When the going gets tough, the tough get going.
Over the past few years, business leaders have had to manage unprecedented situations.
You don’t need us to list them all here.
But needless to say, times are definitely tougher than ever. CEOs are having to make difficult decisions – layoffs, cuts, reshuffles.
Some trying to stay afloat, some doing better than ever.
Which happens a lot during these circumstances. Many businesses shrink: they reduce team sizes, resources and budgets in an effort to recoup losses and batten down the hatches for whatever comes next.
But there is evidence out there to suggest now is actually the best time to push forward.
If you think about it, it makes sense. Your competitors have gone to ground. But your customers are still out there.
Leaders need to build a resilient business that can stand the test of time so that they’ll be the last ones standing when the world recovers.
So how do you build a resilient business? Resilience has been noted by McKinsey as a “vital “muscle” for companies operating in a world of endless volatility and disruption”.
In today's ever-changing business environment, it is essential for leaders to build a resilient business that can withstand challenges and adapt to change.
Building a resilient business means ensuring that your company is well-prepared to face challenges and can continue to operate effectively, even during times of uncertainty.
Here are 5 things leaders must do to build a resilient business…
Defining your company's purpose and values is a foundational step in building a resilient business. It clarifies your company's reason for being, beyond making profits, and establishes clear values and principles that guide decision-making.
When your employees understand the company's purpose and values, they are more likely to work towards a common goal and feel a greater sense of loyalty and commitment to the company. At the end of the day, a huge part of your business resilience is retaining employees.
Now more than ever, customers expect more from businesses, too. The likes of B-Corp certifications and carbon-neutrality promises have led to increased consumer trust, something that goes a long way when it comes to staying front of mind. People want to believe in the brands they buy from, so businesses that clearly define and shout about delivering on their values will pave the way forward.
A strong company culture is essential to building a resilient business. A positive and supportive culture fosters a sense of community and belonging among employees, which can help improve employee engagement, retention, and productivity.
It is also important to encourage open communication and feedback, which can help identify areas for improvement and foster a culture of continuous learning. You can also cultivate resilience and shared responsibility in your employees with a strong culture.
This means providing opportunities for professional development and training, creating a supportive and inclusive work environment, and prioritising employee well-being.
You should also consider the employee experience you now offer, especially post-pandemic where we’re more often than not in some form of hybrid working. What does your office now mean for employees? Is it still the hub of your business? Can you rebuild this virtually to create a sense of community?
When you invest in your people, you are helping to build a team that is better equipped to face challenges and adapt to change. You are also creating a work environment that fosters creativity, innovation, and collaboration, all of which are essential to building a resilient business.
To build a resilient business, leaders must embrace change and innovation. A growth mindset means being open to new ideas, taking calculated risks, and continuously learning and improving.
It involves challenging the status quo and constantly looking for new opportunities to grow and evolve. Building a growth mindset within your company can help your business adapt to change, stay competitive, and continue to thrive in the face of uncertainty.
Technology is the foundation of growth. Though it might seem counterintuitive to make big investments, if you choose tech wisely it can have huge advantages. One of the major factors is increased efficiency.
During a recession, when resources are scarce, this can be especially valuable. Tech can automate repetitive tasks or streamline processes massively.
Technology can also help businesses transform the customer experience, the potential edge over your competition. For example, implementing a chatbot on a website can provide customers with quick and easy answers to their questions, even outside of normal business hours.
By staying up-to-date with the latest technology trends, businesses are prepared for whatever the future may bring. This can help them stay ahead of the curve and remain competitive, even during trying economic times.
Relying on a single product or service can make your business vulnerable to external factors such as economic downturns or changes in consumer behaviour. Diversifying your revenue streams can help mitigate risk and provide new opportunities for growth.
This can involve exploring new markets and product offerings or building partnerships and strategic alliances. By diversifying your revenue streams, you are helping to build a business that is more resilient and better able to weather difficult times.
As we mentioned at the beginning of the article, some of the world’s biggest companies were born in a recession. Consider movement towards green technology, as this is where major investment funds will be heading in the coming years.
Fundamentally, as a leader, you need to be proactive. Taking cover and waiting for the hits to land is too much of a risk.
By defining your company’s purpose, building a strong culture, developing a growth mindset, investing in technology and diversifying your revenue streams, you can build a resilient business that thrives in adversity.
With over 25 years experience as a digital agency, we've seen our way through a fair few difficult periods. If you'd like advice or guidance, book a free consultation call where we can discuss your current challenges and how we can put you on the right path to building a resilient business.