Lessons in Resilience

In my opinion, resilience is one of the great mysteries of human nature. There are countless fascinating stories of people who have endured unimaginable hardships and survived disasters that have threatened their very existence. I have always been fascinated with the concept of resilience, but it was a trip to a plant nursery over the holidays that triggered my recent interest. Sensing my apprehension after I had selected a hibiscus plant, a more experienced customer offered some advice, “If you’re really unsure, then get a bougainvillea plant, it survives almost anything.” Only time will tell if my hibiscus will flourish.

Resilience research began four decades ago with pioneering studies by eminent American clinical psychologist, Norman Garmezy. After studying why many children raised by parents with schizophrenia did not suffer psychological illness, he concluded that the trait of resilience played a greater role in psychological health and well being than had been previously understood. This changed the focus of the research that followed from the role of genetics, to providing greater evidence to support the theory that resilience can be learned.

Why do some people and some organisations crumble under pressure, while others bend and bounce back? The oldest industrial corporation in the world, Scandinavian company Stora Kopparberg, provides one of the greatest examples of organisational resilience. Established in 1288, 73 years after the signing of the Magna Carta, the Helsinki headquartered institution has survived revolutions and world wars, and continues to adapt to market changes. Originally one of Europe’s largest copper producers, it diversified into iron and steel production as copper output declined. Today, Stora is Sweden’s largest supplier of electricity, dairy and agricultural produce. Additionally, as a result of a series of acquisitions in the 1980’s, Stora has become Europe’s largest forestry company and supplies newsprint paper and pulpwood globally. What is the difference between an organisation like Stora and one like RIM, whose incredibly successful Blackberry has suffered recently as a result of increased competition from companies like Apple and Samsung?

Resilience has always been a hot topic in the business world, as reflected in Diane Coutu’s exploration of resilience theories in her article “How Resilience Works” for the Harvard Business Review. This article was first published in 2002, but it is just as relevant in today’s dynamic business climate. Coutu presents the broadly overlapping areas of research that show that resilient people possess three main characteristics: a strong acceptance of reality, a deep belief that life is meaningful, and the ability to improvise. Let’s take a quick look at each of these characteristics and its implications on organisational resilience.

Acceptance of Reality

Facing reality can be extremely difficult, and this is supported by research, which suggests that it is easy for people to slip into denial as a coping mechanism. Lynn Twist, consultant and author of bestselling book, The Soul of Money, has worked closely with investors who were tricked out of $64.8 billion by Bernie Madoff’s infamous Ponzi scheme. She has seen them build greater resilience by accepting the reality of their situation and using this an opportunity to learn and grow, rather than focusing on their status and wealth.

When organisations face relatively small challenges, such as a demotivated sales team, it works well to foster optimism and a sense of possibility at the individual and team levels. In contrast, bigger organisational challenges fare better in the long-term with a more sober sense of reality and an equally cool approach to match. There have been a number of instances lately when we have seen the negative consequences of a lack of accepting reality, where the effects have been devastating for many. Some of the well known scandals of late include: Enron in 2001 that kept massive debts off the balance sheets; Freddie Mac in 2003 that grossly understated earnings; and Lehman Brothers in 2008 that created the impression that it had $50 billion more cash and $50 billion less in toxic assets than it really did. Not accepting reality is no way for an individual to live or a company to operate, and it rarely ends well.

Significance and Meaning

In addition to accepting reality, resilient people search for meaning in adverse circumstances and identify lessons to take forward. Finding and constructing meaning and purpose during overwhelming circumstances makes those circumstances more manageable. Personal and organisational value systems foster greater significance and meaning, as they offer valuable ways to interpret and construct events. The organisational strategy and/or mission may change over time, but successful organisations, just like successful people, stay true to their core values.

Jim Collins and Jerry Porras, in their book Built to Last praise Johnson & Johnson for staying true to their core company values in handling the Tylenol poisoning tragedy of October 1982, which took seven lives. As events unfolded, Johnson & Johnson moved forward by accepting the reality of the situation and putting the safety of the public first. In doing so, they preserved their company values of protecting people first and property second and immediately recalled 30 million bottles of the product taking a hit of around $100 million dollars. Johnson & Johnson has one of the most trusted brands in the world today.

Improvisation

The ability to improvise with what is at hand, without obvious means is the third characteristic of the resilient. Essentially, this is about making the most of what is available, and seeing possibilities where others may not. It is expected that a qualified person can do their job well given limitless resources, but to be great at one’s job without this type of support is far more impressive and indicative of resilience. In today’s world where the economy is in a constant state of flux, and most companies are seeking to enter new markets, this skill becomes key. Resilient organisations regard improvisation as a core skill and have a strong supply of people with a knack for inventiveness and ingenuity.

Fred Cook, author of Improvise: Unconventional Career Advice from an Unlikely CEO argues that the ability to improvise is a critical survival skill. In a recent interview with Forbes, Cook offered this insight, “Creativity calcifies because we don’t welcome new experiences and try new things. If we’re going to be creative in this world where ideas are the main currency, we’ve got to continue exposing ourselves to new things and new kinds of people…I think it’s even more important as you advance in your career to improvise a little.”

Conclusion

Lessons in resilience are all around us – all we have to do is pay attention and relate. We might see it demonstrated in the gift of nature showing us how life unfolds with growth and determination. It could be the people in our lives showing us how to withstand the challenges that life presents and to use those challenges for growth. We only need to open our eyes and be aware in order to learn about the skills that drive individual and organisational resilience.