Resilience & Organizations_Bucharest

7/31/2019 Resilience & Organizations_Bucharest

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SHEFFIELD MANAGEMENT SCHOOL WWW.SHEFFIELD.AC.UK/CREED

Resilient Organizations and Economies

Dr Tim Vorley and Dr Nick WilliamsCREED @ Management SchoolUniversity of Sheffield

@timvorley


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Takeaways

Introduce resilience and why it is important for you

Highlight why you need to always need to bethinking about change in organisations

Reflect on how managing crises and disruption is not

impossible but warrants organisational consideration

Consider how to evoke more resilient responses

within organisations and regions


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Introducing Resilience


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In Physical Systems

The speed at which a system returns to equilibrium

after displacement, irrespective of oscillations, indicatesthe elasticity (resilience).

Bodin and Wiman (2004)


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In Ecology

The ability to maintain

the functionality of asystem when it is

perturbed or the ability to

maintain the elementsrequired to renew or

reorganise if a

disturbance alters thestructure or function of a

system.

Walker et al. (2002)


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In Psychology

The developable capacity to rebound from adversity.

Luthans et al. (2006)


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In Engineering

The ability to sense, recognise, adapt and absorb

variations, changes, disruptions and surprises.

Hollnagel et al. (2006)


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Organizational Change


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In Organizations

Resilience conveys the properties of being able to adapt

to the requirements of the environment and being ableto manage the environments variability.

McDonald (2006)


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Organizational Challenges

Key challenges that organizations

encounter Disturbances

Disruptions

Disasters

Crises

Wild card events

Trends


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Importance of Trending


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Apple Inc

What happened here?


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Seagate vs Western Digital

What happened here?


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Vulnerabilities

Vulnerabilities in theSupply Chain

TurbulenceNatural disasters

Geopolitical disruptions

Unpredictability of demand

Unforeseen tech failures

Pandemic

Deliberate ThreatsPiracy & theft

Terrorism & sabotage

Labour disputesIndustrial espionage

Special interest groups

External PressuresInnovation

Social/cultural changes

Political/regulatory changes

Price pressures (competition)

Corporate responsibility

Environmental changes

ConnectivityScale/extent of supply

network

Reliance on information flow

Degree of outsourcing

Import/export channels

Reliance upon specialty

sources

Resource LimitSupplier capacity

Production capacityDistribution capacity

Raw material availability

Utilities availability

Human resources

SensitivityComplexity/Fragility

Restricted materials

Reliability of equipment

Potential safety hazards

Visibility of disruption

Symbolic profile of brand

Concentration of capacity

Supplier/Customer

DisruptionsSupplier trust, loyalty,

relations, reliability

Customer disruptions

Pettit (2008)


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Managing Disruption


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Managing Disruptions

Generally there are 3 areas that are crucial to

successfully managing disruptions:

Disruption discovery

To successfully recover from a disruption, the firm must have in

place an effective means of discovering disruptionsDisruption recovery

Once the disruption has occurred, how does a firm effectivelyrecover from a disruption?

Organisational redesign

Learn from the disruption to identify how the organisation canbecome more resilient


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Managing Crises

Time pressure:

minimal vs intense

Degree of control:

high vs low Threat level:

low vs high

Response options:many vs few

(Burnett 1998)


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Non-Negative Outcomes

Crises may produce gains as well as losses.

1. Heroes are born

2. Changes are accelerated

3. Latent problems are faced

4. People can be changed

5. New strategies evolve

6. Early warning systems develop

7. New competitive edges appear


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Creating Resilience


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Resilience in Organizations

Organisations can use

times of adversity to

achieve positive change

so they should be open to

both the possibility for

bouncing back, but alsoopportunities to bounce

forward.

Valastro et al.

(2011)


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Resilient Performance

Vargo and Seville (2011) state that to perform well

organisations must balance: Planned vs adaptive strategies

Grounded vs inspired leadership

Structured vs responsive decision-making

Disciplined planning vs creative and innovative culture

Integrative vs adaptive situational awareness

Managing these tensions is at the heart of being anambidextrous organisation


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Towards Resilience

Resilience I

The capacity to:

Resilience II

The capacity to:

Change without first experiencing

a crisis

Change without a lot of

accompanying trauma

Take action before it is a final

necessity

Recover after experiencing a crisis

Persist in the face of threat; not to

yield; tenacity

Survive trauma

Vlikangas (2010) defines 2 types of resilience:


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Resilient Economies Our research


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GEM framework

Social, Cultural,

Political context

General National

Framework

Conditions

Major establishedfirms

Entrepreneurial

Framework

Conditions

Micro, small and

medium firms

Entrepreneurial

Opportunities

EntrepreneurialCapacity

Business Dynamics

National EconomicGrowth


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South East Europe

Research conducted in Sheffield City Region, Thessaloniki,

Sofia now in Bucharest Also research to be conducted in Kosovo, Serbia and Croatia

Interviews with policy makers and entrepreneurs

Entrepreneurship is critical to restructuring and adaption of

(city-) region economies

Entrepreneurial environments are different but there are

common themes


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The Three Entrepreneurs

The supply of entrepreneurship is constant

Distribution depends on rules of the game (Baumol, 1990)

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Productive Destructive

Destroys economic

capacity such as

land, labour and/or

capital

Benefits

entrepreneur and

benefits society

at large

Benefits

entrepreneur

but harms

society at large

Unproductive


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Some common themes

Need to generate productiveentrepreneurship

Barriers to starting up

Importance of culture ofentrepreneurship

The role of corruption

Challenge is to enable resilient

organisations to grow over time How can policy better support resilient

and productive entrepreneurs?


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Resilient Pathways


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A Resilient Approach

How well does your organisation match up against

these attributes?

Disruption or

Crisis

How does the firm identify

the disruption?

What are the benefits of

early discovery?

What are the penalties for

late discovery?

Documents

Resilience & Organizations_Bucharest