Collins and his research team discovered that each of the 11 companies they studied had survived an existential crisis. Collins found the leadership team in each case responded with a powerful psychological duality. On the one hand, they stoically accepted the brutal facts of reality. On the other hand, they maintained an unwavering faith in the endgame and a commitment to prevail as a great company, despite the enormous challenge.
Collins labeled this psychological duality the Stockdale Paradox. It has perhaps never been more relevant than it is today
More commonly, we will see organizations who run out of runway or critical resources as a result of being too optimistic in their planning. Their misjudgment or unwillingness to acknowledge the deep downturn and extended timeframe of the crisis will impair their ability to adapt to rapidly changing conditions.
These are scary times with an overwhelming amount of brutal facts, including the fastest economic decline since the great depression. Trying to shield teams from this reality will only lead them to have false expectations and be blindsided later. These will be the teams with the “broken hearts,” who lack the resilience and resolve required to make it through.
Instead, it’s crucial for leaders to calmly tell their teams what they need to know, and help them understand their role in being part of the solution.
Believe you will prevail over this crisis, without letting optimism and long-term vision obfuscate the brutal facts. Accept this reality, commit to being resilient and develop a plan for you, your family and your organization to live to fight another day.
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