Business leaders worldwide have experienced unpredictability and interconnectedness in the past few years. Several disastrous situations, such as the global pandemic and the Russia-Ukraine war, have affected economics, geopolitics, energy, trade, and financial stability worldwide at a considerable level. As a result, business markets, credibility, supply chains, and employee work routines have experienced colossal uncertainty in the past few months.
In all such scenarios, it is not surprising that resilience has become one of the top agendas for business leaders. Resilience is the ability to thrive in changing systems. Recent surveys show that businesses with resilient survival strategies had better outcomes during the Covid-19 pandemic. Many of them even emerged as winners due to their well-defined structure. But history shows several pieces of evidence where companies fail to maintain resilience after crises. Only a few companies permanently code the lessons and plans backed by resilience into their system.
The experts at Global Investment Strategies advise people to work towards resilience to be prepared to handle future shocks, adverse effects of climate change, cybersecurity-related threats, pandemics, industry-specific disruptions, geopolitical conflicts, and several unpredictable challenges. Below we have listed a few tips to develop this practice for a stable and progressive experience in the highly volatile world.
Adopt the expanded view
It is essential to consider resilience as an operational imperative and a strategic opportunity. Therefore, one needs to build resilience in business operations by assessing the impact of reducing functionality and utilizing a tailored technique to address it.
Address the trade-off
Leaders must investigate the trade-off between their organization’s short-term efficiency and long-term resilience. Studies reveal that poor resilience management can lead to corporate failure, whereas poor efficiency can cause a lack of competitiveness. Leaders cannot calibrate and justify the efforts until the hidden challenges are addressed.
Shift the mindset
Crises in organizations are unavoidable, but leaders must stay prepared for these disruptions and be managed to avail themselves of a competitive opportunity. The thoughtful shifts in the mindset will help companies to develop future-oriented and proactive growth strategies. These efforts can further help them to shape the landscape post-crisis.
Businesses need to introduce relevant metrics that can measure responsiveness and flexibility regularly. It is essential to keep an eye on portfolio fluidity, recovery rates, and speed of mobilization. These aspects can soon help you achieve enhanced growth potential with better performance optimization.
Improve leadership behaviors
Another critical aspect of resilience is maintaining relevant cultural shifts in leadership goals. It is essential to start with a fresh perspective to design workplace culture, short-run efficiency, backward-looking metrics, and misaligned incentives. Leaders need to reinforce a relevant change by organizing campaigns to institutionalize learnings from resilience to prepare for future crises.
These simple efforts towards resilience can help you to improve the credibility and reputation of the business.