Corporate Immune System
In the past one year we have become more aware of how important our immune systems are in warding off invading viruses. Simply put, the immune system is a complex combination of cells and proteins that defends the body against infection. The immune system records every microbe it has encountered and quickly identifies and destroys it before it can adversely affect us. Each of us develop a unique immune system since birth.
Similarly, organisations and corporates also have an immune system. The term Corporate Immune System was coined in July 1999 by Julian Birkinshawa and Jonas Ridderstråleb. The main role of this is to maintain the strategic vision and focus on the core goals, resisting any distraction. Any external threat, perceived or real, is attacked by this immune system. So, anything which it thinks as harmful, is eliminated and neutralised. Which could also mean that if any innovation or new business idea is treated as a threat or not recognised, the immune system will thwart it. So, the challenge is to support the immune system to recognise the real threats from perceived ones so that it does not drive out innovation and new strategies.
In today’s dynamic business environment change is inevitable. Sometimes not to thrive but merely survive, organisations have to be nimble and adapt to changes quickly. So, how is this immune system supported, to let innovation flourish and accept change? A few possible strategies to strengthen the immune system are – firstly, full buy-in and openness at the Board level that change, and innovation will be assessed properly, and current systems and model adapted accordingly. Secondly having a long-term vision for the company which goes beyond the commercial purpose of the company, makes it more open to accessing helpful cues from the environment in which it operates. Thirdly, having flexible business models which can adapt to changing scenarios – like what we saw in the last year, when overnight the offices became empty or workforce, but business continued. Fourthly and most importantly, having a workforce which is committed to reinventing itself, is key to a quick bounce back by corporates.
During the pandemic the companies who have shown resilience and weathered the storm better have managed to support their immune systems in recognising that the following are not a threat but essential for survival and growth. As soon as the immune system understands that the changes are essential for survival, it stops attacking the change and this helps in the overall growth.
- Digitisation – As the world was forced to become contactless, the acceleration of digital transformation was unprecedented. Remote working, e-commerce, use of different platforms, digital content became the norm.
- Changing customer behaviour – Corporates had to quickly adapt to the changes – be it due to more digital adoption, mobility patterns/restrictions, purchasing behaviour, increasing awareness to health and sanitation
- Optimising resources – Allocation and optimisation of resources in the state of uncertainty became more pronounced and also got the corporates analyse their operations and move resources around to cater to the new norm.
- Workforce management – the importance of employee engagement has never been more highlighted than in the last 12 months making many organisations rethink their entire workforce management strategy. Employee communication, wellness, engagement and motivation have become the KPIs for most senior leaders.
In essence the importance of teaching the Corporate immune system to reduce wate and optimise resources is key for the overall wellbeing or an organisation. The immune system is not good or bad, it is a response to a threat. A strong immune system helps corporates to fend off threat and bounce back more quickly. Seems like a pre-requisite for long term success.