Why is Resilience Important for Today's Organizations?
Because the corporate environment is growing more dynamic and unpredictable, resilience is becoming increasingly critical. This is the outcome of several long-term dynamics that are straining and stressing business systems, ranging from accelerated technical evolution to increased global economic interconnection to broader challenges like rising inequality, species depletion, and climate change.
The coronavirus crisis is the perfect example of system stress. The risk of cross-species diseases has increased as humans have encroached on the natural environment. Dense urban populations aided the disease's rapid initial spread. Its global expansion was aided by international travel. Long-distance global supply systems have collapsed. Economic activity has been severely affected, exacerbating disparities and social tensions.
COVID-19 isn't an isolated incident. SARS, MERS, and Ebola all foreshadowed an impending worldwide pandemic, and there is every reason to believe that more will follow. Moreover, the same conditions are favorable for the propagation of a cyber-virus and economic instability caused by climate change or social conflicts.
To recover from a catastrophe, meticulous planning is required ahead of time: investment, effort, and a culture that values foresight and flexibility. Resilient firms are not a luxury any longer. Building resilience needs to be embedded within the strategy and culture of organizations that want to survive through the uncertain and unknown future. Coronavirus is not and will not be the last crisis.
1 HBR, 12 Mar 2021, Five Traits of Resilient Organizations, Accessed 8 Mar 2022, https://hbr.org/sponsored/2021/03/5-traits-of-resilient-organizations
HBR, 2 Jul 2020, Martin Reeves and Kevin Whitaker, A Guide to Building a More Resilient Business, Accessed 8 Mar 2022, https://hbr.org/2020/07/a-guide-to-building-a-more-resilient-business
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