CEOs use 'resilience' to face world problems

Business leaders are using 'resilience' more to handle global problems. This focus helps them plan for risks and grow their companies.
By Newsroom | Business, Management |

Business leaders are increasingly leaning on the concept of 'resilience' as a framework for navigating a world steeped in unpredictability. This focus stems from a shifting landscape of risk management, underscored by events like the COVID-19 pandemic, pushing organizations toward adaptation and deeper awareness.

CEOs and boards are jointly emphasizing organizational resilience, focusing on risk management and scenario planning to balance immediate needs with long-term growth.

Recent discourse highlights how this strategic pivot involves both day-to-day operational agility and a more profound governance shift.

Boardroom's Growing Role in Risk

The role of boards of directors is evolving, moving beyond oversight to active collaboration in building organizational resilience. While management retains the reins of daily operations, boards are increasingly instrumental in guiding strategy and risk assessment. This includes a heightened emphasis on 'risk management' and 'scenario planning'.

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  • Boards are working with management to balance short-term priorities against longer-term objectives and opportunities.

  • This dual focus ensures that immediate challenges and risks are addressed without sacrificing future growth prospects.

The Underpinnings of Resilience

The capacity for resilience is seen as stemming from a clearer understanding of complex situations and a heightened individual and collective awareness within an organization. Key drivers identified for this include:

  • Flexibility: The ability to adapt to changing circumstances.

  • Digitalization: Leveraging technology to enhance operational capacity and responsiveness.

  • Governance: A structured approach to leadership and control, often involving a separation of powers between executive and oversight functions.

Exploring the Lean-Resilience Nexus

Academic inquiry is also delving into the synergy between established management principles and the burgeoning resilience paradigm. Research is examining how 'lean' methodologies, often associated with efficiency and waste reduction, can be integrated with resilience strategies. This involves identifying existing research on the topic and charting prospective directions for future study.

Frequently Asked Questions

Q: Why are CEOs and boards focusing on 'resilience' now?
CEOs and boards are using 'resilience' to manage risks and plan for unpredictable world events, like the COVID-19 pandemic. They want to adapt better to changes.
Q: How are boards involved in building resilience?
Boards are moving from just overseeing to actively helping build resilience. They guide strategy and risk assessment, working with management to balance short-term needs with long-term goals.
Q: What helps organizations become more resilient?
Resilience comes from understanding complex situations better and having more awareness. Key factors include being flexible, using technology (digitalization), and having strong governance.
Q: How does 'lean' management connect with resilience?
Researchers are studying how efficiency methods like 'lean' can work with resilience strategies. They want to find ways to combine waste reduction with the ability to adapt to challenges.