In this blog, Ploy, an MBA student, shares key insights from an inaugural lecture by Kristina Potocnik on resilience, innovation, and overcoming organisational challenges in uncertain times. Through real-world examples and academic perspectives, Ploy reflects on how these concepts can be applied to leadership and team management.
Photograph of Kristina Potocnik from the University of Edinburgh Business School.

Organisational management is a crucial skill for leadership, especially for me as an MBA student and future leader. It’s essential to know how to manage an organisation effectively during uncertain times, such as a pandemic, and to understand how teams and individuals within the organisation can navigate these challenges.

I recently had the opportunity to attend an inaugural lecture by our amazing business school professor, Kristina Potocnik, on the topic "How Individuals, Teams, and Organisations Persevere When Things Go Wrong." From this session, I gained valuable insights into the skills needed by people in organisations when faced with uncertainty.

The importance of resilience in an organisation

Resilience is the ability to bounce back when things go wrong or do not go as planned. It applies to individuals, teams, and organisations. Both individuals and organisations need resilience in the face of unexpected circumstances, as it helps them navigate difficulties and create solutions. By anticipating scenarios and imagining potential outcomes, they can better prepare for challenges. While resilience may not come naturally to everyone, it can be learned and developed over time. Though it can be difficult and stressful to build, resilience is a skill that improves with practice.

Key concepts

Organisational limits are factors that restrict an organisation’s ability to respond to uncertainty. These limits fall into two categories:

  1. Exogenous limits: External factors such as the environment, laws, or social pressures.
  2. Endogenous limits: Internal factors such as individual knowledge and experiences.

A relevant example is the loss of Air France Flight 447. The pilot, lacking proper training, misunderstood how to control the plane during a storm and mistakenly pulled the control stick back, worsening the situation. This case illustrates both exogenous limits (lack of training) and endogenous limits (incorrect interpretation of information).

Understanding an organisation’s limits helps build resilience at the individual, team, and organisational levels. Knowing these limitations allows companies to better prepare their employees, expand knowledge across the organisation, and avoid poor decision-making.

Innovation and creativity within individuals and teams can help overcome obstacles. One simulation Kristina has conducted for years, called the Production Game Simulation, shows that facing pressure can spark creativity and help teams cope with uncertain situations. However, excessive creativity can backfire if people overlook the practicality of their ideas, as seen in the Windscale Disaster. Hence, organisations should foster creativity but also ensure that ideas are grounded in reality. This session was incredibly insightful, and I plan to apply the knowledge gained to my career. As a manager, it’s essential to understand my team's limitations and help them overcome challenges by offering proper training and preparing them to handle unexpected situations. This will help build their resilience in the face of uncertainty.

For those interested in organisational effectiveness, I recommend connecting with Kristina on LinkedIn. She also recommends the book Becoming an Organization Scholar for further reading.