Reports > Management

In an era of unpredictability, building a resilient organizational culture is necessary.

2023.04.12 Sung-Ii Jo

Sung-Ii Jo

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#case study #leadership #organizational culture
As the era of extreme uncertainty emerges, companies are grappling to devise strategies for survival and growth. Among these strategies, the concept of resilience is gaining prominence. Originally studied at the individual level in psychology, resilience is now being extended and utilized at the organizational level. This article aims to outline the significance of resilience, which serves as a driving force for sustaining growth by enabling organizations to effectively respond to unforeseen changes, along with examples of its utilization by businesses.
Table of Contents

  • 1. Increasing Interest in Resilience

  • 2. The Concept of Resilience

  • 3. Case Studies

  • 4. Conclusion and Implications

Executive Summary

  • With the advent of the era of extreme uncertainty, companies are increasingly focusing on securing resilience.

    • The anticipated future characterized by complexity and unpredictability is expected to make uncertainty the new normal, leading to a growing global interest in resilience.

    • Analysis of the performance gap between resilient and non-resilient companies, particularly in the aftermath of global financial crises and the COVID-19 pandemic, indicates a widening gap over time.

  • Resilience is defined as the ability to not only bounce back from adversity but also to continuously grow.

    • It involves actively responding to unexpected shocks and transforming them into drivers of new growth.

    • Beyond mere bounce back, the key is to bounce forward and sustain growth.

  • Global companies are engaged in various activities to secure resilience.

    • Sony: Rebounding through initiatives like 'BE MOVED' and 'ONE SONY' after market setbacks.

    • Hyundai Motor Company: Innovating organizational culture to transform employees' social capital into organizational capabilities.

    • Microsoft: Transitioning from bureaucratic and competitive to collaborative and open organizational culture under CEO Satya Nadella's adaptive leadership.

    • Gucci: Successfully reinventing its perceived outdated image by operating a shadow committee catering to the preferences of the MZ generation.

    • Fujifilm: Establishing a platform for rebound through the creative rediscovery of film manufacturing technology.

    • Google: Implementing diverse efforts such as operating praise sites, offering failure bonuses, and conducting meditation programs to enhance employees' psychological well-being.

  • Insights for securing resilience are derived from the aforementioned cases.

    • Value Sharing: Reducing discrepancies in value sharing among generations, demographics, and individuals.

    • Social Capital: Strengthening horizontal culture for the accumulation of social capital within and outside the organization.

    • Adaptive Leadership: Enhancing networking for middle management authority and open perspectives.

    • Organizational Agility: Expanding the involvement of young generations in decision-making.

    • Bricolage: Promoting DX (Digital Transformation) for sharing tangible and intangible resources and information.

    • Psychological Stability: Fostering an environment of acceptance and encouragement regarding challenging work failures.

  • Enhancing organizational resilience requires a comprehensive improvement program across multiple factors rather than focusing solely on one aspect out of the six mentioned.

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