Five traits that might indicate you’re a resilience builderFollow @PwC
More risk or more opportunity, what do you see in the near future? When we asked 1,322 CEOs this question as part of PwC’s 18th Annual Global CEO Survey this year, the response showed that business leaders are almost evenly split. 59% see greater risk this year than they did three years ago, while 61% of CEOs believe there are more opportunities now than there were three years ago.
Of course, the percentages don’t add up to 100%, and that’s because there’s a unique group of CEOs in the middle - thirty percent - who believe that there are both more opportunities and threats. We were intrigued by this group of 30%. How do they prepare their organisations and strategies for both opportunities and threats? So we dug deeper into the data. What we found was an optimistic group of business leaders who appear to be actively seeking positive disruption. We call them ‘resilience builders’ because their beliefs suggest their organisations are equipped to act on emerging opportunities – even in the most daunting circumstances.
Resilience is an organisation’s capacity to anticipate and react to change, not only to survive, but also to evolve and seize advantage. To survive and evolve today, companies need do more than simply innovate incrementally or tweak their balance sheets; they need to prepare their entire organisations to take advantage of big shifts. And this is what resilience builders seem to understand too, so as to be able to act on emerging opportunities before competitors.
We know that resilience builders are more likely to:
- Anticipate competition from outside of their industry: 66% of resilience builders versus a global average 56%.
- Enter a new industry themselves: 60% of resilience builders versus a global average 54% say that they have entered, or considered entering, a new industry in the past three years.
- See a range of trends as being more disruptive to their industries than the global average, including changes in distributions channels, in industry regulations, in customer behaviours, and in core technologies, as well as increasing competition.
- Pay attention to societal concerns, such as unemployment (54% vs global average 34%) and social instability (68% vs 61% global average).
- Collaborate with non-traditional partners. 52% versus a global average of 44% have or are considering collaborating with start-ups, for example.
Resilience builders have a heightened sense of risk, but this risk mindset isn’t a hindrance; rather, it’s an indication of how they intend to grow. As they plan for growth, they’ve changed their risk management functions not only to mitigate value destruction, but also drive value creation.
What do you think - sound like you? Are you actively fostering the critical business capability of resilience within your organisation? Do you know where to start? Contact me if you'd like to investigate further, and take a look at the full article and infographic on Resilience Builders here.
Dennis Chesley is a Principal in PwC's Advisory practice with experience across a broad range of public and private entities within global operations. Dennis is the Global Leader for Risk Consulting Services and a frequent speaker and author on topics related to strategy, risk, compliance and control. Read more