Permacrisis: What does permacrisis mean?

The world as we know it is in a state of continuous change, characterised by a succession of crises that vary in nature and scale but share a common constant: inevitability.

The term ‘permacrisis’ captures this new reality and requires companies and organisations to rethink the way they plan, operate and adapt. This article provides a more detailed insight into the topic of permacrisis and explores how organisations can thrive in this volatile landscape.

What is a permacrisis?

The term permacrisis is a combination of ‘permanent’ and ‘crisis’ and describes a state in which companies and organisations are faced with an endless succession of crises that can be both predictable and unpredictable.

Permacrisis refers to a state of permanent uncertainty and instability in which traditional crisis management approaches often reach their limits. It is not a single, isolated crisis, but a series of crises that can vary in nature, scope and intensity. These crises can be of an economic, ecological, social, technological or political nature and can reinforce each other, which increases the complexity and difficulty of overcoming them.

Another type of crisis is the polycrisis. You can find out more about this on the linked page.

The dimensions of the permacrisis

A permacrisis is not a major, unchangeable problem, but manifests itself in various dimensions that can influence and reinforce each other. These dimensions can be the following:

1. Ecological crises: Climate change and its consequences, such as extreme weather events and biodiversity loss, pose a permanent threat that affects all aspects of human existence and economic activity.
2. Economic volatility: From global financial crises to local recessions, economic uncertainty is a constant companion of modern societies and businesses.
3. Technological change: The rapid development of new technologies can lead to disruptions that upend entire industries and bring new risks and uncertainties.
4. Social and political unrest: Social changes, political instability and conflicts can have an abrupt and far-reaching impact on companies and markets.
5. Health emergencies: Pandemics and other health crises, as the COVID-19 pandemic has shown, can bring the global economy to a standstill within a very short space of time.

Strategies for surviving and thriving in the permacrisis

In the face of these complex challenges, companies need to go beyond traditional approaches to crisis management and develop a range of adaptive strategies:

1. Antifragility: Companies should not only strive to be resilient to shocks, but also find ways to emerge stronger from crises. This can be done by learning from mistakes, diversifying revenue streams and constantly adapting to changing circumstances.
2. Dynamic risk assessment: The ability to continuously assess risks and respond quickly is crucial. Dynamic risk assessment models that utilise real-time data and artificial intelligence can help companies identify threats early and act accordingly.
3. Decentralisation and flexibility: Rigid, centralised structures are prone to crises. Decentralised decision-making and flexible working models can improve adaptability and speed of response.
4. Sustainable practices: Long-term thinking and the integration of sustainability principles into business models and practices can help companies minimise environmental and social risks while strengthening their legitimacy and competitiveness.
5. Investing in human capital: Fostering a culture of resilience, lifelong learning and psychological safety among employees is critical to overcoming the challenges of the permacrisis.
6. Global and local cooperation: In an interconnected world, crises can quickly take on global proportions. Cooperation across borders, both at a global and local level, is crucial for developing joint solutions and minimising risks.

Permacrisis as a fundamental challenge

The permacrisis represents a fundamental challenge for companies and organisations that requires a profound review and adaptation of existing strategies and practices. However, by adopting a proactive, adaptive and inclusive approach, organisations can not only survive, but also find opportunities for growth and innovation in a world of constant change. The permacrisis may be the new normal, but it also presents an opportunity to explore new ways of thinking, working and leading.