Devastating events, from global pandemics to economic downturns, are on the rise. According to PwC's Global Crisis and Resilience Surveys, 96% of organizations have reported experiencing significant crises recently – not including the pandemic. Moreover, this statistic increased from 69% in 2019.

Take the case of the Texas Big Freeze in February 2021, a unprecedented winter storm which caused widespread power outages and significant infrastructure damage. Prominent supermarket chain HEB faced severe disruptions as the storm's impact led to empty shelves and delayed restocking of essential goods. Extreme weather conditions forced HEB is temporarily closed some of its stores, adding to the difficulties faced by communities that rely on their services for food and supplies.

These impacts received extensive national coverage, but what received less attention was her collective trauma employees and customers experienced as a result of the storm. HEB employees worked under difficult conditions to manage store closures and ensure safety protocols were followed. The sudden lack of basic necessities escalated the anxiety and stress of workers and community members as people scrambled to secure food and water amid the chaos. The storm revealed that even the most robust organizations are vulnerable to disruptions and disasters.

Dr. Nelu Nedelea, organizational researcher and Vice President of the Mission and Ministry in Mercy System, emphasizes since organizations experience these and other types of disruption, leaders must decide specifically resilience strategies to recover.

The heart of the problem, according to Nedelea, is collective trauma. Collective trauma, often used for describe the impacts supported by cultures and peoples, also refers to the phenomenon where members of the organization individual and collective experience emotional and psychological impacts such as stress, anxiety, reduced productivity, increased absenteeism, and a pervasive sense of insecurity and instability during and after a traumatic or disruptive incident affecting their organization.

Related: 10 strategies to help businesses thrive in times of crisis

Why does trauma affect organizations? Nedelea explained that during and after a crisis, instead of coming together, employees tend to withdraw from each other and seek emotional and psychological security elsewhere. This disconnect erodes communication and trust, creating persistent and cumulative relational impacts that last long after operational impacts have been resolved.

This is why strained interpersonal relationships, diminished morale, and a broken organizational culture are often evident after organizational disruption and trauma. Leaders may struggle with decision-making and maintaining employee engagement, while employees may feel disengaged and undervalued. Communities that rely on these organizations for essential services may experience increased anxiety and uncertainty.

Related: Why being resilient is the first step to growth

How can leaders intentionally rebuild trust and foster connection after organizational trauma? Nedelea guides leaders in taking four steps to navigate their organizations through crises:

1. Accept the trauma. Many personal recovery programs emphasize recognition as the first step. Recovering from organizational trauma it is no different. Leaders must first acknowledge the impact of the crisis on the organization and its employees. As Nedelea asked, “How can you resolve the symptoms if you don't even acknowledge what happened?”
2. Prioritize emotional healing. Emotional healing is essential to overcoming organizational trauma. Leaders should create a supportive environment where employees feel safe to express their emotions and get needed support, such as through virtual counseling, stress management resources, and informal interpersonal support as well. Following the devastating impact of the 2019 California wildfires, The University of California, Davis, implemented a comprehensive support program for its staff and students. This included counseling services, stress management workshops and support groups. By acknowledging the trauma and providing emotional support, the university helped its community begin the healing process and restored a sense of normalcy and safety.
3. Promoting open communication and transparency. Transparent and empathic communication it is critical in rebuilding trust and a sense of community within the organization. Leaders should be open about the challenges they face and the steps being taken toward recovery through mechanisms such as holding town hall meetings, providing updates on recovery efforts, and creating channels for ongoing feedback. During the 2020 racial justice protests, Ben & Jerry's took a strong stand communicating openly with employees and the public about its values ​​and actions. The company provided platforms for dialogue and supported initiatives that address racial inequality. This open communication was reinforced trust within the organization and its wider community, demonstrating the company's commitment to its values ​​and people.
4. Embrace Adaptive Leadership. Post-crisis recovery requires leaders to be flexible and adaptive, navigating through uncertainty and change effectively. Adaptive leadership involves empowering employees to contribute to solutions and fostering a culture of innovation. A central aspect of this is leading employees to see challenges as opportunities for growth. Nedelea explained, “Reframing the challenges helps shift the organizational mindset from one of fear and uncertainty to one of possibility and innovation.” After the financial crisis of 2008, the automotive industry faced great turmoil. Under Alan Mulally's leadership, Ford Motor Company embraced adaptive leadership and reframing challenges as opportunities by focusing on innovation and employee involvement. to the company The “One Ford” plan. encouraged cross-functional teamwork and open communication, leading to innovative solutions that helped Ford recover and thrive in a challenging market.

Related: How Adaptive Leaders Find Success During Market Volatility

These steps provide an approach that goes beyond streamlining operations to deeply heal the organization's relational fabric—something Nedelea calls the “organizational nervous system” critical to its connection and communication that drive productivity and morale. When the organization recovers in this way, it not only survives, but emerges stronger and more resilient for the next challenge on the horizon.