Crafting organisational fortitude: Surviving permacrisis

In a world marred by a relentless succession of crises, building resilience is no longer enough. Welcome to the era of ‘permacrisis,’ where organisations must cultivate fortitude to weather the storm.

CREDIT: This is an edited version of an article that originally appeared on Management Today

In recent years, organisations have navigated an array of challenges, from Brexit and environmental threats to a global pandemic and geopolitical tensions. As we face mounting crises, it can seem like we’re no longer dealing with isolated incidents but a continuous state of ‘permacrisis’ – an enduring period of turmoil caused by a series of unprecedented and catastrophic events. The concept of resilience, whether at the individual or corporate level, is no longer sufficient to withstand the relentless onslaught of permacrisis. A recent study suggests that “an episodic or single adversity view of resilience is anachronistic.” Instead, what organisations require now is fortitude. Researchers from Emlyon Business School, IMD/Lancaster/Zhejiang University, Stockholm School of Economics/Jönköping University, and Università degli Studi di Bergamo define organisational fortitude as “an approach that reflects the propensity of an organisation to stand resolute, access resource reserves, and gain support by values shared with key stakeholders.” Fortitude doesn’t emerge overnight; it develops in response to successive shocks and crises. To illustrate the principles of building fortitude, the researchers turned to the story of Formans, a UK smoked-salmon producer that has survived and thrived for over a century despite facing numerous existential threats. Formans, a family-owned business spanning four generations, served as a valuable case study for the researchers. Family businesses often exhibit a remarkable ability to protect themselves during trying times due to the intertwined nature of family and business demands and their long-term outlook. The role of leaders Throughout a decade-long study that began in 2012, the researchers uncovered the intricate dynamics between the family, the business, and their influential leader, CEO Lance Forman, whom they describe as ‘the linchpin.’ These linchpins play a pivotal role by connecting the family with the business, steering goals, motivating organisational stakeholders, and integrating family capabilities into the business – effectively embodying organisational fortitude. The two phases of response In response to each crisis, the researchers observed two distinct phases: reacting and proacting. Reacting involves immediate responses to adversity, while proacting focuses on taking initiative and going on the offensive. This creates a virtuous cycle where organisational fortitude before adversity enhances resilience, which, in turn, strengthens organisational fortitude after adversity – ultimately leading to a ‘new normality.’ However, it’s crucial to strike the right balance. The researchers caution that excessive fortitude may backfire, negatively affecting an organisation’s judgment. Implications for organisations The study’s findings offer invaluable insights for all organisations seeking to infuse resilience into their practices and operations. Building and maintaining organisational fortitude appears essential in navigating and surviving the challenges of the permacrisis. In an era defined by constant turmoil and ever-present perils, embracing the principles of fortitude might just be the key to not only surviving but thriving.