RESILIENCE IS DEFINED AS THE ABILITY OF A COMPANY/ORGANIZATION/ORGANIZATION TO MAINTAIN KEY FUNCTIONS AND PROCESSES IN THE FACE OF STRESS AND THEN RESTORE OR ADAPT TO CHANGE.
THE NEED FOR FLEXIBILITY AND ADAPTATION TO OVERCOME UNFORESEEN CIRCUMSTANCES IS ONE OF THE KEY STRATEGIC CAPABILITIES THAT ORGANIZATIONS EVERYWHERE MUST ADOPT TO SUCCEED COMMERCIALLY, SOCIALLY, AND POLITICALLY, YET MOST MANAGERS ARE UNABLE TO MAKE THE BEST USE OF THE RESOURCES NEEDED TO ENSURE THAT THEIR ORGANIZATIONS ARE ABLE TO WEATHER DISASTERS AND DESTRUCTIVE FACTORS.
RESPONDING TO CHANGES
STRATEGIC FLEXIBILITY: IT IS THE COMPANY’S ABILITY TO RESPOND TO MAJOR CHANGES THAT OCCUR IN ITS EXTERNAL ENVIRONMENT BY ALLOCATING THE NECESSARY RESOURCES TO RESPOND TO THOSE CHANGES AND RETHINKING THE CONTINUATION OF THE CURRENT STRATEGY AND MODIFYING IT OR MOVING BETWEEN ALTERNATIVE STRATEGIES TO ADAPT TO DIFFERENT OCEAN VARIABLES.
STRATEGIC RESILIENCE CAN BE MEASURED IN TWO WAYS: EITHER THROUGH THE MULTIPLICITY AND DIVERSITY OF STRATEGIES OR THROUGH THE SPEED OF TRANSFORMATION OF COMPANIES FROM ONE STRATEGY TO ANOTHER, SO STRATEGIC FLEXIBILITY IS MAINLY RELATED TO THE ABILITY TO MANAGE CRISES AND RISKS, SEIZE OPPORTUNITIES, AVOID THREATS, AND USE RESOURCES IN A PROACTIVE AND EFFECTIVE MANNER.
CORPORATE LEADERS OFTEN FAIL TO ACKNOWLEDGE THAT THEIR ORGANIZATIONS ARE VULNERABLE TO DISRUPTIVE FACTORS AND CRISES – AND THEY PAY THE PRICE FOR THAT DAY – THEIR CONFIDENCE AND BELIEF IN THEIR STRATEGIC EMERGENCY PLANS WILL NO LONGER HELP THEM, AND THEY ARE FORCED TO ACT IN THESE UNPRECEDENTED EVENTS.
ADAPT EFFECTIVELY
EXAMPLES OF CHANGES THAT COMPANIES ARE EXPOSED TO, AND THEY MUST ADAPT TO THEM EFFECTIVELY AND AS SOON AS POSSIBLE: THE ENTRY OF A STRONG COMPETITOR TO THE MARKET, THE OBSOLESCENCE OF THE PRODUCT AND THE EMERGENCE OF A NEW BETTER PRODUCT, THE OCCURRENCE OF AN EPIDEMIC, WARS, ECONOMIC SANCTIONS, SCARCITY OF RESOURCES, AND CHANGE IN CUSTOMER DESIRES IN ORDER TO ACHIEVE STRATEGIC FLEXIBILITY, COMPANIES MUST CONTINUOUSLY SURVEY THE COMPETITIVE ENVIRONMENT, SEARCH FOR OPPORTUNITIES, GET CLOSER TO CUSTOMERS, RESPOND QUICKLY TO THEIR INTERESTS AND SUGGESTIONS, GET CLOSER TO EMPLOYEES, LISTEN TO THEIR CONCERNS AND ADOPT THEIR IDEAS. KEEPING AS LITTLE INVESTMENT AS POSSIBLE IN FIXED ASSETS AND LONG-TERM CONTRACTS, MOVING AWAY FROM HIERARCHICAL ORGANIZATION AND STRICT PROCEDURES, AS WELL AS REDUCING THE NUMBER OF DECISION-MAKERS ARE IMPORTANT STEPS TO ACHIEVE STRATEGIC FLEXIBILITY.
TO SUM UP:
THE ORGANIZATION’S STRATEGIC FLEXIBILITY ACHIEVES DYNAMIC CAPABILITIES, WHICH ALLOWS IT TO RESPOND EFFECTIVELY TO THE EXTERNAL ENVIRONMENT, EXPLOIT OPPORTUNITIES AND INNOVATE, AND THUS ACHIEVE A SUSTAINABLE COMPETITIVE ADVANTAGE.