What is organisational resilience and why is it important?
Updated: Jul 7
Resilience is described as an organisation’s ability to respond to a crisis. Having strong organisational resilience can help not only persevere in the face of adversity but also adapt, rebound and prosper.
The pandemic has forced many organisations to become more efficient, to rethink their product, business and operating models, driving them to become more agile, all of which could potentially drive higher productivity growth.
This rapid change has resulted in some decision making without all the facts. Organisations that do not have enough time or information to make difficult decisions may affect both employees and the business itself. Leaders have had to rapidly adapt their business models to survive during extremely uncertain conditions.
A typical crisis unfolds across three phases: respond, during which the company deals with the present situation and manages continuity; recover, when a company learns and emerges stronger; and thrive, where the company prepares for the “next normal”. The challenge lies in being able to nimbly consider all three phases concurrently and allocate resources accordingly.
Organisations are always facing disruption, but the unrelenting challenges of 2020 certainly stress-tested company’s resilience and uncertainty readiness. However, it’s more than just survival. True resilience is about uncovering value and dynamically shifting business focus to address the market.
As we emerge from the pandemic, some organisations will find themselves at different stages of the crisis, some trying to make it to next week, while others are already looking long term. An organisation designed for speed and agility will see powerful outcomes, including greater customer responsiveness, enhanced capabilities, and better performance, in terms of cost-efficiency, revenues, and return on capital.
This will involve fostering a new, dynamic environment that moves with a clear focus on mission, heightened team focus, that connect the contributions and well-being of workers with the organisation’s higher purpose. Organisations should find ways to capture the energy and rhythm of recovery, regularly review progress and instil it at all levels.
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Our next blog will explore five tactics that organisations need to take when responding to a crisis, keep an eye on our social channels where we’ll be publishing details.