Mike Tyson famously said: “Everybody has a plan until they get punched in the face”. If one of the most famous boxing icons in the world conveys this sentiment, one would better listen. He knows one thing or two about being hit in the face…and hitting back right after. However, this begs the question: How ready are companies for a punch in the face? How prepared can a company be? And are we really in charge? As the world of competitive sports offers a profound analogy for life itself and delves into the very essence of human existence, it also raises deep questions about the illusion of control and the enigmatic nature of readiness in the business place.
During my younger years, and as far as I can remember, “Black Swan” events seemed to occur… well… as the name suggests… very rarely. And like every good Risk Manager, I used to believe that with foresight, preparation, resilience and determination, companies could navigate those dynamic and turbulent operating environments and hopefully survive unscathed.
However, in the last few years, apocalyptic incidents have taken the world by storm and stress-tested even the most robust business continuity plans. These supposedly irregular yet extreme happenings are feeling more and more like a “regular Tuesday”.
In such a dynamic operating environment, and with all the different elements in flux, the notion of control seems more and more like an illusion shattered by the endless slew of unknowns. After all, how many redundancies are we expected to have before we run out of steam or, more critically, of funds?
Accepting uncertainty as part of the game, being able to adapt, and staying prepared to respond to life’s blows are the ultimate testament to our resilience. Yet, antifragility goes beyond mere resilience. It implies that some systems, organizations, or individuals not only withstand shocks and stressors but gain from them. Just as our muscles cultivate strength through resistance and stress in exercise, antifragility suggests that we can flourish, grow, and advance when faced with adversities.
In a world where the underlying assumption is unpredictability and randomness, striving for antifragility becomes a noble quest. Instead of running away from these challenges, we can harness them as catalysts for personal and collective growth.
Applying the antifragile mentality to business continuity planning is vital for promoting fortitude and adaptability in the corporate world.
1. Embrace volatility: “The only constant in life is change”. Once companies embrace the inevitability of change, adaptability becomes the name of the game.
2. Promote decentralization: Centralized Businesses could be vulnerable to disturbances because, by design, they depend on a single point of failure. On the other hand, spreading the resources and decision-making nodes in a more decentralized fashion would enhance response effectiveness in the face of hardships and unexpected events. Also, operations would be nimbler and quicker to recover from disruption—all critical elements of antifragile business continuity.
3. Skin in the Game: Having a vested interest in the success of a venture (whether you are a business owner, trading partner, employee, or any other type of stakeholder) instils the strongest motivation for forward-looking business continuity planning. Valued stakeholders are more likely to promote and participate in proactive risk management.
This mutual responsibility is essential to ensuring effective disaster recovery when threats arise.
4. Learn from Failure: Failure is the best teacher in any walk of life. In the business world, this is even more accentuated. After every incident, conduct a comprehensive deep dive into the event, its root causes, its unfolding and detection timeframe, its process owner, its proposed action plan, and the lessons learned.
5. Diversify Your Business Interests: Investing 101: Do not put your eggs in one basket. The same applies to operations: Avoid over-dependence on a particular provider, supply chain, business line, or geographical market. The more you diversify, the more equipped you are to decrease vulnerability and disruption in your operations. If one side of the firm is under stress, having alternative sources would keep the company afloat.
6. Foster a culture of continuous improvement: According to the “Kaizen” mentality, seeking long-term success hinges upon improving continuously, albeit in small increments. “Kaizen” encourages effectiveness and excellence in firms by seeking small, regular advancements to existing processes to eliminate waste.
In a world defined by tectonic shifts and constant motion, the concept of antifragility reminds us that life’s ebbs and flows need not be ruinous to our corporate environment but rather regenerative and constructive experiences. By embracing volatility, decentralizing our operations, promoting a culture of inclusiveness and responsibility, learning from failure, diversifying our business interests, and fostering a culture of continuous improvement, we can survive the storms and harness them as fuel for development and progress.
So maybe we do have control after all… or this is only the dreamer in me speaking.
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