W04 - New Knowledge about Resilience

I recently finished reading He Fan’s "Variable 3." When discussing "Transformers"-style innovation, the book gave me a new perspective on the concept of resilience. The word "resilience" usually brings to mind persistent determination in the face of difficulty, but its deeper driving force should be the ability to adapt to change.

The book's example of BYD manufacturing masks struck me deeply. We all know that at the start of the pandemic the market perceived severe risk, triggering an excessive stress response and a chaotic rush in mask production.

What no one expected was that China’s mask production would soon produce a stabilizing anchor that not only secured domestic supply but also continuously exported masks abroad. That anchor was BYD — a company that had never made a single mask before and became the world’s largest producer within months. They repurposed tens of thousands of their CNC machines to develop mask-making equipment in-house. Any idea that was proposed could have its parts processed within two to three hours and be put on machines for testing right away.

The book's account is stirring. What stands out about BYD is their ability to convert one manufacturing capability into another, transform one organizational system into a different one, and transplant existing management experience into a new domain.