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A new global study by BSI (British Standards Institution) and Cranfield School of Management, finds that business leaders are struggling to balance risk with opportunity, threatening the long-term survival of their firms. The report, , assesses half a century’s accepted wisdom on best-practice management, identifying an acute need for firms to embrace risk if they are to survive and thrive.

Key Facts

• According to the study conflicting management advice has left senior executives reluctant to intervene, with the subsequent organizational paralysis leading firms to potentially sleepwalk into disaster. The report consolidates half a century of management thinking and over 180 academic papers into a single coherent approach. BSI commissioned the report in the wake of finding that less than one third of CEOs are confident in leading their firms to long term success.

• The study by Professor Denyer highlights the benefits of pairing agile thinking with robust systems. Successful firms do not look to achieve “zero risk”, but rather experience “zero trauma” from business setbacks, adapting to ensure future success.

• Organizational Resilience has risen in prominence since it was first documented in guidance from BSI in 2014. Today’s study sets out a clear framework for adopting good practice across a business. Effective leadership is essential for implementation according to the report, with executives urged to manage the tension between defence and progression, consistency and flexibility.

• David Denyer, Professor of Leadership and Organisational Change at Cranfield and author of the study comments: “Great businesses are built by leaders prepared to take the bad with the good. They recognize the tension between consistent defensive behaviours that stop bad things happening, and progressive, flexible ideas that allow the good to prosper. Put simply, senior leaders must manage the tensions between control, action, performance and innovation if organizations are to be truly resilient – and this requires paradoxical thinking.”

• Howard Kerr went onto say: “A resilient organization is one that doesn’t merely survive over the long term, but flourishes. We believe that mastering Organizational Resilience offers the best opportunity for companies to pass the test of time, unlocking future prosperity and longevity. Those that learn to spring forward and not stagger backwards, reap dividends for their company, employees, investors, government and society in general.”