But it became evident, a few months into the pandemic, that even with a vaccine, there could be no return to business as usual because of the far-reaching, long-term consequences of such an event. Ironically, an event of this magnitude, while being the cause of these consequences, would demand precisely that – a rapid reversion to normal operations. What needs immediate attention today is a recalibration of operations, so that business can return to something resembling normal – the “New Normal.” Organisations are going to have to explore new ways of working, and actively identify opportunities that will help them innovate and grow, while trying to sustain themselves.
One indication of an organisation’s resilience is its ability to absorb the impact of a negative event, recover and adapt to the new situation. This is not easily accomplished; it needs extensive planning and preparation. Organisations which want to develop resilience in the face of future challenges will need to ensure that their operational resilience capabilities are up to par. They can do this by carrying out an initial operational resilience assessment to gauge the extent of their strengths and shortfalls. In the process, they may find they have to deal with outdated procedures and processes, as well as legacy systems that may curb their progress.
Subject matter experts generally agree that the pandemic has affected businesses across the industrial board in four main areas: the supply chain, workforce, finances and sales.The supply chain has been disrupted, leading to logistics challenges, shortages and difficulty in meeting demand for goods and services. Staff are now working from home to avoid infection, giving rise to difficulties in monitoring output and increasing the risk of systems and network security. “Business Unusual” has drastically reduced revenue while bills still need to be paid; and purchasing has gone online in a big way, forcing some firms to completely rethink their business models.
In this near-chaotic environment, long-term operational resilience is probably on hold until companies can get back on their feet. But this is an opportune time to put in checks and balances to support the organisation’s operational resilience and help it manage the various risks that may arise in the future.
16 The IERP® Monthly Newsletter September - November 2021