Michael Lissack
• Boundary clarity (employee understanding of decision parame- ters and constraints) • Error learning ratio (how effectively the organization learns from mistakes versus simply imposing tighter controls)
4. From Efficiency to Resilience Optimization
Early milestone: The organization has identified critical systems where resilience takes priority over efficiency and has begun implement- ing strategic redundancy in these areas. Intermediate milestone: Formal resilience assessment processes evaluate key systems, with explicit consideration of potential disruptions, recovery capabilities, and adaptive capacity. Advanced milestone: The organization has developed sophisticated approaches to measure and optimize the balance between efficiency and resilience across different operational domains. Pharmaceutical company Johnson & Johnson demonstrates this pro- gression through its evolution from traditional supply chain optimization to its "resilience-weighted" operations model. The company maintains effi- cient approaches in stable product categories while investing in significant redundancy for critical medications, with explicit risk-based calculations determining the appropriate balance in each domain.
Measurement indicators:
• Recovery time objectives (established and measured for critical systems) • Resilience premium calculations (explicit methodology for deter- mining resilience investments) • Adaptation speed during disruptions • Opportunity capture during disruptions (ability to create advan- tage through superior resilience)
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