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Standards

Does Your Organization Have What It Takes to Succeed?

Global study finds that 88% of CEOs prioritize investment in resilience to ensure long-term survival

Published: Thursday, December 3, 2015 - 15:11

(BSI: London) -- A new report released Nov. 30, 2015, by The Economist Intelligence Unit (EIU) on behalf of BSI identifies a worrying gap in the capability of firms to maintain long-term growth. The global study of 411 business leaders drawn from Europe, North America, and the Asia-Pacific region, together with in-depth interviews with business leaders and industry experts, reveals that less than one-third (29%) trust that their firms have fully embedded resilience practices, and less than half (44%) expect it to be the case in three years’ time. This is despite 88 percent believing that resilience is a priority for their organizations and indispensable for long-term growth (80%).

The study, “Organizational Resilience: Building an Enduring Enterprise,” finds that achieving the resilience to survive and prosper in the long term is held back by a lack of skills and knowledge, insufficient leadership commitment, and short-term financial considerations. It also highlights that cultural resistance and skills silos create weak points and bottlenecks within an organization. Two-fifths (39%) of business leaders struggle to secure business support for essential resilience measures such as information security, supply chain efficiency, and corporate governance.

Just one in five (19%) European organizations have succeeded in fully embedding resilient processes, compared to a third in North America (37%) and the Asia-Pacific region (34%). Worldwide, a third (33%) of larger organizations have resilient processes embedded across their business, compared to a quarter (26%) of those with revenues of less than $500 million. Smaller businesses are held back by a lack of knowledge, whereas larger firms cite financial issues. Older organizations are found to be more likely to see the connection between resilience and long-term growth.

Resilience as a driver of business success is defined in the report as the avoidance of operational failures to a strategic enabler. Three-fifths (61%) see it as a source of competitive advantage, with more than half seeing a very strong link between investment in this area and long-term financial performance. Firms interviewed for the report, including Fiskars, the 366-year-old Finnish consumer goods company, explained that achieving organizational resilience is vital for long-term financial success. True resilience is found to come from strategic adaptability across all aspects of operations.

“Navigating today’s fast moving and ever-changing world requires companies to be agile, robust, and adaptive in order to defy corporate mortality and pass the test of time,” says Howard Kerr, chief executive of BSI. “That two out of three business leaders believe their organizations may fail this test shows just how fragile and vulnerable company structures are. This is further reinforced by high-profile examples regularly appearing around the world.”

The report identifies six key features of resilient organizations:
1. Proactive approach—a willingness to adapt before being forced to
2. Dynamic leadership—support from the top of organization to embed process, from the CEO on down
3. Responsiveness to change—a willingness to listen to market needs
4. Strong corporate culture—holistic inclusion and recognition of everyone’s responsibility and contribution to the business
5. Keeping focused—possessing a clear vision, purpose, and identity
6. Long-term view—avoiding responding solely to short-term financial goals

“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,” says Victoria Tuomisto, editor of the report from the Economist Intelligence Unit. “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.”

To download a copy of the report, “Organizational Resilience: Building an Enduring Enterprise,” click here.

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BSI (British Standards Institution) works with more than 80,000 clients in 172 countries to help them adopt and cultivate the habits of excellence. Clients are trained and provided with practical guidance for implementation alongside a suite of compliance tools. BSI is assessed and accredited by more than 26 accreditation bodies including ANSI-ASQ National Accreditation Board (ANAB) and United Kingdom Accreditation Service (UKAS). BSI’s influence plays a key role within the International Organization for Standardization (ISO). As one of the founding members, it ensures that international standards address business and societal needs, while delivering real benefits to organizations.