Resilience: Increase Your Ability to Bounce Back

What is resilience in a business context?

Resilience - or resilience - is the ability to "bounce back" after a crisis or gradual negative changes internally and externally. It can be through defensive trying to avoid or minimize negative events. Or progressively / offensively by trying to achieve positive results through strategically based efforts. To be resilient, you must be able to act quickly and efficiently - with the right strategy that is adapted to the new reality.

Why is it especially important during a crisis?

During the Corona saga we have experienced that companies and other organizations have had to navigate a markedly different reality. For example, as a restaurant, you have had to deal with the fact that all of a sudden you are no longer allowed to have seated guests. As a company, you should be able to operate in a world where employees were scattered for all to see without warning. For those organizations where it has not been possible to adapt to the changed conditions, this has unfortunately meant a significant decline or closure.

Organizations with access to lots of capital have been able to cope - so far - with less organizational resilience, whereas it has been vital for other players to be able to act quickly, efficiently, and in line with the new conditions. And those who achieve resilience by primarily having plenty of ducats on the bottom of the coffin may have fewer ducats the day after tomorrow. In the long run, the agile and more resilient actors will generally win.


How to become resilient?

It is not about being ready for all conceivable challenges down to the smallest comma, but instead about being flexible. Here, it makes sense to prepare the organization to always be prepared through the design of dynamic, active contingency plans that are sufficiently general, and to incorporate handling of deviations and minor incidents so that one is best prepared for a possible major crisis.

In addition to contingency plans, fast and efficient communication helps you reach the right people in the field - and get the necessary information back. Both to and from employees, customers, suppliers, and other stakeholders. In the beginning and as development occurs. This supports management and the board in making the necessary decisions at a speed that may need to be faster than usual. The more well-founded and fast that the decisions can be made and implemented, the better. Communication channels should also support the collection of more extraordinary and specific situation-specific information. - Perhaps the commonly collected figures are neither relevant nor correct in a crisis.


How exactly are you going to increase your resilience?

Have the communication channels ready. For some organizations, it will make sense to test the communication pathways frequently. Both to test the technique but also to practice reporting incidents in the field. We have customers who often hold exercises precisely for this reason. At the same time, you can thus measure compliance - whether there are any places in the organization where you have to take action in relation to crisis preparedness.

Make sure you have backup solutions in mind. It makes sense to periodically make sure that you have other suppliers in the binoculars, for example, if something should now happen to your existing suppliers, such as being hit by an earthquake. So be sure to find perhaps less good suppliers who in turn operate under other conditions, such as geographically and institutionally.

Look at what makes sense in your situation based on probability and consequence. And at the same time ignore the risks that are far too unlikely and irrelevant.

 


Read about Carlsberg's experiences of being able to react quickly to crises and other serious incidents under cases.