For the first time since 2017, the Organizational Resilience Index shows that business leaders’ confidence in the resilience of their organizations has faltered.
- The disruptive effects of technology and changes to government and regulation have led to Adaptive Capacity as having the most impact to maintaining Organizational Resilience.
- In another year of political and economic uncertainty, the report shows that business leaders are struggling to adapt to new technology.
- Businesses appear unable to predict future market changes, with Horizon Scanning placed as the lowest performing factor.
Key findings of the 2019 report include:
- The ability of businesses to adapt to change has fallen for the first time due to market turmoil – senior leader confidence in Organizational Resilience has fallen three points, down to 75 per cent.
- Technological change is both the greatest opportunity and most severe threat to corporate adaptation – the gap between impact and performance for Innovation, Horizon Scanning and Adaptive Capacity are growing.
- Strong leaders are needed to adapt strategy to changing conditions – staff engagement, clear direction and business performance are now valued more strongly than innovation and political acumen as key leadership skills.
- Corporate attitudes to sustainability must shift to retain talent – concerns over employee turnover have risen five per cent year on year, while staff engagement is one of the lowest ranked factors.
- Ethical accountability is encouraging a focus on supplier governance – Australia, India and the UK’s shared commitment to regulation supported by common standards are seeing these countries open a supply chain lead over others.
The world’s first Organizational Resilience Index Reports in 2017 and 2018 are now providing change and trend indications with the publication of the third annual report in 2019. The report covers the 16 elements of Organizational Resilience, defining senior executive responses to:
- Perceptions of the organizations’ performance across the 16 elements
- Perceived importance of these 16 elements to the future success of their business
- Insight into how perceptions differ by sector, geography, size and longevity
- Identification of trends and future challenges