Strong leaders build greater organisational resilience: 3 traits for the C-suite to develop

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The study reveals uncertain economic growth, availability of key talents or skill and technological change among the top threats to organisational health.

A report by Russell Reynolds associates, titled H1 2023 Global Leadership Monitor, reveals a strong link between organisational resilience and leadership competence.

As firms face unpredictable complex challenges, it is imperative for them to be able to overcome them. In this report, high-profile leaders in organisations were surveyed, and it was found that the top threats to organisational health over the next 12-18 months are uncertain economic growth (73%), availability of key talent/skills (72%), technological change (44%), changes in consumer behaviour (39%), and increased regulation (39%).

The responses included survey data from more than 1,500 global board directors, CEOs, C-suite leaders, and next-generation leaders across various industries.

To combat the threats cited, the report highlighted leadership competencies that can alleviate uncertainties of the above mentioned concerns. Certain leadership levers were found especially critical in building organisational resilience. As such, firms that are most prepared for external business threats are twice as likely to be led by senior executives who possess the following three key traits.

Enabling change and innovation
Leaders which are forward-thinking who maintain a perspective which allows them to consider new tools, business models and targets are successful in creating a culture of curiosity that allows the organisation to innovate and transform for proliferated progression. Furthermore, clear communication of this foresight would cultivate trust, inspiration, and curiosity across next-generation leadership, middle management, and front-line employees. Leaders who feel that an inspirational, long-term perspective is demonstrated at their organisation are 2.14 times more likely to be at a resilient organisation.

Navigating uncertainty
In order to thrive in uncertain environments, organisations need leaders who possess agility. These leaders excel at confidently navigating ambiguity, making decisions even with limited information, and adapting to change. This is crucial in decision making where effectively prioritising and responding to external threats is of the essence. Findings reveal that companies with leaders who possess this skill are twice as likely to have strong organisational resilience. Data showed leaders whose direct managers effectively navigate uncertainty are twice as likely to be at a resilient organisation.

Creating value through others
Data showed leaders whose direct managers are effective in creating value through others are 2.4 times more likely to be at an organisation that is prepared for the future. Understanding how to encourage and empower teams, as well as build stakeholder bonds are important as leaders navigated new ways of working during and post-pandemic, made progress with diversity, equity and inclusion initiatives, and addressed growth and development opportunities. More importantly as of present, leaders need to inspire and motivate others in order to tackle complex challenges as a team.

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