Organizational Resilience is Practiced Only by a Minority of Businesses Globally
A new study released by the Economist Intelligence Unit found that resilience is a priority for businesses and indispensable for long-term growth. No less that 88 percent of respondents deemed organizational resilience an important priority.
But the survey also revealed that only 29 percent of companies say that resilience has become fully embedded within the organization. Looking ahead, less than half of respondents expect to have achieved this goal in three years’ time.
A number of obstacles are holding businesses back from becoming fully resilient: the need to focus on immediate financial issues (according to 53 percent of respondents), the lack of skills or knowledge related to ensuring resilience (48 percent), and insufficient leadership commitment (47 percent).
The research is based on a survey of 411 global business executives and managers, as well as on a series of interviews with nine business leaders and industry experts from around the world. The report written by The Economist Intelligence Unit and commissioned by the British Standards Institution.
“The apparent gap between the intention and action in companies’ approach towards resilience suggests that businesses are facing a host of challenges in embedding resilience in a changing and volatile marketplace,” said Victoria Tuomisto, the report’s editor. “These, in turn, will be different for every company. But a resilient organization by definition is one that is constantly shifting and adapting. There is no finish line when it comes to implementing a culture of resilience.”
Among the report’s other findings, good people and great service are key to achieving organizational resilience. Economic uncertainty, disruptive competitors and reputational harm are viewed as the leading business risks that drive the need to be more resilient.