Organisational resilience is critical for businesses’ sustainability. A resilient organisation can use uncertainty as a springboard for innovation, long-term planning, and growth.
In the latest episode of the ‘Reshaping Finance’ podcast, titled ‘Building resilient organisations in a changing world’, Andrew Harding, FCMA, CGMA, Chief Executive, Management Accounting at the Association of International Certified Professional Accountants, and Dionne Corradine, Chief Strategy Officer at the City of London Corporation, explore the multifaceted nature of resilience and its crucial role in navigating business challenges successfully.
True resilience is built with intention.
Resiliency is a mindset and set of behaviours that are developed through trials and tribulations. Being resilient doesn’t automatically happen with the flip of a switch during an emergency.
‘Risk isn’t just something to manage; it’s a force for good that can unlock creativity and innovation’, Corradine said in this episode of the ‘Reshaping Finance’ podcast. Organisations must move beyond a mere survival mentality and embrace uncertainty as an opportunity to innovate and plan strategically for the future.
With proactive problem-solving, businesses can adapt and grow rather than purely endure challenges. ‘There is nothing like a crisis to see people be creative’, Harding said.
Uncertainty brought on by inflation, currency fluctuations, and other market volatility can fuel innovative solutions.
Viewing resilience as a personal attribute to strengthen will create a shift in how you, as a finance professional, approach your operations. You anticipate potential disruptions and, in doing so, become a catalyst for change.
Uncertainties can be reframed as opportunities for growth, and organisations can pave the way for long-term sustainability.
Collaboration across teams creates resilience.
As a finance professional, you need to break out of the silos that can isolate you within your role. Successful outcomes are not just about cost control — ‘it’s about understanding the business model and building scenarios that help shape better decisions’, Harding said.
When finance teams collaborate with other departments such as human resources, strategy, and operations, they are much more effective. Teamwork across the organisation promotes a well-rounded approach to shaping outcomes, rather than solely focusing on managing budgets.
‘Having finance professionals who understand that it isn’t just about accountancy and balancing the books … Yes, the technical expertise is critical, but so is understanding the strategic finance perspective’, Corradine said.
By engaging with your peers across various functions, you gain a deeper understanding of the business, which brings more context and depth to decision-making processes, and in turn, a stronger ability to create meaningful change.
Connecting finance teams with other functions ensures that your organisation is more aligned on objectives and outcomes, and together, you can navigate uncertainty confidently.
A resilient organisation fosters trust, transparency, and a shared sense of purpose among its employees.
Organisational culture and resilience are strongly connected. ‘Without a strong culture, businesses are vulnerable’, Harding said.
Empowering your team to handle challenges more effectively means they can adapt and execute swiftly during periods of change.
‘Leaders need to build a culture of trust and transparency, be clear about the organisation's goals, and have systems in place to make sure those goals can be cascaded through to all employees. That way, everybody understands their purpose, has a sense of belonging, has a stake in the future of the business and can contribute’, he said.
Building a strong organisational culture requires intentional effort, where every member of the team has a clear understanding of their roles and responsibilities and also feels they are making meaningful contributions to achieving the shared goals that support the vision.
Clarity from the executive leadership team about strategy strengthens the sense of connection among team members and drives that collective effort, leading to a resilient organisation.
‘If you have leaders where the culture is about everyone pulling in the same direction and everyone is clear on how they are contributing to the overarching objectives, then you’ve got more of a chance at achieving short-term survival as well as that long-term growth’, Corradine said. ‘You want to be able to build a culture of trust where very few things are a surprise’, she said.
Embracing resilience drives success.
With the right culture, any business can be agile, according to Harding. ‘We need to be able to move quickly without compromising our long-term vision’, he said.
Quickly pivoting in response to changing circumstances is critical, and organisations that prioritise agility, supported by good data, scenario planning, and clear communication, can effectively seize opportunities that are brought on by uncertainty.
But agility isn't just about speed; it also involves a mindset shift, where you learn to be comfortable with and embrace change, allowing you to try new and experimental ways of doing things.
‘Risk is inevitable and being able to reposition risk as a force for good to help with creativity, risk appetite and risk tolerance is essential’, Corradine said.
By encouraging cross-functional collaboration and nurturing a workplace culture that exemplifies resiliency, finance leaders can tackle challenges and shape them into opportunities.
Pro tip from Harding: ‘Be prepared. Invest in your risk frameworks, understand how to do your scenario planning and get your data sorted.’
Listen to the full episode of the‘Reshaping Finance’ podcast.
Additional resources:
Harness the Power of Productivity
Re-defining Finance for a Sustainable World