I have personally seen the importance of resilience in entrepreneurship. The story of Ismail Karra, my father, is one of resilience. As a refugee who fled Bulgaria as a Turkish ethnic minority in 1989 with only two suitcases to his name, he built a successful business selling textile and leather goods to Russia, the former Soviet bloc republics, and Ukraine. But when Russia attacked Ukraine in 2021, the stakes were raised higher than ever before. In the midst of this crisis, my family and I decided to stop all operations in Russia. My father, as the CEO of the business, was resolute in the decision. He knew that resilience is key to survival and success in business, and he had proven this time and again throughout his journey as a refugee and entrepreneur. He had faced the Russian ruble devaluation, which cost him everything overnight, the 2008 recession, and the refusal of his one and only Russian distributor to pay his debt. Now, with the persistent pandemic and ongoing geopolitical conflicts, he was ready to face yet another challenge.
In my professional life, I have seen the value of resilience as well. As a resilience expert, I have found that global and economic disruptions are an inevitable part of doing business in today’s world. The current geopolitical conflicts, supply chain disruptions, and economic challenges—including high inflation, increasing interest rates, slowing growth, and currency fluctuations—have combined to create a complex situation that varies greatly by region and industry.
To thrive in this complex environment, business leaders must adopt a flexible mindset and anticipate the various possibilities for how their industry and economic conditions may change. They must also recognize the unique opportunities and challenges that arise from these potential developments. This requires a comprehensive understanding of their markets, and the capacity to swiftly adjust to market fluctuations.
Furthermore, it is important for leaders to have a clear understanding of their organization’s financial strength, and to have a plan in place to address any potential weaknesses. This includes having a clear view of the future and being able to adapt and reshape strategies based on predictions based on data analysis and market trends.
Being able to navigate the complexities and uncertainties of today’s business environment requires a combination of strategic thinking, adaptability, and resilience. Those leaders who are able to develop these traits will be best positioned to not only survive, but to thrive in the face of disruptions and challenges.
Navigating the complexities of today’s business environment requires a dynamic perspective, one that not only anticipates how the operating and economic environment will evolve, but also recognizes the opportunities and risks that these scenarios present for organizations. My research shows that the most successful companies in times of economic uncertainty are not passive, but actively seek out opportunities and thrive in ambiguity.
I have found that the most resilient organizations are those that are adaptable and able to turn uncertainty into opportunity. They possess a clear understanding of the world, a curious mindset, and a flexible and adaptive plan for success. However, it’s important to note that there is no one-size-fits-all solution for today’s complex strategic challenges. But, through my research, it’s clear that the best companies excel in two areas when crafting their unique plans for success: They have a deep understanding of their strategic starting point and they embed a dynamic strategy mindset in their planning. These companies are able to sense and observe trends, adapt and reshape strategies based on data-driven forecasts, and move rapidly to seize growth opportunities.
First, having a comprehensive grasp of their strategic starting point is vital for companies to successfully navigate the ever-evolving business landscape. This includes taking into account various perspectives on the economic and operational stability of the markets in which they operate, as well as evaluating their own organizations’ financial stability. Such evaluations include analyzing metrics such as profit volatility and the ratio of free cash flow to debt, all of which can provide a framework for understanding the company’s position and potential opportunities.
Second, they adopt a proactive approach to strategy, which includes three key components. The first is forecasting which includes, keeping an eye on emerging trends, identifying potential risks, and creating contingency plans based on various scenarios. The second key component is the ability to pivot. This ensures operational and financial stability by adjusting strategies in response to market conditions and data-driven insights. And finally, they must quickly seize new opportunities to grow the business and gain a competitive edge.
Forecasting, pivoting, and adapting are crucial for businesses looking to build resilience. As the famous quote from Mario Andretti goes, “If everything seems under control, you’re just not going fast enough.” By staying attuned to potential risks and identifying our strengths, we were able to adapt and thrive even in the face of adversity.
Thirdly, resilience must be ingrained in a company’s culture. At Stanley Black & Decker, the President and CFO, Don Allan, implemented a strategy called “performance resiliency” to drive resilience into the company’s culture and ensure that employees understand its importance. The goal was not just to drive productivity and cut costs, but also to be able to thrive in a volatile world and seize opportunities as they arise. This approach has led to both cost savings and increased revenue.
I have also seen firsthand the positive impact of personal resilience on business resilience, as individuals and teams understand the importance of being prepared for any situation and the impact that their business has on the lives of those who depend on it.
The ability to navigate and thrive in today’s complex and rapidly changing business environment requires a combination of personal and business resilience. This includes a clear understanding of your strategic starting point, a dynamic mindset that allows for forecasting, flexibility, and seizing growth opportunities, and embedding resilience into the company culture.
By implementing these strategies, companies can not only survive, but also emerge stronger in the face of global and economic disruptions. Businesses that can adapt and pivot in response to changing market conditions are more likely to be successful in the long term.
Neri Karra Sillaman is a management consultant, speaker, and author. She is a professor of practice and an entrepreneurship expert at the University of Oxford, and has guest lectured for Apple, Credit Suisse, the London School of Economics, the Royal College of Art, and Imperial College London.
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