Covid-19 revealed a key issue-fragility. Today, the world is more interconnected than ever before, and this interconnectedness can lead to negative outcomes. Business leaders are now taking steps to provide resilience to their corporate cultures. Because of the pandemic, executives are reworking their business models to become more sustainable and resilient.
The Value of Resilience
Business is a field that requires high resilience. Businesses that are resilient can overcome challenges and emerge stronger. They recover quickly from incidents and bounce back from bad news.
Traditional management approaches make it exceedingly challenging for a corporation to implement and measure resilience. This is because companies are designed primarily to maximize shareholder value. Consequently, they have fewer incentives to manage risk and uncertainty inherent in other business activities. Because of the recent financial crisis, many people are questioning whether this approach is sustainable.
Redesigning Corporate Efficiency
Technology has made business organizations more efficient, more productive, and more profitable. These gains in efficiency and productivity come at a cost, however — a loss of resilience.
There are still many organizations that have not realized how disruptive an event can be to their business continuity. They don’t understand that a company’s ability to recover from disruption is like its ability to survive, and too many companies are not prepared for change.
In the digital age, enterprises need to do the following things to build a more resilient business:
- They need to build in more redundancy.
- They need to increase the diversity of constructive responses.
- They need to introduce more modularity in business infrastructure to prevent the entire system from collapsing.
Preparing for an Uncertain Future
Businesses can never predict everything that might happen in the future. Every company must be prepared for an uncertain future in a time of global changes.
A resilient response to adversity is adaptive. It can be defined as a pragmatic set of attitudes, beliefs, and behaviors that promote personal growth and maintain mental health under stress or adversity.
Resilience is key now more than ever. With social, economic, environmental crises occurring almost every day, it’s no wonder that many companies are struggling to keep up. But it’s time for corporations to step up and face these challenges head-on