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Organisations can no longer rely on rigid ways of working. According to BDO partner Julianne Kennedy, cultivating an adaptive organisation is now a critical foundation for sustainable growth in a world defined by disruption.
Presented by BDO
In an environment where change is constant, organisations need structures and workforces that can respond, evolve and reposition quickly, says Julianne Kennedy, a partner in the People Advisory practice at consulting firm BDO in Australia.
These organisations have leaders who are skilled in change management, a workforce with psychological safety and a governance structure that allows them to reprioritise business-as-usual work.
Workforce resilience is more than employee wellbeing programs or flexible work policies. It is about embedding adaptability into the DNA of the organisation.
“The psychological safety comes back down to two things,” says Kennedy. “Are employees confident and comfortable when things change? Can they rely on support around them?”
The important role elasticity plays in ensuring an organisation can adapt, means for boards, it’s not just a human resources matter.
“Workforce resilience and the ability of an organisation to adapt, recover and thrive in the face of disruption has become a strategic governance priority,” she says.
This is all the more so as Australia enters a period of profound workforce disruption. Skills shortages are projected to reach 250,000 workers by 2030 (Future Skills Organisation), particularly in finance, technology and business services. At the same time, directors are grappling with inflationary pressures, geopolitical instability and rapid adoption of AI.
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Culture is paramount
An organisation’s culture is especially important during times of rapid change. Employee expectations have altered and they now want to work with an organisation aligned to their own values.
Digitisation and the rise of AI in particular is changing the workforce, shifting job design as it takes over some roles previously carried out by workers. For directors, this means understanding what their organisation is planning around its design for hybrid and AI-enabled work. A board with oversight of strategic workforce planning, organisation design and culture will bring an employee lens to their discussions on resilience.
“With workforce planning, it’s really about trying to understand the future capabilities that are needed — what we have today, what the gaps are, how we’ll close them and how aligned our workforce strategy is to our business strategy,” says Kennedy.
In addition, directors who ensure the company has programs in place to assess organisational engagement and culture — and have strategies to improve the capability of the leadership in change management will make sure that any strategy implemented is sustainable.
“People have to be managing change almost constantly,” says Kennedy. “From a management practices point of view, directors should ask what their organisations have in place to pivot when needed. For example, what happens if there is global market crash, another COVID or a major supply chain issue? How are they getting the insights into the market shifts? How do they evaluate this on an ongoing basis and how is the usual set, three- to five-year strategy able to adapt if needed? How does this cascade down throughout the business? For me, that would be about understanding what governance the organisation has in place to support a flexible approach like this.”
Not just a defensive strategy
A key part of this is that the organisation’s leadership is also durable under pressure. Kennedy says resilience is not just a defensive strategy for organisations; it is also a source of competitive advantage. Boards that treat workforce resilience as a governance priority will reduce exposure to operational risk, enhance organisational agility and build reputational capital as employers of choice.
“Organisations that can pivot quickly, redeploy talent and sustain culture through disruption will outperform peers,” she says.
These organisations aren’t just reacting to changes in the market, but staying ahead of them, she says.
“Boards that become more comfortable with adaptability when considering strategy and workforce planning will not only safeguard their organisations, but position them to thrive in the future economy.”
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