Upheaval - A framework for organisations in crisis
In his book 'Upheaval - how nations cope with crisis and change', Jared Diamond applies a personal crisis framework to nation states to analyse the likelihood of succeeding in resolving a crisis.
For clarity, a personal crisis is understood as disruption or breakdown in a person's normal pattern of functioning. Applied to countries this includes war; civil war; institutional breakdown; change in geopolitical status; adapting to resource constraints.
As I delved into the book, I couldn't help but think there is opportunity to reflect and apply these factors to all types of organisations crippled by crisis. This could be reacting to external crises (financial crash, pandemics), internal crises (breakdown in leadership/operating model), or even localised crises (competition, labour demands).
These are the 12 factors:
1. Acknowledgement one is in crisis
2. Accept responsibility
3. Delineating problems
4. Getting help from others
5. Using others as models
6. Importance of Identity
7. Honest self-appraisal
8. Past experience
9. Patience with failure
10. Organisational Flexibility
11. Values
12. Freedom from external factors
I've captured a few thoughts on what this means and how we can apply these lessons for organisations.
Factor 1. Acknowledgement that one is in a crisis.
Without recognising there is a problem it is difficult (impossible) to make progress towards solving it. Moving beyond the individual, this requires consensus across the organisations or at least consensus from those who have the power to make changes. Often the gap between these two can precipitate an even greater descent.
Factor 2. Accept responsibility; avoid victimisation, self-pity and blaming others.
Without honest reflection, there isn't an opportunity to change the factors that are within ones control.
Factor 3. Building a fence/selective change
This delineates between those policies/practices that require change and those that are better being preserved. As with individuals, it is easy to be overwhelmed by the scale of the change required.
Factor 4. Getting help from others
Identify external sources of material and financial help such as grant funding, accelerators and investment. Also, non material assistance in form of consultants/advisors. However, important to avoid this being seen as the silver bullet, ignoring the 11 other factors!
Factor 5. Using others as models on how to solve the problems.
As much as possible, look for case studies of those who have faced and overcome similar situations in similar circumstances. Unlike nation states, no matter how unique you think your organisation is there are likely to be many more comparable examples to look to.
Factor 6. Identity
While this doesn't directly translate from the 'ego strength' of an individual or the 'national identity' of a nation. Having a collective, confident identity and a culture built around purpose and values ensures greater resilience in times of crisis.
Factor 7. Honest self-appraisal
This requires two aspects:
1. Accurate knowledge of organisations through data and interpersonal relationships.
2. Ability to evaluate this information honesty. Bringing this together in deliberative panels of employees and stakeholders creates the right environment for this. Get in touch with myself through Sortition Foundation for more information on how to do this.
Factor 8. Historical experience of previous crises
This gives one confidence that you have survived and can do so again. Lessons learned from past experience are invaluable, however, as long as it is taken in context rather than just assumed.
Factor 9. Patience with failure
Crises tend to be complex and require a series of possible solutions to identify ones that works. Important to be tolerant of frustration and failure. The worst case is backsliding into behaviours which prompted the initial crisis.
Factor 10. Situation specific flexibility
The psychologists dichotomy of recognising an individuals character between flexibility vs rigidity. Applied to organisations, horizontal or 'agile' organisational structures have proven to be better equipped to respond flexibly to unknown circumstances.
Factor 11. Core values
These are Widely accepted values to bind together the individuals under a collective vision. This is not referring to untrained values that are decided and imposed on the back of a management retreat, instead ones that are underpinned by culture and practice.
Factor 12. Freedom from external constraints
Organisations experience varying degrees limitations on their freedom of choice based on geographical, financial and political constraints. It is important to delineate which of those are self-imposed and those that are avoidable.
I hope this is a useful framework to apply to your organisation to identify on how well equipped you are to cope with and overcome crises.
Definitely, a lot of scope of applying it in the UK!
What other cases can this be applied?
BUY THE BOOK - it's a great read!