Business resilience is a term that has been gaining popularity in the productive world, even though most people are unaware of it. However, its implications are decisive today and can also mean the difference between success and failure in your business and companies.
Definitely, this concept implies a universe of possibilities for you and your projects or productive activities. In case you are one of those who ignore the inherent details, do not worry, because here we proceed to explain what it is all about.
Business resilience according to Harvard Business Review
Three words summarize the concept of business resilience: adaptation, recovery and growth. However, Harvard Business Review gives it a precise definition that we can consider.
Based on his words, it could be identified as the ability of companies to assimilate stress, recovering critical function and prosperity in altered situations. This is a reality that most of the world’s production centers have suffered after the COVID-19 pandemic.
Features
To speak of business resilience, the affected production or marketing centers must undergo certain conditions. We refer to some risks that may disrupt your financial stability:
- Affects the continuity of the information and communication technologies used.
- Consumer-derived claims.
- Certain cyber attacks.
- Radical changes in the market.
These are some of the most salient elements that force those affected to modify their operational models to achieve the necessary changes. This is something that is becoming more and more frequent as a product of the economic globalization we are experiencing.
Principles of business resilience that can be beneficial
Although it may initially appear to be a calamity for those affected, in reality business resilience brings with it a wealth of opportunities. It all depends on satisfying some basic inherent principles:
- Here they must identify and review pillars such as the company’s mission, vision and values. It also provides an effective and bidirectional communication between employees and the company. Finally, a perfect connection between collaborators and the pillars referred to is required.
- It implies agility of response to each circumstance, changes and the consequent uncertainty. Likewise, it is important to be aware of the negative effects derived.
- Turn the situation to your advantage, not just focusing on the short-term eventuality. For they have to readjust to the structural changes required by circumstances in order to operate in the long term.
- Willingness to change. Negative, high-risk situations must drive the appropriate adaptive changes for the future of the company. This requires identifying your business culture, structure, scope and limitations in order to undertake the intended actions.
- Performance evaluation. Here it is necessary to measure the company’s flexibility to face contingencies and its capacity to adapt and grow in response to them. Knowing these values, we can work on improving them to strengthen the company.
- Openness to diversity. Attention should be paid to the opportunities for diversification of goods and services to be implemented.
This is illustrated by such famous companies as Yamaha and Toyota, in Japan, initially dedicated to music and textiles, respectively. And thanks to the entrepreneurial resilience they underwent, they evolved to the point where today they are among the best motorcycle and vehicle brands in the world.
Five concrete benefits that today’s business resilience will bring
They point to current trends in business resilience arising from the COVID-19 pandemic, in the time to come some precise aspects will come to life. These include:
- Improvement of the respective distribution channels for goods and services.
- Industry regulations in line with current needs.
- Increase in both direct and indirect competitors.
- Modernization of the technological elements implicit in the process of production of goods and provision of services.
- Variations in people’s behaviors as consumers and their derived needs.
In short, in view of all the above, when managed properly, business resilience offers great productive opportunities. By treating it through a good risk management, your business may well evolve to adapt to the new market demands, even consolidating itself in the future.
