You are on page 1of 14

MANAGEMENT DEVELOPMENT INSTITUTE - GURGAON

Post Graduate Programme in International Business


PGPIB: 2020-22 Batch Term: II (Oct -Dec 2020)
Operations Management
Submission Deadline:
st
Monday, 21 Dec 2020 Group Minor Project Weightage: 10%
Prof. (Dr.) Manoj K Srivastava

PGPIB: 2020-22
Group

06
Theme-06
Organizational Resilience:
Harnessing experience, embracing opportunity

Name of Group Members


(In Ascending ID)

1 20PGPIB008 Aman Siddiqui


2 20PGPIB015 Divya Anurag Agarwal
3 20PGPIB024 Kartik Mrig
4 20PGPIB030 Prashant Thakur
5 20PGPIB039 Shahinur Miraz Rahman
6 20PGPIB056 Shivam Awasthi

1
TABLE OF CONTENTS

WHAT IS ORGANIZATIONAL RESILIENCE? 3

ORGANIZATIONAL RESILIENCE: THREE KEY DOMAINS 4


OPERATIONAL RESILIENCE 4
SUPPLY CHAIN RESILIENCE 4
INFORMATION RESILIENCE: 5

ELEMENTS OF ORGANIZATIONAL RESILIENCE 5


PRODUCT EXCELLENCE 5
PROCESS RELIABILITY 6
PEOPLE BEHAVIOR 6

THE EVOLUTION OF THINKING ON ORGANIZATIONAL RESILIENCE 6


PREVENTATIVE CONTROL 6
MINDFUL ACTION 7
PERFORMANCE OPTIMIZATION 7
ADAPTIVE INNOVATION 7

THE ORGANIZATIONAL RESILIENCE ‘TENSION QUADRANT 7


PREVENTATIVE CONTROL: DEFENSIVE AND CONSISTENT 7
MINDFUL ACTION: DEFENSIVE AND FLEXIBLE 8
PERFORMANCE OPTIMIZATION: PROGRESSIVE AND CONSISTENT 9
ADAPTIVE INNOVATION: PROGRESSIVE AND FLEXIBLE 9

INTRODUCING THE 4SIGHT METHODOLOGY 10


FORESIGHT: ANTICIPATE, PREDICT AND PREPARE FOR YOUR FUTURE 11
INSIGHT: INTERPRET AND RESPOND TO YOUR PRESENT CONDITIONS 12
OVERSIGHT: MONITOR & REVIEW WHAT HAS HAPPENED & ASSESS CHANGES 13
HINDSIGHT: LEARN THE RIGHT LESSONS FROM YOUR EXPERIENCE: 13

BENEFITS & CONCLUSION 14

2
What is Organizational
Organizational Resilience includes more
Resilience? than just the capacity to endure, imperative
however this is. It empowers organizations
to saddle insight and grasp opportunity to
flourish in the present dynamic,
interconnected world.

At last, Organizational Resilience is the


appearance of 'making excellencea
propensity'. A business chief's expert
commitment should be to guarantee that
their association performs reliably well and
to leave it in robust shape for the future. To
accomplish that, they should guarantee
their association, just as the business, is
resilient.

Figure 1: Organizational Resilience drivers


(https://fbk.it/blog/blog-organizationalresilience.html)

Organizational Resilience is the capacity of


an association to flourish year on year in a
dynamic, interconnected world.
A strong association is adaptive, agile,
robust and serious – bridling experience
and embracing opportunity to pass the test
of time. Organizational Resilience includes
the reception of best practice to convey
nonstop business improvement, installing
skill and capacity across all parts of an
association. Organizational Resilience is
natural for an association's ethos and gives
a regular stage and mutual perspective for
adjusting to a unique business climate;
permitting pioneers to face estimated
challenges with certainty, reacting rapidly
and suitably to both happenstance and
danger.

3
ideal way. At last it is tied in with having
an unmistakable vision, and running after
Organizational it. Adhering to and accomplishing that
vision includes all parts of
Resilience: Three key operational great work on, beginning with
great administration at board level and
domains afterward zeroing in on territories, for
example, management of quality,
environmental issues and occupational
health and safety. A resilient organization
is mindful. It has a valid comprehension of
the circumstance and strength of the
business –
the dangers, weaknesses, qualities and
current capacities of the organization, just
as the commercial center and outer climate
it works inside.

Supply Chain Resilience:


As supply chain networks progressively
range mainland and become more intricate,
the capacity to evaluate and alleviate
supply chain hazards all through the
Figure 2: Continuous Improvement Framework
obtainment, assembling, transportation and
(https://www.bsigroup.com/en-IN/Our-
services/Organizational-Resilience/Essential-elements-and- deals lifecycle is foremost. Organizations
domains-of-Organizational-Resilience/) need to distinguish basic dangers to limit
interruption and help secure worldwide
operational, monetary and reputational
Operational Resilience: introductions.
A resilient organization has a full
comprehension of how it is run and the Firms endeavoring to keep up their serious
climate in which it works. This edge and edge levels have been compelled
incorporates distinguishing operational to move a few or the entirety of their
upgrades across its items/administrations producing operations to nations that offer
and cycles to address the issues of its more moderate work costs. Current
clients over the long haul, through to how assembling depends on worldwide supply
an organization esteems its kin and chains for crude materials and
oversees itself. It requires certifiable proof progressively for completed segments for
that the organization isn't complacent and gathering, marking and showcasing.
is continually provoking itself to improve
execution and develop economically. Essentially, business & expert
administrations organizations regularly
To accomplish operational resilience relies rely on consultancy and backing
on clear knowledge and investigation of administrations from around the globe.
the yields and contributions of items, Notwithstanding, dependence on expanded
cycles and individuals. This requires supply chains, contract producers and
gathering understanding and taking globalization of operations can cause
educated, strategic and vital choices in an negative effects, including business
4
interference, discolored notoriety and processing and the rethinking of individual
harmed brand esteem. Enormous and business information has just
organizations can be intricate and unfit to exacerbated the issue.
access or respond to one side data across
different capacities; and many do not have Organizations should assemble, use and
a low cost, inconspicuous approach to store information properly and secure its
gauge sway. respectability with robust information
security, the executives’ frameworks. In
Supply chain hazard is to a great extent the present computerized world individual
unsurprising and through appropriate and business clients should have the option
demonstrating can be recognized and to trust organizations to be run safely and
alleviated ahead of time of an antagonistic to have satisfactory conventions set up to
occasion. For instance, in 2011, numerous ensure their sensitive information.
car
producers' get together operations were Best practice organizations guarantee that
disturbed on the grounds that of a fire at a information security is implanted into their
solitary provider's production line in organizational conduct – supporting fast
Germany. and successful dynamic in a protected
climate.
Information Resilience:

In this day and age, organizations should


Elements of
be trusted to shield sensitive information.
A resilient organization should deal with
Organizational
its information – physical, computerized
and licensed innovation – all through its
Resilience- Product
lifecycle, Excellence, Process
from source to annihilation. This requires
the appropriation of information security- Reliability & People
disapproved of practices that permit
partners to assemble, store, access and use Behavior
information
safely and successfully.
Product Excellence:
In this setting 'product' alludes to whatever
Information is key in keeping up trust and
product, administration or arrangement an
straightforwardness across a supply chain
organization brings to market to produce
and it is a basic component inside an
income. The beginning stage is to ask
organization in overseeing execution,
which areas an organization serves. Do its
guaranteeing due measure and ensuring the
capacities and products coordinate the
nature of the final result. Digitalization has
market prerequisites – and consent to
enormously helped business profitability,
administrative necessities – what's more, if
be that as it may, has left organizations
not, how can it adjust to them?
helpless against security dangers
Horizon examining – the methodical
for example, PC helped misrepresentation,
assessment of information to distinguish
surveillance, damage and 'digital
likely dangers, chances, arising issues and
defacement'. Most dangers are not outer,
openings – should play a key job.
but rather stem from helpless practice
inside. The fast extension of cloud
5
Really resilient organizations enhance, not common society and its supply chain
just bouncing on another person's fleeting accomplices on moral and social obligation
trend, yet making new products while issues. In the event that our experience is
continually remaining one stage in front of positive we, and numerous others like us,
contenders. They are well prepared to will aggregately fortify the brand's
separate their contribution, taking a lead standing. Organizations that finish the test
while others follow. of time
accomplish arrangement between client
Process reliability: desires and representative conviction by
Implanting knack for excellence into the having a strong sense of identity.
advancement of products and Numerous organizations have moved away
administrations and offering them for sale from order, progressive administration.
to the public is a key part of progress.
Organizations need an orderly All things considered, present day pioneers
way to deal with quality in the broadest accomplish commitment by being more
feeling of the word. They should guarantee inclusive and value the contributions from
they 'do the nuts and bolts right' reliably their staff.
through the strength and reliability of their
processes, while still
leaving extension for development and
imagination. The evolution of
Business-basic processes in zones, for thinking on
example, quality, natural administration,
wellbeing and security, dependable Organizational
sourcing, information security and business
coherence should be robust and agreeable.
Resilience
Also, not just inside an organization itself,
yet additionally all through its supply
chain, where the weight on organizations
emerging from globalization of the supply
chain and their utilization of outsider
providers, opens the door to corruption and
compliance
challenges.

People behavior:
An organization's people, culture and
values decide business achievement.
'People work with people' may be a
platitude, however it stays succinctly that
we regularly judge an organization by the Figure 3: Organizational Resilience Evolution
individual experience we have with it.
1. Preventative control: Organizational
This incorporates how its representatives Resilience is achieved by means of risk
serve us, and how we notice the management, physical barriers, redundancy
organization associating with the climate, (spare capacity), systems back-ups
6
and standardized procedures, which protect
the organization from threats and
allow it to ‘bounce back’ from disruptions
to restore a stable state. i.e. defensive +
consistent.
2. Mindful action: Organizational
Resilience is produced by people, who
notice and react to threats and respond
effectively to unfamiliar or challenging
situations. i.e. defensive + flexible. It soon
became recognized that Organizational
Resilience was not only about learning to
bounce back (Wildavsky,1988), but also
Figure 4: Tension Quadrant
the ability to ‘bounce forward’ (Manyena,
O’Brien, O’Keefe and Rose, 2011) to grow
and prosper in the future (Reich, 2006). Preventative control: defensive and
consistent
3. Performance optimization:
Organizational Resilience is formed by
Society expects organizations and critical
continually improving, refining and
infrastructures to be safe, secure and
extending existing competencies,
dependable, and that industry, government,
enhancing ways of working and exploiting
regulators and service-deliverers have
current technologies to serve present
appropriate and continually improving
customers and markets i.e. progressive +
capabilities to ensure this. Small problems
consistent.
and errors, which are not rectified at
source, can cascade into more significant
4. Adaptive innovation: Organizational
events.
Resilience is created through creating,
As damage propagates, it may induce
inventing and exploring unknown markets
component failure and eventually system
and new technologies. Organizations can
failure. Regulating the system involves
be the disruption in their environment i.e.
protecting it from threat by promoting
progressive + flexible.
constancy and predictability. The ultimate
goal of regulation is to produce fail-safe
The Organizational system designs. Defenses, barriers,
safeguards and back-ups occupy a key
Resilience ‘Tension position in this approach. Systems have
multiple defensive layers: some are
Quadrant engineered, others rely on people, and yet
others depend on procedures and
administrative controls.

7
Preventative control: At its best in new situations, as challenges arise
(Sutcliffe and Vogus, 2003). An important
Known problems are solved using contribution of this stream of work is that
proven techniques people are not regarded purely as sources
of error, but provide a positive contribution
towards resilience (Hollnagel, Woods
Standard ways to do things are
and Leveson, 2006). For example, it has
perfected by fine tuning
been suggested that the operator’s role is
to make up for holes in the designer’s work
Redundancy through design and (Rasmussen, 1986). Thus, the focus of
diversification has a stabilizing effect resilience thinking shifted to the need for a
culture that facilitated noticing and
containing problems (Sutcliffe and Vogus,
Disturbances are quickly counteracted 2003).
by planned responses
Mindful action: At its best
People are wary about what could go
Preventative control: Signs of wrong
weakness
Systems and people are impractical and
rigid – ‘go by the book’ Opportunities and problems are noticed,
understood and addressed quickly

Local practice has taken over from written People exercise judgement, discretion, and
procedure and has become normal imagination when faced with challenges

Inefficient and complex systems and People are empowered to act when they
processes recognize a problem

Prearranged corrective actions are unclear


or impracticable Mindful action: Signs of weakness
People being too certain about how things
are.
Mindful action: defensive and flexible
Signs of problems are missed; people who
To be resilient is to be prepared for raise issues are ignored; people don’t
adversity, which requires “improvement in report errors
overall capability, i.e. a generalized
capacity to investigate, to learn, and to act, People diffuse responsibility for resolving
without knowing in advance what one will problems and defer decision making and
be called to act upon” (Wildavsky, 1988). action to others
Rather than relying on static controls and
reactive responses, Organizational
Resilience also requires resources that can
be activated, combined, and recombined
8
Performance optimization:
progressive and consistent
Performance optimization: Signs of
Driven by globalization, the need for weakness
downward pressure on costs and the aim of Lack of novel ideas on how to ‘do better
improvements in shareholder value, many things
organizations have focused on the need to
plan, organize for and realize efficiency
gain and increase productivity Overconfidence in “best” practice;
(Judge,Piccolo and Ilies, 2004). viewpoints of non-experts are excluded;
Performance optimization involves
learning to do existing things better,
People’s individual identities and motives
delivering goals and meeting the needs of are at odds with the organizational goals
the public, the media, regulators and the
government, who all demand that products
and services be delivered that ‘work right Lack of leadership at all levels; lack of
this time, next time and every time’. devolved ownership and responsibility
Typically, optimizing involves process
enhancement, including the refinement,
extension and exploitation
of existing assets and competencies, Adaptive innovation: progressive and
technologies, and paradigms (March, flexible
1991).
For an organization this means “It is not the most intellectual of the
“identifying operational improvements species that survives; it is not the strongest
across its products/services and processes that survives; but the species that survives
in order to meet the needs of its customers is the one that is able to adapt to and to
over time, through to how it governs itself” adjust best to the changing environment in
(BSI, 2014) which it finds itself” (Megginson, 1964).
The famous quote, often attributed to
Performance optimization: At its Charles Darwin, highlights the importance
best of adaptation. In today’s business
Performance improvement – ‘do what we environment the rapid production of
do better’ knowledge and innovation is critical to
organizational survival (Uhl Bien et al.,
2008). Innovation involves creative
Known solutions are implemented quickly problem-solving, innovation and learning,
which have become critical to competitive
advantage (Santos and Eisenhardt, 1989).
A clear sense of direction, goals, roles and In response to these challenges,
responsibilities organizations can no longer engage in
technical change by applying known
solutions and current know-how that can
A strong individual leader who people can be implemented by experts, rather they
relate to need to engage in adaptive change that
“requires going beyond any authoritative
expertise to mobilize discovery, shedding
certain entrenched ways, tolerating losses
9
and generating the new capacity to thrive
anew” (Heifetz, 1994; Heifetz and Laurie, Introducing the 4Sight
1997; Heifetz and Linsky, 2002). This
requires experiments, new discoveries and
methodology
invention from numerous places in the
organization or community. • Organizations have increasingly
complex projects with multiple
stakeholders. The leaders are focusing
Adaptive innovation: At its best
on different parts of the organization to
Productive tension disrupts existing measure effectiveness. Organizations
patterns and generates a search for new
bring resources in from the
possibilities
environment, and those resources are
Creative thinking and problem solving by transformed into outputs delivered back
people drawing on multiple perspectives into the environment. The effectiveness
and taking risks in a safe environment can be measured through the below
Collective strategic action with rich approaches:
interactions coalition formation, o Resource-based approach
negotiation and compromise assesses effectiveness by
observing the beginning of the
Systems-wide changes across borders and
boundaries; multidimensional and process and evaluating whether
fundamental changes the organization effectively
obtains resources necessary for
high performance
Adaptive innovation: Signs of o Internal process approach looks
weakness at internal activities and assesses
Entrenched thinking; People often resist effectiveness by indicators of
even acknowledging adaptive challenges internal health and efficiency
o Goal approach to organizational
Lack of diversity of people and outlooks; effectiveness is concerned with
nonconforming voices are ignored; people the output side and whether the
are too frightened to try something new organization achieves its goals in
terms of desired levels of output
Silos; people refer to “them” and “us”;
resources or ideas aren’t shared • The modern problem solving is based
on the assumption that there are
disagreements and competing
Quick fixes; local changes; reinventing the
wheel; change is resource intensive and viewpoints about what constitutes
slow - the search for solutions goes on effectiveness. The solution should
satisfy multiple stakeholders and lead
to long term growth in the organization.
• Through developing four main
practices: foresight, insight, oversight
and hindsight, the 4Sight methodology
helps those in leadership positions in
10
the organization, implement and the dynamic problems that abound in
maintain organizational resilience. modern business.
• 4Sight is especially helpful in dealing
4Sight describes a repeatable process
with complex problems such as the
employing creative thinking. It
development of a new software
application, the development of a new involves four core processes –
technology, the designing of a new
infrastructure system, the introduction
of a major change program or the
management of a crisis.
• Due to insufficient or conflicting
information, the number of
stakeholders and opinions involved, the
financial risk, and the interconnected
existence of these problems with other
problems, such challenges are difficult
to overcome.
• Issues involving shifting behavior,
beliefs and goals, or which are
indeterminate in nature and size, are
difficult. Organizational resilience is at
the heart of mobilizing people to solve
these challenges and problems.
• Organizational resilience is at the heart
of mobilizing people to solve these
challenges and problems. Managers Figure 5: 4Sight Response
signal and implement values through
leadership as well as through the formal Foresight: Anticipate, predict and
system of the organization. Leaders prepare for your future:
must formulate and communicate a
clear vision. Managers should Foresight is the field of theory & practice
remember that every statement and relating to construction of high-quality
action have an impact on culture and forward views to make inform decisions
values. and actions in the present. It is specifically
• The organization and the external oriented towards organizational application
environment are complex and so that is, towards the coordination of
continuously changing. The 4Sight action amongst groups of individuals with
methodology complements the shared purposes.
methodology of the developed Plan- Being unsure of what you don't know is the
Do-Check-Act (PDCA) mechanism. worst kind of uncertainty. Therefore, to
Although PDCA provides stability, expand and grow an organization, one
4Sight offers the versatility to deal with must search for the external stimuli to the
11
organization. This will entail continuous line workers, to continuously refine and
monitoring of future possibilities and refresh your understanding of the status of
potential risks to the company. Exploring ongoing operations and the world you face.
possible, plausible, probable and preferred In short, build up a situational awareness.
futures in a structured way will help to plan Unceasingly check for latent problems and
better. This foresight will assist individuals mistakes. Encourage citizens to report
to be mentally prepared for ambiguity and irregularities, errors and complaints,
transition. however small, without fear of retaliation,
In order to help the people, predict and and offer faith that people's concerns will
notice challenges, mistakes and problems be answered.
within the company that might develop Avoid being detached from what
into major events, Foresight often requires consumers and frontline staff do, say, think
an internal emphasis. The leaders must and feel. Spend time studying, engaging
encourage individuals to follow the and empathizing with others to understand
warning signs and attend to impending their perspectives and motives, as well as
issues with 'bad signals.' Just as with immersing yourself in the physical world
evolution, the secret of resilience is variety, in order to obtain a deeper personal
which comes from different viewpoints understanding of the issues involved. Some
and diversity in organizational terms. of the most important realizations come
Embrace different points of view and listen from realizing the difference between what
to diverse voices. someone says and what they do. Elicit
stories from people you're talking to, and
Insight: Interpret and respond to still wonder, "Why? "To explore a deeper
your present conditions: sense. It is often necessary to reframe or
disrupt traditional thinking about solutions
Bring people together to pause, step back by questioning the widely accepted view of
and see a big picture, helping them to think the underlying problem. Enable people to
about the interactions between the different discuss the conflicting aspects of the issue
parts of the organization. Examine knock- and promote new ideas that might change
on effects and change the attention people's minds from having just 'either/or'
between the various areas of the company options to 'both/and' solutions.
and the organization as a whole. Try to
bring clarity and attention to the challenges Oversight: Monitor and review what
you face and frame them in ways that help has happened and assess changes:
people develop mutual understanding and
dedication. Look for patterns and Oversight is important for organizations
connections in your environment and because failures in control can lead to large
develop multiple assumptions about what's financial losses, reputation damage, and
really going on. This includes regularly possibly even to organizational failure.
collecting information and facts from a Oversight has two basic functions:
variety of sources, including first-hand • Strategic control: the process of
customer observation in the field or front- monitoring as to whether to various
12
strategies adopted by the improvement are also used. These
organization are helping its internal initiatives are proactive in nature and
environment to be matched with the report on what employees are doing on a
external environment. It allows daily basis to ensure resilience. Examples
managers to evaluate a company's of leading indicators include customer
program from a critical long-term satisfaction, employee training hours and
perspective. lagging indicators such as profitability,
• Management control: include market share etc. There is a strong
processes for planning, organizing, correlation between key leading indicators
directing, and controlling program and future performance of an organization.
operations.
Oversight is necessary to guard against
Hindsight: Learn the right lessons
possibilities that people will do something from your experience:
the organization does not want them to do
or fail to do something they should do. “Don’t make the same mistake twice.
Establish a comprehensive process for Learn from your mistakes rather than
defining, prioritizing, sourcing, handling repeating them."
and tracking critical risks for the enterprise Our valuable experience and learnings
and ensure that the process continues to define the future path of our organization.
evolve as the market climate changes. Invest time in learning about previous
Balance efficiency and compliance by experiences and events. Future success will
ensuring that management decisions are only be improved if the company is eager
aligned with the corporate strategy, reflect and able to improve its actions as a result
the culture of business and comply with the of experience. Learning goes beyond
risk profile of the company. Understand collecting statistical data on incidents,
the risks inherent in your business model, Metrics and Analysis will help the
including the key assumptions that underlie organization under root causes.
the continued viability of the mission, and Hindsight bias is a psychological effect
agree with executive management on the that can limit learning and create a blame
company's risk appetite and failure culture. The term hindsight bias refers to
tolerance. the tendency people have to view events as
The organization must monitor its own more predictable than they really are. As
performance and track how things are knowledge of outcome biases our
going. The organizations should compare judgement about the processes that led up
budgeted figures with actual figures. It is a to that outcome.
key insight to understand how the The leader needs to create a culture and
organization is performing over time. environment that allows employees to fail.
Many companies use lagging metrics that If your employees are afraid to fail, they
are backward-focused or 'trailing.' won't try. They'll never get creative or
However, leading metrics that concentrate attempt something new. Instead, they'll do
on potential success and quality everything exactly inside the lines and
keep everything exactly how it is.
13
Therefore, resist playing the classic blame drawing on different experiences and
game by pinning faults and discuss what interdisciplinary teams, or co-creating
could have been done better. This will help with customers and consumers. The
uncover the situational and organizational 4Sight model includes the generation
factors that led to the event. and refinement of concepts and the
creation of designs and prototypes.
• In an increasingly diverse and
Benefits & Conclusion competitive environment,
Organizational Resilience calls for
leaders to be able to guide and organize
• Organizational resilience is the capacity change, but to do so without specifying
of an organization to anticipate, plan, solutions or creating 'top-down' visions
react and adjust to incremental changes and objectives that might alienate the
and sudden disturbances in order to very people who can create solutions to
thrive and prosper. emerging challenges. Paradoxically,
• Organizational resilience needs a therefore, executives must handle and
holistic approach and an effective control the conflict between the solid,
balance of preventive management, welcoming leadership that people want
careful intervention, performance to see in times of transition and the
enhancement and adaptive innovation. more challenging, collaborative
• Organizational resilience may be leadership that will maintain the
challenging to understand, execute and company.
maintain – many companies are • In the leadership, as in the
heading toward disaster or irrelevance. Organizational Resilience as a whole,
• Organizational resilience requires the highly dynamic, unpredictable,
strong leadership and a change in complicated and ambiguous world calls
thought – leaders and colleagues should for an acceptable balance between
use the 4Sight approach. security and development, stability and
• The focus on 4Sight methodology flexibility.
depends on the essence of the issues
facing the company. Having that wrong
would minimize organizational
resilience.
• Whether you are a Chief Executive
setting the course of the company or a
person working on a particular mission,
the 4Sight technique will allow you to
accomplish organizational resilience
• Creative approaches to evolving
challenges and opportunities can only
be accomplished by stimulating fresh
concepts and new ways of operating,

14

You might also like