How to turn setbacks into strengths & cultivate organizational resiliency
We’ve probably all encountered the quote, “Success occurs when opportunity meets preparation,” usually attributed to the speaker and author Zig Zigler. It’s an inspiring insight because it evokes the promise of the future. If you’re prepared when opportunity arrives, you’ll be equipped to achieve great things.
We like to plan and develop strategies that whisk us forward into a great future. But that is rarely how the future arrives. It usually arrives in fits and starts, stumbling and surging through both opportunities and setbacks. Why would we prepare for one of these inevitabilities and not the other? It seems like the inverse of Zigler’s idea is just as true as the original:
Resilience occurs when setback meets preparation.
Organizations of all sorts — ours included — are currently navigating through an extraordinary economic moment. As we confront these challenges, we find ourselves reflecting on the experiences and insights that have equipped ArchPoint Group to weather setbacks and uncertainty, and to cultivate the resiliency needed to do so.
Resilience: It’s Not What It Seems
From the outside, resilience may appear like a remarkable reaction to adversity — but beneath the surface, it’s preparation, strategic foresight, and disciplined anticipation at work.
Resilience isn’t merely an inspiring response to external forces — it’s the visible outcome of intentional preparation and strategic clarity. It’s this consistent state of readiness that is the defining characteristic of resilient organizations. From an outside perspective, it might look like calm under pressure, agility amid chaos, or foresight amidst uncertainty. But from the inside, it’s the result of a deliberate approach — an ongoing discipline of anticipating, strategizing, and adapting.
Relationships: The Heartbeat of Resilience
Building organizational resilience begins with building durable relationships. When a relationship never moves beyond being merely transactional, we leave no room for collaboration in moments of crisis, limiting our ability to pivot effectively. For example, when a customer can simply demand, “Don’t bring us tariff-based increases,” without inviting further dialogue, the relationship reveals itself as vulnerable to breaking down under pressure.
True resilience thrives in relationships built on trust, loyalty, and mutual investment. If our stakeholders — whether employees, customers, or financial partners — clearly understand the unique value our organization provides, they’re more likely to weather storms alongside us. It’s up to all of us to clearly understand, define, and communicate our value.
Needless to say, nurturing resilient relationships begins long before setbacks arise. At all times, especially good times, we must:
- Engage stakeholders early and regularly — customers, suppliers, employees, and financial partners, alike.
- Value trust and loyalty as foundational assets, investing time and resources into cultivating meaningful connections.
- Understand and articulate our organization’s specific value proposition clearly to every stakeholder.
Values: The Backbone of Resilience
When viewed through the lens of resilience, our organizational values can reveal new dimensions of usefulness as practical strategic tools. Our values should help to define how we prepare for setbacks as well as what actions we take when they arrive. If we fail to keep our values in mind as we plan for setbacks, we may find they are the first thing to be abandoned when challenges arise, leaving us even further adrift, and making it even harder to get ourselves back on track.
Every organization embodies its own unique set of values, which means every organization’s approach to expressing resilience through its particular values will be slightly different. The important thing to remember is that our values must be a central component of our strategic and contingency planning.
Cultivating Resilience: Practical Steps
Resilient organizations integrate contingency planning into their strategic planning. It’s not enough to envision success; as leaders, we must consistently ask “what if?” — especially during good times.
As ArchPoint Group CEO Jesse Edelman succinctly puts it, “You have to live in contingency.” A lack of contingency planning leads to panic; panic leads to overwhelm; and overwhelm leads to poor decision making.
Here are some practical steps every organization should take to build resilience:
- Address potential vulnerabilities: Identify critical vulnerabilities and proactively address them. As a manufacturer, ArchPoint identified the need to ensure each product can be manufactured in multiple countries. By developing this contingency, we became more resilient to global uncertainty.
- Lean on your team: When contingency planning is a regular part of strategic planning, team members remain primed to identify potential challenges and collaborate on strategies to confront them. They also maintain an understanding of how their particular expertise contributes to the overall resilience of the organization.
- Engage customers as partners: When setbacks occur, provide ranges of solutions rather than simply conveying decisions or price adjustments. This is easier and more effective when the groundwork for a resilient relationship we discussed earlier has already been laid.
- Prioritize frequent stakeholder communication: When issues arise, rapidly socialize and inform stakeholders to avoid confusion and maintain alignment.
- Perform regular strategic and contingency planning: Make “what if” conversations routine, especially during prosperous periods. Instill a mindset of continuous preparation — regularly acknowledging the possibility of adversity.
- Turn challenges into strategic opportunities: Identify disruptions as chances to close gaps or pivot to new market positions. When you’re prepared for disruptions others aren’t, you find yourself in a position to forge new relationships built on your demonstrated ability to solve difficult problems.
- Reevaluate strategic costs through the lens of resilience: Factor potential losses from unforeseen events into your financial exercises. You may find that the extra cost of preparedness in specific, strategic circumstances is ultimately worth it when compared to the potential risk of being caught unprepared.
- Shift operational focus as needed: Remain flexible. You may find the need to toggle, for example, between a profitability focus and a cash management focus as conditions evolve. It’s ok to shift as needed.
- Balance conflicting organizational needs: Navigating competing interests can be more of an art than a science. For example, how to balance the need for inventory reserves against the need for cash reserves. Every leader has unique interests and priorities, but rigorous planning will help to inform the correct balance.
- Know the difference between must-haves and nice-to-haves: Understanding which category everything belongs to at all times will streamline decision-making during crises and setbacks.
- Protect customers proactively: Center contingency planning around customer protection strategies. For every “what if,” consider how your actions can protect your customers.
- Leverage leadership opportunities: Embrace challenges as moments for authentic leadership — demonstrating vulnerability, openness, and clarity.
- Maintain strategic perspective: Be connected enough to have the knowledge to plan effectively, but retain time for a balcony view so you can maintain vision and lead effectively
- Educate teams continuously: Utilize setbacks as valuable learning opportunities to inform future resilience strategies.
- Consider creating redundancy in critical operations: For ArchPoint, this means geographically diversified manufacturing, among other things. For every organization, critical operations and how to achieve strategic redundancy will differ.
Resilience: Preparation by Another Name
The mid-20th century Olympian Bob Richards famously said, “It may sound strange, but many champions are made champions by setbacks.” The same is true for champions of the business arena. The world may see how a resilient organization, like an elite athlete, reacts to crises. But what the world doesn’t see is how meticulously both have prepared for them. As leaders, we have to internalize the fact that resilience isn’t nearly as much reactive grit as it is proactive strategy.
Resilience is preparation made visible — preparation that might never have become visible except for the arrival of an unexpected setback. It doesn’t spontaneously emerge in response to adversity, but as a result of systematic, proactive preparation.
When we take the initiative to build strong relationships, align our shared values with preparedness, and embrace continuous, actionable strategies, we become truly resilient. And true resilience — cultivated resilience — is what turns setbacks into opportunities, and transforms good companies into great, enduring organizations.