Banks have had stress tests (imposed) to see how they would cope with difficult market conditions. For example, in the US, a typical stress scenario in the past has been: 50 per cent drop in equity prices; 21 per cent decline in housing prices; unemployment at 13 per cent. Regulators will ‘see’ how a particular bank would do under these circumstances. They will asses its responses, its reserves etc. Then, they will issue a pass or not.
Hardware and software products have stress tests to see how they will react under given circumstances. People undergo Cardiac Stress Tests to see what would happen with your heart during extra-ordinary effort. Doctors put people on treadmills and examine the Electrocardiogram during enforced, non-normal circumstances. It helps to uncover possible hidden anomalies.
Organizations should also have Stress Tests. I am not talking about financial conditions, but organizational. Some examples of real life ‘stress situations’ are:
- An acquisition that, although always a possibility, had not been expected so soon. It will divert lots of attention and resources and will create great disruption.
- New product launches that are too close in date but these can’t be changed. There will be a 6 month mad peak followed by prolonged calm.
- Recruitment is much slower than predicted and there will be significant and prolonged resource gaps beyond expectations.
- A sudden leave or illness of a member of the top leadership team in charge of a delicate business area will require a care taker, extending the already unstable situation.
Other sources of Stress Tests my be a technological crisis, product recalls or a complicated or hostile merger, for example.
Management teams should simulate these scenarios and map possible reactions. It is the equivalent of military manoeuvres. It’s not difficult and has zero cost. First step is to define which situations will put the company under sudden stress, list them, and agree on a few top ones. Agree on criteria to pass the test. Then simulate responses and imagine bad and less-bad scenarios. List reactions and, assess the cost (not just monetary). Have you passed?
One of the expectations about leaders is that they will have great ability to project and imagine the future. But, we are not very good at this in organizations. Despite a myriad of SWOT analysis and scenario planning techniques, people usually revert to a linear, predictable, extrapolated world in the crafting of a Business or Strategic Plan. If I could have 100 pounds (or dollars) for every Scenario Planning flipcharts covering the walls, after exhausting hours, only to be ignored at the next item in the agenda, e.g. the business plan itself, I could have a few exotic holidays.
Stress tests should be routine in any Planning process. It’s the company on a treadmill. It’s called a health check up. And they should be in your calendar.
________________________________________________________________________________________________
Enter the world of organization architecture and acquire a complete blueprint for mobilizing people whether you are working in change, transformation, or shaping culture, with our Mobilize! Masterclass.
Special 30% discount if you sign up in November [1]. Use promotion code: RMGCMWDF
Divided into 27, easy to digest video chapters, with reflective questions, short quizzes and additional resources to support your learning, this masterclass led by Dr. Leandro Herrero and based on his pioneering Viral Change [2] approach is invaluable for anyone working in change, transformation, culture or people engagement, whether a business leader, NGO or HR/OD professional.
Offer ends 30th November 2021.
Sign up today [1]
The Mobilize! Masterclass provides the following features:
- Each chapter is built around a video section in which Dr. Leandro Herrero shares the vital principles and practices of the Viral Change platform. A complete transcript of all chapters is available in the downloadable and course manual PDF.
- Reflective questions before and short quizzes after each video segment ensure that you will digest and internalize the learning points. A complete question and answer key for each chapter is also included in the course manual.
- As your personal read thread throughout the training you will be encouraged to link your insights to a change challenge you are currently facing in your work context. You will also be able to record all your personal thoughts and notes in the “Your Notes” section throughout the course.
- Additional resources (from Leandro Herrero´s Daily Thoughts and book excerpts) at the end of each chapter provide you with further examples of the Viral Change philosophy.
- You will have 6 months to complete the course from the point of purchase.
Masterclass Chapters:
1. Why Many “Change Programmes” Fail
2. A Tale of Two Worlds
3. Have Two Kitchen
4. Framing the Narrative
5. A Host of Motivations
6. Crystal Clear on Non-Negotiables
7. Segment, Segment, Segment
8. Communicate, But Not Too Much
9. Scope the Social Movement Well
10. Red Herrings and Distractions
11. Highly Connected People Wanted
12. Roles and Characters
13. Online and Offline Activism
14. Not All Activists are Equal
15. Grassroots Need Organizing
16. Leadership is a Plural Word
17. Track Progress
18. Master Storytelling
19. “Designed Informality”
20. All Good Things Happen Far Away
21. Busy-ness is a Trap
22. Build Capacity, Welcome the Unintended
23. Connect With Other Initiatives
24. Write the Script
25. Resist Deviations from the Model
26. The Longevity Rules
27. Conclusion
Viral Change ™