A System Dynamics Model of Organizational Resilience

Abstract

Resilience is the ability to avoid, withstand, and recover from adversity. In this paper, we examine organizational resilience using a case study of an organization that suffers from a series of scandals that lead to problems with its reputation as an inclusive organization, which results in difficulties in recruiting and retaining employees. We suggest some policies involving leadership efforts to change the culture in the organization and thereby restore its reputation. Based on the results of a System Dynamics Model that mixes quantitative and qualitative measures, we find that changing organizational culture is difficult. There can be inertia and long delays before the leadership sees results in improved recruiting and retention statistics.