The resilient operating model

In brief

The pandemic has fundamentally altered customer behavior and reshaped markets.
Organizational agility and resiliency are increasingly critical to helping companies deal with these changes.
74% of C-suite executives feel they need to completely rethink their operating models to be more resilient.
93% say their organization’s existence is jeopardized by operating models that can’t keep pace.

The fallout from the COVID-19 pandemic has changed consumer behavior and fundamentally restructured the global economy. To survive, companies need to adapt. Fast.

One lesson is clear: Those armed with operating models that enable them to continuously adapt are more likely to prosper. However, 74% of C-suite executives feel they will need to completely rethink their operating models to be more resilient as a result of COVID-19. Organizations that fail to act now risk getting buried by the competition long before the next crisis.

Beyond value of shares to shared value

As we look towards a post-pandemic future, every company must consider its raison d’etre. Why they exist, their purpose, and how they will create value—not just to shareholders but to extended stakeholders: their customers, employees, and the wider community. Defining a clear organizational purpose acts as the North Star to guide not only the overall corporate strategy but the operating model itself. Sustaining a sense of purpose over time means understanding how all levels and roles contribute to the organizational purpose.

Foresight begets agility and resilience

In a world of massive data proliferation, every company is challenged to derive insight from the information. It’s another challenge that’s been exacerbated by the crisis. In fact, 68% of executives we surveyed ranked capturing insights as the most important element of the organization’s operating model for adapting to the COVID-19 crisis. Yet only 17% had full confidence their organization had the necessary insights to make the right business decisions.

Ecosystems as agents for change

90% of C-suite respondents consider building an ecosystem business model important for their company as they navigate the effects of the pandemic. Why? Partnerships allow organizations to access capabilities to refine their market approach rapidly. By turning to a trusted network of partners and alliances, companies can access the customers, capabilities, talent, and ideas needed to respond to changing market trends, new technologies, emerging competitive threats, and regulatory changes.

93% of C-suite executives surveyed said their existence is jeopardized by operating models that can’t keep pace.

74 %feel they will need to completely rethink their operating models to be more resilient as a result of COVID-19.

68 %of executives ranked capturing insights as the most important element of the organization’s operating model.

Making the change

By designing the operating model to create a state of perpetual motion, organizations can withstand unexpected disruption and rapidly exploit new opportunities. Here are some concrete actions for building enterprise agility and organizational resilience.

Resilience now and in the future

Companies looking to gain the resilience and agility demanded by today’s competitive environment—in the short and long term—need to focus on their operating models. Specifically, that means harnessing insights, structuring and reskilling the workforce, and re-invigorating partnerships to maximize organizational flexibility.