Barrier 1: Companies struggle with aligning and empowering their people
Explore how executives can overcome a lack of resilience and agility by leveraging three key questions.
Executives and employees agree that when it comes to building business resilience and agility, people are a main driver of their organization’s success — or failure. Companies’ systems and technology impact operations, but more critical is how executives and employees collectively approach tasks, navigate systems and infrastructure, and promote a unified, overarching vision.
In our 2023 report, Unlocking business resilience and agility, we examine the current state of business resilience and agility. Our comprehensive survey of executives and employees across industries reveals that nearly half of today’s companies do not see themselves as resilient and agile.
Furthermore, the data shows that one of the four primary barriers to achieving resilience and agility is an organization’s failure to empower their people to be part of the solution. When a team fails to move together toward a common vision, lackluster momentum and nonexistent direction makes them vulnerable to industry and market changes.
To surmount this obstacle, executives can consider three key questions to help strengthen and unite their people in creating solutions that drive processes forward:
Does your team effectively implement systems?
Cutting-edge technology systems might seem like the answer to an organization’s challenges, but they are really tools that must be implemented effectively if organizations hope to see meaningful results.
When we asked executives and employees if they find their technology systems helpful to business processes, 40% said no. Moreover, 71% believe that people and the way they use systems are the cause of most problems within their organizations — rather than the other way around.
This data suggests that technology solutions built to help teams work efficiently and uphold data and compliance rules are achieving their intended impact in three out of five organizations. Why is that? The answer likely lies in the second statistic: If nearly three out of four companies report that people do not use systems effectively, then the technology cannot deliver meaningful or intended results.
This is a concern for companies investing in technology — and those selling tech solutions. If companies don’t equip their employees with the necessary training and resources to use technology systems successfully, the money and time spent on that technology is wasted. By the same token, technology companies must pay attention to how they’re communicating product features and educating customers. Tech solutions that don’t live up to the benefits they promise are at greater risk of churn.
Employees can play a strategic role in successfully integrating technology solutions as long as companies invest sufficiently in their teams. By adopting a holistic view of systems and processes, companies can harness the power of their people to reap the benefits tech solutions offer. Leaders must realize that people and systems are entangled: If systems don’t reflect people’s needs, people won’t find value in — or use — the technology.
Do you promote a culture of change within your organization?
Companies that equip their employees with tools and resources to communicate obstacles, inefficiencies and constructive feedback are in a much better position to spot risks and pivot when necessary. This agility requires a transparent company culture in which employees understand expectations and have a voice in creating them.
Our survey revealed that, unfortunately, many companies today are deficient in a positive culture of change:
- 56% of companies have voice-of-employee processes and tools.
- 59% say “our people are open to change, which enables us to move faster than competitors.”
- 58% say “our compliance controls ensure our people follow policies.”
Without methods for employees to share ideas and feedback, executives can’t know what their teams think about company processes, expectations and culture. This lack of knowledge thwarts alignment and makes it difficult for executives to convince their team members to follow them into battle in times of crisis, when real change is necessary.
From the data, we see there might be a fundamental misunderstanding behind this pervasive lack of communication and executive-employee alignment: 62% of executives claim their company has a voice-of-employee process or tool, but only 46% of employees say it exists.
This gap suggests that while executives believe they are receiving quality input from employees, employees might in fact have more input to give than they feel empowered to communicate.
Executives rely on honest and open communication from employees to help guide the evolution of their organization. Prioritizing a positive culture of change means investing in processes that facilitate transparency and build community. This investment not only helps employees feel heard and respected but leads to a company that’s resilient and agile in the face of change.
Are your employees aligned with a clear and compelling company vision?
Our survey identified the number-one driver of business resilience and agility as, “Our people understand and follow the vision provided by leadership.” In other words, when companies prioritize alignment, they experience much stronger resilience and agility.
Still, while executives and employees consider alignment the most important attribute for success, 41% of survey respondents say such alignment doesn’t exist within their organization.
Does the problem lie with the employees and point to a need for more awareness, understanding and initiative? Or do company executives not provide a clear vision for employees to get behind?
Again, the data shows us there’s a disconnect between how executives and employees perceive company vision. Sixty-two percent of executives today think their company vision is clear and that employees are following it — whereas 50% of employees agree. Clearly there’s work to be done in improving alignment between leadership and employees.
A clear and compelling vision is critical for organizations that want to keep pace with competitors, navigate change and bounce forward after setbacks. Executives who fail to align their workforce with a distinctive, persuasive vision are likely to encounter dissolution and a lack of motivation within their teams.
Companies interested in building resilience and agility would do well to make vision and alignment their top priority.
Successful companies run on people that are aligned and empowered
An organization’s greatest — and most vulnerable — asset is its people. Employees inadequately trained in systems, left without a voice in company culture and processes, and unclear on their organization’s vision will be an obstacle to progress rather than part of the solution.
Across industries, executives who understand their employees’ critical role in building business resilience and agility — and who invest in their success — will be in a much better position to maximize the potential of their workforce, now and into the future.