Forbes Business Council Post: Steps To Build Resilience In Uncertain Times

This article was written for Forbes Business Council, of which the author is a member. The original article can be found on the Forbes website.

By Matthew Gantner, Founder & CEO

Economic uncertainties and changing geopolitical environments have become part of our daily lives. My 2023 playbook emphasizes the importance of revenue generation, risk mitigation and return on investment for business leaders. These crucial elements can help guide companies toward building resilience and ultimate success.

In the second half of 2023, building resilience is essential for two reasons. First, we continue to face uncertainties that require preparation. Second, since some leaders were unable to adapt quickly enough or adopted a wait-and-see strategy during the first half of 2023, this has shifted pressure to the second half of the year.

In this current environment, companies cannot afford to delay building resilience, especially as the competition recovers and seizes new opportunities. In my view, business leaders should optimize a strategy for resilience that focuses on customers, financial health and business operations.

Executives and team leaders can look to evaluate and fine-tune each area of building resilience—with rapid execution being paramount to success.

Deep Relationships Through Service

Companies pride themselves on delivering great customer service. They attempt to be as responsive as possible to customers, launch helpful and targeted features or services and quickly address concerns. However, these efforts are not necessarily differentiators in today’s market.

One global survey found that 52% of consumers cite poor quality service as the primary reason for not making a repeat purchase, but that same percentage expects a better experience in today’s economy. Consequently, organizations can increase their focus on going above and beyond in their approach to customer relationships in order to succeed.

Three Tips To Create Value And Deepen Relationships

1. It starts with culture and values. Company leaders must adopt, demonstrate and teach a customer-first approach. If customers see, hear and feel valued, they are likely to become long-term relationships and customers.

2. Be proactive. Reach out, check in and maintain a dialogue with your customers. Customers who only hear from a leader when there is an issue with service often feel less valued.

3. Lean into your customers’ desired outcomes. This can help them establish realistic timelines and expectations and allow them to manage internal and external discussions proactively.

Mitigating Financial Risks

We have all been witnesses to the unfortunate failures of a handful of regional banks, brought on in part by poor risk management strategies in investments and cash reserves amid a period of high-interest rates and widespread anxiety.

However, business leaders can take a lesson from the fallout—namely enabling, building and implementing financial resiliency strategies during this challenging environment to pay dividends now and in the future.

Three Tips To Mitigate Financial Risks

1. Maintain clarity on revenue streams and drivers that impact revenue. Develop and maintain a focused set of KPIs and controls to enable decisions that allow your business to pivot quickly.

2. Establish and nurture relationships with financial institutions. Longstanding relationships with financial institutions can open the door to secure capital during lean times that can help sustain the business.

3. In tough times, companies must do more with less. Leverage technology as a market differentiator and manage productivity.

A Resilient Mindset

A resilient mindset and culture start at the top. Executives and department leaders need to clearly communicate the position in which the organization currently finds itself and, if appropriate, detail the plan to pivot or refocus as the organization prepares to meet the challenges ahead.

Three Tips To Drive A Resilient Mindset

1. Consistently communicate and celebrate the wins no matter how big or small. Be transparent about the challenges that your company is facing. Clear communication enables individuals and teams to lean into their strengths and help address the challenges you are facing.

2. Meet your company’s needs through long- and short-term strategy and operational plans. By creating, maintaining and iterating plans on a frequent basis, leaders can assess where their target market is and how it may shift as the economy changes and technology evolves. This can help put companies in a strong position to capture more market share.

3. Focus on culture and sustainable growth. Companies that have a strong culture and sustainable growth mindset are typically better positioned to weather the storms. Culture keeps teams engaged, and consistent communication allows them to focus on how to enhance their strengths while turning weaknesses into opportunities.

In my role as founder and CEO of a business consulting group, I’ve worked closely with companies looking to embrace resilience and remain at the forefront of their industry. By strengthening key internal functions—such as finance and operations—and maintaining a high level of service excellence for clients, you can build a solid foundation of resilience that enables you to thrive in uncertain times and capitalize on growth opportunities during prosperous periods.