Photo credit: www.entrepreneur.com
In an era marked by increasing disruptions, such as global health crises and economic fluctuations, the frequency of significant organizational crises is noteworthy. Findings from PwC’s Global Crisis and Resilience Surveys indicate that 96% of organizations reported experiencing a significant crisis recently, a substantial rise from 69% in 2019.
An illustrative example is the February 2021 Great Texas Freeze, which brought an unprecedented winter storm resulting in widespread power outages and devastating damage to infrastructure. The renowned supermarket chain H-E-B faced significant operational challenges as these conditions led to bare shelves and delays in restocking essential supplies. The storm forced temporary store closures, leaving communities reliant on their services even more vulnerable.
While the media highlighted the operational disruptions, there was less focus on the collective emotional trauma experienced by both employees and customers. H-E-B workers operated under demanding circumstances to manage closures while adhering to safety guidelines. The abrupt lack of essential goods heightened anxiety and stress among employees and community members as they struggled to find food and water. This incident underscored the susceptibility of even the most resilient organizations to sudden disruptions.
Dr. Nelu Nedelea, an organizational researcher and System Vice President of Mission and Ministry at Mercy, stresses the importance of implementing resilience strategies in the wake of such disruptions. He believes that the core issue lies in collective trauma, which can severely affect an organization’s members both individually and collectively. This phenomenon leads to emotional and psychological repercussions, including increased anxiety, stress, and decreased productivity, with lasting impacts that extend beyond the immediate crisis.
Related: 10 Strategies to Help Businesses Thrive in Times of Crisis
Why do organizational crises lead to trauma? Nedelea points out that during and after crises, employees often withdraw from one another instead of seeking support, a behavior that erodes communication and trust. This disconnection can leave lasting negative effects even after operational difficulties are resolved, manifesting as strained relationships, low morale, and a weakened organizational culture. Leaders may find decision-making challenging, and employees may experience feelings of disconnection and lack of appreciation, while communities dependent on these organizations can feel heightened anxiety and instability.
Related: Why Being Resilient Is the First Step to Growth
To help organizations rebuild trust and connections post-crisis, Nedelea outlines four key strategies for leaders:
Acknowledge the Trauma
Recognizing the impact of a crisis is essential for recovery. Leaders must confront the reality of the effects on both the organization and its employees. Nedelea poses the critical question, “How can you resolve the symptoms if you don’t even acknowledge what has happened?”
Prioritize Emotional Healing
Emotional healing plays a pivotal role in overcoming trauma within an organization. Creating a supportive environment where employees can express their feelings and access necessary resources, such as virtual counseling and stress management workshops, is vital. For instance, in response to the devastating 2019 California wildfires, the University of California, Davis established a comprehensive support program aimed at helping staff and students process their experiences and regain a sense of normalcy.
Foster Open Communication and Transparency
Transparent and empathetic communication is crucial for rebuilding trust within an organization. Leaders must be candid about the difficulties faced and the measures taken toward recovery, utilizing town hall meetings, regular updates, and open feedback channels. During the 2020 racial justice protests, Ben & Jerry’s exemplified this approach by openly conveying their values and actions, fostering dialogue and supporting racial equality initiatives, which strengthened trust within their organization and community.
Embrace Adaptive Leadership
Post-crisis recovery necessitates that leaders remain flexible and adaptive, steering through the challenges of uncertainty. This form of leadership encourages employee participation in problem-solving and fosters a climate of innovation. Nedelea emphasizes the importance of reframing challenges to inspire growth. He cites Ford Motor Company, which thrived under Alan Mulally’s adaptive leadership in the wake of the 2008 financial crisis by prioritizing innovation and employee engagement through their “One Ford” plan.
Related: How Adaptive Leaders Find Success During Market Volatility
These strategies extend beyond merely restoring operations; they focus on healing the relational dynamics within an organization—what Nedelea refers to as the organization’s “nervous system.” By fostering reconnection and communication, organizations can not only endure challenges but emerge with enhanced resilience, better equipped for future adversities.
Source
www.entrepreneur.com