In the past months I have observed astonishing reactions from various leaders and organizations to an unexpected economical situation. When faced with a scary and stressful situation, it is amazing how thoroughly people tend to revert to their comfort zone – where they had been successful in the first place. The problem is that this comfort zone might be obsolete! This has dramatic impact on the organizations and individuals.
I am quite active in the Oil & Gas industry which has suffered a shock since a bit more than 6 months with the sudden drop of the oil price. Some organizations’ leadership have literally freaked out, with the result that they have undone what they had been building for the last few years in just one movement, fleeing back to their traditional business model – the one that made them successful in the first place. Of course, some organizations had taken some measured risk to expand and grow in the last years, but it is really astonishing how people revert to their basic nature when they freak out!
Going back to their comfort zone means often, reverting to business models and operating modes that are thought to be safe while they are in fact obsolete. Where a crisis should rather force to ask tough questions about significant changes in the business model, possible new industry structure and new alliances, those organizations that freak out retreat into their comfort zone and close the door, waiting for the storm to pass.
This creates a most depressing effect on the morale of the top people in the organization, who were at the forefront of building a sustainable new model. When they are not sacked they generally leave quickly.
It is in tough times that the quality of the skipper shows. Retreating into one’s former comfort zone is certainly not the best reaction. Yet it is amazing how leaders sometimes react, with dire consequences on their organizations on the long run.
