The Power of Resiliency in McKinsey’s State of Organizations 2023

I have just wrapped up McKinsey's "State of Organizations 2023" report and it is a must read.

This ongoing research initiative paints a clear picture of the significant people, procedural, and structural changes organizations face today.

Through this comprehensive exploration, they offer practical insights on how to navigate these shifts. In this first deep dive, they have pinpointed ten critical shifts, and it's no surprise that "Increasing speed, strengthening resilience" tops the list.

Key Shifts Identified:

1. Increasing speed, strengthening resilience

2. ‘True hybrid’: Balancing in-person and remote work

3. Making way for applied AI

4. New rules for attraction, retention, and attrition

5. Closing the capability gap

6. Walking the talent tightrope

7. Self-aware, inspiring leadership

8. Progress on diversity, equity, and inclusion

9. Mental health: A portfolio of interventions

10. Efficiency reloaded

The emphasis on resiliency struck a particular chord with me, aligning perfectly with my work on Team Resiliency which I define as this.

Definition & Team Impact: Team Resiliency is based on a collective that not only withstands challenges, changes, and transformation — they use them as catalysts for growth and improvement. It's not merely about bouncing back; it's about thriving and adapting in shifting landscapes.

Organizational Impact: By fostering this resiliency within teams, the ripple effect is profound. The entire organization starts to shift, becoming more robust, more adaptive, and ready for the future. This transformation is a team effort, reinforcing the idea that we build resiliency team by team, not just individual by individual.

Key Take Aways

In shedding light on resilience's role in contemporary organizations, McKinsey emphasizes that adaptability isn't just a bonus; it's vital.

From their report, here are some key resiliency takeaways:

• Structure and Adaptability: Surprisingly, only 14% have shifted to a fully agile operating model. This reveals a significant challenge: a majority of organizations might be ill-equipped to handle sudden disruptions.
• The Tangible Benefits of Resiliency: Resilient organizations don't merely survive challenges; they leverage them into opportunities for inclusive growth. They assess the landscape, pivot, and move forward, emerging more robust with each hurdle.
• Obstacles in Cultivating Resiliency: Building resiliency isn't straightforward. A key challenge identified is the prevalence of a "low-adaptability culture" in many organizations. This culture acts as a roadblock to fostering resiliency.
• The Role of Adaptable Leaders: Adaptable leaders are invaluable. They don’t just respond to crises. They mentor their teams, promote adaptability, and strategize for both immediate solutions and enduring resiliency.

For a detailed dive, check out the full report .

Do yourself a favor, give it a read, and spread the word!