Building Resilience in Organizations: Insights from Industry Leaders

And what happened over time at Intuit is that this type of role modeling had a trickle-down effect within the organization and allowed others to show their vulnerability, making it more normal to have open conversations about people’s strengths, development opportunities, and goals. That’s a big shift.

So since CEOs can’t be everywhere all the time, how do they pick and choose carefully where they weigh in? When it comes to resilience, we see that there are a number of decisions that have disproportional weight in building resilience in a company.

I know right now, there are a lot of CEOs having conversations about tariffs going up and coming in. And in an environment with higher tariffs, how do we think about hedging what happens right now? How do we think about potentially filling up inventories?

Anticipating disruptions that can happen in the cost structure and the supply chains, we see CEOs leaning in on topics like talent rotation—the habit of rotating people across the different parts of the company. That gives individuals more experience, it challenges them more, it creates some battle scars, and it builds that resilience.

I was in a conversation with the CEO of a financial institution who basically put his thumb on the scale in exactly that way. He was meeting with an executive. The executive was building up a new area of the company. And the CEO asked a simple question. He said, “What message will it send to our organization if you build up this area solely with external hires?”

What I think is interesting about that example is the CEO taking that longer-term view, but also stopping short of saying, “I’m going to tell you what to do,” and asking a well-timed question.

Interview Insights

Laurel Moglen: Is there anything organizations commonly do that stands in the way of developing a resilient company?

Ida Kristensen: I talked about financial, organizational, and operational resilience, and I think of these as muscles that work together and partially compensate for each other.

One kind of error I sometimes see is that companies, particularly companies with a very high level of talent, can sometimes over rely on organizational resilience, and it’s a bit what I like to call a hero culture. So something disruptive happens, something the organization was unprepared for, and there might not be a lot of resilience protocols or other things built up over time. But you have a group of very intelligent and very hardworking people who get the job done.

In my experience, that can be very effective. But the issue is it’s not sustainable. It is absolutely exhausting for people to be in that role for more than a short amount of time.

On the other hand, if you equally or more evenly invest in the different types of resilience, you will see that these different elements will support each other. If you are intentionally investing a little less in one area, at least make sure you know how the other areas are compensating.

Your employees will still do heroic things at times, but they will do so feeling more supported and feeling more accomplished.

Industry Analysis

Resilience in organizations is not just a buzzword; it is a critical factor that can determine the survival and success of a company in today’s volatile business environment. As disruptions become more frequent and unpredictable, building resilience has become a strategic imperative for CEOs and business leaders.

According to a recent report by Gartner, organizations that prioritize resilience are better equipped to adapt to change, mitigate risks, and seize opportunities in the market. This is particularly crucial in industries where external factors such as regulatory changes, economic fluctuations, and technological advancements can have a significant impact on business operations.

Key Strategies for Building Resilience

Based on insights from industry leaders and research conducted by McKinsey and BCG, here are some key strategies for building resilience in organizations:

1. Develop a culture of openness and vulnerability: Encourage leaders to role model vulnerability and create a safe space for employees to have open conversations about their strengths, development opportunities, and goals.
2. Invest in talent rotation: Rotate employees across different parts of the organization to provide them with diverse experiences, challenge them, and build their resilience.
3. Balance organizational, financial, and operational resilience: Avoid over-reliance on one type of resilience and ensure that all three elements work together to support each other.
4. Anticipate disruptions: Stay ahead of potential disruptions in the cost structure and supply chains by developing contingency plans and hedging strategies.
5. Empower decision-making: Encourage leaders to ask thought-provoking questions that challenge the status quo and foster a culture of innovation and adaptability.

Market Trends

In today’s rapidly changing business landscape, organizations are facing a multitude of challenges that require them to be agile, flexible, and resilient. From geopolitical uncertainties to technological disruptions, companies must be prepared to navigate the complexities of the global market.

One emerging trend in building resilience is the focus on digital transformation. By leveraging technology and data analytics, organizations can enhance their ability to anticipate risks, optimize operations, and respond quickly to changing market conditions.

FAQ

Q: How can organizations measure their resilience?

A: Organizations can measure their resilience by conducting regular assessments of their risk management processes, business continuity plans, and crisis response capabilities. By analyzing key performance indicators and benchmarking against industry standards, companies can identify areas for improvement and strengthen their resilience.

Q: What role do employees play in building resilience?

A: Employees are critical stakeholders in building resilience as they are the ones who execute the strategies and processes put in place by leadership. Engaging employees, providing them with the necessary training and resources, and empowering them to make decisions can enhance the overall resilience of an organization.

Conclusion

In conclusion, building resilience in organizations is a multifaceted process that requires a strategic and holistic approach. By leveraging insights from industry leaders, adopting best practices, and staying ahead of market trends, companies can enhance their ability to adapt, innovate, and thrive in today’s dynamic business environment.

CEOs and business leaders must prioritize resilience as a core competency and invest in the necessary resources, tools, and strategies to build a resilient organization that can withstand the challenges of the future.