Improving Company Resilience through the Pandemic
Every company is familiar with the challenges resulting from the competitive environment, such as the advent of new technology or production troubles. Due to these facts now more than ever, the resilience of organization or company is something that a company must seek to develop. Resilience is the ability to adjust to a new situation most of the time unprecedented challenges a company or an organization may face to learn from them and rebound after them.
But when it comes to bigger problems like political, cultural, physical, or economic restriction companies are facing a broader crisis. Now the health crisis caused by COVID-19 has affected companies’ performance in a wider range. This virus underscored market vulnerability to such external disruptions. Either you are the leader of a market or just a new company this crisis questions all industry and market capacity.
Economic downturns are impossible to predict you cannot anticipate what a next crisis cycle is but you can get ready and move your organization. You cannot deny the fact that the future is a mystery whether for a person or an industry but you can ride the waves of uncertainty instead of being overpowered by them.
Passive and active resilience
Organizations can have two different kinds of resilience. Active and passive. When an organization chooses to have passive resilience it means that the company seeks temporary changes and minor shifts to organizational schedule, but those which choose to be active develop new resources to enable a long term transformation. In active business resilience, the organization not only face a crisis and change the plans but also try to avoid unwanted shocks.
During the COVID -19, businesses choose different strategies to hang on. For example, some organizations closed their buildings and retailers, restaurants select different strategies to serve their customers. They change their payment routine and order preparation, these changes are not intended to be permanent for a company. An organization may use these shifts to cope with a new situation and absorb shocks and reduce losses it is exactly the definition of passive business resilience.
Avoiding the crisis
Sometimes businesses choose to avoid shocks instead of absorbing it. They do not intend to reduce the impacts they want to vanish the harmful effects of a crisis. Active resilience involves more significant changes. An organization that develops new activities that enables it to overcome a crisis have active or proactive business resilience. In the COVID-19 some factories use a completely different line to produce the coronavirus related productions. They changed their product line to survive in this crunch. They have used active resilience as their defensive mechanism in the confrontation of the corona crisis. Remember that active shifts should make it possible to bypass future crises by vanishing organizational weaknesses.
Why is business resilience important?
If you are asking yourself why it is important to build your business resilience we should say resilience is especially important today because the environment around the organization is getting more and more dynamic and unpredictable. The best example of its importance is during COVID-19.
How to build a company with resilience enterprises
Companies can structure their preparation for crises by using different principles. These are some ways that can help an organization to make long-lasting systems.
Leaders are vital elements in crisis. Leaders must be able to mobilize and reassure the entire team and company. For enabling cooperation, maintaining team spirit is essential.
Building redundancy in your organization is such a crucial activity. For achieving this goal a business can duplicate elements by having multiple factories that produce one product or by having different elements that gain the same ends.
The organization structure must be flexible
In crisis periods such as COVID-19 making quick decisions is vital. For achieving this goal the structure of a company must be flexible to promote the rapid efficient transformation of activities.
Diversity is a key criterion in business resilience
Different responses to new stress and tension can ensure that systems do not fail. In business, this requires not only hiring people with various cognitive profiles but also creating an environment that helps staff to think critically and out of the box.
There exist some plausible risks that could happen in business, prudence involves on the precautionary principle. This needs developing contingency plans and stress exams for possible risks with significant results.
A combination of certain levels of diversity with an iterative selection mechanism to scale up the opinions that work best. In learning organizations and flexible ones, adaptability is more welcomed than stability and minimum variance organization.
Another vital element for creating a business resilient is modularity. This feature allows systems to work chunk by chunk and if one module fails the whole system remains without collapsing. This is very helpful. Especially during the crisis because monitoring and reviewing the modular system is much more convenient and fast.
Apart from all these principles, a company can use migration strategies. In this strategy there some shifts in activities. it can be a business portfolio, channels, business models, and so on. Most companies used to contribute equal resources for different parts in an organization but in times of crisis, some parts need more attention and reallocation. Achieving this requires both business intelligence and agility.
Other Ways to Build Resilience
Another way to build resilience is collaboration. Sometimes in crisis, such the coronavirus businesses can increase their strengths by working together. For example, collaborating with online business especially in these days, not only decrease the cost of entry into new fields of businesses but also develop flexibility. Business resilience can bring a lot of advantages during crises and play an important role in a confrontation with a crisis like this pandemic.
At Maadico, you have the possibility of hiring our highly professional and sophisticated team of experts in the fields of Digitalization, Marketing and Sale and also Agility for your company to roam among the giants of the international confidently and sustainably. Feel free to contact us to find out more about the services we provide to our friends.