Is Your Organization Resilient Enough to Survive The Next Disruption?

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Is Your Organization Resilient Enough to Survive The Next Disruption?
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All organizations are at risk for unforeseeable challenges, threats, and crises. You can’t control everything, but here are seven ways to mitigate the damage and start the healing process.

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Q2 2021 hedge fund letters, conferences and more

Nashville, TN (July 2021)—Eventually, a major crisis will impact your company. It’s not a matter of “if” but of “when.” And while COVID-19 is the most obvious disruptor, it’s certainly not the last. We all face a new era of uncertainty, volatility, and disruption. Organizations are rocked by technological shake-ups, shifting consumer habits, and political and social unrest, not to mention internal upheavals like harassment, violence, scandal, and more.

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Diana Hendel, PharmD and Mark Goulston, MD, coauthors of Trauma to Triumph: A Roadmap for Leading Through Disruption and Thriving on the Other Side (HarperCollins Leadership, March 2021, ISBN: 978-1-4002-2837-9, $17.99) say the most resilient organizations are those that prepare to deal with traumatic events.

“Organizations that will stand the test of time are those that put a plan in place to deal with the kinds of disasters that could create traumatic stress in their people and destabilize their culture,” says Dr. Hendel.

The "Must Haves" Of Resilient Organizations

What does such a plan look like? While it varies from company to company, and is too comprehensive to describe here, Hendel and Goulston share a few of the “must haves” of resilient organizations.

Get A Firm Grasp On The Difference Between Trauma And Stress

While stress upsets our balance in the moment, we still maintain a feeling of control over our lives. Most of us deal with routine stress daily and are able to manage it (up to a point, anyway). Trauma, on the other hand, overwhelms our self-protective structure and sends us scrambling for survival. It leaves us vulnerable, helpless, groundless. It shatters our sense of safety and security and changes how we look at the world. And unaddressed, it can result in long term harm.

Launch A Rapid Response Process The Moment A Crisis Occurs

You might think of this as a “Code Blue.” It’s a standardized, preplanned approach for dealing with disruption. Getting one in place helps everyone know exactly what to do so that decisions can be made quickly, efficiently, and with a focus on safety. Here are the components to focus on:

  • Gather your Rapid Response Team. Appoint people to this team before a crisis happens and make sure they know their respective roles. It should include all senior leaders and leaders of key functions such as operations/logistics, security, finance, HR, communications/PR facilities, etc.
  • Allow the leader in charge to delegate. You need a central commander to manage response activities such as assigning personnel, deploying equipment, obtaining additional resources, etc. This leader must be fully present, visible, and available in the heat of crisis.
  • Have the team report to the command center. This is a pre-determined location (physical and/or virtual) for monitoring and reacting to events. You should also select a CODE WORD that puts the Rapid Response Process into action.
  • Gather relevant information. In a crisis it’s critical to centralize information, facts, and data. What’s known? What isn’t known? The goal is to organize and coordinate response activities, ensuring that the most pressing needs are met and that resources are properly allocated.
  • Promote a unifying message. It is vital to deliberately shape and disseminate a message of unity. Make sure your message is one of “we are all in it together.” This helps people transcend the impulse to split into factions.

"Name, Claim, And Frame Trauma" From The Onset

This helps everyone understand what is happening to individuals and to the group. It gives us the language to talk about it so that everyone is on the same page. It helps people say “Aha, this is why I am feeling so bad!” And it gives everyone permission to finally seek real help.

Know The "Red Flags" Of Traumatized Employees

When people are traumatized, they experience the “fight, flight, freeze” survival response. This is the body’s natural response to danger that enables us to defend ourselves or flee to safety or freeze as a means of survival (much like playing dead in the animal kingdom). Fight, flight, freeze can manifest in different ways. Some people might become hostile, belligerent, aggressive, or otherwise “difficult”—often seemingly without adequate cause. Others might cling to their “competence zone,” blindly doing what they’ve always done even though it no longer works. People dig in and resist change. Or they may insist they are “fine,” even when it is clear they are struggling.

“Meanwhile, leaders may behave in distinctively un-leaderly ways as well,” notes Dr. Goulston. “They might hide out in their office instead of jumping into action, or else make rash, knee-jerk decisions when they were previously known for levelheaded steadiness.”

Get Super Focused On Communication. (Think: "VITAL")

In times of crisis, employees need frequent, real-time, transparent communication more than ever. The acronym VITAL will help you remember the tenets around communicating in the aftermath of trauma:

  • Visible. Leaders must be highly visible and take the lead in communication. Don’t hide behind a spokesperson. Communicate quickly and clearly to reduce ambiguity.
  • In it Together.” Double down on messages connected to teambuilding, camaraderie, purpose. Acknowledge fears and worries as normal. Let people know what to expect.
  • Transparent. Align leadership in how they see the external environment and make sure everyone agrees on what “success” looks like so messages are cascaded consistently. Don’t create voids by waiting to communicate. Tackle rumors head on. Share bad news the minute you have it.
  • Accessible. Use all modalities (video, email, intranet, text, town halls, etc.) to convey messages from the senior leader. Have a central repository/FAQ where people can get info and ask questions between regular communication sessions.
  • Listening. Ask questions and leave room for inquiry. When listening, stop talking. Resist the temptation to just listen for what you want to hear (your job is to hear and deal with the hard stuff too).

Leverage The Power Of The 4th F

You already know about the Fight/Flight/Freeze response. You may not know about the lesser known “fourth F.” This stands for friend. It represents the bonding that occurs in response to trauma due to the presence of oxytocin (the “love” hormone that fuels friendships). This hormone causes people to bond in the aftermath of trauma. If leaders can leverage this camaraderie early on it can bring the entire organization together. However, if they fail to do this, the fourth F can work against your organization as individuals bond with likeminded coworkers and end up splitting into factions. People begin to question other peoples’ motives and start taking sides. This division can lead to deep polarization.

Use "Both/And" To Stop Post-Trauma Polarization

When a traumatic event occurs, opposing views can divide the organization. People believe the right course of action is either “A” or “B.” They see themselves as right and the other side as wrong. Leaders succumb to pressure and choose one option over the other (say, Choice A). When the downsides of that action appear, they reverse courses and go to the other extreme. Naturally, the downsides of Choice B then appear…and leaders swing back to Choice A. With every swing of the pendulum division deepens. This is incredibly damaging to your culture.

“A 'BOTH/AND' mindset helps us manage polarization,” says Dr. Hendel. “Instead of approaching issues with an either/or mentality, organizations can leverage both sides of these polarities with a both/and approach. The idea is to maximize the effects of both sides and minimize the downsides of each. For example, in a crisis, effective leaders can BOTH take charge AND build consensus. They can be direct and candid AND diplomatic and tactful.”

It actually is possible to recover and go on to thrive in the aftermath of trauma, assert the authors. But it’s a process—and the process starts long before the disruptive event occurs.

“Don’t be caught unprepared,” advises Dr. Goulston. “When trauma shows up at your front door, the sooner you take action, the sooner you can make things right—and the sooner your employees can be on the road to healing.”


Diana Hendel, PharmD

Dr. Diana Hendel is the coauthor of Trauma to Triumph: A Roadmap for Leading Through Disruption and Thriving on the Other Side (HarperCollins Leadership, Spring 2021) and Why Cope When You Can Heal?: How Healthcare Heroes of COVID-19 Can Recover from PTSD (Harper Horizon, December 2020). She is an executive coach and leadership consultant, former hospital CEO, and the author of Responsible: A Memoir, a riveting and deeply personal account of leading during and through the aftermath of a deadly workplace trauma.

As the CEO of Long Beach Memorial Medical Center and Miller Children’s and Women’s Hospital, Hendel led one of the largest acute care, trauma, and teaching hospital complexes on the West Coast. She has served in leadership roles in numerous community organizations and professional associations, including chair of the California Children’s Hospital Association, executive committee member of the Hospital Association of Southern California, vice chair of the Southern California Leadership Council, chair of the Greater Long Beach Chamber of Commerce, board member of the California Society of Health-System Pharmacists, and leader-in-residence of the Ukleja Center for Ethical Leadership at California State University Long Beach.

She earned a BS in biological sciences from UC Irvine and a Doctor of Pharmacy degree from UC San Francisco. She has spoken about healthcare and leadership at regional and national conferences, and at TEDx SoCal on the topic of “Childhood Obesity: Small Steps, Big Change.”

Mark Goulston, MD, FAPA

Dr. Mark Goulston is the coauthor of Trauma to Triumph: A Roadmap for Leading Through Disruption and Thriving on the Other Side (HarperCollins Leadership, Spring 2021) and Why Cope When You Can Heal?: How Healthcare Heroes of COVID-19 Can Recover from PTSD (Harper Horizon, December 2020). He is a board-certified psychiatrist, fellow of the American Psychiatric Association, former assistant clinical professor of psychiatry at UCLA-NPI, and a former FBI and police hostage negotiation trainer. He is the creator of Theory Y Executive Coaching that he provides to CEOs, presidents, founders, and entrepreneurs, and is a TEDx and international keynote speaker.

He hosts the My Wakeup Call podcast, where he speaks with influencers about their purpose in life and the wakeup calls that led them there, and is the co-creator and moderator of the multi-honored documentary Stay Alive: An Intimate Conversation about Suicide Prevention.

He appears frequently as a human psychology and behavior expert across all media, including CNN, ABC/NBC/CBS/BBC News, Today, Oprah, New York Times, Wall Street Journal, Forbes, Fortune, Harvard Business Review, Business Insider, Fast Company, Huffington Post, and Westwood One, and was featured in the PBS special Just Listen.

He is the author or principal author of seven prior books, including PTSD for Dummies, Get Out of Your Own Way: Overcoming Self-Defeating Behavior, Just Listen: Discover the Secret to Getting Through to Absolutely Anyone, Real Influence: Persuade Without Pushing and Gain Without Giving In, and Talking to Crazy: How to Deal with the Irrational and Impossible People in Your Life.

About the Book:

Trauma to Triumph: A Roadmap for Leading Through Disruption and Thriving on the Other Side (HarperCollins Leadership, March 2021, ISBN: 978-1-4002-2837-9, $17.99) is available from major online booksellers.

 

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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