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Are companies without resilience doomed to fail?

In times of geopolitical "Zeitenwende", companies must prepare for entirely new challenges. Crises and environmental disruptions that could temporarily halt business operations have existed since time immemorial. However, in recent years, political upheavals have increasingly directly impacted companies.

Ever since the U.S. relinquished its role as guardian of a stable world order and the unipolar system gave way to an emerging multipolar order, trade wars, embargoes, sanctions, and protective or punitive tariffs have shaped the economic landscape. By identifying such risks early—particularly in international supply chains—companies can take measures to become more resilient. In this context, resilience means a company’s ability to withstand disruptions or crises and to restore critical core processes quickly after an interruption. We call this recovery capability.

It is therefore no surprise that resilience has become a buzzword in recent years, appearing in nearly every aspect of life. Some speak of strengthening the resilience of the general population against hybrid warfare, others of corporate resilience, and yet others of individual resilience against illness.

This article focuses solely on the corporate perspective. As representatives of a consulting firm with 30 years of experience in logistics, we have always dealt with securing supply chains. Risk analyses have resulted in detailed emergency and recovery plans. In other business areas, however, the focus has long been on process optimization and efficiency improvements. Shifting this mindset can be challenging.

Take human resources, for example. Traditionally, the emphasis was on reducing staff through process automation, with the expectation that the remaining personnel would take on increasingly more tasks. In industries reliant on highly skilled professionals, personnel can be unavailable at short notice during crises, and demographic developments over the next ten years—particularly the retirement of the baby boomer generation—will create massive gaps that incoming generations cannot fill. Human capital is becoming a critical resource.

Many companies are still unaware of this dimension. Only those that offer attractive work models, competitive compensation, a compelling environment, and favorable location factors will be able to retain talent and attract new employees. This is particularly challenging for companies in peripheral or economically weaker regions. In an era of growing competition for skilled workers, only the best employers will prevail.

It is no longer enough to focus solely on process or personnel efficiency. What use is the most efficient process if no one is left to operate or manage it? In a crisis, the entire business model could be at risk. Companies that aim to be resilient must maintain efficiency but also invest strategically to ensure business continuity.

All of this requires funding. The earlier companies accept this reality, the more effectively they can protect themselves against crises—avoiding being caught unprepared or overwhelmed. The recently passed KRITIS umbrella law, expected to take effect next year, already contributes significantly to this, although it initially applies only to companies in critical infrastructure sectors.

Resilience, however, should not be seen merely as a box to tick to comply with legal requirements. Resilient organizations grow from within, continuously building resilience capabilities and embedding them across all business areas. Therefore, resilience should not be confined to emergency or crisis management—it must be orchestrated and supported as a holistic corporate responsibility by company leadership.

Thinking in “what-if” scenarios must become part of a company’s DNA. When every department understands its vulnerabilities, the organization as a whole can prepare. Resilience should not be viewed as a burden but as a key strategic competency.

Conclusion: Efficiency remains important, but it can no longer come at the expense of resilience. Recent developments have shown how quickly even highly efficient processes and competitive products can reach their limits when external shocks occur. While efficiency alone cannot guarantee long-term survival, without resilience, corporate goals are ultimately doomed to fail.

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Author

Boris van Thiel

Member of the Executive Board, LMBG GmbH

Boris van Thiel is a geographer and entrepreneur with two decades of experience living and working in the Gulf States. He currently serves as Co-Managing Director at LMBG Logistics and Management Consulting GmbH in Berlin. As the founder and driving force behind Boardroom Geopolitics, Boris explores how geography shapes global business strategy. His work delves into the connection between leadership and the geopolitical challenges that today’s executives and decision-makers must navigate. He can be reached at borisvanthiel@boardroomgeopolitics.de