Strategic Management of Organizational Resilience (SMOR): a Framework Proposition

Moura, Denise de; Tomei, Patricia Amelia

doi:10.7819/rbgn.v23i3.4118

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Article • Rev. Bras. Gest. Neg. (Online) 23 (03) • Jul-Sep 2021 • https://doi.org/10.7819/rbgn.v23i3.4118 copy

Strategic Management of Organizational Resilience (SMOR): a Framework Proposition

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

Purpose:

To present and describe the Strategic Management of Organizational Resilience (SMOR) framework, as well as to analyze it based on the strategies used by four Brazilian organizations in this current time of intense vulnerability due to the worldwide pandemic triggered by COVID-19 at the beginning of 2020.

Theoretical framework:

Organizational resilience and related management practices.

Design/methodology/approach:

A literature review; bibliometrics relating to organizational resilience; the SMOR theoretical framework; an analysis of this framework within four Brazilian organizations, based on qualitative research and interviews, aiming to identify the strategic actions adopted by these organizations before and during COVID-19.

Findings:

The organizations analyzed, which were different sizes and from different sectors, presented common points directly linked to the dimensions of SMOR: systematic analysis of scenarios; partnerships with stakeholders; systematic sharing of information; decision-making ability; financial management; rapid response and learning ability.

Practical & social implications:

The research contributes to understanding how organizations can improve their culture of resilience and, therefore, deal more assertively with vulnerabilities and disasters of different natures. The COVID-19 pandemic has forced the world and organizations to reinvent themselves. In this context, the SMOR framework aims to provide a more detailed understanding of environmental risk / vulnerability management.

Originality/value:

The SMOR framework helps organizations with different levels of complexity to understand their strengths and weaknesses, assess internal and external scenarios, and systematically analyze their processes, with the aim of strategically managing their respective resilience.

Keywords:
Strategic management of organizational resilience; environmental variability and adversity; environmental uncertainty and risk; organizational adaptation and flexibility; COVID-19

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Dimension	Concept
Risk management	Systematic identification of potential factors that can interrupt business and the adoption of practices that help protect the current environment, thus preserving the status quo (Ortiz-de-Mandojana & Bansal, 2016Ortiz-de-Mandojana, N., & Bansal, P. (2016). The long term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37, 1615-1631. doi:10.1002/smj.2410 https://doi.org/10.1002/smj.2410... , p. 1619).
Vulnerability management	Adoption of practices to reduce potential failures and losses when a certain risk arises. Identification of processes that are susceptible to damage and/or that have ‘potential for system change or transformation, when faced with a problem’ (Gallopín, 2006Gallopín, G. C. (2006). Linkages between vulnerability, resilience, and adaptive capacity. Global Environmental Change, 16(3), 293-303. doi: 10.1016/j.gloenvcha.2006.02.004 https://doi.org/10.1016/j.gloenvcha.2006... , p. 294).
Learning capacity	Acquisition of knowledge from lessons learned, using it in future projects (Lee et al., 2013Lee, A. V., Vargo, J., & Seville, E. (2013). Developing a Tool to Measure and Compare Organizations’ Resilience. Natural Hazards Review, 1, 29-41. doi: 10.1061/(ASCE)NH.1527-6996.0000075 https://doi.org/10.1061/(ASCE)NH.1527-69... ).
Change management / reinvention / improvisation	Capacity for reinvention with the aim of adapting to external changes (Wicker, 2013Wicker, P., Filo, K., & Cuskelly, G. (2013). Organizational resilience of community sport clubs impacted by natural disasters. Journal of Sport Management, 27, 510-525. doi:10.1123/jsm.27.6.510 https://doi.org/10.1123/jsm.27.6.510... ) and the ability to improvise by developing solutions using available tools (Mallak, 1998Mallak, L. (1998). Putting Organizational Resilience to Work. Industrial Management, 40(6), 8-13. doi:10.1108/09552069810215755 https://doi.org/10.1108/0955206981021575... ).
Ability to anticipate / proactive search for resources	Implementation of processes and procedures incorporated into organizational strategies that help an organization in preparing to respond to specific situations, but in a flexible manner (Burnard et al., 2018Burnard, K., Bhamra, R., & Tsinopoulos, C. (2018). Building Organizational Resilience: Four Configurations. IEEE Transactions on engineering management, 5(3), 351-362. doi: 10.1109/TEM.2018.2796181 https://doi.org/10.1109/TEM.2018.2796181... ). The ability to anticipate disruptions, systematically analyzing the current situation and the near future and investigating what can happen in the medium and long term (Hollnagel, 2008Hollnagel, E. (2008). Resilience Engineering in a Nutshell. In E. Hollnagel, C. P. Nemeth, & S. W. A. Dekker (Eds.), Resilience Engineering Perspectives (Volume 1, Preface, pp. ix-xii). Aldershot, UK: Ashgate. Available from http://erikhollnagel.com/onewebmedia/Hollnagel_preface.pdf http://erikhollnagel.com/onewebmedia/Hol... ).
Ability to adapt	The ability to respond to changes in current environmental conditions, learning and reconfiguring resources. Skills acquired in previous lessons enable proactive monitoring, which helps ‘flexible transfer of knowledge and resources to handle situations, as they arise’ (Sutcliffe & Vogus, 2003Sutcliffe, K. M., & Vogus, T. J. (2003). Organizing for Resilience. In K. Cameron, J. E. Dutton, & R. E. Quinn (Eds.), Positive Organizational Scholarship (Chapter 7, pp. 94-110). San Francisco: Berrett-Koehler., p. 14).
Management of financial volatility	Maintaining financial reserves that allow an organization to quickly return to pre-crisis performance levels. Organizations are better prepared to handle a crisis when ‘they maintain strong relational and financial reserves and when they have business models that can be adapted to the needs of the existing competitive environment” (Gittell et al., 2006Gittell, J. H., Cameron, K., Lim, S., & Rivas, V. (2006). Relationships, Layoffs, and Organizational Resilience Airline Industry Responses to September 11. The Journal of Applied Behavioral Science, 42(3), 300-329. doi: 10.1177/0021886306286466 https://doi.org/10.1177/0021886306286466... , p. 301).
Response capacity	Fast problem detection; mobilization of monetary, physical, technological, and informational resources; and the ability to prioritize tasks to respond to a disruption.
Response capacity	Decision making during a crisis can be based on ‘the ability of managers to effectively interpret the demands of the situation and balance them with the capacities and resources available (Burnard et al., 2018Burnard, K., Bhamra, R., & Tsinopoulos, C. (2018). Building Organizational Resilience: Four Configurations. IEEE Transactions on engineering management, 5(3), 351-362. doi: 10.1109/TEM.2018.2796181 https://doi.org/10.1109/TEM.2018.2796181... , p. 17).

Dimension of organizational resilience	Desired employee contributions	HR principles	HR policies
Cognitive dimension	▪ Creativity	▪ Partnership with employees	▪ Job security
	▪ Expertise	▪ Localize decision-making power	▪ Cross-functional work assignments
	▪ Questioning fundamental assumptions	▪ Relational rather than transactional relationships	▪ Broad recruiting sources
	▪ Novel solutions	▪ Minimize rules and procedures	▪ Continuous developmental opportunities
	▪ Decisiveness	▪ Ensure pluralism and different individual experiences	▪ Group-based incentives
			▪ Continuous socialization
Behavioral dimension	▪ Devising unconventional responses to unprecedented challenges	▪ Develop a culture of organizational ambidexterity	▪ Experimentation (freedom to fail)
	▪ Combining originality and initiative	▪ Create a climate of open communication and collaboration	▪ Lessons learned
	▪ Practicing repetitive routines that provide the first response to any unexpected threat	▪ Encourage problem-solving processes tied to organizational learning	▪ Human resource and coordination flexibility
	▪ Making investments before they are needed	▪ Encourage knowledge sharing	▪ Broad job descriptions
		▪ Enable rapid deployment of human resources	▪ Employee suggestions
		▪ Emphasize worker flexibility	▪ Cross-departmental task forces
Contextual dimension	▪ Developing interpersonal connections	▪ Encourage social interactions, both inside and outside the organization	▪ Joint employee-customer teams and networks
	▪ Developing resource supply lines	▪ Nurture a climate of reciprocal trust	▪ Empowerment
	▪ Sharing information and knowledge widely	▪ Develop facilitative communication structures	▪ Open communication
	▪ Sharing power and accountability	▪ Emphasize contributions and outcomes rather than tasks	▪ Results-based appraisals
		▪ Reinforce power based on expertise rather than hierarchical position	▪ Accessible, integrated information systems
		▪ Create broad resource networks

Model proposed by Lengnick-Hall et al. (2011Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 21, 243-255. doi:10.1016/J.Hrmr.2010.07.001 https://doi.org/10.1016/J.Hrmr.2010.07.0... )	SMOR	Strategic actions of organizational resilience (Ho et al., 2014Ho, M., Teo, S. T. T., Bentley, T., Verreyne, M.-L., & Galvin, P. (2014, July). Organizational resilience and the challenge for human resource management: Conceptualizations and frameworks for theory and practice. 4th Annual International Conference on Human Resource Management and Professional Development for the Digital Age (HRM&PD 2013), Singapore, 4. doi: 10.5176/2251-2349_HRMPD14.09 https://doi.org/10.5176/2251-2349_HRMPD1... )
Cognitive dimension	Environmental dimension	Strategy.
Desired employee contributions, HR principles, and HR policies that enable a company to accurately diagnose environmental conditions and assume a more effective strategic posture. (Keep using current sources or create different ones).	Actions implemented by the organization with a focus on the external environment before, during, and after a crisis, supported by organizational practices.	Strategy.
Behavioral dimension	Organizational behavioral dimension	Leadership, agility, and organizational learning.
Desired employee contributions, HR principles, and HR policies linked with ‘actions needed to turn competitive potential into realized strategy’ (p. 252).	Internal actions performed by the organization before, during, and after a crisis (anticipation, response, and learning capacities), supported by organizational practices.	Leadership, agility, and organizational learning.
Contextual dimension	Individual behavioral dimension	Individual knowledge, skills, and attitudes of professionals working in the organization: flexibility and adaptability.
Desired employee contributions, HR principles, and HR policies that help generate contextual conditions that support resilience, with better use of strategic capacity (for example, psychological security - when individuals perceive that their work environment favors assuming interpersonal risks).	Individual employee behaviors, supported by organizational practices before, during, and after a crisis.

Name	Sector	Size	Respondent
A	Insurance, risk management activities	Large company, 300 employees, 18 years old.	Compliance director
B	Corporate / industrial food services	Small company, 60 employees, 8 years old.	Owner
C	Food goods and services	Large company, 500 employees, more than 80 years old.	Executive marketing manager
D	Technology and software	Large company, 1,800 employees, 31 years old.	Founder/president

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