Building Resilience In An Age Of Disruption

Laurent Philonenko is the CEO of Servion Global Solutions, a leader in customer experience and contact centers.

The defining question of this decade is clear: How can business leaders build a resilient organization that delivers on core capabilities? Whether you are in a large company or a startup, you face (or will face) unexpected challenges. Opportunities will always come with risks — your market could change, a competitor could lure your team, your product might encounter a glitch, a large customer might defect or your access to capital might reduce. These risks (on top of the disruptions of Covid-19, inflation and supply chain, to name a few) should have business leaders of upcoming or established companies thinking differently.

There is no one answer to this question. Every company is different and will require its unique approach. However, some general tips can help any business leader build resilience.

Identify your core capabilities and invest in them.

What does your organization do best? Customer service? Logistics? Innovation? Sales? Figure out your organization’s core capabilities and shift your business strategy to focus on them. Netflix, for example, competes on its core capabilities of content creation and delivery (a.k.a. streaming, disrupting the media and entertainment industry). Amazon thrives on its massive product roster, customer service and fast shipping. Your organization’s core capabilities are what your customers truly value. Invest accordingly, and you can sustain those valued strengths and build resilience.

Create redundancies in critical areas of your business.

Have depth in people and robust processes in place so that if one fails, another can step in and take over seamlessly. For example, if you rely heavily on IT systems for day-to-day operations, make sure you have backup systems and continuity plans in place in case of an outage or cyberattack. Ensure that leaders are ready to take on other roles on short notice. Continuing to perform critical tasks while in degraded mode is vital. Doing this can allow you to continue operations even if something goes wrong with one aspect of your business.

Be prepared for change and hard decisions.

Resilience is just as much about thinking ahead as it is about in-the-moment response and recovery. Preparation is crucial. Here are some things to keep in mind.

• Think short and long term. According to a 2021 study conducted by Deloitte: “More than 85% of CXOs whose organizations successfully balance addressing short- and long-term priorities felt they had pivoted very effectively to adapt to the events of 2020, whereas fewer than half of organizations without that balance felt the same.”

• Focus on risk management. Only 26% of companies surveyed by Deloitte said they had a process in place pre-Covid-19 for assessing whether cash reserves could withstand unexpected market events. Make sure you have protocols in place for dealing with unforeseen disruptions or crises and don’t forget that money becomes harder to get when you badly need it.

• Adaptability is key. Organizations that are flexible from a culture and technology standpoint can respond quickly when things don’t go as planned to soften the impacts of disruption. For example, companies that supported versatile ways of working pre-Covid-19 could easily navigate sudden remote work mandates and redeploy workers to different roles depending on needs.

• Trying new things can help you stay ahead of the curve while challenging conventional norms. For example, during the pandemic, we saw dating platforms offer video dating for customers to continue using their platforms during social distancing. Experimenting with new offerings quickly and safely requires flexible and composable technology.

• Act fast and with confidence. As business magnate Ross Perot famously said: “If you see a snake, just kill it—don’t appoint a committee on snakes.” Be prepared to make decisions and execute fast in times of crisis, especially when it comes to cash. Financial health is akin to survival.

Have the right skill sets and knowledge base.

One of the best ways to make your company more resilient is to ensure your team has the skill sets and knowledge needed to weather any storm. If you have employees who can think on their feet and adapt quickly, your company should be better equipped to handle unexpected challenges. Make sure you invest in training and development so that your team can stay up to date with the latest trends and technologies.

Maintain a strong sense of purpose throughout your organization.

Above all, stay focused on what’s most important. Don’t get sidetracked by distractions or shiny objects; keep your eye on the prize and remain committed to your core values and principles. This can help keep everyone focused during tough times and provide something positive to work toward even when things are challenging. A clear vision provides stability during turbulent times while inspiring creativity and innovation. Make sure your organization’s mission statement is clear and concise, and communicate it regularly throughout your company.

Be a resilient leader.

Deloitte’s research found that “before 2020, only 24% of CXOs felt completely ready to lead through potential disruptions.” Your team will expect you to provide direction and a positive outlook, accountability for yourself and others and encouragement to surmount obstacles in uncertain times. To deliver on these expectations, you’ll need to be mentally and physically resilient. Do not underestimate the toll that changes and crises can take on you. Get to and stay in a readiness state, and do not hesitate to invest in yourself. Know and accept your strengths and weaknesses and train accordingly — on your own or with the support of others. Don’t be afraid to demand the same discipline from your team.

With these suggested practices, any business leader can better position their organization to adapt, rebound and endure.

Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?