RESILIENCE IS CRUCIAL TO OVERCOMING ORGANISATIONAL FRACTURES

The importance of organisational resilience was highlighted by the coronavirus (COVID-19) pandemic and is now being further emphasised by the financial crisis. Organisational resilience is essentially the ability to recover and continue achieving objectives despite multiple challenges.

However, this involves more than just overcoming significant challenges. It is a continual, deliberate process that represents the ability to face issues head-on and then adjust, transform and thrive, irrespective of the difficulties being faced.

Resilience solutions hinge on fracture points – deep divides in the structure of an organisation that distort the delivery and execution of strategy.

Effective progress can only be made by addressing the interface between the board and C-suite, where governance meets strategy. It is here that tensions between the chair and chief executive are a vital element behind whether or not fracture points are allowed to expand.

We have found that some 70 percent of these relationships flounder over the avoidance of difficult subjects which, if handled properly, can serve to minimise bigger problems down the line and ensure oversight procedures are effectively employed.

Resilience – an ongoing, conscious approach

Organisational resilience is often viewed as a firm’s ability to bounce back and continue performing and meeting objectives in the face of one or multiple challenges.

However, it is about more than just overcoming a shock – it is the ongoing, conscious process that represents an ability to absorb, adapt, transform and continue to thrive in the face of multiple threats.

There are two key elements to consider: planned resilience and adaptive resilience.

Jul-Sep 2024 Issue

Henley Business School