The war in Ukraine has been going on for over a year. And amid all the tragedy and drama of these past months, Ukraine has surprised everyone with its resilience and tenacity—and not just on the military front. According to a study by the consulting firm McKinsey, businesses in Ukraine have held up surprisingly better than one might expect given the circumstances they face.

Of the companies analyzed by the consulting firm, 63% saw their operations severely impacted by the war, but only 2% were forced to suspend operations. In terms of revenue, more than half reported a decline of between 10% and 30% compared to levels prior to the start of the conflict, mainly due to lower demand, supply chain disruptions, and physical damage to their facilities. 

What has worked best for Ukrainian companies? According to the study, one of the main factors was the concern for ensuring the safety of their employees—as much as possible given the context of the war. Relocating employees and their families to safer locations was an urgent priority from the outset and enabled companies to maintain their operations despite physical damage to their facilities and power supply issues. Instilling a sense of meaning and purpose in employees has also been a factor that helped companies keep their operations running: two-thirds of the companies analyzed have been able to retain more than 90% of their employees one year after the war began.

Another factor that has helped Ukrainian companies stay afloat has been agile decision-making, with shorter planning cycles and greater interaction between different levels of the organization.

What are Ukrainian companies planning for the post-war period? Nearly half of the organizations surveyed plan to invest in diversifying their operations, while nearly a third plan to prepare for potential contingencies and ensure their resilience in extreme scenarios.

You can read a summary of the study here