Practical Strategies for Building Resilience in Adversity
Five hundred years BC, the notion of kalocagathos emerged in Athenian society as a code of conduct for the emerging aristocracy of the Attika region. The expression is made from the unions of the Greek words Kalos and Agathos, meaning beautiful and good, which highlights the need for a balanced and harmonious personality in mind and body.
Six hundred years later, a similar notion also became a pillar of the classical Roman Age, “mens sana in corpore sano,” highlighting that men are gifted as long as they strive to balance and care for their physical and mental condition.
Fast-forward to the age of the post-COVID-19 pandemic, these long-forgotten principles have found a new breath of life in the business notions of resilience and mental well-being.
The term “resilience” is commonly used in business, but what does it mean? Having gone through both positive and negative situations, I have experienced the highs and lows of life; I can attest that resilience is not merely a characteristic but a skill developed over many years of facing challenges and overcoming obstacles.
From the APA Dictionary of Psychology:
“Resilience is the process and outcome of successfully adapting to challenging life experiences, primarily through mental, emotional, and behavioral flexibility and adjustment to external and internal demands.
Several factors contribute to how well people adapt to adversities, predominant among them:
How individuals view and engage with the world
The availability and quality of social resources refer to the level of access and standard of support provided by social networks, services, and organizations within a community.
specific coping strategies
Psychological research demonstrates that the resources and skills associated with more positive adaptation (i.e., greater resilience) can be cultivated and practiced.”
In my years, I’ve realized that adversity is a given. Market downturns, internal challenges, and unforeseen disruptions are part and parcel of the entrepreneurial and innovation journey. It’s not about avoiding these challenges but building the resilience to withstand and navigate them. Here are some strategies that I observed as key to becoming more resilient:
1. Embrace a Growth Mindset
A fixed mindset sees failures as indications of personal inadequacy. On the other hand, a growth mindset views them as opportunities for development. Recognize that every adversity carries a lesson. By internalizing this, not only do you become better equipped for future challenges, but you also cultivate a culture of continuous learning. Embracing a growth mindset has the benefit of being kinder to oneself by helping better navigate any adversity. To read more on the link between resilience and Growth Mindset, read my previous article on Medium: Growth Mindset and Building Resilience.
2. Financial Prudence
In a VUCA reality, the meaning of “as-usual” is rapidly diluting. External shocks, rapid technological development, global and intertwined markets, black swans, and white rhinos challenge the status quo. Yesterday is not a good predictor of tomorrow. In this context, financial management is the backbone of resilience. During the good times, avoid the temptation to over-leverage. Keep a tight handle on your cash flow, and always have a rainy-day fund. The buffer you create today can be the lifeline that keeps you afloat during a downturn.
Paradoxically, in the business realm, financial prudence isn’t just about saving pennies; it’s about making each penny work for you. Through thoughtful planning, regular assessment, and proactive decision-making, you can ensure your business remains robust, even in adversity.
So, maintaining budgets, reviewing your financial statements regularly, and creating emergency funds are all critical activities; however, investing in your training is also fundamental for staying up-to-date and ahead of the curve. It is core to financial prudence.
3. Diversify, But Don’t Overextend
There’s wisdom in the adage, “Don’t put all your eggs in one basket.” Diversification can be a safeguard against market shocks. But be wary of overextending. Expansion for the sake of expansion, without a clear strategy, can be a liability. Moreover, be aware of the many hoaxes — for lack of a better term — promising financial independence through passive income and no-effort side hustles. And no, cryptocurrencies are not investments to most of us: in most cases, they are speculations that can be assimilated into casino betting.
4. Invest in Contingency Planning
Hope for the best, but plan for the worst. Regularly revisit and revise your personal and business continuity plans. Conduct mock drills, evaluate potential risk areas, and create response strategies. Preparedness can drastically reduce the impact of a crisis.
5. Prioritize Self-Care
This might seem out of place, but resilience begins with the self. As a leader, your mental and emotional well-being is paramount. Take breaks, invest in hobbies, and ensure you have a support system. A clear mind can navigate adversity with dexterity. Mindfulness is a great platform to start with self-care.
6. Be Adaptable
The business landscape is in constant flux. Those who rigidly adhere to dated models and strategies need to catch up. Embrace a culture of adaptability. Welcome innovation and be open to pivoting when necessary.
What about businesses? The above drives also apply to corporations, but their resilience also requires two more points:
Foster a Cohesive Team
The key to a resilient business is a strong team. Foster transparency and value employees. When adversity strikes, a cohesive team that trusts its leadership can move mountains.
When Slack transitioned from a gaming company called Tiny Speck to the business communication platform we know today, it emphasized flexibility and adaptability. Instead of laying off employees from the gaming division, they retrained and incorporated them into the new vision. This fostered a culture of adaptability and resilience, where teams felt valued and were more willing to pivot and adapt to new challenges.
Google’s Project Aristotle sought to identify what made teams effective. One key finding was the importance of psychological safety — the belief that one can speak up without the risk of punishment or humiliation. By fostering environments where team members felt safe to voice concerns, ask questions, or propose new ideas without fear of reprisal, Google teams became more cohesive, innovative, and resilient to challenges.
Build Strong Relationships with Stakeholders
Your suppliers, clients, and stakeholders are crucial to your business ecosystem. Nurture these relationships, and they will offer support when times are tough. Remember, in business, bridges are more valuable than walls.
Having a close relationship with the developer community has been vital during the various transitions in Apple’s operating systems or hardware changes. For instance, when Apple transitioned from Intel to its ARM-based M1 chips, the seamless transition of apps was paramount. Apple’s deep-rooted relationship with developers ensured that many apps were quickly optimized for the new architecture. This prevented potential disruptions and upheld the brand’s reputation for smooth user experiences.
Starbucks faced potential supply chain disruptions due to unpredictable climate patterns affecting coffee yields. Through the Coffee and Farmer Equity (CAFE.) Practices, Starbucks had already built trust and direct communication lines with farmers. This allowed them to collaboratively tackle these issues, ensure a steady coffee supply, and even support farmers to adopt climate-resilient farming methods.
In Conclusion
Building resilience in adversity isn’t about being impervious to challenges; it’s about developing the capacity to recover and thrive in their wake. In the words of the Japanese proverb, “Fall seven times, stand up eight.” Your ability to rise wiser and more robust each time is a testament to your resilience.
However, it is also important to highlight that resilience does not mean inoculation to adversity. You still struggle and experience negative turn of events. Resilience is about the way and speed of bouncing back and how, in the medium term, you leverage that experience as learning for the future.
