Organizational Resilience: Building Blocks For A Healthy & Successful Organization
Organizational Resilience: Building Blocks For A Healthy & Successful Organization
Resilience
Building Blocks for a Healthy & Successful Organization
ORGANIZATIONAL
RESILIENCE
BUILDING BLOCKS FOR A
HEALTHY & SUCCESSFUL
ORGANIZATION
2
Organizational Resilience: Building Blocks for a Healthy & Successful Organization
1st edition
© 2020 Dorothy Spry, Nigel Marlow & bookboon.com
ISBN 978-87-403-3529-3
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ORGANIZATIONAL RESILIENCE Contents
CONTENTS
About the Authors 5
1 Introduction 7
1.1 Introduction 7
1.2 Overview of this eBook 8
4 Takeaways 27
4.1 Takeaways 27
Further Reading/References 28
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ORGANIZATIONAL RESILIENCE About the Authors
Dorothy Ann Spry, MSc Organisational and Behavioural Psychologist with a background
in training, coaching and development; Dorothy has worked for various organisations in
the USA, UAE and Europe.
Dorothy is the author of numerous business management books and research articles.
Topics include: Psychometric Testing; Careers in the 21st Century; Emotional Intelligence;
Authentic Leadership, Anger Management and Cognitive Behavioural Coaching (CBC),
Psychopathic Leadership, The Good, Bad and Downright Ugly, Using ‘Fast Thinking’ in
Business Star Performers: How to enhance your Emotional Intelligence and Psychological
Resilience for Individuals.
Contact: [email protected]
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ORGANIZATIONAL RESILIENCE About the Authors
Nigel has a background of 20 years business experience at Director Level (UK, Germany
& Italy). He has also worked in the HE sectors as a Principal Lecturer in Psychology,
developing MSc programs in both Business Psychology and Consumer Psychology. Currently
he is R&D director for business-psychology. online and has created several bespoke online
engines for exploring the subconscious and emotional aspects of decision-making within
organizations and within the minds of consumers.
Contact: [email protected]
https://business-psychology.online/
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ORGANIZATIONAL RESILIENCE Introduction
1 INTRODUCTION
1.1 INTRODUCTION
“Everything that can be counted does not necessarily count,
and everything that counts cannot always be counted.”
– Einstein
Organizational Resilience (OR) is one of those ‘things’….” that counts but cannot always
be counted.”
It would be true to say that we are currently living in difficult times, with economic downturns,
the lack of confidence in the markets, crises of values, and so on. But it is time not only
for surviving, but also for emerging stronger than ever. And this is what resilience is about.
The paradox for organizations is that the only certain thing in their environment is ‘change’.
This may be social, political, economic and even physical environments; they are all complex,
chaotic, volatile and full of uncertainty.
Here are some examples of changes in the environment that are happening now: -
• Black-lives matter
• Covid-19
• Climate change (flooding, fire & drought)
• Terrorism
• Economic recession
• Migration
• Cyber-crime
• Social distancing
• Face masks
• Changing shopping habits
• Increased use of the Internet for ‘virtual meetings’ (social and business related)
• Stricter environmental protection laws to reduce pollution and overuse of non-
renewable resources
• Rise of Nationalism as a reaction to Globalization
• Use of drones and autonomous vehicles
• Aging populations in Western countries
• Smart technology (e.g. cars and fridges)
• Use of AI technology for face/voice recognition
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ORGANIZATIONAL RESILIENCE Introduction
This eBook is part two of two eBooks. Part one, focuses on “Individual Resilience” whilst
this eBook is designed to help organizations understand the key elements required towards
building a resilient organization which will stand the test of time.
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ORGANIZATIONAL RESILIENCE What is Organizational Resilience?
2 WHAT IS ORGANIZATIONAL
RESILIENCE?
Although there are different approaches towards explaining organizational resilience, the overall
need is for flexibility; organizations need to have an open mind when seeking solutions to
problems and be inclusive in the ways in which decisions are arrived at.
Organizational resilience is not just about successfully reacting to developing situations and
circumstances; it is about anticipating change and seeing ‘problems’ as potential opportunities;
it is about welcoming risk as a stimulus and as a catalyst for proactive adaptation to
environmental change.
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ORGANIZATIONAL RESILIENCE What is Organizational Resilience?
feeling of engagement and ‘togetherness’ that stimulates a mutual motivation to seek and
try out innovative ways to improve performance.
Note: A collection of people with high individual resilience (see eBook individual resilience),
does not necessary generate a resilient team. For example, in my career as an organizational
psychologist (Spry), I have seen lots of resilient employees who performed very well on an
individual level when facing a crisis. They had the ability to bounce back quickly from the
bad event and to adapt and change. However, they struggled during a crisis when it came
to working as ‘part of a team’.
In other words, resilient organizations avoid “rigid thinking”; they are open and flexible to
change; and generally, encourage creativity and confidence across all functional departments.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
3 BUILDING A RESILIENT
ORGANIZATION
Each of the pieces of the jigsaw (Figure 1 below) plays a crucial role in building a resilient
organization. In the remainder of this eBook we expand on each ‘piece’ and explain its
contribution to the whole of Organizational Resilience. We will begin with Leadership.
A LEARNING ORGANIZATION
LEADERSHIP
TEMPERATURE CHECKS
FOR PROGRESS
TEAM STRUCTURING
PSYCHOLOGICAL SAFETY
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
3.2 LEADERSHIP
Organizational resilience is a quality that is important not just for the organization itself.
The ability of an organization to cope with change and challenges also affects how all its
stakeholders fare.
Organizations are an integral part of their local communities and the wider economy as well.
Organizations affect peoples’ lives by providing employment and remuneration; by proving
healthcare and sick pay. They also offer a focal point within the community for individuals
to socialize safely. Therefore, it is the leadership of organizations that has the responsibility
for adopting this wider view of organizational resilience. An ‘authentic’ leadership is required
that demonstrates a set of values that transcend the traditional economic criteria such as
‘profit’ or ‘return on investment’ etc.
Authentic leaders’ value open and honest relationships whether it is with their employees,
peers, clients, customers or shareholders. They do not discriminate between who has a higher
value above another – all are human beings. They set about building their relationships
with others based upon a strong moral-compass and an open and trusting communication.
The leadership will also need to show an understanding that individuals and different
workgroups and/or project-teams will hold different values; and the relationship between
these various organizational elements will need careful guidance. Therefore, it follows that the
leadership of resilient organizations needs to have self-awareness with regard to establishing an
organizational culture that has the following qualities (values or shared mission statement): -
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Leadership of resilient organizations will want to identify and eradicate any, or all, of the
following behaviours:
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Organizations are finding it necessary to find new ways of structuring their approach to work,
and project teams are being ‘put-together’ in a virtual environment. The ‘new-normal’ way
of working now seems to be via the internet. The use of electronic communication systems
such as ‘Zoom’ and ‘Microsoft Teams’ are increasingly being employed as a supplement to
the normal use of phone and email.
Team members are perhaps listening to disembodied voices explaining a PowerPoint presentation
or engaging in a ‘Zoom’ video conference, where the ‘talking-head’ participants are visible.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
For teams to ‘work’ efficiently, information has to be readily accessible between team members
and between teams. Individual knowledge needs to be ‘translated’ into group knowledge
and ultimately organizational-level knowledge. This shared information becomes a shared
understanding, which in turn strengthens levels of trust, engagement, and motivation within
all levels of the workforce.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Consequently, the organization benefits from more insightful and creative problem solving.
This leads to enhanced organizational performance levels.
Important to note: The quality of that performance level will in future need to be validated
by measuring its success against a more comprehensive and inclusive set of criteria that
include both social and ecological specifications, in addition to the more traditional business
benchmarks.
Team Diversity
• Organizations are now operating in an environment that is increasingly
characterized by the imperatives of dealing with diversity amongst their
employees and customers, and of having to recognize and take into account the
multiple and often competing values and goals of different interest-groups.
• Organizations need to ensure that their project teams are as diverse as possible.
If teams are allowed to form informally based upon similarity or prior
acquaintance, the potential for learning is minimized because the knowledge and
viewpoints of group members will be similar and lack diversity.
• “Like-me” groupings may foster a relaxed & comfortable atmosphere and build a
sense of ‘belonging’. However, there is the danger of ‘Groupthink’ (Janis, 1971),
which occurs within a group of people in which the desire for harmony or
conformity in the group results in an irrational or dysfunctional decision-making
outcome. Cohesiveness or the desire for cohesiveness, in a group may produce
a tendency among its members to agree at all costs. This causes the group
to minimize conflict and reach a consensus decision without proper critical
evaluation.
A similar phenomenon is the “Band-Wagon effect” (Asch, 1955), when the rate of
uptake of beliefs, ideas, fads and trends increases with respect to the proportion of
others who have already done so. As more people come to believe in something,
others also „hop on the bandwagon“ regardless of the underlying evidence.
Both of these subconscious mind-sets (Groupthink & The Band Wagon Effect)
have the potential to seriously undermine a team’s problem-solving effectiveness.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Previous research has consistently shown that organizations that value diversity are more
likely to be effective in solving non-routine and complex problems (e.g. Jehn et al., 1999).
However, Nonaka and Takeuchi (1995) have suggested that total diversity among workgroup
members is not always desirable; some “redundancy” (i.e. agreement between points of view
or perspectives) among group members is necessary to ensure sufficient common ground to
facilitate successful group interaction.
Ensuring diversity will also mean that organizations have to allow virtual teams more time
go through the stages of group development.
Bruce Tuckman (1965) proposed a four-stage model that characterized the necessary phases
that a group of individuals needed to face and resolve in order to become an effective team.
Stage 1: Forming
Individuals come together and learn about the tasks, challenges and opportunities placed
before them. Initially everyone is on their best behaviour but is focussed on self-presentation
rather than the clarification of any team objective(s) and the possible issues arising from
their pursuit.
Stage 2: Storming
As group members become more used to interacting with one another, individuals begin to
express opinions. Different opinions emerge as well as different working styles. At the same
time there is a tendency for individuals to assume different roles within the group and an
informal status hierarchy is implicitly established. This exchange of opinions and informal
‘role-distribution’ leads to conflict particularly if the informal roles do not correspond to the
formal status of individuals ‘outside’ of the group. Disagreements about roles and personality
clashes characterize this ‘storming’ phase. These must be resolved through discussion and a
degree of tolerance if the group is to progress.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Stage 3: Norming
The process of resolving disagreements and personality clashes leads to a more open and
trusting atmosphere: confrontation gives way to cooperation. Individuals ‘buy-in’ to the
common aims and objectives of the group and accept collective responsibility for the
performance of the group, even when this occasionally means ‘biting-the-tongue’. The dangers
of trying to minimize conflict at this stage may lead to ‘Groupthink’ and the ‘Band-Wagon’
effect explained earlier.
Perspectives and values are explored and tried out, and eventually become (implicitly)
acceptable as alternative problem-solving strategies.
Stage 4: Performing
The ‘norming stage’ has established an acceptable pattern of behaviour for group members
and there is an implicit agreement to focus on achieving common goals, rather than any
disharmony. The group has a recognized role structure and a functioning decision-making
process. Any dissent is now dealt with through a ‘diversity-lens’, which allows challenges to
be seen as attempts to contribute alternative solutions, rather than a destructive dynamic.
The group has transformed into a performing team.
Allowing time and support for a successful group transition into a team (through the 4-stage
process) will provide a platform for more organizational learning.
Hybrid Teams/Groups
Organizations will need to provide up-to-date technical support and training for hybrid and
virtual groups e.g. how to conduct webinars; i.e. the use of Zoom and other video facilities.
The use of Skype, Zoom or Microsoft Teams for meetings, should become ‘routine’ in order
to help generate feelings of ‘belonging’.
It will also be necessary to provide the facilities for teams/groups to meet face-to-face
either regularly or on an ad hoc basis. If this ‘hybrid’ form of teamwork is possible and/or
acceptable for all group members, the face-to-face communication helps with the ‘storming
and forming’ stages and facilitates the development of mutual trust and respect.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
The culture of a resilient organization has a ‘flat’ or ‘democratic’ power structure. Employees
have the autonomy to solve problems by cooperation between themselves, sharing ideas and
insights in a non-judgmental atmosphere.
The culture is one that encourages ‘thinking-out-of-the-box’ and creativity is highly valued,
with different viewpoints being encouraged rather than frowned upon and being treated
as disruptive.
The knowledge accumulated from individual (and group) learning experiences has to be
shared i.e. the atmosphere should be one of cooperation rather than individually competitive.
In this way, everyone in the organization benefits from the accumulating expertise and
skill sets. The atmosphere of collaboration needs to be supported by a knowledge-sharing
infrastructure and reflected in the remuneration system.
If we look at the famous Johari Window model (Luft and Ingham, 1955), see Figure 2
below, disclosure and possible negative feedback is actually part of the positive process of
increasing self-awareness, a cornerstone of resilience. However, initially, individuals might
understandably be hesitant to share their private and maybe eccentric points of view or admit
particular limits to their knowledge for fear of embarrassment or being ridiculed by others.
It is therefore of paramount importance that the organizational culture is one that fosters
open and honest communication, and promotes the value of cooperation, and of learning
from others. This type of organizational culture or climate has been characterized as providing
a sense of ‘psychological safety’ for employees.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Feedback
Known to Unknown to
Self Self
Known to
Others
OPEN BLIND
Disclosure
Unknown to
Others
HIDDEN UNKNOWN
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Figure 3 below demonstrates the differences between Psychological Safety and Psychological
Danger
Fear of Comfort
admitting admitting
mistakes mistakes
Better
«Common Learning
Blaming innovation &
Knowledge from
others decision-
Effect» failure
making
Less Everyone
likely to share openly
different views shares
ideas
Figure 3
A feeling of psychological safety in a team is a vital precursor for generating trust. In turn,
this atmosphere of safety and trust leads to:
At a basic level, situations that evoke negative emotional responses, promote instinctive
‘fight-or-flight’ behaviour coined by Walter Cannon Better
a physiologist in the early Learning
1900s. In
«Common
Psychological Blaming innovation & Psychological
Knowledge
such environment’s individuals will tend from
Danger othersto look to criticize and blame
decision- Safetyco-workers, leading
Effect» failure
to increased interpersonal conflict, which in turn tends
makingto lead to defensive and obstructive
behaviour, and finally disengagement.
Less Everyone
Psychological safety (mainly
likely experienced at a subconscious or implicit level),
to share openly reduces the feelings
of insecurity and defensiveness and leads to a more open and honest shares
different
communication between
views ideas
team members, and at an organizational level, between teams. This improved quantity and
quality of interpersonal and inter-team interaction promotes higher levels of engagement,
motivation and creativity. The highest-performing organizations have one thing in common:
‘psychological safety’
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
In today’s highly competitive environments, which are both complex and chaotic, success
more and more depends on a cooperative interdependence that can bring a more ‘cool’ and
strategic perspective to problem solving and decision making. Such behaviours are fostered
by a positive team-atmosphere that is challenging but not threatening i.e. an atmosphere of
perceived psychological safety. Rather than the ‘fight-or-flight’ response, positive emotions
tend to lead to the ‘emergent’ characteristic of ‘trust’, and positive behaviours such as:
• Motivation
• Persistence
• Openness
• Resilience
• Confidence
• Tolerance
Members of a project-group need to be open towards new ideas and information from
a variety of sources and must also be willing to share this information. This implies that
there is a high degree of interpersonal trust and mutual respect among team members and
between different teams. Trust and respect are important aspects that foster a feeling or
‘atmosphere’ of psychological safety.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Here we introduce a new online engine that uses a radical method “Image-Pro™”, to uncover
implicit, hard-to-express feelings. This new measure indicates the felt ‘psychological safety’
being experienced by an organization’s employees.
“Psychological Safety” has an ‘emergent’ quality that is not readily accessed by traditional
questionnaires. An individual’s appraisal or evaluation of their felt psychological safety is
implicit, taking place at a subconscious level and therefore requires implicit measures to
access it. (see eBook Using Fast Thinking in Business (Spry, D, 2020).
• D = Dependability
• O = Openness
• C = Concern for others
• E = Engagement
• Sa = Satisfaction,
• M = Mutuality
• Su = Support
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Figure 4 below, is a screen shot from a section of the PSM to illustrate the unique Image-
Pro™ scale construction.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
Participants respond to random screen presentations of images and/or words. This data is
then combined with more traditional Likert-scale responses to generate a global ‘Psychological
Safety’ figure and scores for the seven independent sub-scales (outlined above).
The PSM generates an indicative score for each dimension and a global ‘psychological
safety-index’.
Further details and access to a free trial are provided in the reference section at the end of
the book.
This questionnaire is a mixture of items and images designed to access the implicit feelings
and perceptions of employees; it is an indication of how well individuals are coping with the
work-environment (work-life balance). Apart from measuring the physical and psychological
health of employees, it also helps management to identify potential ‘pressure-points’ (or
stressors) in the organization.
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ORGANIZATIONAL RESILIENCE Building a Resilient Organization
In addition, using its unique Image-Pro™ technology, WBQ provides information about the
emotional resilience of the organization’s employees.
Details of how to access the WBQ are in the reference section at the end of this eBook.
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ORGANIZATIONAL RESILIENCE Takeaways
4 TAKEAWAYS
4.1 TAKEAWAYS
We have covered a lot of material in this eBook, so here is a brief summary of the main
points to think about when considering the resilience of your organization:
Finally, we have offered you two new online instruments that can be used by management
to monitor ‘Psychological Safety’ and employee ‘Wellbeing’, which directly influence the
resilience characteristics of any organisation.
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ORGANIZATIONAL RESILIENCE Further Reading/References
FURTHER READING/REFERENCES
Denyer, D. (2017), Organizational Resilience: A summary of academic evidence, business
insights and new thinking; BSI and Cranfield School of Management
DIY or ‘make-do-and-mend’
Luft, J.; Ingham, H. (1955), The Johari window, a graphic model of interpersonal awareness,
Proceedings of the Western Training Laboratory in Group Development; Los Angeles
Hackman, J. R. (Ed.) (1990). Groups That Work (And Those That Don’t): Creating
Conditions for Effective Teamwork, San Francisco: Jossey-Bass.
Asch, S. E. (1955), Opinions and social pressure. Scientific American, 193 (5): 31–35
Jehn, K. A., Northcraft, G. B., & Neale, M. A. (1999), Why Differences Make a Difference:
A Field Study of Diversity, Conflict, and Performance in Workgroups. Administrative Science
Quarterly, 44(4), 741–763.
Nonaka, I., & Takeuchi, H. (1995),The Knowledge-Creating Company; New York: Oxford
University Press.
Mallak, L. (1998), Putting organizational resilience to work; Industrial Management, 40.6, 8–13
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ORGANIZATIONAL RESILIENCE Further Reading/References
Norman, S., Luthans, B., and Luthans, K., (2005); The proposed contagion effect of
hopeful leaders on the resilience of employees and organizations, Journal of Leadership and
Organizational Studies,12.2
https://emotix.org.uk/employee-wellness/
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