I’ve spent years helping leaders navigate the complexities of organisational resilience. I even write a book that is, at its core, about helping leaders to become more resilient – or avoid demising their resilience.
When I came across this article by Dana Maor, Michael Park, and Brooke Weddle from McKinsey & Company titled “Raising the resilience of your organisation.” This article highlights the critical elements necessary for organisations to not just survive but thrive amid disruptions. I want to share some key takeaways from this piece and explain why building resilience is more important than ever for leaders and founders.
You can read the full article here, but I’ve summarised some of the key points below.
The Essence of Organisational Resilience
The McKinsey article emphasises that resilient organisations don’t just bounce back from challenges—they bounce forward. This means they have the ability to absorb shocks and turn them into opportunities for sustainable growth. For a business to really succeed, the ability to be resilient is not optional; it’s essential.
Key Strategies for Building Resilience
- Adopt a Systems Mindset: The McKinsey article outlines the importance of a systems mindset, which includes agility, psychological safety, adaptable leadership, and a cohesive culture. These elements work together to create an environment where teams can quickly assess situations, pivot as needed, and stay aligned with the organisation’s goals.
- Foster Agile Organisations: Agility is crucial. McKinsey suggests that organisations should shift towards faster, data-informed decision-making and be comfortable with “good enough” outcomes. This allows leaders and teams to test, learn, and adapt quickly, ensuring that the organisation can respond effectively to unforeseen challenges. This also reminds me of another article I shared recently – whereby Chris Williamson notes that putting off decision making only serves to create low level, background anxiety. Making a decision is always better than not making a decision – IMO.
- Empower Self-Sufficient Teams: BANG, BANG, BANG. It’s the same old drum with the same important point. Building self-sufficient teams that are accountable and empowered to make decisions is a critical aspect of resilience. When teams are trusted to carry out strategic plans and innovate independently, they are more likely to adapt successfully to change. Stop micromanaging, it’s doing more harm than good.
- Develop Adaptable Leaders: According to McKinsey, adaptable leaders are those who don’t just react to crises but also coach their teams through them, fostering an environment of continuous learning and resilience. These leaders set the conditions for both short-term responses and long-term sustainability by encouraging new behaviours and developing capabilities that can withstand future disruptions.
- Invest in Talent and Culture: Finally, the article underscores the importance of investing in talent and culture. Resilient organisations attract and retain top talent by creating environments that are adaptable and focused on continuous development. This, in turn, perpetuates a cycle of resilience that benefits the entire organisation.
Why This Matters for Leaders and Founders
Understanding and cultivating organisational resilience is paramount. The ability to navigate and emerge stronger from disruptions can mean the difference between success and failure. Fostering agility, empowering teams, developing adaptable leaders, and investing in culture will all help you build a resilient organisation that not only survives but thrives in the face of adversity.
Building a resilient organisation is not a one-time effort; it requires ongoing commitment and adaptation. As we face an uncertain future, the ability to turn challenges into opportunities will set the most successful leaders and organisations apart. McKinsey’s research offers a valuable roadmap for those looking to cultivate resilience and secure a competitive advantage in today’s volatile world.
Andy
