In the course of this series, we would like to highlight the importance and the understanding for corporate resilience which is reflected in BCM+. i.e.an implemented BCM is only as good as the employees who operate it and vice versa.
Furthermore, in order to understand corporate resilience, it is important first to understand what a lack of resilience looks like, in other words, corporate failure.
There are two ways of corporate failure – gradual decline over several years like Nokia and rapid decline like Lehman Brothers.
But we don’t want to go into this – they are typical case studies when studying corporate resilience.
In every case, there are warning signs. Some of them are much shorter in nature or more complex than others. In most cases companies have every opportunity to make the necessary changes.
When we see companies that fail to change, the awareness exists, the signals are usually out there. The problem is a lack of action. The problem is changing from awareness to action.
It is somewhat jokingly put like the frog in hot water. You could argue that what happens with executives when they see some warning signs of threats emerging. What do they do?
They actually invest in water temperature monitoring equipment (Thermometers ), they form water committees, but they don’t actually jump out of the hot water.
One of Ediths professors called it active inertia.
This phenomenon of active inertia is companies can see things are not going well. They do lots of things, they are active, maybe they are restructuring or they are investing and divesting and they try to change things around. But at the core of the company there is still a real inertia. In other words, they continue to fail to initiate change.
We will tell you more about active inertia in our next post. Stay tuned!
And don’t forget: