Essential 1 Skill 8 Embrace Challenge & Change
Challenge
“The ultimate measure of a man is not where he stands in
moments of comfort, but where he stands at times of challenge.”
Martin Luther King, Jr. ( 1929 – 1968 )
American Civil Rights Leader
Change
“It is not the strongest of the species that survives,
nor the most intelligent, but the one most responsive to change.”
Charles Darwin ( 1809 – 1882 )
English Naturalist, Theorist
How We Look at Things
Any challenges most of us have will pale in comparison to billions of people who
suffer around the world. So in spite of personal and professional setbacks, there
were a few life lessons that taught me really well …
Although I had a somewhat dysfunctional childhood (divorced parents, eight
schools, ten homes), I never starved and was blessed to travel as a youth soccer
player. Hopes of an athletic career were crushed due to injuries, but that led me
to entrepreneurial thinking. When I started in real estate, the market crashed
and I lost everything, but that inspired me to launch my first company. In my late
20s, I ventured into technology and raised millions of dollars, but our company
failed. We suffered a family tragedy that same year, but self-reflection enabled
me to discover greater purpose as a writer and more social entrepreneur.
Perspective is everything …
3 Immutable Laws in Life and Business
1 There will be a crisis.
2 There will be challenges.
3 There will be change.
From financial setbacks to family tragedy, adversity will be a test of courage
and character. It will be a time to build new skills and relationships. It may even
be a time to renew purpose. As the cliché goes …
Never miss the opportunity in a crisis.
Analyzing Crisis – Thriving on Change
The opportunity in a crisis begins with self-awareness. What are my
strengths and weaknesses? What’s the mindset of those around me? What
changes are essential? To address these questions, behavioral experts often look
at 5 stages of grief, credited to Swiss psychiatrist, Elisabeth Kubler-Ross (1926-
2004). The Kubler-Ross theory was first introduced in her book, On Death and
Dying (1969).
The 5 stages of grief are: denial, anger, bargaining, depression, and acceptance.
As a method for dealing with trauma or loss, the grief model provides insight
to how we deal with crisis or change, each according to personal experience, as
well as social or emotional wisdom.
My own experience with crisis is that time between stages of grief is not the
same for everyone. In fact, I’ve noticed that stages are often skipped. Some
people jump from denial to depression. Some people suppress anger. Others
regress from acceptance and return to denial. Recognizing these patterns is
essential, if for no other reason than to appreciate what others may be going
through and how we might deal with our own challenges. For leaders, managers,
and authority figures, it’s especially important to recognize behavior among
coworkers, customers, and communities (local, national, and international).
Let’s now apply the Kubler-Ross model to a global challenge …
The 2008 Financial Meltdown
In the fall of 2008, an economic crisis struck nearly every corner of the globe.
Spearheaded by the near collapse of America’s banking, auto, and real estate
industries, millions of people spiraled into denial, anger, and depression.
Before the crisis, countries enjoyed great prosperity, oblivious to economic
time-bombs ready to explode. When the stock market finally crashed, the world
woke up to tragic flaws in financial systems and government practices. Many
had fallen prey to investor schemes, mortgage fraud, and pitfalls of their own
greed. Unemployment would rise to levels not seen since the Great Depression.
Retirement savings were wiped out, illusions of home values stripped away, and
years of work destroyed. How would most people deal with the meltdown?
Depending on a person’s experience, they would typically respond with one or all
of the Kubler-Ross grief stages …
Stage 1 – Denial
Everything is f ine. This isn’t happening to me.
Before the 2008 economic crisis, financial assumptions were often based on
a false premise that parades last forever. These assumptions were rooted in
personal greed, non-sustainable debt, and fraudulent accounting to name a few.
This was a toxic blend for disaster. In fact, Denial of sound financial principles
and a lack of personal accountability were just a few elements that kept the
illusion alive for so long.
It was months after the crisis hit that Alan Greenspan, former Chairman
of the United States Federal Reserve, acknowledged a flaw in his own financial
theories. He and most economic experts foolishly believed that bankers, business
leaders, and governments would always be honest; regulating themselves
in the interest of free and fair markets. But world citizens quickly joined Wall
Street in a state of collective shock. Why it took so long to recognize so much
reckless behavior remains a mystery. (It’s fair to say many citizens, politicians,
and business leaders were still in denial years after the crisis.) Denial can’t last
forever though. If you lose a job or can’t pay bills, reality kicks in. Rich or poor,
a state of panic often triggers Kubler-Ross Stage 2: Anger …
Stage 2 – Anger
Why me? Who’s to blame? This isn’t fair.
The old expression, “America sneezes and the world catches a cold,” was never
more apropos than in 2008, but this time banks and insurance companies had a
heart attack. As the world blamed America, everyone blamed fat corporations and
incompetent governments. Anger was the dominant response.
The truth is business and political leaders worldwide had turned a blind eye
to corrupt behavior for decades. But no one was willing to take responsibility for
their own state of denial long before things went bad. Serious changes in spending
and borrowing would now be imperative. Yikes! Most people don’t like change.
Time for Kubler-Ross Stage 3: “How can we Bargain our way out of this mess …?”
Stage 3 – Bargaining
I promise to be good. Just let me live to play another day.
While no one had perfect solutions to a once-in-a-generation financial storm, the
bargaining game of the century began. Everyone looked for handouts. Individuals,
companies, and countries alike started negotiating for their own survival. Everyone
was certain their solution was best.
At the height of the panic, Lawrence Summers (former Harvard President
and Director of National Economic Council for President Barack Obama) said,
“There are only two types of economists in today’s world; those who don’t know,
and those who know they don’t know.” Suddenly, investors realized that even the
most trusted financial minds don’t know what they’re doing. Are we laughing or
crying yet? Time for Kubler-Ross Stage 4: Depression …
Stage 4 – Depression
I’m beyond sad. I see no solutions. No one understands my problem.
For those who lose a job or home, lifestyle interruptions are traumatic. When
it occurred on a global scale in 2008, the financial collapse spawned a collective
melancholy. For millions of people, manifestations on mind and body were so
debilitating, they fell straight into depression. But there’s always hope. The goal
in any crisis is to move past denial, anger, bargaining, and depression and arrive
at Kubler-Ross Stage 5: Acceptance.
Stage 5 – Acceptance
I understand. I’m ready to recover and take action.
The sooner we arrive at acceptance, the sooner we can focus on solutions.
This is the moment where we’ve exhausted the previous 4 grief stages and
come to a healthy conclusion; that we can gain strength from a negative
experience and persevere. This is not only in our self-interest, but for the
greater good of those around us.
5 Steps to Arrive at Acceptance
1 Show humility and ask for help.
2 Understand the benefits of change.
3 Be optimistic and trust that there’s a way.
4 Be open-minded and willing to change habits.
5 Gain perspective. Others overcame similar situations.
Handling a crisis requires a strong awareness (and practice) of The 4 Essentials,
especially highly-connected principles like humility, teamwork, and self-awareness.
It’s also important to exhibit empathy and confidence when those around
us are confused or frightened. Without a courageous mindset, denial breeds
anger, anger sets off bargaining, depression take over, and acceptance is harder
to come by. The most effective entrepreneurial thinkers however (especially
friends, family, and leaders), tackle grief by serving as an inspirational force to
others. Our peak performance peers also accept chaos as part of life and business,
without allowing setbacks to dominate the landscape too long.
So embrace your challenge …
“… Life is about growth and change.
When you are no longer doing that, listen to your whisper.”
Oprah Winfrey (1954- )
American Talk-Show Host, Entrepreneur, Philanthropist
“You must be the change you wish to see in the world.”
Mohandas Gandhi ( 1869 – 1948 )
Indian Activist, Peacemaker, Spiritual Leader
Without personal experience in crisis management, I could never
have written this book. But each of us must find their own way to handle
challenges or significant change. The best advice is to start with an entrepreneurial
mindset: Who’s been down this road? What worked? What didn’t? What
lessons were learned? From these baseline questions, you’ll be on the shortest
path to a new beginning.
This blog is from a chapter section in…
The 4 Essentials of Entrepreneurial Thinking
Essential 1 – Skill 8 – Embrace Challenge & Change
