Resiliency is the result of an organization that is agile, adaptive, and has cultivated the ability to recalibrate in response to changing times.
Drawing from a historical perspective to inform the future strategically, “certain differences” magnify the way in which this isn’t just a new era, or a “typical cyclical economy”. Rather, as discussed in this post, the post 2020 era moreso echoes an economic, geopolitical, and societal earthquake.
Generally speaking, since the dot com boom (approximately 30 years ago), economic trends have been characterized by low interest rates, and benign inflation. Currently, those trends are in the crosshairs of a direct challenge by the congruence of additional factors of the interconnectedness brought by the digitization and growth of the larger global economy, and geopolitics. In other words, in the same way the economy has arguably never been so interconnected, the topic of dependency has also arguably never been more relevant. The more dependency, the more imbalance when the “wheel turns”. Because of the interconnectedness, the more critical an observation of how we’re involved, and question dependency.
Recalibration in the current era will likely require a higher level of innovation, and capitalization of the opportunities this time present. In other words, in a cyclical economy that may be more imbalanced that recent times, strategically capitalize on the “up” of the wheel when you know there will be a downturn.
So, as we plan for the future as leaders of our businesses, how can we strategically recalibrate to innovate and blaze trails in the future? Beyond creating a business; how do you build something that endures? What is the framework that withstands cyclical economies?
Using the challenges of the new era and recession allows leaders the opportunity to cultivate the muscle to “mobilize at a faster rate” for future operational models. Plan for the future; the present challenges will end. Economies are cyclical, and those that endure are those who use challenges to become more agile and, thereby, adaptable. Resilient businesses don’t just happen, they’re carefully crafted. Agility is requisite, and agility comes from course correcting.
Build resiliency in business
In the post COVID era and looming recession, a critical conversation becomes about resiliency. According to a McKinsey & Co study, to address the geopolitical risks of the present—and future—leaders should challenge their organizations on six key dimensions of resilience:
- Business model
- Business Organization
How are you effectively addressing and implementing these factors into your business?
Additionally, societal considerations are driving consumer decisions differently than ever before; with each generation having a slightly different response. Understand them to create a resilient company. For instance, “boomers” were the most concerned about the economy, even though they have the most savings to support them in times like this. Conversely, Gen Z is least likely to name the economy as their top concern, focusing instead on social and environmental issues—even though they have the least in savings. On the other hand, Gen Z and Millennials are looking for authenticity in the brands they buy and want to put their dollars behind responsible actors. They’re not just evaluating a product’s impact on their wallet but its broader effect on society. At the same time, 80 percent of them are trading down to lower priced products. Right now, authenticity will not always command a premium. The need to reassure consumers is paramount so they know they’re making smart purchases. Clear, personalized messages delivered when and where consumer want to buy at the right price will be powerful for consumers.
At the end of the day, resiliency is the art of learning how and when to course-correct and adjust to survive new eras.
Capture this moment
As entrepreneurs, we’re used to cycles within our own businesses, and therefore, I’d argue that entrepreneurs have a head start on cultivating the mentality required to navigate transitional times. We’re accustomed to the challenge, and while sometimes it may feel like we’re at the base of a mountain, staring up….often, we’ve been in this place before, and no matter how big the mountain may feel, there’s a quiet, unshakeable voice in our gut smiling at the opportunity that challenges can present. When most are caught off guard, causing them to take a step back, we lean in.
inable growth, maximize profitability, and emerge as stronger and more resilient organizations.
The Future Of Work Will Be A Recalibration Of The American Dream
Furthermore, it is important to recognize the interconnection between business, economic, and societal resilience. It’s one thing to cultivate the capability to recalibrate, and remain resilient. But to do so with wisdom, we have to look at more than just business trends. Cultural shifts directly impact the evolution of business.
Today, people are looking for something new. The American Dream is no longer about what you can achieve, but the richness of the quality of life that can be cultivated. This understanding emphasizes the need to shift our attention towards redefining the concept of building a lifestyle business.
In conclusion, as leaders navigating these transformative times, it is essential to cultivate an organization that is agile, adaptive, and possesses the ability to recalibrate in response to changing circumstances. The post-2020 era represents more than just a typical cyclical economy; it symbolizes an economic, geopolitical, and societal earthquake. To thrive in this new era, it is crucial to embrace innovative approaches and capitalize on the opportunities presented. Resilient businesses are not built by chance but through careful crafting, leveraging agility, and course-correcting.
As we plan for the future, it is important to strategically address and implement key dimensions of resilience, including business model, reputation, business organization, operations, technology, and finance. Additionally, understanding societal considerations and catering to the preferences of different generations can help build a resilient company that aligns with their values.
Amidst these challenges, entrepreneurs have a unique advantage in navigating transitional times, as they are accustomed to cycles within their own businesses and possess the mentality required to face and overcome challenges. By focusing on strategic moves such as embracing inflation-proof growth, driving self-funded growth through efficiency, personalizing customer relationships, embracing omnichannel sales, and standing above the rest as a professional, leaders can position themselves for sustainable growth and emerge as resilient organizations.
The future of work and the pursuit of the American Dream will require a recalibration, acknowledging the interplay between business trends and cultural shifts. Building a lifestyle business that aligns with the evolving aspirations and desires of individuals becomes essential. By embracing these principles and continually adapting, organizations can pave the way for a resilient future and thrive in the face of uncertainty.