A new model of Organisational Resilience

Transcription

1 A new model of Organisational Resilience Dr Erica Seville Amy Stephenson Dr John Vargo Resilient Organisations The Resilient Organisations Research Group Building more resilient organisations, able to survive and thrive in a world of uncertainty, through research and practice A multi-disciplinary team of researchers and practitioners from around New Zealand

2 Defining Organisational Resilience A resilient organisation is one that is not only able to survive, but is able to thrive in an environment of change and uncertainty. How do you Judge Resilience? You can t just wait for the disaster to happen to find out Want a tool that is relevant for all types of organisations and for all hazards Can t just look at inputs... Some organisations that don't plan, actually perform very well during a crisis...

3 Iteration 1 case study analysis Situation Awareness Management of Keystone Vulnerabilities Adaptive Capacity SA 1 SA 2 Roles & Responsibilities Understanding & Analysis of Hazards & Consequences KV 1 Planning Strategies AC 1 Silo Mentality KV 2 Participation in Exercises AC 2 Communications & Relationships SA 3 Connectivity Awareness KV 3 Capability & Capacity of Internal Resources AC 3 Strategic Vision & Outcome Expectancy SA 4 Insurance Awareness KV 4 Capability & Capacity of External Resources AC 4 Information & Knowledge SA 5 Recovery Priorities KV 5 Organisational Connectivity AC 5 Leadership, Management & Governance Structures Resilience Ethos RE 1 Commitment to Resilience RE 2 Network Perspective Situation Awareness Management of Keystone Vulnerabilities Adaptive Capacity SA 1 Roles & KV 1 Planning Strategies AC 1 Silo Mentality Responsibilities SA 2 Understanding & Analysis of Hazards & Consequences KV 2 Participation in Exercises AC 2 Communications & Relationships SA 3 Connectivity Awareness Iteration 2 literature and practitioners KV 3 Capability & Capacity of Internal Resources SA 4 Insurance Awareness KV 4 Capability & Capacity of External Resources SA 5 Recovery Priorities KV 5 Organisational Connectivity AC 3 AC 4 AC 5 Strategic Vision & Outcome Expectancy Information & Knowledge Leadership, Management & Governance Structures SA 6 Internal & External Situation Monitoring & Reporting KV 6 Robust Processes for Identifying & Analysing Vulnerabilities AC 6 Innovation & Creativity SA 7 Informed Decision Making KV 7 Staff Engagement & Involvement AC 7 Devolved & Responsive Decision Making

4 Development of the benchmarking tool Three questions for each indicator 25% To what extent do you agree or disagree with the following statement: Our organisation is focused on being able to respond to the unexpected Strongly Agree Agree Disagree Strongly Disagree Don t Know Resilience Measurement Tool 63 questions measuring organisational resilience 2 versions of the tool senior manager and allstaff 18 reflective questions financial and management questions Approximately 20 minutes to complete Auckland Study: 250 responses from 69 organisations

5 New model of Organisational Resilience Planning Dimension Proactive posture Planning strategies Recovery priorities Participation in exercises Access to external resources Adaptive Capacity Dimension Leadership Decision making Innovation and creativity Situation monitoring and reporting Mgmt of Information &knowledge Staff engagement Minimisation of silos Availability of internal resources New Model... Planned and Adaptive, this is the key Planned Greater Resilience Adaptive

6 Auckland Study Resilience Strengths Internal and External situation monitoring Devolved and responsive decision making Resilience Weaknesses Planning strategies (only 25% orgs have a plan. Less than ½ of staff think this plan is any good!) Capability and capacity of external resources Approaches to Resilience Industry Sectors Approaches to Resilience between Industry Sectors Score 80.00% 75.00% 70.00% 65.00% 60.00% 55.00% Communication Education Best - FinanceHealth and Community Health and Community Manufacturing Personal Worst and Other - Services Property Wholesale and Business Services Trade Retail Trade Wholesale Trade 50.00% Planning 1 Adaptive 2 Capacity Dimensions of Organisational Resilience

7 Approaches to Resilience Organisation Size Approaches to Resilience by Organisation Size 80.00% 75.00% Score 70.00% 65.00% 60.00% % 50.00% Planning 1 Adaptive Capacity 2 Dimensions of Organisational Resilience NB: Organisation size is the number of full time staff employed The Least Resilient Organisation 100% Score 0% Planning Planning strategies Simulations and exercises Proactive posture External resources Recovery priorities Silos Internal resources Staff involvement Information and knowledge Crisis leadership Adaptive Capacity Innovation and creativity Decision making Situation monitoring and reporting

8 The Most Resilient Organisation 100% Score 0% Planning Planning strategies Simulations and exercises Proactive posture External resources Recovery priorities Silos Internal resources Staff involvement Information and knowledge Crisis leadership Adaptive Capacity Innovation and creativity Decision making Situation monitoring and reporting How Organisations Can Use This Information? Resilience scores Identify their overall approach to resilience Identify strengths and weaknesses and develop workplans to address them Increase awareness of resilience issues Provide evidence of progress over time Resilience benchmarks Compare their organisation with others Provide evidence of progress over time

9 Reflective Measures Reflective Measure Significance # with Organisational Resilience Debt to equity ratio 22.10% Number of locations or sites 28.20% Average annual staff turnover 42.80% External directors on governing board 50.30% Relocation in a crisis if building was inaccessible 65.70% Back-up IT facilities 66.20% Average annual sales growth rate 77.20% Use of a staff satisfaction survey 97.00% Number of full time staff 97.80% Average annual profit-to-sales ratio 98.80% Average annual return on investment 99.70% Cash flow 99.80% # A score above 95% is considered significant, the closer to 100% the more significant The case must: Making the business case for resilience development go beyond just better insurance or preparing for the big one, go beyond managing risk link to organisational strategy and competitiveness The case must be better than that for a new piece of equipment or a new staff member!

10 Future Research These are early days... Confirmatory study of the tool validity Build up the dataset Local studies rural/urban businesses in the Hurunui Tool going online end of this year Longitudinal studies Sector based assessment tools When the crisis comes......will your organisation be resilient enough?