The best way to deal with uncertainty is to embrace the fact that it’s here to stay indefinitely (unless AI becomes smart enough to predict the future!). Leaders should consider reevaluating their current operating models, in light of this uncertainty. If you haven’t yet, scenario planning is a practice you may want to start incorporating into your strategic approach.
If you start planning for future scenarios now, you’ll be better equipped to deal with them when they eventually arrive. We can’t predict the future, but we can make ourselves future-proof.
There’s a 70% chance of global recession in the next 12 months as central banks unleash more pain in the form of higher interest rates to combat inflation, now skirting close to double digits.
It’s never been more important for leaders navigating uncertainty to sharpen their approach to managing volatility and cost reduction. While an economic downturn is never guaranteed, leaders need a strong resilience strategy in order to evaluate trade-offs and successfully lead.
Approach to Organisational Resilience Strategy
An organisational resilience strategy can provide a competitive advantage by enabling leaders to react quickly and decisively — because a situation has been thought through and actions documented, no one has to scramble when in the midst of a crisis.
An organisational resilience strategy also gives executives and boards of directors a framework to make non-emergency decisions more effectively by providing insight into plans, budgets and forecasts and painting a clearer picture of key drivers for business growth and the potential impact of future events.
6 Steps: Build Organisational Resilience Strategy
More resilient organisations can anticipate and respond to threats and opportunities, arising from sudden or gradual changes in their internal and external context. The behaviour of leadership is a key contributor to how an organisation implements its organisational resilience strategies and is rooted in its understanding of itself and its relationship with others. Top management must demonstrate responsibility for the governance and accountability of the organisation’s resilience capability.
1. Strengthen Identity
People long to belong, and they want to be part of something bigger than themselves. Organisations that create a strong identity that meets employees’ needs for affiliation, social cohesion, purpose, and meaning will be more resilient.
2. Improve Culture
Use culture as your “secret spice”. Its main ingredients are specific and observable behaviors that employees at all levels adhere to. The organisation’s culture provides a sense of identity to its people. It promotes a sense of commitment and reinforces the values of the organisation.
The behaviour of an organisation’s leadership is a key contributor to how an organisation implements its organisational resilience strategic objectives and is rooted in its understanding of itself and its relationship with others.
3. Build for Speed and Agility
Operating models need to be fast, nimble, and frictionless to create ways of working that foster agility and simplicity. They need to enable a network of empowered, dynamic teams to find pockets of value, including at the company’s “edges” where employees are closest to customers.
4. Build a More Resilient Workforce
Organisational resilience is enhanced when knowledge is widely shared as appropriate and applied and is recognised as a critical resource of the organisation. Treat talent as scarcer than capital – nurturing and retaining talent whenever possible.
5. Use Data to Empower Decisions
The organisation understands that data IS the business. Data should continually empower decisions and the value agenda. The organisation uses predictive analytics and performance management to operate agilely.
6. Increase Preparedness and Manage Risk
The organisation implements systems to anticipate, plan, and respond to changing circumstances. It develops and allocates resources such as people, premises, processes, technology, finance, and information to address vulnerabilities, providing the ability to adapt to changing circumstances.
No two resilience journeys are the same, with each path forward individually based on region and industry, so Gestaldt’s business resilience consulting experts help leaders recognise their starting points and guide them each step of the way.
Gestaldt’s approach also helps leaders chart their course for the future and build a more resilient enterprise, no matter their starting point. We draw on our strategic heritage to help organisations reinforce their positions and create functional advantage, even in moments of uncertainty.