What is Resilience??
Well, ability to bounce back.
When you press grass by foot, it resurrects when you remove your foot. So when hard time comes, why surrender and collapse, why not bounce back. I meant here mostly for the large corporates though this principle is equally applicable on personal life.
I studied in detail when I was in IIM Calcutta few good strategy tools. The most inspiring ones were The Break Through Management and The Blue Ocean Strategy.
I fortunately studied the former i.e. BTM from the very professor who first introduced this subject and is recipient of Deming Prize, H’ble Professor Shoji Shiba. He is international management guru who taught us this subject in detail for almost 3 weeks and 10 hours daily without any break inclusive of Sundays.
BOS is also famous work of two INSEAD professors who carried study across a range of industries spanning over a period of many decades, etc. And how those companies survived difficult times.
Both strategies came with very interesting similar findings but in different styles and contexts.
I add a third angle to these two strategy theories. I term it as “The Resilience Strategy (TRS)”.
You need not to succumb before adversaries. Rather you need to make move which others don’t dare. And you will make history then.
When you are a large corporate. And when you suddenly find adverse business environment. You many a times find it hard to with stand your bank loans, share holders cry, loss of market share and revenue, etc. You get thrown out from the star list.
The time changes very fast. Can anyone imagine the darling of mobiles Nokia now has been bought over by Microsoft, Blackberry again bought over by Fairfax, etc. There are numerous examples.
But then how TRS helps you to face this. Well I take example of Harley Davidson HBR case study here. See how HD bounced back when it faced tough competition from Japs and it was almost bankrupt.
Resilience applies when you were Great in past. Something happened and you collapsed. But during this collapse you forget that you were great brand, you were having bonding on your consumers mind, you have great intangible assets so called, etc. It’s only about en-cashing the same at right time. This is Resilience. And overall implementing this is The Resilience Strategy.
How many companies are common in Fortune 100 list after a period of 50 years. Hardly 15%. What happen to others. A sustainable growth doesn’t applies always. So there you need any of three: BTM; BOS; or TRS.
Even large corporates has started creating a position known as Chief Risk Officer whose major job is to protect the company from any foreseen decline. Though this is more a part of Corporate Strategy Cell.
However, At the same time in order to be resilient, the companies must be having good CSR records, ethics and values in business, vision for welfare of mankind and mother nature, etc.. This what I believe.