence of resilient leadership: Business recovery from COVID

Resilient leaders shift organizational mindsets, navigate uncertainties, and invest in building trust in order to develop a recovery playbook that serves as a solid foundation for the post-COVID future.

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Whereas organizations used to describe agile change as “fixing the plane while it flies,” the COVID-19 pandemic has rewritten the rules of upheaval in modern times. Those of us leading any organization—from corporations to institutions to our own families—are not fixing the plane in midair, we’re building it. Times like these need leaders who are resilient in the face of such dramatic uncertainties.

The first article in this series described the essential foundations leaders need in order to effectively navigate through the crisis.1 Resilient leaders are defined first by five essential qualities of who they are, and then by what they do across three critical time frames: Respond, Recover, and Thrive.

As we progress into the Recover phase of the crisis, resilient leaders recognize and reinforce critical shifts from a “today” to a “tomorrow” mindset for their teams. They perceive how major COVID-19-related market and societal shifts have caused substantial uncertainties that need to be navigated—and seized as an opportunity to grow and change. Amid these uncertainties, resilient leadership requires even greater followership, which must be nurtured and catalyzed by building greater trust. And resilient leaders start by anticipating what success looks like at the end of recovery—how their business will thrive in the long term—and then guide their teams to develop an outcomes-based set of agile sprints to get there.

Resilience is not a destination; it is a way of being. A “resilient organization” is not one that is simply able to return to where it left off before the crisis. Rather, the truly resilient organization is one that has transformed, having built the attitudes, beliefs, agility, and structures into its DNA that enable it to not just recover to where it was, but catapult forward—quickly.  read on »

Source: Deloitte Insights / Written By: Bill Marquard