Jan 24, 2021

Bain: Getting Business Resilience Right

Kate Birch
5 min
New insight from Bain & Company examines five myths that stand in the way of allowing a company to tackle shocks to its system
New insight from Bain & Company examines five myths that stand in the way of allowing a company to tackle shocks to its system...

The Covid-19 pandemic is the latest in a long series of disruptions and disturbances that expose vulnerabilities in unprepared companies. In recent years companies have had to cope with trade wars, a financial crisis, geopolitical posturing and now the pandemic. On top of those, a recent flurry of government interventions have hit global technology giants including Ant Financial, Google and Huawei.

The pandemic exposed dependencies on far-flung supply chains, which are showing increasing strain. 

Resilience has become more important but the retreat of globalisation, new technology risks and the ever-present dark clouds of climate change mean it faces its biggest challenge.

In recent conversations with business leaders, global management consulting firm Bain recognised five stubborn myths that distort the resilience discussion.

Myth 1. Resilience eliminates volatility

In current times, the likelihood and consequence of events cannot be forced into a tidy probability distribution. As a case in point, consider how ineffective most polling proved in forecasting recent US elections or the British vote to leave the European Union.

In such an environment, it’s both unrealistic and unhelpful to treat resilience as a trait that will eliminate earnings and share price volatility. Instead, we distinguish volatility ― strpredictable fluctuations in every business over time ― from true risk ― exposure to a lasting adverse change in trajectory.

Failure to properly define risk appetite is the original sin in many discussions on resilience.

Myth 2. It’s all about the balance sheet

Business leaders often tend to view resilience solely through a balance sheet lens, examining leverage and liquidity, but ignoring other potential sources of fragility. In fact, resilience spans five dimensions:

  • Strategic, including absolute and relative scale, demand elasticity, revenue and profit diversification and cross-correlations;
  • Financial, including leverage and liquidity, but also insurance coverage and hedges;
  • Operational, including operating leverage, supplier concentration and redundancy;
  • Technological, including availability, workload mobility and cybersecurity; and
  • Organizational, including crisis preparedness, organizational agility and personal resilience.

Adopting a holistic view of resilience acknowledges the reality that external events typically affect companies through several of these dimensions simultaneously, compounding the extent of the shock. Accounting for all these dimensions allows executives to make smarter choices about where to invest scarce resources in resilience.

Myth 3. Past resilience guarantees future resilience

Once the dust settles from the Covid-19 crisis, most firms will likely be better prepared to deal with the next pandemic, just as banks are better prepared for the next mortgage crisis. “Black swan” events, however, look different than the crises in recent memory.

Building true resilience demands asking what could happen that would truly test the business, rather than anchoring on recent experience. Many companies that have shown resilience in responding to strategic and financial shocks have suffered from major technology outages ― sometimes due to the failure of just one router or server ― and cyber-attacks. As the trends to digitalize and automate operations accelerate, technology will pose greater risks that some firms haven’t yet prepared for.

Myth 4. Resilience should be handled by the risk function

Too often, risk gets treated as an obligatory but unfortunate box-checking exercise, then relegated to a corner of the business. Accepting this more limited scope, risk functions may fall into the trap of becoming overly tactical and blinkered in their identification of risks.

This approach falls short in a world of greater turbulence. The combinatorial nature of many risks demands that companies identify and mitigate risks for the entire business. A piecemeal buying down of specific risks in specific functions and business units will probably not achieve the resilience needed for the business as a whole (or at least not at an acceptable cost). Moreover, many future risks will emerge from the ecosystem of partners outside the firm, and traditional risk-management functions are ill-suited for this challenge.

Instead, firms will need to elevate and integrate risk into the rhythms and rituals of their most important decision-making processes at the C-suite and board levels. Rather than making decisions based mostly on the upside, and protecting against a few siloed areas of risk, business leaders at all levels should adopt an ownership mindset that fully accounts for how decisions will affect value creation across the business over the long term.

Myth 5. Resilience doesn’t require difficult trade-offs

Can a firm shield itself against future shocks without compromising earnings today? True, firms will be able to identify no-regret moves that add to resilience without denting current profitability, such as improving supply chain visibility or introducing crisis readiness. And, as noted above, a holistic, firmwide approach to resilience can often improve cost-effectiveness. However, gaining a meaningful edge on resilience will often entail investment and opportunity cost.

Here, business leaders will have to expand the dialogue with investors on balancing short-term and long-term value creation.


For larger firms with at least US$1 billion of annual revenue, other factors play a greater role, such as debt levels, revenue diversification or choices around asset ownership. Bain tracked the shareholder returns of larger firms that remained publicly listed from 2000 through 2019. Those that took on greater risk tended to underperform in years when the broader economy contracted but outperform in expansionary years.

But low-resilience firms pay dearly in another respect, with significantly higher rates of bankruptcy or acquisition. Indeed, over this period high-resilience firms had nearly double the survival rate of their low-resilience counterparts. In other words, a strategy of higher risk works for those that manage to stay afloat despite the volatility. The question is whether these gains are worth the risk of failure.

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Jun 13, 2021

Marketing matters: from IBM to Kyndryl

Kate Birch
5 min
Former CMO for IBM Americas Maria Bartolome Winans was recently named CMO for Kyndryl. Maria talks about her new role and her leadership style

Former Chief Marketing Officer for IBM Americas, and an IBM veteran of more than 25 years, Maria Bartolome Winans was recently named CMO for Kyndryl.

Prior to joining Kyndryl as Chief Marketing Officer, Maria had a 25-year career at IBM, most recently as the tech giant’s CMO where she oversaw all marketing professionals and activities across North America, Canada and Latin America. She has held senior global marketing positions in a variety of disciplines and business units across IBM, most notably strategic initiatives in Smarter Cities and Watson Customer Engagement, as well as leading teams in services, business analytics, and mobile and industry solutions. She is known for her work with teams to leverage data, analytics and cloud technologies to build deeper engagements with customers and partners.

With a passion for marketing, business and people, and a recognized expert in data-driven marketing and brand engagement, Maria talks to Business Chief about her new role, her leadership style and what success means to her.

You've recently moved from IBM to Kyndryl, joining as CMO. Tell us about this exciting new role?

I’m Chief Marketing Officer for Kyndryl, the independent company that will be created following the separation from IBM of its Managed Infrastructure Services business, expected to occur by the end of 2021. My role is to plan, develop, and execute Kyndryl's marketing and advertising initiatives. This includes building a company culture and brand identity on which we base our marketing and advertising strategy.

We have an amazing opportunity ahead at Kyndryl to create a company brand that will stand apart in the market by leading with our people first. Once we are an independent company, each Kyndryl employee will advance the vital systems that power human progress. Our people are devoted, restless, empathetic, and anticipatory – key qualities needed as we build on existing customer relationships and cultivate new ones. Our people are at the heart of this business and I am deeply hopeful and excited for our future.

What experiences have helped prepare you for this new opportunity?

I’ve had a very rich and diverse career history at IBM that has lasted 25+ years. I started out in sales but landed explored opportunities at IBM in different roles, business units, geographies, and functions. Marketing and business are my passions and I landed on Marketing because it allowed me to utilize both my left and right brain, bringing together art and science. In college, I was no tonly a business major, but an art major. I love marketing because I can leverage my extensive knowledge of business, while also being able to think openly and creatively.

The opportunities I was given during my time at IBM and my natural curiosity have led me to the path I’m on now and there’s no better next career step than a once-in-a-lifetime-opportunity to help launch a company. The core of my role at Kyndryl is to create a culture centered on our people and growing up in my career at IBM has allowed me to see first-hand how to prioritize people and ensure they are at the heart of progress in everything Kyndryl will do.

How would you describe your leadership style?

I believe that people aren't your greatest assets, they are your only assets. My platform and background for leadership has always been grounded in authenticity to who I am and centered on diversity and inclusion. I immigrated to the US from Chile when I was 10 years old and so I know the power and beauty that comes from leaning into what makes you different from other people, and that's what I want every person in my marketing organization to feel – the value in bringing their most authentic self to work every day. The way our employees feel when they show up for themselves authentically is how they will also show up for our customers, and strong relationships drive growth.

I think this is especially true in light of a world forever changed by the pandemic. Living through such an unprecedented time has reinforced that we are all humans. We can't lead or care for one another without empathy and I think leaders everywhere have been reminded of this.

What’s the best leadership advice you’ve received?

When I was growing up as an immigrant in North Carolina, I often wanted to be just like everyone else. But my mother always told me: Be unique, be memorable – you have an authentic view and experience of the world that no one else will ever have, so don't try to be anyone else but you.

What does success look like to you?

I think the concept of success is multi-faceted. From a career perspective, being in a job where you're respected and appreciated, and where you can see how your contributions are providing value by motivating your teams to be better – that's success! From a personal perspective, there is no greater accomplishment than investing in the next generation. I love mentoring younger professionals – they are the future. I want my legacy as a leader to include providing value in work culture, but also in leaving a personal impact on the lives of professionals who will carry the workforce forward. Finding a position in life with a job and company that offers me a chance at all of that is what success looks like to me.

What advice would you give to your younger self just starting out in the industry?

I've always been a naturally curious person and it's easy for me to over-commit to projects that pique my interest. I've learned over years of practice how to manage that, so to my younger self I’d say… prioritize the things that are most important, and then become amazing at those things.

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