Respond, recover, thrive with Deloitte’s crisis plan
Adaptability, preparedness, collaboration, responsibility and ethics are considered the five traits of a resilient leader in a report by Deloitte Insights which explores how companies can improve their response to a crisis.
“Resilient organisations rapidly and successfully cycle through three phases - Respond, Recover, Thrive - not just for COVID-19 but for every crisis,” says the new report, The journey of resilient leadership, Building organisational resilience.
"While promising results from vaccine trials - perceived by global CEOs as the highest priority on the path to recovery - encourage us to set our sights on a “better normal” progress has been more looping than linear,” says the author Punit Renjen of Deloitte Insights.
“Regardless of where each of our organisations is on the journey from Respond to Recover to Thrive, virtually every CEO I interact with agrees on one thing: The journey involves an ever-accelerating pace of change.
“Achieving a better normal is not just about having a better map; it’s about having the nimble team, resources, and systems that enable us to thrive before, during, and after change (especially adversity). It’s about having a resilient organisation.”
According to Deloitte’s report, resilience is not a destination; it is a way of being.
“A resilient organisation is not one that is simply able to return to where it left off before the crisis. Rather, the truly resilient organisation is one that has transformed, having built the attitudes, beliefs, agility, and structures into its DNA that enable it to not just recover to where it was, but vault forward - quickly.”
Deloitte also points out it is about having an inspiring leader who possesses the five traits that can connect all aspects of an organisation. “Resilient leaders know that responding to disruption with agility is about more than survival. It’s about uncovering value,” comments Renjen.
“Discontinuities create obstacles, but also open new paths for discoveries and value creation. Market structures, business models, ecosystem relationships, and customer needs are dramatically reshaped, and the winners script the future. The same has been true during the COVID-19 market disruption.”
According to Deloitte the key actions on the road to a resilient organisation are the following:
- Beliefs: Explore and leverage opportunities on the trail of the pandemic
- Attitudes: Lead your team through the mindset shifts to navigate a path to resiliency
- Agility: Embrace collective agility by convening stakeholders to codesign the answers to company-critical challenges
- Structures: Ensure C-suite members are accountable for the seven key elements of a resilient organisation
“The situation pivots from a tenuous interim normal to actively pursuing a better normal. Leaders must therefore chart their organisation’s strategic destination as it emerges into Thrive, said Deloitte.
A Fortune/Deloitte CEO survey signalled key elements of that better normal: 96% of CEOs said that diversity, equity, and inclusion are strategic priorities, and 78% expect a consistent focus on sustainability and carbon reduction.
“The leadership attitude shifts from reinventing ways of doing business in the interim to a pioneering ethos, one in which you focus on inspiring and empowering the team to follow you.
“During the Recover phase, the focus shifted from internal to market-facing. Now, however, we shift to market-making,” says the report. A total of 74% of the CEOs in the survey expect the crisis to create significant new market-making opportunities
Collective agility to thrive
According to the report, today’s leaders can build resiliency by convening the full ecosystem to collaborate and define the journey together – known as collective agility.
“As my colleagues have seen in their work with various client organisations, the accelerated delivery of viable vaccines demonstrates this type of collective agility across a whole system of stakeholders,” says Renjen.
Deloitte found that the vast majority of organisational needs cluster into one of seven categories:
- Resilient strategy -Define the transformation journey and ambition
- Resilient growth - Drive customer focus, product innovation and market/revenue growth
- Resilient operations - Transform and modernise operations
- Resilient technology - Accelerate digital transformation
- Resilient work - Transform the work, workforce and workplace
- Resilient capital - Optimise working capital, capital structure and business portfolio
- Resilient society - Steward environmental and social resources through trust, response, governance and measurement
“Each of these elements needs to be strong independently. Taken together, the seven elements operate within a cohesive, interdependent web that reinforces each of the parts and enhances the adaptability of the organisation,” comment Deloitte.
G7 Summit guide: What it is and what leaders hope to achieve
Unless you’ve had your head buried in the sand, you’ll have seen the term ‘G7’ plastered all over the Internet this week. We’re going to give you the skinny on exactly what the G7 is and what its purpose on this planet is ─ and whether it’s a good or a bad collaboration.
Who are the G7?
The Group of Seven, or ‘G7’, may sound like a collective of pirate lords from a certain Disney smash-hit, but in reality, it’s a group of the world’s seven largest “advanced” economies ─ the powerhouses of the world, if you like.
The merry band comprises:
- The United Kingdom
- The United States
Historically, Russia was a member of the then-called ‘G8’ but found itself excluded after their ever-so-slightly illegal takeover of Crimea back in 2014.
Since 1977, the European Union has also been involved in some capacity with the G7 Summit. The Union is not recognised as an official member, but gradually, as with all Europe-linked affairs, the Union has integrated itself into the conversation and is now included in all political discussions on the annual summit agenda.
When was the ‘G’ formed?
Back in 1975, when the world was reeling from its very first oil shock and the subsequent financial fallout that came with it, the heads of state and government from six of the leading industrial countries had a face-to-face meeting at the Chateau de Rambouillet to discuss the global economy, its trajectory, and what they could do to address the economic turmoil that reared its ugly head throughout the 70s.
Why does the G7 exist?
At this very first summit ─ the ‘G6’ summit ─, the leaders adopted a 15-point communiqué, the Declaration of Rambouillet, and agreed to continuously meet once a year moving forward to address the problems of the day, with a rotating Presidency. One year later, Canada was welcomed into the fold, and the ‘G6’ became seven and has remained so ever since ─ Russia’s inclusion and exclusion not counted.
The group, as previously mentioned, was born in the looming shadow of a financial crisis, but its purpose is more significant than just economics. When leaders from the group meet, they discuss and exchange ideas on a broad range of issues, including injustice around the world, geopolitical matters, security, and sustainability.
It’s worth noting that, while the G7 may be made up of mighty nations, the bloc is an informal one. So, although it is considered an important annual event, declarations made during the summit are not legally binding. That said, they are still very influential and worth taking note of because it indicates the ambitions and outlines the initiatives of these particularly prominent leading nations.
Where is the 2021 G7 summit?
This year, the summit will be held in the United Kingdom deep in the southwest of England, with Prime Minister Boris Johnson hosting his contemporaries in the quaint Cornish resort of Carbis Bay near St Ives in Cornwall.
What will be discussed this year?
After almost two years of remote communication, this will be the first in-person G7 summit since the novel Coronavirus first took hold of the globe, and Britain wants “leaders to seize the opportunity to build back better from coronavirus, uniting to make the future fairer, greener, and more prosperous.”
The three-day summit, running from Friday to Sunday, will see the seven leaders discussing a whole host of shared challenges, ranging from the pandemic and vaccine development and distribution to the ongoing global fight against climate change through the implementation of sustainable norms and values.
According to the UK government, the attendees will also be taking a look at “ensuring that people everywhere can benefit from open trade, technological change, and scientific discovery.”