Business Resilience: what to do when there is nothing normal?

1st of November 2021

We are experiencing such a level of disruption when there is nothing normal — extreme uncertainty and business risks are not seen in generations. Some companies freeze and fail, while others innovate, advance, and even thrive. Well, to be able to thrive in the face of a rapidly shifting environment there is an accelerated need for companies to become bionic according to Boston Consulting Group (BCG). What does it mean? It implies a conscious synthesis of human and technological capabilities. Building bionic companies is also at the heart of HRB Portal approach to digital transformation since it’s absolutely idle to make standalone digital improvements.

Bionic companies’ top 3 investment priorities include: 

  1. Technology (modernizing applications), 
  2. Data (increasing the quality and accessibility), 
  3. Employees (strengthening their digital skills). 

What’s more, the latest McKinsey Global Survey on digital strategy (2021) indicates that the pandemic has increased the pace of business and that technology capabilities will be critical to companies’ COVID-19 exit strategies as well as to what comes next. HR managers will develop a tolerance of ambiguity, a quickened operating cadence, and a culture of constant refinement, review, and revision. Management structures and processes need to be adapted, too, as the crisis unfolds, to ensure an organization is sustainable and can take advantage of new opportunities.The top-decile performers are making more aggressive plans to differentiate themselves with technology, with some preparing to reinvent their value proposition altogether. 

McKinsey Global Survey on digital strategy (2021) unhesitatingly confirms that the future will belong to companies that put technology at the center of their outlook, capabilities, and leadership mandate. The survey results confirm the time is now to make bold investments in technology and human capabilities that will equip their businesses to outstrip others in a rapidly evolving landscape.Thereto, the highest-performing companies make bolder investments in technology and possess stronger overall capabilities than their rivals.The results suggest a clear link between the technology endowment and economic outperformance.The vast majority of companies (64%) believe to stay economically viable through 2023 their companies need to build new digital businesses to help them get there.

Critically, these companies make sure that HR & business unit heads work closely with the technology function, which is vitally important. Thus, when it comes to setting up digitalization milestones, outlining an implementation strategy, and validating execution, HRB Portal specialists, HRs and CIOs/CTOs (Chief Information/Technology Officers) work hand-in-hand. 

HRB Portal solutions unite data across all entities of an organization ensuring the right digital infrastructure & interaction models. Since, HR managers are responsible for preparing & guiding the people assets of an organization for this digital transformation a pivotal step is promoting a culture (through leadership engagement and incentives) in which employees are expected to continually look for ways to integrate technology and data into their routine day-to-day responsibilities and tasks.

Edward E. Lawler III and Christopher G. Worley in their bestseller “Build for change: How to Achieve Sustained Organizational Effectiveness“ (2006) argue that most companies which are established with stability in mind have to think about adapting to change in the long-run, in the sense of responding to a competitive environment. While careful attention to an organisational design, the policies and processes that underpin day-to-day work make a company be more responsive to changing circumstances.  

The most digitally mature industries according to BCG’s Digital Acceleration Index (DAI) study (2021) have appeared the following: 

  1. Financial institutions, 
  2. Technology, 
  3. Telecommunications.

Apart from that the pandemic has clearly accelerated the digital development of: 

  • Consumer goods, 
  • Retail, 
  • Health care. 

Not surprisingly, the above mentioned industries are among the key HRB Portal adapters.

Over the last couple of years the most digitally mature companies have already outperformed their peers across 9 KPIs (revenue growth, enterprise value, ROI, cost reduction, share price increase, market share growth, overall EBIT impact, digital impact & artificial intelligence impact), and they have been particularly strong in such areas as: 

  • Revenue growth, 
  • Enterprise value,
  • Return on investment (ROI) in digital projects.

Really, recently we’ve seen a surge in digital adoption. Companies are taking stock of their digital capabilities and assessing how well prepared they are for the future. While nearly all organizations are focused on digitalization McKinsey Global Survey on digital strategy (2021) intimidates us by the fact, almost half of HR leaders have reported that their organizations do not have clear and consistent strategies for digital transformation. In fact, reality shows that only 10% of chief human resource officers agree that their organizations are prepared for the future of work. Many respondents have recognized that their companies’ business models are becoming obsolete. 

Given these insights, HR’s involvement in a strategy design is imperative: it ensures the smart application of technology coupled with the right level of people maturity to maximize a change.The time is now for companies to make bold investments in technology and capabilities that will equip their businesses to surpass others. 

To make real progress, an HR manager should become a trusted advisor on digital transformation by collaborating with HRB Portal specialists & management to address digital goals and ensure that they are consistent with an organizational strategy. Also, it is important to track employees’ skills to develop and refine digital plans and prevent execution blind spots.  Since HR processes serve as the arteries of a company to nurture its health. Through a systematic approach, HR leaders can promote processes that flow efficiently and harmoniously, thereby boosting employees’ engagement, productivity and retention.

The consistent application of such software  as HRB Portal can help HR leaders track progress, pinpoint areas for improvement, and redesign their practices. As a framework provides structure and guidance, HR deals with humans, so it should preserve the essential human qualities within the process, such as flexibility, critical thinking, and perspective. 

Our HRB Portal specialists can professionally advise you how to obtain a purpose-driven digital transformation strategy which allows you to align teams, launch proper digital initiatives, and build capabilities to sustain a digital advantage. Digitally transformed HRB Portal companies are powered by cutting-edge technologies and data-driven insights possessing remarkable advantages over their competitors. 

As well, AGroup CEO, Alexander Snurnitsyn asserted, “HRB Portal digitally transformed companies might see powerful outcomes, including enhanced capabilities, and better performance in terms of cost efficiency, revenues, and return on capital. They also might find a higher sense of purpose and improved organizational wellbeing.”

Sources used:

  • Boston Consulting Group: BCG’s Digital Acceleration Index (DAI) study, (2021);
  • McKinsey Global Survey on digital strategy, (2021);
  • Lawler III, E., Worley, C., “Build for change: How to Achieve Sustained Organizational Effectiveness“, (2006)