The Business Resilience Framework: The Keystone Activity

As a former senior executive within the global cruise industry, a CEO, Board Member, and Investor in various other business categories, I have learned hard lessons that I have developed into a framework I use with my C-Suite clients across varied industries and sectors. I developed the Business Resilience Framework based on 6 key processes I believe every business leader should use. I shared these in my book Hard Ships and have aligned the framework beyond the cruise industry to be applicable across industries. In this series of articles, I will show you how to apply the framework in your business.

Process 2: THE KEYSTONE ACTIVITY: Safeguard and enhance the ONE essential function that sustains the business.

In the intricate tapestry of business operations, there lies a single thread that is absolutely vital to the integrity and success of the entire enterprise. This thread, which I call the "Keystone Activity," represents the one essential function sustaining the business. Identifying, safeguarding, and enhancing this Keystone Activity is a critical element of my Business Resilience Framework, as elaborated in my book “Hard Ships.” This principle is designed to help leaders withstand disruption, drive recovery, and achieve long-term growth.

Understanding the Keystone Activity

The Keystone Activity is the core function that your business cannot do without. It is the activity that, if compromised, would jeopardize your company's very existence. Regardless of the industry, the Keystone Activity is the foundation upon which all other operations rely.

Real-World Example: Cruising's Keystone Activity - Ensuring a Safe Restart Post-COVID-19 

Let’s consider the example of an entire industry navigating the complexities of the pandemic. Although developing and maintaining liquidity in the multi-billions of dollars was essential to survive the extended operating “pause” during the worst of the pandemic, there was an even more essential and fundamental priority: The Keystone Activity. 

I advise my clients that during any disruption, a company's initial priority should be addressing the most critical issue that, if mishandled, could lead to further setbacks. For the cruise industry, that issue was the ability to return to safe operations in a new global environment. Ensuring a safe restart to prevent further COVID-19 outbreaks on ships was critical. Another industry shutdown due to outbreaks would have been devastating, potentially leading to an unrecoverable situation. Focusing on a rush to profitability during the initial restart phase would have been shortsighted and detrimental in the long run. Instead, a "failure prevention" approach, prioritizing a cautious, phased return to operations to rebuild trust and ensure long-term sustainability. This involved meticulous planning, collaboration with health organizations, stringent safety protocols, and a patient, gradual increase in operations. The strategy relied most on creating a "vaccine bubble" requiring all passengers and crew to be vaccinated, providing guests a sense of security and confidence. Indeed, the vaccine saved the cruise industry and much of the travel industry.

Clarifying your Keystone Activity - 

1. Analyze Core Operations: Begin by mapping out all your business's critical functions. Consider areas such as production, sales, customer service, and logistics. Identify which of these functions are most integral to your business model and revenue streams.

2. Assess Impact and Dependency: Evaluate the impact of each function on the overall business. Which activities, if disrupted, would cause the most significant damage? Determine the level of dependency other operations have on each function. The more dependent other activities are, the more critical the function.

3. Consult Stakeholders: Engage with key stakeholders, including employees, customers, and partners, to gain insights into what they perceive as your business's most vital aspects. Use their feedback to validate your analysis and ensure a comprehensive understanding.

Safeguarding the Keystone Activity

Once identified, the Keystone Activity must be protected from disruption. This involves creating robust systems and processes, including risk management, operational redundancy, and continuous monitoring, that ensure continuous operation even in adverse conditions.

Enhancing the Keystone Activity

Enhancement drives durability, resilience, and growth. By continuously improving this core function, businesses can stay ahead of market trends and customer expectations.

Resilience is a multi-layered process. The Keystone Activity is a linchpin of your business’s success. By identifying, safeguarding, and enhancing this essential function, you can ensure the stability of your operations and create a strong foundation for growth. As a leader, your ability to focus on and invest in your Keystone Activity will determine your resilience in the face of disruption and your capacity to seize new opportunities.

In the complex and ever-changing business landscape, the principles outlined in my Business Resilience Framework, including the Keystone Activity, provide a roadmap for navigating uncertainty and achieving sustained success. If you are ready to uncover your Keystone Activity and build a resilient and thriving business, let’s connect and explore how my experience, proven expertise, and valuable strategic insights can guide your journey. Schedule a consultation today, and let's define your path to resilience and success together. Book An Appointment