Dear connections,
This week, we're exploring '6 Types of Resilience Companies Need Today' by Paul Polman and Andrew Winston. Here are my expanded takeaways:
1) Beyond Traditional Resilience: While financial flexibility, portfolio diversity, and organizational agility remain crucial, today's volatile business environment demands new forms of resilience. Companies now need to cultivate purpose-driven, trust-based, and stakeholder-focused resilience. This multifaceted approach helps organizations not just survive crises, but thrive amidst uncertainty. For instance, a clear organizational purpose can drive employee engagement and guide decision-making during turbulent times.
2) The 'Net Positive' Approach: The authors argue that the most resilient organizations are those that give more than they take from the world – termed 'net positive' companies. This approach goes beyond traditional CSR, aiming to improve the well-being of all stakeholders through operations, value chain, products, services, and influence. By aligning business success with societal progress, companies can build deeper, more sustainable forms of resilience. This might involve reimagining products to solve societal challenges or transforming supply chains to benefit local communities.
3) Stakeholder Trust as a Crisis Buffer: Building strong, trust-based relationships with diverse stakeholders can provide crucial support during crises. The article uses Unilever as an example, showing how their long-term, multistakeholder model helped them weather challenges like a hostile takeover attempt. By consistently engaging with and delivering value to employees, suppliers, customers, and even NGOs, companies can create a network of support that bolsters their resilience in tough times. This approach requires transparency, genuine partnership, and a long-term perspective.
In our increasingly complex and unpredictable business landscape, how is your organization building these new forms of resilience? Are you moving towards a 'net positive' model in your operations or supply chain?
I'm eager to hear your thoughts and experiences. Let's learn and grow together!
#ManagementMusings #BusinessResilience #LeadershipInsights #SupplyChain #OperationsManagement"