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Key Takeaways Strategic resilience enables companies to thrive amid change by focusing on precision in diversification, smart flexibility in operations and dynamic decision-making.
Active and strategic diversification requires an in-depth understanding of customers and deliberately managing concentration risk to stabilize cash flow.
Building a flexible and adaptive infrastructure helps mitigate supply chain risks and equips the business for rapid adjustment to market changes.
Visualize the modern business as a Formula 1 racing car — a technical wonder, meticulously honed, ruthlessly efficient and capable of attaining astounding velocities on a pristine road. What if, however, the good weather on race day turns to rain and the smooth road to a twisty mountain road?
Today economic reality now demands a new response. And that response is resilience. This isn’t passive resilience — the kind that just bounces back after difficult times. This is active, strategic resilience that allows an organization to not only ride out change, but to emerge stronger, quicker and ready to seize thrilling opportunities that others overlook in times of turbulence.
Related: When Life Collapses, Entrepreneurs Rebuild — 5 Lessons From the Science of Resilience
System #1: Strategic diversification — building revenue streams that actually protect you
When things appear to be uncertain in terms of revenue, the impulse is to do more — more products, more services, more markets. But it creates only complexity without safety. It makes you a larger, more cumbersome operation that gets less focused and muddles the brand message. Strength is precision. You don’t need more lines of business; you need more defined lines of business that reduce correlation, stabilize cash flow and leverage what you do best.
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