How to Build Resilience into Business Processes
Leaders can build resilience and agility into their operations
As businesses take on a continually changing landscape, leaders have had to pivot. They’ve changed their approach to everyday business processes like risk management and communication.
In this video, renowned economist Dr. Mohamed El-Erian and Capital One’s Dave Kucera shared 3 key takeaways for how businesses can build greater resilience into their processes and operations:
1. Think more holistically about risk management.
“You’re managing a new normal that is much more complex...where unthinkables become a reality...your reality,” El-Erian said. He cited the global lockdown as the ultimate “unthinkable” situation.
In the past, the risk management function primarily focused on a company’s financial health. Now, it requires a much more comprehensive definition to include health, workplace and reputational risk, among others. That means integrating risk management into every part of the organization.
2. Leverage the right technology to improve your processes.
Technology is a major driver in every industry. It’s a critical part of both internally and externally facing processes - from social media monitoring and listening to financial scenario planning. These tools are crucial for businesses to intelligently process data and identify potential risks.
When businesses get their technology implementations right, El-Erian said, it is a complete gamechanger.
3. Commit to honest, open and frequent communication.
Open communication is essential to keeping employees engaged. That means leaders should share regular updates about the company’s path forward and also set up safe spaces for employees to share feedback.
And when faced with the choice between over-communication or under-communication, El-Erian said leaders should err on the side of over-communication.
If you under-communicate, you leave people in the dark, El-Erian said. This can lead to a massive disconnect between leaders and their teams, especially in times of uncertainty. “It is paralyzing. It is literally paralyzing.”
Managing a new normal requires versatility.
Ultimately, leaders need to remain agile and open-minded so they can quickly adapt to new circumstances. In many cases, that will require leaders to assess and evolve their existing processes to meet changing stakeholder needs.
El-Erian is a former chief executive officer, investment analyst, investor and market commentator. He was inducted as President of Queens College at the University of Cambridge in September 2020.
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