Why resilience is so important for business survival

In a period of extreme changes that fundamentally redefine how organisations must behave, most agree that meeting those challenges requires resilience. But what does resilience actually mean?

A new World Economic Forum report shows that 84 per cent of companies that responded do not feel properly prepared for unexpected developments in the future and even though resilience attracts attention, only 13 per cent of companies actually include resilience indicators in their strategy. There is therefore a gap between what we know and what we do. To bridge it, we first need to step back and look at what it means to be resilient.

We often associate resilience with the ability to withstand pressure. But when leaders talk about a resilient organisation it should also be about something else. The world is changing. The economy is being hit more often and more severely by sudden shocks. Conflicts, fragile supply chains, inflation and low growth create uncertainty.

On top of this are fragile trade deals and the risk of new tariff barriers. These are not just temporary tremors; they will shape the future. As crises become the rule, complexity grows. Companies that want to stay relevant must do more than just stand firm.

A ballet dancer who moves seemingly effortlessly and gracefully across the stage requires strength, constant navigation and the ability to adjust precisely and quickly to maintain balance – and elegance. Balance is not a static state – it is a dynamic process that requires strength and a fixed focal point, but also flexibility and adaptation. In the same way, leaders can think about their role in preparing the organisation for a future where the rules of the game are constantly changing.

To seize opportunities that arise in changing times, the organisation must be designed to be continuously shaped by the shocks it encounters. True resilience lies in combining a strong core business (and narrative) with the ability to adjust strategy and the business model quickly and accurately.

Resilience is a balance between strength and flexibility. But how do you find the balance in a world defined by imbalance? How do you build a resilient organisation? It begins with an honest recognition that resilience is not just a buzzword, but must be deliberately and actively integrated into the organisation’s operating model and long-term strategy. And action should follow that recognition:

Think about strategy in a new way

Many see strategy as being the major decisions made centrally by management. But real strength can be seen in how the organisation unfolds and implements the strategy in its daily activity. Ensure there are clear ambitions and flexibility in executing them. Continually adjust direction without weakening goals.

Understand the world around you

In macroeconomic theory, economists distinguish between temporary and permanent shocks. We experience both – from disruptions in supply chains to lasting changes in global trading dynamics and generative AI. As a leader, you must assess when to react quickly and when to adapt structures and the business model in a more fundamental and long-term way.

Create frameworks with room for movement

We cannot predict everything, but we can prepare. Build structures and processes that both create stability and allow flexibility. Define where the organisation must stand firm – and where you need to respond in an agile way to change.

Lead together

Like a dancer in a corps de ballet, you need to work closely with your colleagues, build trust and create a shared direction. Give leaders room to make decisions in line with the strategy – this frees up the power to act, creates momentum and strengthens the organisation’s agility in turbulent times.

Resilience is also about seizing opportunities

Resilience is a complex concept and it can be difficult to grasp what it truly means to be resilient. But by starting with these four areas, an organisation can put itself in the best possible position to deal with the coming shocks. Because they will come. External changes will continue to move closer to the heart of the organisation. That is why it is important for leaders to understand the complex forces at play, to navigate the shocks, and to find a dynamic balance between strength and flexibility. Resilience is not only about resistance and strength, but also about flexibility – and about the ability to create new opportunities amid chaos.

This is where an organisation can turn change into progress and uncertainty into decisive action.

This article was first published in Finans in Danish.