BAKU, Azerbaijan, January 22. Resilience is critically important in navigating economic challenges, said Bob Sternfels, Global Managing Partner of McKinsey & Company, as he addressed the World Economic Forum session on 'Emerging Economies amid Shock', Trend reports.
Sternfels opened his address by emphasizing the growing relevance of resilience, stating, "I’m more and more excited every year. This is our third year doing this together. Resilience is something we need to lean into".
He referred to McKinsey’s recent survey, which revealed a concerning trend: "Most folks aren’t doing enough on the topic of resilience, whether it’s private enterprise or public institutions. In fact, 84% of respondents said they don’t think they’re investing enough in resilience". This statistic, Sternfels noted, should serve as a call to action for both the private and public sectors to invest more in strengthening resilience.
Sternfels further explored the need for strategic reorientation, especially in terms of long-term foresight and preparedness. "These are more of the long-term things that I think there was a call out in our report to do more on," he said. He stressed the importance of resilience as a skill, akin to a muscle that must be exercised regularly to remain effective: "Unless you keep that muscle in shape, it can atrophy".
He also pointed to the necessity of investing in resilience at both the organizational and individual levels, particularly for leaders: "How do you help leaders be more resilient at an individual level? That’s one of the under-invested areas just at a personal skill level". Sternfels highlighted that resilience must be a shared responsibility, emphasizing the public-private interface. He said, "Resilience cannot be solved in isolation. It requires collaboration".
Turning to the positive side of resilience, Sternfels discussed its potential to address critical challenges. "We looked at furthering macroeconomic stability, something that’s absolutely critical in this world," he said, noting the connection between resilience and stable investments over the long term. He explained that a resilient environment builds confidence in making bold investments and equips the workforce with the skills necessary for the future. "Investing in resilience gives us more confidence about re-skilling the workforce," Sternfels remarked.