Resilience as a Long-Term Business Strategy
In today's world of constant change, resilience has evolved from a short-term crisis response to a critical, long-term necessary business strategy. The COVID-19 pandemic, climate crises, economic volatility, and technological advancements have highlighted the importance of building resilient organizations. According to the 2023 Deloitte Global Resilience Report, 62% of business leaders believe resilience is essential for success in the coming decade, and 70% are investing more heavily in resilience initiatives post-pandemic. Here’s how businesses are embedding resilience into their culture and strategy for sustainable growth.
Embedding Resilience in Corporate Culture
A 2023 McKinsey survey shows that 70% of organizations that prioritize resilience see improved business performance during change. Encouraging continuous learning is a key part of this strategy that more businesses need to look at incorporating. With rapid technological change, it’s estimated that 44% of workers’ skills will need to change within the next five years (World Economic Forum, 2023). By not only fostering a culture of upskilling, but also providing time and resources for their employees, companies can ensure their workforce remains adaptable, leading to less turnover and ultimately more cost savings.
A powerful example of this is Salesforce, which emphasizes resilience through employee development. The company offers continuous learning opportunities, including certifications and training for future skills, ensuring its workforce is prepared for emerging challenges. While Salesforce is just one example of many, companies need to do better, even the ones that are currently allowing for learning opportunities.
Normalize Learning as Part of the Work Week
A third of Americans state they don’t have enough time for learning during work. While some may argue it comes down to time management, there’s much more to consider. When working on global projects, global teams or under the pressure of tight deadlines, it’s all too common to see meetings being double and triple booked. It’s also common to see this happen repeatedly, and over the course of 12 hours or more, day after day. This not only leads to a decrease in both productivity and morale but ultimately burnout. In my last corporate role, this was exactly the case. I knew there were multiple days I had meetings for 6 hours straight starting at 7 o’clock AM week after week. This meant any time I had left in the day was to get work done and left absolutely no time for upskilling.
Proactive Approach to Prevent Future Chaos
Instead of waiting for changes to happen and being forced to be reactive, companies are taking proactive steps to prepare. Scenario planning is becoming common, as businesses brace for everything from supply chain breakdowns to possible new pandemics. A 2023 PwC report on supply chain resilience found that 52% of global companies have started increasing their inventory of critical goods to safeguard against future disruptions.
Agility is another crucial component of resilience. During the pandemic, retailers like Walmart expanded their online delivery services to meet changing consumer demands. This ability to pivot quickly is vital for surviving and thriving in unpredictable environments. Walmart's investment in e-commerce, which rose by 69% in 2021 alone, has made it a leader in resilience during the pandemic.
Investing in Innovation and Technology
Technology plays a central role in building resilience. From automation to data analytics, companies are leveraging technology to create flexible and responsive operations. According to Accenture’s 2023 Technology Vision report, 91% of executives say that technological innovation is key to building resilience.
Automation has become a critical investment. Take Amazon, which uses Artificial Intelligence (AI)-driven systems to streamline its warehouses and optimize delivery routes. Amazon's use of machine learning enables real-time adjustments in operations, allowing it to meet customer demands during unexpected changes.
Utilizing AI and Machine Learning to complete these tasks often poses the question, are robots taking over? The short answer is no. AI and Machine learning are only as good as the people “feeding” them. Also, there are certain jobs machines cannot do, such as business management, education and health care. That doesn’t mean AI and Machine Learning won’t change the job description or resources these professions utilize but it’s all about embracing technology where possible to free up your time to invest in areas of the job that cannot utilize AI and Machine Learning.
To round out the technology conversation, as businesses move online, cybersecurity threats have also risen. A 2023 IBM report revealed that the average cost of a data breach has reached $4.45 million, up 15% in the past three years. To counter these threats, companies are strengthening their cybersecurity infrastructure as part of their resilience strategies. Microsoft, for instance, has committed to investing $20 billion in cybersecurity over the next five years, highlighting the importance of digital security in a resilient business framework.
Regardless if you are a large corporation, small/medium size business or a solopreneur, you are not immune to needing resilience as part of your long-term strategy. Having a well devised plan and building resilience now will save you the time, money and resources it will take you to catch up if you choose to be reactive. This is part one of a two-part series. In my next post I’ll talk about some ways to implement and measure long-term resilience.
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