This is the third in a series exploring Dr. Kristen Lee’s (Northwestern University) nine lessons in personal and collective fortitude. Seen through the lens of a business operation, each lesson has application in the current national health and economic challenges, and for successful endeavors in the future.
Resilience is innate to us all. We have built-in mechanisms to endure and recover from physical challenges, and we can strengthen our physical resilience, as any athlete will tell you. We can strengthen our psychological resilience too, by connecting with others and doing something meaningful every day.
The ability to adapt to challenges and novel circumstances is the hallmark of resilience, not just for individuals but for businesses as well. But unlike human resilience, business resilience is not innate.
Most businesses have provisions for sudden disruptions to supply chains and operations, but few have the same resilience built in to the business model itself. Your old business model may not be holding up well to the challenges of today. But you can modify the model to add a measure of resilience that not only helps your business survive, but thrive in the “new normal.”
The business experts at Gartner offer a five-step approach to improving business resilience:
- Define the current business model.Customers, value proposition, capabilities, financial model – what have they been, up to this point? What has changed in the current crisis?
- Identify uncertainties. What uncertainties are likely to affect the business? Define the disruptions.
- Assess the impact. Create a Business Impact Analysis that covers the categories of impact, the time frame and cycles of impact, the relative weights of different types of impact, and the dependency risks.
- Design the changes to the model. An example: Some organizations are changing to fully remote work, supported by imaging (document conversion) to maintain productivity. Focus on what would need to change in your organization’s model to meet Step Three’s impact; no idea is off limits here.
- Execute. The four previous steps inform the decision-making process. Once decisions are made and the new business model is defined, take an agile approach to execution. Ensure that all department leaders, from IT to customer service, have bought in to the new business model, and are integrating it into their operations.
The same is true for business organizations. Change is inevitable, but it is usually slow and gives plenty of notice. In a crisis, however, change doesn’t wait. No business can be entirely shock-proof, but those which add resilience to their business models can meet the challenge: endure, adapt, strengthen, and thrive.
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