To weather boom and bust cycles in business, leaders must ensure resilience is an integral value. As we approach 2024, we are being asked to juggle a mixed bag of economic factors. It appears we’re in for a soft landing, but economists and financial experts are split on whether the Federal Reserve has delayed an inevitable recession.

How does your business remain strong in our economy—or any economy, for that matter?

Business strategies must be built on the foundation of a clear mission and vision. Economic realities demand adaptability, and a strategic plan articulated from a mission and vision can help a business remain flexible against outside forces while it grows sustainably.

At Smith + Malek, we work to help our clients become more resilient. We do that by facilitating a process to help clarify purpose, define a better future, and work to attain that future. At the end of that process, our clients have a concise strategic plan that is understandable and immediately applicable. This approach is a collaborative exercise that prepares the business to remain focused in an ever-evolving economic landscape.

To build resilience, define a better future.

My business coach always tells me that leaders take people to a better place. Simon Sinek would call this "Jut Cause," which he defines as “a specific vision of … a future state so appealing that people are willing to make sacrifices in order to help advance toward that vision.”

Knowing where your company is going is an extremely valuable asset in building a resilient company because it prevents you from being either knocked off course by unforeseen challenges, or being too inflexible to handle the realities that arise on the way to your destination. A focus on where you are going enables resilience.

Using a variety of tools—such as oral quizzes, role-playing, and question-and-answer periods—organizational leaders and business stakeholders can define a better future and chart a course to success. It’s a personal process, and in order to guarantee clarity, business leadership must be aligned regarding why the organization exists, where it is going, and how it’s going to get there.

The process prepares organizations to anticipate and prepare for adverse situations. Identifying vulnerabilities from the outset and formulating contingency plans that can address them helps build resilience into organizations because they can proactively mitigate risks and minimize the impact of unexpected events. It also involves a thorough examination of resources, enabling leadership to allocate them more efficiently and, perhaps, identifying opportunities for growth and development that align with the organization’s mission and vision.

Something that I appreciate most throughout such workshops is that they encourage a culture of continuous learning and improvement within the organization. Because the process is iterative and collaborative, trust and respect for each other’s knowledge and insights are fostered naturally.

Envision for the long term.

Strategic planning is complex, but it serves as the foundation for building resilience in an organization by providing a roadmap for navigating challenges, optimizing resources, and capitalizing on opportunities. It fosters adaptability, informed decision making, and a forward-looking mindset.

Next year’s economic outlook is muddy. Interest rates that have remained "higher for longer" dominate the narrative, and there’s no forecast of Federal Reserve cuts in sight. Strategic planning is the linchpin for success, because adjusting strategies without fundamentally changing the nature of the organization allows your business to navigate economic challenges while staying true to your mission.

When you have a shared future state, you can stay nimble in terms of how to get there, and resilience is enhanced when organizations view challenges as opportunities for growth, rather than a reason to panic.

Luke Malek is a founding attorney and co-owner at Smith + Malek Attorneys and practices in the areas of business, health care and municipal law.