How resilient is your organization?

Defining organizational resilience

Organizational resilience is the ability of a company to adapt to and recover from any disruptive event, whether it be a natural disaster, economic downturn, or a significant cybersecurity breach. Essentially, it's the organization's capacity to survive and thrive in adversity.

Resilience isn't just about bouncing back from a crisis; it's also about being prepared for future disruptions and mitigating the impact of potential risks. An organization with solid resilience can quickly assess situations, adapt to new circumstances, and take decisive action to address problems. It requires long-term planning, preparation, and assessment. Key elements for success include a strong culture, strategic leadership, effective communication, and robust technology.

Click to read Leaving legacy behind to build business resilience (gated)

The role of technology in improving resilience

Technology can help businesses build resilience. ERP automates processes, reduces errors, and frees up resources for planning. FP&A allows real-time financial analysis to identify risks and adjust plans. HCM leverages data analytics and machine learning to attract and develop top talent for agile change responses.

Artificial intelligence (AI), machine learning (ML), and automation have revolutionized the way businesses operate. Service-based organizations rely heavily on these technologies to optimize operations, enhance decision-making, and reduce operational costs. AI, ML, and automation can improve resilience by reducing time-consuming, manual processes and streamlining operations. They can also enhance risk management by analyzing data from different sources to identify patterns and potential risks.

However, many professional service firms still rely on legacy systems, which lack the integration, flexibility, and automation capabilities of modern ERP, FP&A, and HCM technologies. These outdated systems cannot provide companies with the data insights and agility necessary to respond to changes quickly.

Building a resilient organizational culture that promotes technology adoption, innovation, adaptability, and open communication can empower employees to respond to challenges effectively. A resilient culture encourages risk-taking and experimentation, allowing companies to find new growth opportunities.

How technology can enhance resilience

ERP technology is essential for businesses to improve their resilience by centralizing departments and processes and providing real-time data and insights.

• Streamlined processes – eliminate manual tasks and automate routine processes to save time and reduce the risk of errors.
• Real-time data – on finances, projects, and other key metrics drives informed decisions and allows firms to respond to challenges and seize opportunities more effectively.
• Improved collaboration – can improve communication, foster innovation, and strengthen relationships, ensuring everyone works together to achieve common goals.
• Better financial management – robust financial management tools and insights for better decisions allow easy tracking of revenue, expenses, and other financial metrics.

FP&A technology is crucial for financial stability and helps organizations plan for the future by anticipating obstacles and enabling informed decisions.

• Enhanced data accuracy and visibility – powerful analytics provide an accurate picture of financial health and enable agile, informed decision-making.
• Improved financial planning and forecasting – detailed forecasts and budgets that align with strategic goals allow effective resource allocation and efficient cash flow management.
• Better risk management – identify potential risks early on and proactively mitigate them.
• Increased efficiency – automate time-consuming tasks, freeing time for more strategic activities.
• Better decision-making – valuable insights into financial performance enables them to make more informed decisions about investments, expenses, and revenue.

HCM technology helps organizations build resilience by identifying, attracting, retaining, and developing talent.

• Streamlined recruitment processes – leverage AI-based recruiting tools to better match candidates with the skills, experience, and culture fit required for the job.
• Comprehensive performance management – this software can provide real-time feedback, track goal progress, and enable continuous performance coaching.
• Learning and development – increase capacity for innovation and adaptability with personalized learning paths, eLearning content, and tools for tracking and reporting on training.
• Succession planning – with talent pools and career development plans, organizations can proactively develop employees and ensure a smooth transition when key people leave the organization.
• Compensation and benefits planning – personalized compensation planning strategies improve employee satisfaction, engagement, retention, and overall company performance.  

Outdated legacy systems

Outdated legacy systems hinder organizational resilience by causing inefficiencies and bottlenecks. Poor integration and security breaches can negatively impact data sharing and increase the potential for disruptions.

Upgrading technology can improve organizational resilience, flexibility, and efficiency in reacting to challenges and disruptions. Adapting promptly is necessary for competitiveness in today's dynamic business landscape, where organizations must be able to pivot quickly to stay competitive.

How Unit4 can help to boost your organizational resilience

Strategic leadership is a vital component in building organizational resilience. CIOs must have the foresight to identify potential threats and develop a plan to address and implement them effectively. This requires looking beyond short-term concerns and instead focusing on long-term objectives and goals.

Unit4 solutions provide the right information at the right time. Having a single source of truth in a centralized platform breaks down silos, reduces errors and inconsistencies, and enables data-driven decisions. You can check out our suite of solutions here.

And you can find out how resilient your organization is in this quick survey.