Roger Michaelis shares insights on how organizations can strengthen their governance frameworks to effectively navigate unexpected challenges and crises.
In recent days, I encountered a situation that, while not new, brings valuable reflections on managing essential elements that sustain business operations. This unexpected event exposed vulnerabilities and illustrated the complexity of handling unpredictable crises. For an attentive observer, the situation goes beyond the specific circumstances; it reveals structural flaws and highlights the need to rethink how we manage critical situations, whether in large corporations, medium-sized companies, or small businesses.
The Importance of Adaptability
It is essential to recognize that in times of uncertainty—such as during the COVID-19 pandemic, wars, or climate crises—we cannot predict everything. Often, effective management is revealed in our responses to the unexpected. Throughout my career, I have witnessed many companies facing unforeseen challenges, both external and internal. An organization’s ability to respond swiftly and effectively to emergencies is a direct reflection of the quality of its management and the preparedness of its leaders. When it comes to critical infrastructure, such as energy supply, this responsibility becomes even more pronounced.
Just as the recent storm presented us with unforeseen challenges, the COVID-19 pandemic required innovative thinking and the discovery of new solutions to complex problems. In our company, uncertainty was palpable; each day brought new information, requiring us to rapidly adapt our plans. We chose a gradual and adaptive approach, avoiding extremist decisions. Our dynamic risk matrix was fundamental in this process, allowing us to continuously monitor changes in the landscape and adjust our strategies accordingly.
The choice to observe day-to-day operations and make targeted decisions, rather than adopting radical changes, proved to be the right one. This flexible approach allowed us to initially focus on buying, producing, and receiving, adjusting actions according to daily needs. As I often say: first the heart beats, then the liver eliminates toxins. In this way, we adapted our actions to preserve the health and well-being of our employees while maintaining the company’s operations. The result was not only overcoming the crisis but also strengthening the bonds with our team and clients.
Lessons of Resilience and the Need for Strategic Planning
One of the main lessons we learned is the importance of cultivating an organizational culture that values adaptability and resilience. Furthermore, the constant updating of the risk matrix has become a fundamental practice in our company. Whenever I encounter a crisis scenario, I reflect on the importance of anticipating scenarios and implementing action plans that can truly absorb impacts. Organizational resilience is not just tested; it is validated in moments of crisis. If there is one thing that has become evident in recent days, it is that we need to constantly review and enhance our response mechanisms, including maintaining a dynamic risk matrix.
Final Reflections
How is your organization preparing for the unexpected? What proactive steps can you take today to enhance your organization’s resilience for tomorrow?
