Adaptive companies seem to survive (and flourish) no matter what is thrown their way. The economy falls into a bad recession. The competition grows. New technology is created to disrupt the market. Government regulation has been implemented in your industry.
Whatever the example of change might be, an adaptive company somehow navigates its way over the proverbial hurdles. In other words, these companies adapt to the changes around them.
So what are the common denominators that allow companies to survive - and possibly flourish - in the face of change?
In the book The Practice of Adaptive Leadership, authors Ronald Heifetz, Marty Linsky, and Alexander Grashow have identified five key characteristics*:
(1) Elephants in the room are named. These companies have a culture that encourages people to speak up when there is an issue. That might look like pointing out inconsistencies in action versus espoused values, or underlying tensions not being spoken for between departments. Regardless of the size of the issue, these companies encourage employees at all levels to speak up - and not fear repercussions for doing so.
(2) Responsibility for the organization's future is shared. Imagine a company where employees all felt they had a stake in its future, regardless of their title or responsibility. The finance department sees the slump in sales as their part of the mess as well, not shifting blame and pointing fingers solely at the sales department. Collaboration tends to occur across departments, not siloing work or protective behaviors of roles and responsibilities. In these companies, the judgment and fear of loss are minimized, and the attitude tends to be "How can I help?" or "What's the opportunity here?" towards company challenges
(3) Independent judgment is expected. Employees in these companies are given the space and autonomy to develop their own capacity for developing their own points of view. One's title and level of responsibility matters less than their insights and experience when contributing their point of view on a challenge. As implied in the previous characteristics, the hierarchical structure is less of a factor when it comes to idea generation for solving challenges, and more in the execution of the agreed-upon decision after vigorous discussions.
(4) Leadership capacity is developed. This goes hand in hand with talent development. The intention behind developing leadership capacity within the talent pool is to build a roster of qualified personnel to take on the positions of authority for the longevity of the company. In other words, a conscious effort to plan for succession of authority within the company. Leadership capacity is irrespective of one's role or authority; but the development of the activity of leadership is necessary for an effective future manager of operations, a VP of sales, or even a future CEO; companies that develop their talent's leadership capacity are keenly aware of this. These companies foster a culture of leadership regardless of the role in order to encourage the previous characteristics of independent judgment, shared responsibility for the company's future, and naming elephants in the room.
(5) Reflection and continuous learning are institutionalized. A culture of learning means accepting that any one person does not have all the answers. Specialists in their field are not expected to know everything. Even upper management and the C-suite do not expect to have the "right" answer right away. Instead, the expectation in these companies is to continually pursue mastery within their roles, industries, and beyond. This goes beyond continued education; it is also incorporated into the company's autonomy for employee experimentation on solving problems. When an experiment "fails", the results are shared as a learning opportunity, not as a punitive measure. These organizations value learning and experimentation more than getting the "right" answer right away, making it a safer place to make mistakes than other companies.
What is the Takeaway?
Adaptive companies survive because they have built a culture that allows their people to be adaptable.
By embracing the 5 characteristics, companies can equip themselves to navigate and flourish despite external challenges. The adaptability of a company is less about avoiding hurdles and more about embracing and overcoming them through collective effort and continuous improvement. This adaptability not only ensures survival but also paves the way for growth and success in an ever-evolving world.
*The Practice of Adaptive Leadership, pg(s) 101-108
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