Uncertainty is the sure constant in our daily business. Disruption and VUCA (Volatility, Uncertainty, Complexity and Ambiguity) describe this state of constant fear in companies, in which crises determine the daily routine. The question is not whether a new threat will affect business processes, but when. Companies are often overwhelmed in this situation and crisis management unfortunately leads to blind actionism, which makes systematic management of the crisis even more remote. The forward-thinking minds have brought a new approach to the game of profitability – business resilience. But is this resilience a panacea for healthy and stable growth? And what actually is business resilience? We are all resilient – to a certain extent! And exceptional situations are extreme because they are not the norm, i.e. cannot be regulated. But how do we deal with it, how can we use the crisis as an opportunity? This is what business resilience is about.
the organizational resilience includes the ability of a company to deal with the constantly occurring challenges in a foresighted manner – i.e. crisis prevention instead of crisis management. This means adapting to changes flexibly and integrating smart solutions into the corporate landscape. Technologies, processes and employees are required to support this corporate attitude and – even more so – to actively shape it. This inner attitude across all department and hierarchy levels creates an agile awareness of how to deal with crises professionally. However, the prerequisite for this is that processes, technologies and procedures are prepared accordingly. The keyword here is “digitization”, which forms the basis and which must and can adapt to the constantly changing framework conditions by means of permanent further development. This digital resilience, i.e. the ability of systems to quickly incorporate the changed framework conditions into adapted solutions, is ultimately decisive for the future security of the company. Digital transformation or digital evolution, the permanent further development of digital systems, is the essential building block of the holistic concept. Company processes and structures are monitored in an agile manner, always under the aspect of a sustainable and value-oriented approach.
Business resilience is based on four pillars to build resilient companies that turn disruptive events into profitable opportunities. The pillar that always comes first is finance, because the harmonious orchestration of all financial instruments enables financial resilience that leads stably through crises. This objective of Operations is a robust operational layer that provides stability, such as end-to-end and aligned supply chains. The combination of human skills with innovative technologies shows creative properties for dynamic adjustments. However, strategic considerations such as market and customer behavior should not be neglected, because this fragile construct of market placement, dependent on financial security, is crucial for a company’s business resilience.
In theory, this approach is obvious to every manager and is classified as urgently needed. In practice, however, it often looks a little different. Well-established processes, firmly established organizational structures, possessive departmental thinking and a panic fear of additional resource burdens make creative progress difficult. What’s the solution here? Taking small steps means systematically approaching the individual areas of the company while not losing sight of the big picture. This system sheds light on processes, systems and structures in the company, always taking into account the company’s DNA. Specifically, this can take the form of process mining with subsequent comprehensive process optimization, a critical analysis of the existing systems with the implementation of modern alternatives, or a methodical approach to critical business processes in a digital twin for controlled risk minimization. There is a wide range of options to choose from, which should not be seen as isolated solutions with a limited scope, but as an integral part of a comprehensive concept that takes a 360° view into account in all facets. This way of thinking supports companies in disruptive events in adapting quickly and agilely to the changed situations. Being prepared for an emergency is a strategy that enables companies to get a crisis under control immediately, to stabilize the situation, to implement alternatives quickly and even to look to the future with renewed strength.
Establishing business resilience is not just a contingency plan for a crisis, it is an organization’s ability to be resilient and proactive in dealing with threats. What is decisive is the awareness of pursuing the goal together and involving all areas.
Author: Sabine Rudolf
Image: ©wutwhanfoto / istockphoto.com
The article Resistance wanted – business resilience for crisis prevention appeared first on PROMATIS software GmbH.