Adaptive Approach
Adaptive Approach
Robert Cote
University of Missouri – Saint Louis
This paper will assess and evaluate the context of the COVID-19 Pandemic’s impact on corporation, small
businesses, economy, and unemployment. Also, the impact on organizations including customers,
workforce, supply chain, economic outlook, and industries. Due to COVID-19, organizations are faced with
risks and a complexity of challenges, including globalizations, intense competition, sustainability, speed
and responsiveness to environmental changes, and the digital revolution. Adaptive leadership will be
evaluated, explored, and for addressing the complexity of challenges in organizations, including: 1. What
is adaptive leadership? 2. Explain the differences between technical and adaptive challenges, 3. What are
the six behaviors used by adaptive leaders? They require leaders to get on the balcony “big picture”,
identify the adaptive challenge/technical challenge, regulate distress, maintain disciplined attention, give
the work back to the employees, and protect voices from below. The conclusion with summarize the findings
of adaptive leadership, challenges, and application with post COVID-19 pandemic work environment.
INTRODUCTION
COVID-19 Pandemic has resulted in organizations to close their doors, file for bankruptcy, lay off
employees, and operate their business with the challenges that are impacting their business livelihood and
customers. Organizations will need to mobilize employees, stabilize operations/finances, and get people
back to work. To better understand the challenges presented by the pandemic, organizations will need to
conduct a review of data collected and gain insights from the pandemic. What are the next steps?
Organizations will need to assess the environment to discover potential risks, including: 1.) financial risk:
also, known as currency risk. The COVID-19 pandemic increased the exchanged rate volatility and
stabilized after government intervention (Feng, Yang, Gong, & Change, 2021), 2.) political risk: also,
known as country risk. The risk can impact businesses based on governments unable to meet the social
concerns of the people, including food shortage, job loss, unemployment, fear, and medical supplies can
create challenges (Burns, 2020), and 3) commercial risk: this risk can impact both domestic and
international organizations. For example, construction companies have been impacted by increase in
product/services, higher labor-cost, extended project increase performance costs, and higher interest
payments (Gilge, C, 2020). Some of these risks may be anticipated and managed with effective strategies
to reduce their effects. However, they cannot be avoidable (Dunn, 2015; Stamouli & Bouras, 2015). Leaders
will need to develop and implement a plan of action prioritizing the actions that will minimize
risks/challenges, add value to the organization, and develop resiliency for the future (PWC, 2021).
COVID 19 OVERVIEW
In 2019, a virus called severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) created a global
Pandemic that has impacted people, businesses, economy, and government. The dangerous virus is known
as COIVD-19. Currently, more than 235, 242,311 cases have been reported worldwide and 44,447, 518
cases in the United States. The number of deaths reported have been 4,808,608 and 719,037 in the United
States (CDC, 2021; World meter, 2021). The next section will provide a brief overview on major
corporations, small business, economy, and unemployment.
Corporations
As this Pandemic has spread across the global economy, 32 major companies have filed for bankruptcy
or closed their doors due to COVID-19, including J. Drew, Hertz Global Branding, Whiting Petroleum
Corporation, Chesapeake Energy Corporation, Stein Mart, Lord & Taylor, Virgin Atlantic, California Pizza
Kitchen, Tailored Brands (Men’s Wearhouse), Golds Gym Neiman Marcus, JC Penny, GNC (Clifford &
Wahba, 2021; Moon, 2021; Reeth, 2021). According to S&P Market Intelligence (2021), U.S. company
bankruptcies have reached the worst level in 10 years with 630 filings in 2020 and 900 in 2021. Out of the
630, 155 companies have filed with assets greater than $100 million in 2020 compared to 43 companies in
2021. Based on the findings, 48% of bankruptcies are mining, oil, and gas companies and retail trade
companies. The largest bankruptcy filing in 2020 was Hertz Corporation with $25 billion in assets. On a
positive note, 88% decline in total assets in bankruptcies in 2021 compared to 2020, including Seadrill
Limited (Mining, Oil, and Gas) with $7 billion in assets (Corner Stone Research, 2021).
Small Businesses
Small Businesses have been impacted by COVID-19. As of April 2021, 34% of small businesses are
still closed, i.e., San Francisco has 48% closure rate (Ghosh, 2021). Based on a survey by Yelp in 2020,
63,735 businesses have indicated that they have closed. In 2021, permanent closures have reached 97,966,
representing 60% of closed businesses that won’t be reopening (Sundaram, 2020).
Economy
Based on a USC study, USC Center for Risk and Economic Analysis of Terrorism Events (CREATE)
have found the COVID-19 pandemic could result in net losses starting at $3.2 trillion and reaching as much
as $4.8 trillion in U.S. real gross domestic product over the next two years. Based on the findings,
researchers also project workforce decline in response to COVID-19. Some of the highlights are 54 million
to 367 million workdays would be lost due to people getting sick with COVID-19, 2 million to nearly 15
million workdays would be lost due to employees staying home to care for sick loved ones, and Job losses
could range from 14.7% to 23.8% and, in a worst-case scenario, affect an estimated 36.5 million workers
(Gersema, 2020).
Unemployment
The National Bureau of Economic Research (NBER) explains the rise in unemployment was caused by
the economic downturn resulting in an unprecedented loss of 22.1 million jobs between January 2020 and
April 2020 compared to 9M in August 2021 (BLS, 2021; Congressional Research Service, 2020). Many
individuals left the labor force over this period, and by April 2020 the labor force participation rate declined
to 60.2%, a level not seen since the early 1970s. Job losses could range from 14.7% to 23.8% and, in a
IMPACT ON ORGANIZATIONS
Today, during the COVID-19 Pandemic recovery phase, Leaders have been faced with many challenges
during these times of uncertainty. Leaders have learned from the impact of COVID-19 the importance to
identify the challenges, mobilize the teams, motivate employees, reevaluate jobs to meet the needs of
followers, reassess strategies, and focus the attention of others getting back to work. This will require
organizations to reevaluate business strategies, change old models, reintroduce new models, and adapt to
the new norms of doing business in competitive marketplace. Reinventing the wheel may be the only
solution for regaining customers, increasing revenue growth, and survive in a post-pandemic era (Deloitte,
2021). Below are key areas that have impacted organizations, include:
Customers
The COVID-19 pandemic has driven companies to reconsider how to deliver products/services to
customers, how to evaluate the customer experiences, how to engage a virtual work environment, and how
digital technology can be used to support business continuity through the crisis and the future. With these
emerging new behaviors, organizations have an opportunity to expand existing offerings and creating new
lines of service which will capture new marketplace opportunities and digital customer segments. For some
retailers, implementing a delivery service that minimizes human contact, includes curb-side and pick-up
services for customers (Accenture, 2020).
Workforce
Many organizations are experiencing workforce disruption that are impacting work culture, roles and
responsibilities, and the future. How will organizations use technology, engagement programs, and data to
increase employee engagement, productivity, and collaboration? Essentially, all organizations are
evaluating short-term and long-term strategies that can be implemented to promote a productive and
engaging virtual workforce environment while supporting the employees struggles to cope with anxiety,
stress, and other aspects impacting their daily lives (Deloitte, 2021). Many organizations are now adapting
the work strategies to a virtual work environment as the new “norm.”
Supply Chains
Many organizations have had to rethink how will they rebuild their supply chains and meet the
consumer demand for products. Some of the challenges with COVID-10, have impacted consumer buying
behaviors, supply chains, and getting products to market. As organizations are responding to the pandemic,
leaders need to prioritize the implementation of agile ways to improve the value chain transformation during
times of uncertainty (Deloitte, 2021).
Industries
COVID-19 has impacted all industries with varying degrees of severity. Some industries have
implemented strategies to provide some protection during the crisis, while other industries continue to
struggle with the new “normal.” Based on status of doing business, global supply chains are disrupted and
unable to deliver products/services on time, consumer demand patterns are shifting due to lockdowns, and
the government, markets, and different regions are responding with different tactics to the COVID-19 crisis
(Deloitte, 2021). The next section will discuss the challenges related to the COVID-19 pandemic
Today, organizations have transformed from the simplified defined functions to organizations focused
on formalized processes, specialized products/services, increased vertical spans of control/hierarchy,
complex matrices, multiple departments, and centralized decision making as the norm of global companies
in the current landscape (Conger, Spreitzer, & Lawler, 1999; Peng, Lu, & Peters, 2014).
Due to these changes, organizations are faced with a complexity of challenges, including globalizations,
intense competition, sustainability, speed and responsiveness to environmental changes, and the digital
revolution (Daft, 2021). As a result of these changes, organizations to develop strategies that will adapt to
marketplace that impact the organizations success (IBM, 2021). According to an IBM report (2021), the
five key insights from leading executives for the post-pandemic business landscape, would be to increase
digital transformation opportunities, the future of a diverse work force, transparency across the
organization, and environmental and employee health sustainability. Together, they provide a playbook for
proactive leaders who understand the world is changing more rapidly than before COVID-19.
Organizations are also dealing with a unique set of workforce challenges that are focused on the
organizational work environment, customer’s safety, mental health, critical roles, and flexible work
schedule (PWC, 2021). In a recent SHRM survey of 1,099 employees, more than 40% of employees are
burned out, exhausted, and feel hopeless. Based on the findings, 37% who are unable or cannot
telecommunicate are concerned about their pay and benefits compared to 22% of employees who are able
to telecommunicate full-time. Another finding shows 55% of employees are experiencing less interest and
satisfaction in doing their job and less committed and loyal to the organization due to the stress of working
remotely (Smith, 2021).
For organizations, all these challenges will require leaders that influence and motivate customers in a
changing work environment that promotes a productive and aspiring culture (SHRM, 2021). As
organizations shy away from the pre-COVID-19 normal practices, they are implementing different
approaches in organizing and managing their people, operations, and effectively sustain a competitive
advantage in a COVID-19 environment. Some of the tech companies like Apple, Google, Facebook, and
Microsoft have developed work remote approaches to adapt to today’s COVID-19 environmental demands
(Ortutay, 2021).
Leadership research has demonstrated that there are as many definitions for leadership as the people
that have tried to define it (Stogdill, 1974; Rost, 1991). Over the century, the evolution of leadership
definitions has been influenced by many factors, including behaviors, personality, influence, followers,
situations (i.e., world events), and communication process. According to Northouse (2019), leadership has
been conceptualized based on the following components, including (1) leadership is a process: transaction
event between leader and follower, (2) leadership requires influence: leaders affect and communication
process between leaders and followers Ruben & Gigliotti, 2017), (3) leadership requires individuals and
groups: leaders influence a group of individuals, and (4) leadership requires common goals: leaders and
followers have a common purpose. Based on the components, Northouse states the definition of leadership
“is a process whereby an individual (leader) influences a group of individuals to achieve a common goal”
(2019).
For leaders in a post COVID-19 Pandemic, they will need develop different skill, behaviors, and
competencies than leaders in the past. According to Cote (2012), Kets de Vries is one the world’s foremost
thinker on leadership, explains a leaderships power of position, status, and level of seniority is less
important than your ability to implement change during times of uncertainty. You have to anticipate what
lies ahead, recognize discontinuities” and anticipate the meaning of those discontinuities in your
environment (Kets de Vries, 2005). As leaders are being evaluated by organizations during times of change
and uncertainty, leaders that encompass key traits, skills, and behaviors have the ability create a sense of
urgency that motivates, inspires, and empowers others (Kotter, 1988; Kotter, 1990; Kotter, 2012). The next
sections will discuss technical and adaptive challenges, differences between technical and adaptive
challenges, adaptive leadership, six behaviors of adaptive leadership, and impact on followers.
In this section, technical and adaptive challenges will be identified, the difference between the two
challenges will be explored, and examples applied for each challenge. During the post COVID-19 Pandemic
recovery phase, leaders may not be familiar with adaptive challenges and technical challenges. Why is this
important for leaders to differentiate between the two challenges? For a leader to implement a solution for
an adaptive challenge as a technical challenge, would be detrimental to the organization. This would be a
big mistake. Not to mention, the challenge would not be resolved.
Technical Challenges
Technical challenges in organizations are issues/problems that are clearly defined, the solution is
known, and can be solved by experts with known skills or training. For technical challenges, people rely
on the leader for a solution, and they accept the leader’s authority to solve the problem. Factors to consider:
• Easy to identify – clearly defined, i.e., virtual meeting versus face-to-face meeting with Zoom,
Microsoft Team, etc…
• Minimal effort to resolve by an expert or authority, i.e., IT Department implements technical
solution for new monitor.
• Organizational change minimal – impact one location, i.e., implementation of new computer
in the office.
• People are more apt to accept technical solutions, i.e., IT Help Desk resolves email issue.
Adaptive Challenges
Adaptive Challenges are different, because they are not clearly defined or easy to identify, they require
learning to understand what is going on, and the solutions require learning to develop new tools,
methodologies, and practices. The challenges cannot be solved by expertise or authority. Leaders encourage
If You Are Having a Difficult Time Distinguishing the Adaptive Challenges Versus Technical
Challenges? Ask Your People Five Questions (O’Malley & Cebula, 2015)
1. When you think about the future of your organization dealing with post-COVID-19 pandemic,
what concerns you the most?
2. What makes progress difficult on this concern? Process Do you have challenges (issues or
barriers) among team members or organization hinder the progress on this concern.
3. How adaptive leadership will help us to overcome those barriers?
4. that will make adaptive leadership difficult for you? Identifying adaptive challenges won’t be
easy and require time to find solutions.
5. What will it take to build adaptive leadership within your group?
For adaptive leadership, it is a complex process that involves several components, including identifying
technical and adaptive, implement key leadership behaviors, encourage productive adaptive work, and help
followers find solutions to their challenging issues/problems. In the next section, the technical and adaptive
challenges were identified. The next section will define adaptive leadership and explore the applications of
the six leadership behaviors in an adaptive work environment.
ADAPTIVE LEADERSHIP
Adaptive leadership was developed on the data that defines it as a process that can be complicated,
ambiguous, messy, chaotic, and considered complex with no easy solutions. For leaders to transform
change, specific behaviors will be necessary in this process for followers and organizations during times of
uncertainty and change (Cote, 2012; Heifetz & Laurie, 2001).
Adaptive leadership explained is not a formal process that may require personal traits, authority, and
power to be effective (Cote, 2012; Heifetz & Laurie, 2001). Heifetz, Kania, and Kramer (2004) explain
adaptive leadership is a process that includes the following steps: (1) identify the problem as a technical
problem that is well defined, answer is known, implementation process is specific, and solution can be
resolved by organization or technical expertise. If the problem is an adaptive challenge, they are complex,
the solution will require learning with new technologies, strategies, and methodologies, longer process, and
timeline is difficult to ascertain, (2) focus attention by including stakeholders in identifying the problem
and working together in a collective manner that will require changing their mindset in the way they have
Leadership Behaviors
The first leadership behavior is “Get on the Balcony” is a required before using the other five leadership
behaviors. Adaptive leaders will view the business from the balcony and get the “big picture” perspective.
This will enable them to view patterns, trends, and potential challenges in the situation. The benefit of
leaders viewing from the balcony allows them to see day-to-day operations, communicate valuable
information to the executive management team, and allow for the utilization of organization resources to
change in the present and shape the future (Cote, 2012; Heifetz & Laurie, 2001). This is an important step
for leaders to assess the COVID-19 current landscape, opportunities, threats, and challenges that are
impacting their business. Heifetz and Laurie (2001) states “one has to get accustomed to getting on the
balcony, delaying the impulse, and asking, what is this guy really talking about? Is there something we’re
missing?”
The second leadership behavior, “Identify the Adaptive Challenge” requires leaders to distinguish
between technical problems from adaptive challenges. Technical problems can be identified, solutions can
be solved by experts with adequate resources and training. For adaptive challenges, they are not easily
identified, challenges can be ambiguous, complex, and unpredictable, and finding solutions require
commitment from the key stakeholders. In times of stress, leaders may be pressured to make quick decisions
(i.e., knee-jerk reaction) resulting in setbacks to the organization when treating technical problems as
adaptive challenges and vice versa. For adaptive leaders, the solution to the problem lies within the
followers of the organization. The challenges may include employee stress, lack of motivation, lack of
engagement and job satisfaction, and factors impacting the overall organizational culture (Cote, 2012;
Heifetz et al., 2004; Heifetz & Laurie, 2001; Heifetz & Laurie, 1999).
The third leadership behavior, “Regulate Distress” the leader will need to be aware of stress level with
followers. Adaptive leaders will need to produce moderate stress to facilitate the need for change. During
the change process, this may create distress and uncertainty with followers. When followers are learning
new responsibilities and processes, they tend to be stressed when finding a solution for their issue or
concern. This can be counterproductive and devasting in progress. Therefore, leaders will need to get buy-
in, stress sense of urgency, and provide direction with followers to understand the need for change. To
ensure followers stress is in a productive range, the leader will monitor and regulate stress (Cote, 2012;
Heifetz & Laurie, 1999).
Based on adaptive leadership, it can be considered a balancing act for leaders when working with
overwhelmed followers while empowering change (Cote, 2012; Heifetz & Laurie, 2001; Heifetz & Laurie,
1999). The challenge for leaders is to help others recognize the need for change. This means the leader
CONCLUSION
The COVID-19 Pandemic started in 2019 and continues through 2021 due to a virus called severe acute
respiratory syndrome coronavirus 2 (SARS-CoV-2) with more than 235, 242,311 cases worldwide,
44,447,518 cases in the United States, and 4,808,608 deaths reported worldwide (CDC, 2021; World meter,
2021). More than 97,966 small businesses have closed, and several major corporations have filed for
bankruptcy, including Hertz Global Branding, Chesapeake Energy Corporation, Stein Mart, Lord & Taylor,
Virgin Atlantic, California Pizza Kitchen, Tailored Brands (Men’s Wearhouse), Golds Gym Neiman
Marcus, JC Penny, GNC (Clifford & Wahba, 2021; Reeth, 2021; Sundaram, 2020). Not to mention,
COVID-19 pandemic could result in net losses starting at $3.2 trillion and reaching as much as $4.8 trillion
in U.S. real gross domestic product over the next two years (Gerseman, 2020).
COVID-19 has influenced organizations to scan and evaluate the external environment to assess
opportunities and threats, including global competition, changing markets, mergers and acquisitions, and
other external factors. Some of these external factors have impacted organizations, how will affect how
customers purchase goods and services? How will the workforce mentally adapt to a virtual work
environment? How will organizations supply chain meet the demands of customers? Are CEO’s able to
assess the consequences of the marketplace on sales and profits? And are industries able to adapt to the
“new” normal business operations? (Deloitte, 2012). COVID-19 has organization workforce challenges
focused on the work environment, customer’s safety, mental health, critical roles, and flexible work
schedule (PWC, 2021). In a recent survey, more than 40% of employees are burned out, exhausted, and feel
hopeless. Another finding shows 55% of employees are experiencing little interest or pleasure in doing their
job (Smith, 2021).
COVID-19 pandemic has created several challenges in organizations ranging from technical challenges
and adaptive challenges. As organizations assess and evaluate the challenges, they are over-inundated with
finding solutions in this ever-changing global marketplace. For technical challenges, they are well defined,
simple, answers are known, and solutions can be resolved by the technical expertise and resources, i.e.,
organizations transferring to a virtual work environment require technical experts (Heifetz et al., 2004). For
adaptive challenges, they are complex, ambiguous, unpredictable, answers are unknown, and the solution
will require learning, longer process, and experimentation with new strategies, technologies, and
methodologies (Northouse, 2019). Timeline difficult to ascertain. The solution process require input from
the key stakeholders in the organization (Heifetz et al., 2004). For organizations to be successful, leaders
will need to help followers identify key challenges, frame the issues with appropriate questions, and
empower followers in the organization to find solutions (Northouse, 2019).
In the adaptive leadership approach, leaders work with followers to help them identify the adaptive
challenges (i.e., issues, problems, and concerns) and find solutions. The key six leadership behaviors that
are instrument in the process are get on the balcony (big picture), identify the adaptive challenge, regulating
distress (monitor level of stress), maintain disciplined attention (focus on work), give the work back to the
followers, and protect leadership voices from below (Northouse, 2019; Heifetz et al., 2004). Overall,
adaptive leadership is effective when the leader engages in the leadership behaviors to help followers and
organizations in providing solutions to adaptive challenges.
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