Founder and Chief Culture Officer of Ideal Outcomes, Inc. Author of the new book Culture Ignited: 5 Disciplines for Adaptive Leadership.
If it sometimes feels like you’re climbing Mount Everest in flip-flops, take heart. There’s opportunity in adversity.
Many companies have achieved considerable success necessitated by—and even inspired by—a business crisis of one kind or another. With around half of Fortune 500 companies created during a crisis, it can be argued that encountering adversity when running a company is a driving force behind innovation and creativity.
When your back is against the wall, I’ve found that this can drive you to make an all-out push to get back into a trailblazing position of strength and leadership. You’re also more likely to motivate and rally your team to pull together and overcome the obstacles.
Companies Overcoming Adversity
Look at Elon Musk’s groundbreaking achievements with Tesla and SpaceX. Despite production delays, financial hurdles and tons of skepticism within both the automotive and aerospace industries, he has soared to success.
Look at Apple and its continuing reinvention. Founder Steve Jobs accomplished remarkable things, was ousted and triumphantly returned after the company struggled with a sales decline and internal feuds. Since his death and the tenure of Tim Cook, Apple became the first company to achieve a trillion-dollar market capitalization while operating in an increasingly competitive marketplace.
Look at Satya Nadella and Microsoft. Nadella took the reins when there were major challenges in the rapidly-evolving tech landscape. The cultural shift he led, with an emphasis on collaboration, innovation and making the cloud a priority, helped the company regain its competitive edge.
Look at American Express. The company was severely endangered by rising default rates and declining customer demand during the 2008 financial crisis, so it reduced expenses, sold non-core businesses, refocused on new partnerships and adopted digital technologies. As a result, its stock prices increased by more than 1,000% in the ensuing decade.
New competitors and dramatically changing technological advances have already caused an increase in competitive volatility. And while only “one in three companies successfully navigates disruptive shifts,” those that do often emerge stronger than before.
Research from BCG points out that, historically, companies have underestimated the urgency, scale and breadth of responses necessary to cope with and thrive in a downturn. I would urge you to use challenging times like this as “an opportunity to gain competitive advantage.”
Developing Leadership Skills In Times Of Adversity
In my experience over the past twenty-plus years working with companies across the country, and especially since the pandemic, I’ve witnessed firsthand the attributes of forward-thinking leaders who help enterprises develop healthy workplace cultures and thrive.
Learning From Mistakes
Adversity delivers learning opportunities. It’s a time to analyze mistakes and course correct for enhanced operational efficiency, strategic decision-making and overall performance.
Problem Solving
The chances are that a major business crisis was what forced most organizations to think outside the box and find creative solutions. From this, you can develop processes that will have an enduring benefit.
Team Bonding
I’ve found that individuals forge closer relationships when they’re shoulder-to-shoulder in the trenches fighting for a common cause. It fosters a sense of camaraderie, builds trust and strengthens relationships throughout the company.
Decision Making
Facing adversity tends to force leaders to make quick decisions under mounting pressure. It speeds up the ability to weigh alternatives, evaluate risks and make judgment calls. All of these are great qualities for when business stabilizes.
The Power Of Re-Invention
As CEO, John Chambers transformed Cisco Systems into one of the most successful internet-era companies, spearheading annual sales growth from $1.2 billion to $47 billion. He has spoken a lot about the need for reinvention.
When companies break away from the pack during good times, he says they often gain just two or three points of market share, and it’s costly. However, he says that “Breaking away during the tough times is when the next generation of great companies gets formed.” As examples, he cites Facebook, Google and Cisco.
Final Thoughts
I believe that encountering and overcoming adversity is a badge of honor. It sorts out the winners from the losers. It develops a new class of leaders who have learned from the experience. It propagates strength.
No one put it better than the famous German philosopher Nietzsche who famously wrote, “What does not kill me makes me stronger.”
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