5 Steps to Foster a Culture of Adaptability in Your Organisation

Humans are hardwired for predictability. Yet, today’s world demands adaptability for success. In high-stakes situations, businesses must think out of the box to predict disruption, adapt swiftly, and innovate with foresight.

Netflix exemplifies this in how it evolved from a DVD rental service to becoming the largest streaming service in the world with ~302 million global subscribers and annual operating income exceeding $10 billion. Netflix’s success isn’t happenstance: it comes from its futuristic vision that is rooted strongly in a culture of adaptability and resilience.

The benefits of an adaptable workforce isn’t just anecdotal; it is measurable. According to KPMG, resilient workers proved 31% more productive during the pandemic, 22% more innovative, and exhibited higher cognitive flexibility than their change-resistant counterparts. High employee engagement, often a direct outcome of resilient cultures, boosts profit by 21%.

Such resilience isn’t innate—it must be built. Leaders play a decisive role in fostering resilience and adaptability. Prioritising transparent communication during uncertain times, supporting psychological safety of employees, and rewarding proactive problem-solving can pave the path for confident employees. How can leaders code this kind of resilience into an organisation’s DNA? Here are five strategies to implement:

1. Promote Psychological Safety Among Employees

Cultures where employees feel safe enough to speak up, challenge ideas, and admit mistakes without fear of punishment form the bedrock for resilience. A study from Aon, a professional services firm, reveals a clear connection between supportive work environments and resilience: only 15% of employees are resilient in workplaces with no health and wellbeing programs. That nearly triples to 45% in organisations with a broad wellbeing program, encompassing professional, physical, social, emotional, and financial wellbeing.

The World Health Organization’s Health 2020 framework backs this, highlighting availability of supportive environments for resilience. Shifting from reactive to proactive support and creating a culture of safety and ownership that may look like encouraging candid feedback, normalising vulnerability, and making wellbeing a strategic business priority rather than a side quest can turn resilience into a structural asset.

2. Champion Transparent, Two-Way Communication

Leaders demonstrate how information flows in a company. Transparency, be it from executive town halls to routine one-on-ones, promotes trust and enhances collective resilience.

Take Airbnb’s CEO Brian Chesky’s response through a public letter to downsizing and layoffs during the 2020 pandemic. He addressed employees directly, openly explaining business realities, the decision-making process, and support avenues for those affected—garnering praise for his empathy and clarity.

Early and transparent communication not only drives resilience, it positions leaders as anchors in volatile times. A Salesforce report found that teams where employees feel their opinions matter are 4.6 times more likely to perform at their best. Transparency is relatively easy to achieve when companies create a communication structure that provides critical information regularly through channels like executive town halls, manager check-ins, team huddles, and anonymous feedback tools.

3. Promote a Growth Mindset at All Levels

A resilient workforce is a prerequisite for companies that want to recover from setbacks. A growth mindset cannot be limited to top management. All employees must believe skills can be learned and use challenges as springboards for innovation.

Satya Nadella’s approach at Microsoft provides a blueprint for how prioritising a “learn-it-all” culture instead of a “know-it-all” one can drive collaboration, agility, and innovation across the board. In his decade of helming the company, it grew from a $300 billion valuation in 2014 to over $2.8 trillion by 2024. This is an example of how modelling curiosity, encouraging experimentation, normalising failure as part of the learning process, and rewarding adaptability instead of just outcomes can reinforce agility among employees.

4. Invest in Holistic Well-being and Development

Employees cannot be resilient if they’re burned out or disengaged. Apart from psychological safety, companies must invest in overall well-being. Research from WHO shows that the global economy loses up to US$ 1 trillion each year because of reduced productivity due to depression and anxiety. Mental health support, such as counseling and employee assistance programs, go a long way in building resilient cultures.

Flexibility in work arrangements also plays a key role. A Deloitte survey found that one in three professionals believe work flexibility boosts their job satisfaction and morale, with 30% believing it would increase their overall productivity. These combined with mentorship programs and career development pathways can address key concerns of belonging and long-term commitment among employees, reducing turnover and absenteeism, and reinforcing resilience.

5. Lead by Example

Leadership credibility is built through action. CEOs and senior executives must embody what they preach. For instance, Marriott CEO Arne Sorenson exemplified resilient leadership during the COVID-19 pandemic by being honest about his struggles with cancer treatment while managing an unprecedented business challenge. His vulnerability built trust, reinforced company values, and showed how authentic, value-driven leadership fosters collective strength in times of crisis. Leaders who share their own stories of uncertainty, recalibration, and learning reinforce a culture where adaptability is expected.

Build a Resilient Workforce That is Future-Ready

Resilience and adaptability must be developed, not assumed. As John Plant of Howmet Aerospace notes, “Very few people have the experience or versatility to operate in different modes.” An organisation that envisions indefinite success cannot overlook the importance of an agile workforce.

As the concept of business disruption evolves, leaders must eschew rigid hierarchies and traditional playbooks in favour of cultures that are flexible, creative, and experimental. Looking ahead, the most resilient companies will be those that respect their employees, foster a growth-oriented culture, prioritise flexibility as the norm, and embody these ideals from the top.

Image by Egor Kamelev from Pexels