Crisis Change. Will you survive or weather the storm?

Crisis reveals character. Except when it doesn’t. Crisis often reveals survival at all cost to make it out of an adverse situation, i.e. COVID-19. The survival at all costs mentality makes leaders and organizations go against the very thing they should stand for. Value statements which highlight taking care of employees, sticking together, and integrity are quickly abandoned when a crisis throws everything overboard. Far too often leaders navigate these uncharted waters like a drowning swimmer pushing their lifeguard underwater to stay afloat. Leaders fail to realize the temporary breath of relief is short lived because no one can swim long distances alone, not even Martin Strel.

It's a luxury to be pushed out of your comfort zone because it creates an opportunity for growth. Unfortunately, crisis does not push you out of your comfort zone. Crisis test the limits of your existence. The totality of disruption becomes real as the full weight of a crisis bears down. The reality is that there's no guarantee that one will make it out. If you make it out, one must wonder what remains. Much of what follows depends on if you survived or weathered the storm.

Leaders talk about what they would do when a crisis occurs. It is not until a crisis comes to fruition that leaders are given a chance to make good on their promise. Mike Tyson donned the famous words "Everybody has a plan until they get punched in the mouth.” It should come as no surprise that some leaders lose everything they stand for as threats become more immediate. The immediate threats stretch financial resources and jeopardize the vitality of an organization. Loss aversion leads to aggressive cuts, which include people, to minimize the pain of the punch. The stakeholders who survive are usually shareholders and executives who seek to maintain financial gains. This response to financial survival was addressed in an HBR article that noted “181 CEOs committed to lead their companies for the benefit of all stakeholders — customers, employees, suppliers, communities, and shareholders. It was a response to what was happening to capitalism and its effects on society”. The goal to benefit all stakeholders is honorable, but that focus fades for some leaders when the 2020 sequel of Black Monday is barreling down. It is commonplace to sacrifice employees stakeholders, even those that could potentially help-turn the tide. Sadly, there’s nothing off-limits when a leader is trying to survive. Just ask Francesco Schettino, the captain who abandoned the capsized Costa Concordia cruise ship following a rock crash. Schettino’s act of survival was followed by a 16 year prison sentence.

While stakeholders are often sacrificed internally, that's not always the case externally. Leaders will use any resource at their disposal to stay buoyant. One way for leaders to do this is to bank social good. Social good is great when it’s a permanent fixture in the actual community outreach strategy. Sadly, mendacious leaders use social good initiatives to remain relevant. The good will benefit recipients in need, but the intentions were strictly to enhance their chance of survival in the short term. Goodwill initiatives that were shunned in normal conditions instantly move forward for positive media coverage or to appeal to the heart strings of outsiders. The goodwill received from these initiatives are short lived as the true motivation for these actions are revealed. Still, leaders ride the wave only to crash when they pull back the temporary deeds after the crisis fades away. The after effect of these actions fracture trust and credibility, which will leave a leader and organization worse off in the end. 

Survival is often confused with weathering the storm. Leaders who weather the storm never abandon their people. Some will fight for their lives, others will fight for their livelihood. These leaders display altruism as they navigate the current and future dangers with their team in mind. Through it all leaders charge forward by rallying their teams together. Leaders understand that they can always regain profits and competitive advantage, but not without the people that helped get them there. The crisis will end. The crisis always ends. When it does, leaders who weathered the storm with their people have a share experience that cannot be replicated. Storms refine groups and leave them full of pride, resilience, courage, and grit; all traits that leaders and organizations look to install in their teams. As a result leaders create an organization that talented people want to join to push an improved mission forward through solidified values. The battle tested organization creates offerings that customers and investors willingly join forces with. Katherine Klein, vice dean of the Wharton Social Impact Initiative at the University of Pennsylvania’s Wharton School highlights this in her recent WSJ article, "At the very least, investors and prospective employees should view the crisis—and how companies respond—as an opportunity to ask questions about the social issues that matter to them… This is a real opportunity to say, ‘How you treat your employees matters a whole lot." Social impact is not a survival trend. The rise of social enterprises and ESG (environmental, social and corporate governance) investing will continue to grow. Stakeholders are more informed than ever through social media and technology to know where to invest their time, talent and treasures. Leaders and organizations that challenge the status quo, both locally and globally, will continue to separate themselves from their competitors who abandon their people.

Leaders and organizations are on noticed. Every action will be documented. The reputation of a leader will be shaped by their actions through a crisis. Stakeholders no longer have to settle for leaders and organizations that fail to uphold their end of the bargain through tough times. Survivors will continue to falter as crises expose their true priorities. Weathering the storm is painful, but in the end it is more rewarding as the tide shifts the way leaders and organizations approach the new normal. When a crisis hits, will you survive or weather the storm?