Resiliency has become a buzzword, but it’s so much more. It’s a necessary value to remain successful when the economy hits rough waters.
In early 2020, as a collective, we were forced to become resilient. The pandemic pushed teams to find a new way to work together—remotely. It compelled businesses to become operationally braver and more flexible—fast. At the same time, it pressed individuals to become adaptable in the face of new and stubborn obstacles—and mass uncertainty.
Closures in certain industries forced employee layoffs. Many left the workforce to take on additional responsibilities, most of those who remained held in place, waiting for normal to return. They found a way to function in their roles and with their teams. They found a way to survive. And businesses with highly resilient teams even thrived.
Then those teams changed.
Once industries began re-opening, hiring across sectors intensified. The new normal was a “worker’s economy.” The great workplace reshuffle started with the percentage of employees changing jobs rising as much as 37% over the previous year.
Now we are heading for turbulent economic waters. We are doing it with new multi-generational team members, potentially working from new global locations, with many stepping into new roles. When the pandemic began, business leaders had no warning. There was no time to prepare.
This time we can see the storm clouds gathering and prepare our teams to withstand the rough waters ahead. Instead of setting our teams up to simply survive the coming economic storm, we can help them prepare to thrive. As McKinsey wrote, “Crises and disruptions expose weaknesses, separating the resilient from the unprepared.”
The storm clouds on the horizon
After two years of pandemic-fueled enterprise deal-making activity, dealmakers witnessed deal counts slow substantially in the first half of 2022.
Peter Miller, managing director at BMO Capital Markets, said, “companies were spooked by a number of factors, including central bank dynamics, supply constraints and the potential for an overall economic downturn. The wildcard that proved to be the biggest surprise, however, was Russia’s invasion of Ukraine.”
Other economic factors threatening businesses include 40-year high inflation rates, volatile trading, and stock market lows. The first half of 2022 was the worst for the S&P 500 since 1970. Goldman Sachs, foresees a 30% chance of a U.S. recession this year, while economists at Bank of America peg that likelihood at nearly 40%. According to economists at Citigroup Inc, the probability of the world economy succumbing to a recession is nearing 50% as central banks tighten monetary policy and demand for goods weakens.
While economists can’t agree on if, when, or how a recession may play out, they can agree that the next few years will be tumultuous, and businesses need to prepare—those that do will be rewarded.
Resilient teams can weather the storm
McKinsey reports: In the world financial crisis of 2007–09, resilient companies generated around 20% more shareholder returns, an advantage which accelerated to approximately 50% in the turnaround years of 2009–11 and 120% during the stable period of 2011–17.”
Resilient teams can contribute to significant bottom-line impact through heightened productivity, decreased absenteeism, lower health care costs, increased job satisfaction, and diminished turnover. Aligned and cohesive teams will outperform competitors leading to higher revenues and more innovation. While there is no quick fix for building team resilience, now is the time to prioritize resiliency efforts—and we can help.
Our award-winning Winning Teams Win® program helps companies create and align extraordinary teams. Our proven strategy is delivered by executives with in-depth experience who have been in your shoes—accountable for profit and loss.
We’ll help you assess where your team is and help you get them where you need them to be—efficient, effective, communicative, collaborative, and agile. The Winning Teams Win program has inspired high-performance teams for over twenty years. Our SPER® approach (strategy, people, execution, results), developed and delivered by a specialized, global team, has evolved as workplaces, technologies, and employees’ needs change. Our methods are built on having the mind, will, and heart to lead, and have been proven effective in Fortune 500 companies worldwide.
In six to twelve months, we can help you create teams that can weather the rough economic waters that lay ahead. Learn more about Winning Teams Win.
References:
- LinkedIn, “The Great Reshuffle in 2022: Top Trends to Watch” (January 2022).
https://www.linkedin.com/pulse/great-reshuffle-2022-top-trends-watch-karin-kimbrough/ - McKinsey, “Resilience for sustainable, inclusive growth” (June 2022).
https://www.mckinsey.com/business-functions/risk-and-resilience/our-insights/resilience-for-sustainable-inclusive-growth - Barron’s “The Economy Could Take 3 Paths, J.P. Morgan Says. Only One Is a Soft Landing” (July 2022).
https://www.barrons.com/articles/economy-fed-rates-soft-landing-51657123990 - Barron’s “The Economy Could Take 3 Paths, J.P. Morgan Says. Only One Is a Soft Landing” (July 2022).
https://www.barrons.com/articles/economy-fed-rates-soft-landing-51657123990 - Bloomberg, “Citigroup Economists See Chance of Global Recession Nearing 50%” (June 2022).
https://www.bnnbloomberg.ca/citigroup-economists-see-chance-of-global-recession-nearing-50-1.1782144#:~:text=Citigroup%20Economists%20See%20Chance%20of%20Global%20Recession%20Nearing%2050%25,-Simon%20Kennedy%2C%20Bloomberg&text=(Bloomberg)%20%2D%2D%20The%20probability%20of,to%20economists%20at%20Citigroup%20Inc - McKinsey, “Resilience for sustainable, inclusive growth” (June 2022).
https://www.mckinsey.com/business-functions/risk-and-resilience/our-insights/resilience-for-sustainable-inclusive-growth
