The Need for Organisational Resilience - Chapter 3

A key factor in distinguishing between dispersion and concentration is the degree of

attention on critical functions in an organisation. From a ‘defensive’ standpoint (see Figure

1.3), dispersing one’s resources and capabilities aims to prevent any risk from destabilising

the entire organisation.

From a defensive Schwerpunkt perspective (see Figure 3.1), only those functions are

bolstered that are considered critical; hence any successful disruption – by a competitor or

by environmental volatility - would end up threatening the viability of the entire organisation.

Dispersion

Focus of Attention

Concentration

Focus of Attention

Figure 3.1: Focus of Attention

Progressively, resources and capabilities could be targeted at the competitor’s weakest

point. Achieving results could relate to concentrating one’s efforts on creating a competitive

advantage derived from economies of scale and greater efficiency gains (e.g. by relying on

lower labour costs). Alternatively, a differential advantage can be driven by patent-protected

products, superior quality and a distinguishable strong brand identity.

Defensively or progressively, both operational ways of working – dispersion or

concentration – are associated with distinctive benefits (see Table 3.2).

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