Interview with Déborah Carlson-Burkart

swissVR Monitor: A company’s resilience can be expressed at different levels: financial, operational, people, environmental and reputational. What is the role and responsibility of Boards in ensuring organisational resilience at all levels of the company?

Déborah Carlson-Burkart: Early on in my career, and before I took up Board mandates, I worked exclusively in companies and then, as an external lawyer, supporting companies undergoing fundamental transformation in response to external investigations (for example by the FBI, the Securities and Exchange Commission, or the Office of the Attorney General of Switzerland). These companies were also facing financial strictures, high staff turnover or operational weakness – and the impact these had on the company.

The lesson I learned is that resilience is not a bolt-on but rather a central strategic principle of leadership. The Board of Directors needs to see resilience as a holistic concept covering finance, operations, people, the environment and reputation. It is not enough simply to focus on just some of these areas: our role as a Board is to work continually on resilience, rather as an athlete would train a muscle – and not to be afraid of using that muscle. In other words, our role is to promote a culture that sees change as an opportunity, openly confronts risk, and ensures the company can continue to operate even in a crisis. I find it helpful that I have had to face many tough challenges myself but that building my own resilience means I can face turbulence calmly and find a way through.

Let me give you a specific example. At N26, a European online bank, I saw how regulatory oversight had the potential to call the bank’s entire business model into question. Following very rapid growth, the German Federal Financial Supervisory Authority (BaFin) imposed limits on N26’s expansion of its customer base because its compliance processes could no longer be scaled up and were lagging behind the growth in numbers. For a dynamic fintech company like N26, that was a huge limitation: expansion plans were put on ice, millions were invested in IT and compliance, and the plug was pulled on new products. The mood was tense and management was under enormous pressure, so the bank needed resilience more than ever before. Improvements had to be implemented in the face of internal resistance and some negligence, so it was only strong determination and close cooperation with the authorities that saw the restrictions on growth subsequently being lifted. N26 was then free to expand and grow once more. The experience taught me that resilience is not something you create by designing processes but is a mindset, characterised by a willingness to learn, organisational adaptability and individual perseverance.

swissVR Monitor: Organisational resilience may be discussed both in committees and at Board level. Which committees do you think are particularly relevant when it comes to discussing organisational resilience?

Déborah Carlson-Burkart: My experience in companies undergoing fundamental change and restructuring has taught me that resilience needs to be discussed in the right forums with the right skills and powers. Audit Committees and Risk Committees need to be resilient so that they can address critical and often unpopular evaluations of financial and operational risk. Nomination and Compensation Committees need to be resilient, too, especially during periods of transformation so that they are able to resist short-term fixes in favour of sustainable long-term decisions about staffing and remuneration. And specialist committees are now increasingly important, especially in the face of artificial intelligence (AI).

Regardless of the specific committee, though, a Board needs people with vision and integrity who are willing to accept responsibility and act in the best interests of the company rather than being motivated by fear or hope.

At Visana, our Audit and Risk Committee does not merely monitor the company’s financial stability and risk management but also ensures that corporate processes remain robust and flexible. And the Nomination and Compensation Committee focuses on building a sustainable culture of resilience among staff, for example through initial and continuing training. We have also set up an AI Committee to tackle the challenges raised by artificial intelligence and scrutinise AI projects; this will ensure we do not merely comply with regulatory requirements but also guarantee Visana’s long-term future.

The close interrelationship between committees that this approach requires, and the network of responsible individuals it creates, mean that we can identify solutions that work in the company’s interests and plan and implement the initiatives we need to secure the organisation’s future.

swissVR Monitor: Our survey of Board members shows that only a small number of companies are implementing specific activities or projects on all five levels of resilience – finance, operations, people, environment and reputation. What risks do you see for companies that are taking action at just some of those levels?

Déborah Carlson-Burkart: Companies that approach resilience at separate levels often overlook the interplay between different levels – and that can have serious consequences. I’ve seen how attempts to tackle a crisis simply by cutting costs and reducing budgets have actually exacerbated the problem: they unsettled the staff, who felt uncertain and unvalued, and that just made the situation more volatile and created a difficult working environment. At the same time, the savings measures being implemented meant there was less money for day-to-day operations, prompting mistakes and increasing inefficiency. Not making structural improvements at the same time did nothing to remove operational weaknesses, which actually got worse in some cases, and the negative spiral meant that the financial problems were not tackled but worsened as one-sided measures had an impact. Moreover, the disquiet within the company leaked out to the public, damaging the confidence customers and partners had in the company. It wasn’t until the Board and management took a coordinated approach at a number of levels – to stabilise the finances, digitalise processes, boost supply chains and provide continuing training for staff – that the downward spiral was halted and we were able to get the company back on track. This example shows how important a holistic approach to resilience is if a company is to avoid risky blind spots and domino effects.

swissVR Monitor: Our findings also show that Board members think their company’s resilience is going to be challenged over the next 12 months as a result of global turbulence, especially in terms of financial stability, customer acquisition and HR strategy. Have you identified any other fundamental challenges to companies’ organisational resilience?

Déborah Carlson-Burkart: I think many companies are still massively underestimating the fundamental and rapidly growing influence of AI on their processes, business models and mindset. AI is forcing companies to adapt rapidly and continuously, and that also means they are having to develop new skills on an ongoing basis. And as if that weren’t challenging enough, companies are also facing geopolitical uncertainty and an ever-changing regulatory environment, sometimes with contradictions between jurisdictions. All these factors put businesses under huge pressure and demand strategic flexibility and rapid reactions – characteristics that now, more than ever, determine corporate success or corporate failure.

At least as important, but often overlooked, is a resilient corporate culture. A company can demonstrate resilience only if its workforce is open to change and willing to experiment with new situations and scenarios. As a Board member, I see one of my main roles as being to create the right framework so that the organisation and its people can remain strong and united when times are uncertain. And that is far from easy: it takes a lot of hard work and the ability to tolerate uncertainty and, sometimes, fear.

We all face these far-reaching challenges, and each individual has to find their own way of dealing with them. My personal approach is continuing self-development: at the moment, for example, I’m learning about AI at the MIT Sloan School of Management. I also make sure I break out of my comfort zone at least once a year: recently, for example, I’ve climbed the Matterhorn and sailed in a regatta. These experiences help me to remain open to the unknown, overcome my fears, and gain fresh perspectives. I really believe the future belongs to those who don’t simply tolerate change but get stuck into shaping it with curiosity, courage and a willingness to constantly reinvent themselves.

swissVR Monitor: So how should Board members be preparing their companies for these (new) challenges?

Déborah Carlson-Burkart: Board members need to understand resilience as an ongoing leadership process – and to get involved in managing it proactively. They need to ensure that resilience is embedded in the company’s corporate strategy and culture by proactively identifying weak spots, roleplaying scenarios and preparing the organisation for a range of outcomes. It’s important that mistakes are discussed openly and seen as a learning opportunity to ensure the company remains adaptable.

One specific example I’d like to give dates back to when markets were very volatile. The Board and management simulated crisis scenarios on a regular basis, working through the impact they would have on our financial position, our staff and our supply chains. This identified weak spots that we were previously unaware of, such as over-reliance on some suppliers. And what we learned enabled us to target counter-measures to diversify our supply chain and put the organisation on a more robust footing. In that situation, it was vital to have a range of perspectives and skills represented on the Board of Directors. That was the only way we could identify risks at an early stage and formulate creative solutions. Our cooperation with management went beyond simple oversight; our role was to be supportive and create impetus. We worked together to challenge processes, evaluate new technologies, and ensure staff were involved in change. Boards need to be undergoing regular training and development, to keep abreast of changes and trends, and to be role models for resilience and the willingness to learn. Personal perseverance and the willingness to step out of your comfort zone are essential.

In short, resilience demands constant attention and ongoing self-development. The Board has to ask the right questions, provide impetus and be consistent in working on the organisation’s resilience – and ideally, doing so by taking specific practical measures that will really change things from the bottom up.