A research report from the EMCC (European Monitoring Centre on Change) has stressed the importance of businesses to cultivate “anticipatory awareness” and flexibility in building resilience to change. How does this translate into straightforward, practical steps that a small sustainable business can take to help it thrive during times of change?

If you’re already running your small business sustainably (i.e. in accordance with the triple bottom line – people, planet, profit) then you’re well on the way to establishing resilience in your business. There is, however, another vital ingredient for sustainable small businesses to take on board in order to ensure that we can respond effectively and quickly to unforeseen changes. This essential business quality is known as “holism”.

What is a Holistic Business?

“The whole is more than the sum of its parts.” Aristotle

Awareness

A holistic business is one that operates in the awareness of the importance and interrelatedness of all of its parts and of its integration with its physical, community and business environments.

One way we can understand the interrelatedness of business parts is by using the holistic view of the human form – mind, body and soul.

Mind
We can think of the “mind” of a business as being its collection of plans, strategies, logistics and management systems (financial, marketing, distribution etc). So, just like in a human, it’s the thinking, rational part of the business.

Body
We can think of the “body” of a business as being its resources, materials and stock, physical environment, employees, business relationships, premises etc. It’s the company’s physical manifestation in the world.

Soul
We can think of the “soul” of a business as its values; those qualities that are the most important reasons for its existence, aside from earning a living for those employed by it. This is usually communicated in the form of a mission statement and spells out, in the case of a sustainable business, how the company is making a positive contribution to humanity and the planet.

Within the business, these three elements are interconnected. You will probably know from experience that whatever you do to change a management system (business mind), for example, will have an impact on your material resources (business body). Also, that it’s a good idea, when making business decisions (business mind), to refer to your mission statement (business soul) to ensure that whatever you decide to do will keep you on track with your business purpose.

The business, rather than existing in isolation, is intricately linked to its physical environment and the community it serves and that it operates in. A business can be said to be holistic when it recognises itself as a significant, interdependent element in its environment.

So, how does the “sum of the parts” become more than “the whole” and how does it help us to respond to unforeseen circumstances?

By recognising the interconnectness of these internal and external elements, we become more aware of how everything we do within and outside the business has the potential to create or destroy, to serve or to consume. So, a holistic and sustainable business not only adheres to the triple bottom line, but it also behaves authentically, congruently, ethically and with integrity. It recognises that what it gives to the outside world, also benefits itself. The two cannot be separated.

Paradoxically, because of this interrelatedness and synergy, each business is also unique in its requirements and offerings. With small businesses in particular, the company is often a reflection of the values, character and personality of the business owner or management team. This doesn’t mean that the Managing Director is the only person in the business whose ideas count, or that it is run dictatorially. Rather, it indicates just how personal and inspiring business ventures can be and just how much potential there is to effect positive and creative change using business as a vehicle.

Flexibility

Flexibility in business is about having choices. When faced with the downturn of a market we’re serving, we need to be able to diversify. When looking for new opportunities, we need to have the ideas, the energy and the resources to follow them up and convert them into something tangible. By running our businesses holistically, we become aware on a daily basis of the big picture of our business – the place it occupies in the world and it’s interrelatedness to all things internal and external. This is the approach that allows us to unearth countless possibilities for change, growth and development. This is the approach that feeds our creativity, imagination and motivation. So, it is a model that fully supports flexibility in our small businesses and therefore the capacity for resilience.

Conclusion

Sustainability plus holism leads to resilience, for sustainable small businesses.

By using this insight to cultivate awareness and flexibility in our business ventures, we can quickly respond to changes and opportunities and recover from setbacks in a fruitful way.