Weathering Storms: How Startups Build Learned Resilience and Thrive Through Uncertainty -

Weathering storms is a critical ingredient to a startup’s success. Every startup I’ve worked at and most of the famously successful ones came close to failing at least at once. My premise: It’s not the fastest ship that wins the race, it’s the one that can weather the storms. In fact, rough seas make for good sailors.

“Bad companies are destroyed by crises. Good companies survive them. Great companies are improved by them.” – Andy Grove.
“Ease is a greater threat to progress than hardship.” – Denzell Washington.
“Any rational person would give up.” – Steve Jobs.

My journey has spanned decades of observing, modifying, creating and carrying forward rituals. I’ve been fortunate to work with amazing teams in 11 companies that have disrupted various industries and survived. 3 filed for IPO and 3 were acquired. 7 achieved valuations of over $1B. This is sometimes met with skepticism given how high the odds are against a startup surviving let alone succeeding. So, I put together an Against All Odds note to dive into that.

In beating the odds, the practice of recognizing fear as healthy and panic is deadly has applied in almost all of those cases. That mindset allowed us to find success after existential threats to the point of being able to make a final payroll. That includes a BroadVision that later achieved a $26B valuation. These existential survival moments are often rites-of-passage that enable success.

The Difference

What sets the successful apart is being passionate, adaptable, and having Learned Resilience, enabling them to rationally course correct through whatever challenges arise. This cultivated strength is what truly allows them to thrive. Challenges come in many forms:

Paradigms shifts like rapid advances in generative AI, a global pandemic, quantum advances in bio-tech, geopolitical turmoil, etc
Error in the Product-Market fit hypothesis
Unexpected changes in the economy economic situation that dry up funding and/or disposable income of prospective customers
Emergence of a competitor that out-markets or outperforms you in your current space

Andy Grove quote on how crises improve great companies, leadership lesson for startups.

Organizations and leaders need to be adaptable to changes and resilient to weather the storms of upheaval. To do so will be the difference to succumbing to the changes of thriving as a result. Below is a list of 10 areas to focus on to create such organizations. Uncertainty as a business in any market should be taken as a given. Matt Watkinson, Csaba Konkoly describe this in Mastering Uncertainty How Great Founders, Entrepreneurs, and Business Leaders Thrive in an Unpredictable World.

From Crisis to Clarity

In the darkest moments, something else emerges: clarity. When routines are shattered and assumptions undone, we are forced to see what we previously missed or ignored. The familiar illusions fall away, and the hidden flaws in our systems, our decisions, and even ourselves are exposed.

But with that exposure comes an opportunity.

As I explored in The Edge of Chaos: Where Startups Thrive, this space between order and disorder is where innovation takes root. It’s where founders and teams are forced to shed complacency, make rapid sense of uncertainty, and evolve faster than their more rigid counterparts. The storm, when seen clearly, is not just a test; it’s the very proving ground for Learned Resilience, reinvention, and meaningful breakthroughs.

Is Adversity a Necessary Ingredient?

Andy Grove suggests great companies are improved by crises. My experience led me to believe it’s more than that. Great companies, disruptive startups need to sail head-on into and through storms they face in order to become successful. Rough seas make for good sailors and good, cohesive crews.

According to sources like McKinsey and YFS Magazine, facing and overcoming crises can be a vital part of startup success. Crises force startups to adapt and innovate, fostering a bootstrap mentality. This is about being frugal, innovative, and agile, irrespective of funding levels. This mentality, along with resilience and the ability to pivot during difficult times, significantly contributes to the robustness and eventual success of a startup. See McKinsey: Helping start-ups overcome inevitable challenges and crises, and YFS Magaine’s Bootstrap Mentality: Key Ingredient For Startup Success. Furthermore, the McKinsey article highlights that Learned Resilience, a quality honed through navigating crises, is critical for any startup leader. The experiences and the adaptations made during crises not only test a company’s business model but also provide opportunities for growth and innovation. Opportunities that might not have been pursued otherwise.

Beyond Resilience: Embracing Antifragility

The concept of improving from shocks and stressors aligns with Nassim Nicholas Taleb’s notion of Antifragility. While fragile systems break under stress, and robust ones merely resist it. Antifragile systems actively benefit, strengthen, and grow from volatility, uncertainty, and disorder. For a startup, this means developing a fundamental capacity to thrive in unpredictable environments. Deliberately exposing itself to calculated risks can transform adversity into a distinct competitive advantage. This means learning rapidly from “failures” through rituals like blameless 5-Why post-mortems. It also means fostering a team that “steers into the storm” rather than avoiding it, an organization. It’s about designing systems, cultures, and teams that are not merely resilient, but are configured to develop Learned Resilience and become better with every challenge they face.

In the 1960s, Bruce W. Tuckman, introduce the concept of forming-storming-norming-performing. Tuckman’s model explains that as the team develops maturity and ability, relationships establish. Leadership style changes to more collaborative or shared leadership. Note that storming is seen as an essential stage in this maturation process. Like the tale of the bison heading straight into the storm, you exit stroms sooner when you steer into them.

Core to learning from failures and crises is doing thorough, blameless, 5-why post mortems afterward. This is true for everything from a production outage to a major company setback.

The Bonds of a Shared Struggle While Weathering Storms

Wingsuit soaring over the Alps, symbolizing the exhilaration and risk of startup challenges.

Facing a crisis together can result in a much stronger team both in fighting its way through the challenges and after emerging on the other side. It can be exhilarating, but is not for everyone – as Jobs suggests “any rational person would give up.” Much like jumping off a mountain top in a wing suit, while exhilarating, is not for everyone.

There’s a strong parallel between the individual thrill of overcoming challenges and the collective energy that propels a team or company forward through challenges:

Shared Challenges Foster Innovation.
When a team tackles a seemingly insurmountable obstacle together, it fosters creativity and out-of-the-box thinking. Everyone contributes their unique perspective to find solutions,leading to innovation and a stronger sense of accomplishment.
Building Resilience.
Overcoming challenges as a team builds Learned Resilience within the group. Facing setbacks together strengthens the bonds between team members and allows them to bounce back from future difficulties.
Increased Motivation and Engagement.
When a team sets ambitious goals and takes risks to achieve them, it can be incredibly motivating. Everyone feels invested in the outcome, leading to higher levels of engagement and a more fulfilling work experience.

Ten Rituals for Weathering Storms

In the ever-shifting landscape of our world, navigating the unpredictable waves of change requires not just a steadfast ship but a skilled and adaptable crew. The secret to thriving amid volatility and ambiguity is not just about survival. It’s about harnessing the winds of change to sail ahead.

Title graphic for the ten rituals of weathering storms in startups, Talent Whisperers guide.

To build an organization that withstands the storms and rides the tides of transformation, there are ten pivotal areas you must master.

Sea captain holding a compass, guiding a ship through stormy seas as a metaphor for leadership.

Build a Resilient Crew – the right team and leaders matter
On-Boarding Crew – On-boarding for alignment and impact
Set a Clear Compass of Purpose – The Why of Mission / Vision
Charting the Course Together – Transparent, honest cultures foster engagement and resilience
Human Anchor – Genuine care for team is an anchor in rough seas
Navigational Foresight – Remain vigilant of changes
Construct a Resilient Vessel – Build upon a solid base – the rest can change
Mosaic of Perspectives – Diversity of mind increases adaptability and global affinity
Rituals to Cultivate Growth – Even in the toughest times, people want to grow
Ship Balancing Rituals – Stay afloat (keeping the lights on) while moving forward

Glossary of Terms
Frequently Asked Questions

Let’s delve into each of these tenets, charting a course for success in an era where change is the only constant.

1. Build a Resilient Crew to Weather Storms

Illustration of selecting the right crew for a startup, emphasizing hiring and leadership alignment.

Begin by assembling a passionate, adaptable, and Learned Resilience-capable crew. You want people passionate about what they do with growth mindsets seeking a journey towards a vision they believe in. There are conscious and effective methods and rituals to finding such a crew; however, these are all too often not applied.

Studies on Interviewer’s Decisions

75% of hiring managers have made a decision about a candidate by the end of their first interview – Top Employers Institute (2022). The Global Hiring Survey.
University of Texas at Austin found that interviewers made up their minds about candidates within 2 minutes – Baron, R. A., & Hattrup, K. (2002). An investigation of the importance of first impressions in hiring interviews. Journal of Managerial Issues, 14(2), 214-228.
A study published in the Journal of Management in 1992 found that interviewers’ first impressions were based on a number of factors, including the candidate’s appearance, demeanor, and communication skills. These first impressions were then used to make hiring decisions. The study’s authors concluded that “the first impression formed by an interviewer within 30 seconds of meeting a job candidate is an important predictor of the candidate’s hiring outcome.” – Cuddy, A. J., Knight, W. G., & Bevelandi, J. L. (1992). First impressions in job interviews: A test of the validity of candidate expectations. Journal of Management, 18(1), 125-139.
The largest block, 52% of interviewers make their decision about a candidate in between five and fifteen minutes of the interview. – Article: Workopolis: Study: How quickly do interviewers really make decisions? Study: Journal of Occupational and Organizational Psychology

Set up rubrics and review interviewers observations against them

In all my years of being interviewed for leadership roles, I’ve always been surprised how little structure the was to the interview process. This for what is often the most important role in a tech startup. Improving the interview process is one of the first challenges I usually take on. In my previous role, the person I had groomed to be my replacement unfortunately also decided to leave when I was ready to move on.

Fifteen rapid interview questions for assessing startup candidates’ adaptability and grit.

So, I came up with a structure set of questions for a CTO role that would not so much probe their knowledge as their interest and ability to think on their feet. Much like with engineers where it’s not so important to hire people for what they know but rather for why they know it. Also, VP and CTO candidates can go off on tangents; so, I set up speed-dating rules. I ask 15 questions, you get two minutes to answer each. The interesting part came after that. See Speed-Dating Interview Questions. I also have a selection of interview questions to help find the elusive 10x engineers. See also a great list from First Round: Hire Better Managers: 35 Interview Questions for Assessing a Candidate

Lean Startup Approach

Illustration of the 10x engineer concept, highlighting extraordinary impact in startups.

At IMVU (aka The Lean Startup) we had devised a set of engineering interview questions. Interviewers needed to get certified to ask these questions which included shadowing others and then being shadowed. Each question started out reasonably straight forward but had a designed path to becoming increasingly complex.

This to go beyond the candidate’s knowledge and see how they collaboratively solve a problem they hadn’t seen before. Knowledge is a proxy for ability to learn. It is the desire and ability to learn that you really want to assess in a world where things change quickly. I speak more to that in looking at the Root Cause of a 10x Engineer. Learned Resilience and Grit are key attributes for employees that will be confronted with uncertainty and the need to weather storms. Angela Duckworth’s ‘Grit‘ explores the power of passion and perseverance as key drivers of long-term success, challenging the conventional emphasis on talent alone.

Steve Jobs: You’ve gotta be a really good talent scout

Choosing the right crew both in hiring and when you’re faced with choosing who to keep, you need to understand what sets people apart. This requires not valuing people for what they know but for why they know it. When facing rough seas and uncharted waters, what matters isn’t how well you can face challenges you’ve faced before. What sets people apart is the passion, grit and mindset to take on new challenges in different ways.

When asked for entrepreneurial advice, Steve Jobs said:

“You’ve gotta be, you’ve gotta be a really good talent scout because no matter how smart you are, you need a team of great people. And you’ve got to figure out how to size people up fairly quickly, how to make decisions without knowing people too well and hire them, see how you do, and refine your intuition,and be able to help build an organization that can eventually just build itself. Because you need great people around you.“

2. On-Boarding Crew Rituals

There are two key facets to on-boarding a new team member:

I. Bringing a new member, especially a leader, up to speed and into alignment

Metaphor of spinning up a sailor to represent effective onboarding in startups.

On-boarding is not merely an introduction but an investment in culture crafting. Here, every new addition is a moment to reinforce the resilience of your team, mirroring the mentorship excellence of The Lean Startup. At IMVU (aka The Lean Startup), we had dedicated mentors that would spin up new hires. What I added to that process was to make part of the spin-up tasks for the new hire and the mentor to include improving the spin-up process. That way it was always current and improving. However, more importantly, it starts out underscoring the mindset of continuous improvement related to anything and everything we do. I brought that process to Twitch, continued with it at Pure Storage, Prosper Marketplace and Hum Capital. It’s explained in greater depth at New Hires.

II. Validating you made the right hire

A new ship crew member being vetted, symbolizing the importance of evaluating new hires.

Given how crew selection is often done, it is even more surprising how little crew vetting happens after a hire. You want sailors that can take you through calm and rough seas as part of your crew. While it’s incredibly harsh to bring on a new person and then let them go in the first 90 days, no interview process is perfect.

As you’re bringing someone up to speed in their job, in the company culture and into alignment with company vision and mission. It’s critical to identify red flags early and determine if they can be corrected or not. It may seem straightforward to let someone go if they aren’t proving to be the right hire. However, the impact of letting someone go, especially like that, can send the wrong message to those that remain. It can leave them feeling not valued, not safe and their well-being not a concern of the company’s leadership. Ben Horowitz speaks to the impact on employees that remain after a layoff in his book: The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers. That also informs how to think about departure rituals when letting an individual go.

Nonetheless, if you made a poor decision in hiring that you discover later, you need to address it. This then provides an opportunity to revisit the interview process to see if it can be improved to catch what you missed. Doing this with empathy and the perspective that you don’t want to repeat bringing someone on that’s not a fit can help with the healing and moving forward.

3. Set a Clear Compass of Purpose

Identifying and aligning with your ‘why‘ (a la Simon Sinek) is akin to setting your compass. It keeps you on course, no matter how the tides turn, ensuring every small step is moving you towards the objective.

At Prosper Marketplace, I remember asking everyone why they worked there. When it came to why Prosper there was a common answer: The “My Prosper Story” videos where customers explained how a loan from Prosper had significantly helped them in their lives. This also really helped drive focus during Covid when people struggled to pay off their loans.

At BroadVision, the core Why was delivering personalized content. The company had started with delivering streamed videos (before Netflix) that were suggestion based on your past viewing and viewing of others. It wasn’t going great, but when the paradigm shift of the internet came, the platform allowed us to shift to web content which led us to a $25 Billion valuation.

Steve Jobs: Any rational person would give up

Without a why, a purpose, a compass that you and your team have and have passion for, you will likely fail in the face of rough seas.

At All Things Digital (D5) Rob Kelly asked Bill Gates and Steve Jobs “We’ve got a 100-person internet-media business. I’m wondering, what would be the single most valuable piece of advice you’d give us…“

Steve’s reply:

“People say you have a lot of passion for what you’re doing, and it’s totally true and the reason is because it’s so hard that if you don’t any rational person would give up. It’s really hard and you have to do it over a sustained period of time. So if you don’t love it, if you’re not having fun doing it, if you don’t really love it, you’re going to give up. And that’s what happens to most people, actually.

If you really look at the ones that ended up being successful in the eyes of society, and the ones who didn’t, often times it’s the ones that are successful love what they did so they could persevere, you know, when it got really tough. And the ones that didn’t love it, quit. Because they’re sane, right? Who would want to put up with this stuff if you don’t love it? So it’s a lot of hard work and it’s a lot of worrying constantly and, if you don’t love it, you’re gonna fail. So, you gotta love it, you gotta have passion.“

4. Charting Course Rituals

Promote a culture where ideas are treasures, and candid feedback is the currency of growth. Empower through servant leadership that serves the collective journey, not just individual paths.

A mindset shift can be thinking about an “All Hands” meeting after a RIF. There’s likely a strong feeling of us and them. If you think about the term “Hands” it’s an implication that you’re speaking to the doers. Leadership can shift mindset to that meeting being an “All Minds” or “All Hearts and Minds” meeting. That could change how the employees feel seen. Employees will know when they are seen differently. Actually changing the name of the meeting could be risky if it doesn’t seem or feel genuine. It could as hypocritical as the Enron list of company values.

Radical candor is touted as a great thing. However, it doesn’t work if it’s received as criticism or it doesn’t come from a mindset of being helpful. There are effective ways of delivering Radical Candor.

Celebrate Learnings

Celebrating the learnings of a failure through a successful 5-Whys post-mortem leads to more resilient systems and processes. This clearly has more positive impact than calling out an individual for having brought down the site. This can be healing if done with a published post-mortem of how the company got into trouble. Likewise, framing code and design reviews as things that are gifts helps. This happens when reviewers help the recipient improve their craft to build a collaborative culture. When reviews are seen as criticisms, they lead to resentment and division.

An informed team will always be more aligned and engaged with helping build alignment around collective objectives and challenges. I have always preferred open calendars, shared content from board and exec meetings (except individual HR issues). The same holds for meeting agendas with recordings so people can follow up if they missed something. It can be tricky to change overnight, but one can either start with transparency or move toward gradually.

These things only really work if you’ve also filtered well during the hiring process.

5. Steadfast Anchor and Beacon

Solitary lighthouse on a cliff during a storm, symbolizing resilient leadership guiding teams.

Genuine care for your team is your anchor in rough seas. It fosters unity and resilience, and when storms hit. It’s the compassion that will guide you through the necessary but difficult decisions. However, some will make the mistake of believing “Servant Leadership” means that leaders should be servants to teams. Blindly doing what your team wants is not leadership. However, doing things that are in service of them within the context of symbiotic benefit between employee and company is.

A captain’s steadfast dedication to their crew needs to be like a lighthouse on solid rock. It stands unfazed not matter how many storms it has been battered by.A lighthouse beacon provides guidance to seafarers amidst the fury of an untamed sea. A captain’s unwavering commitment to his crew illuminates the secure passage to the envisioned journey’s destination. In the face of raging storms, it is this bond that anchors the spirit. It ensures that no gale is too fierce to overcome. When the captain charts the course with the welfare of their crew at the helm, the ship is not merely a vessel navigating the waves. It becomes a testament to the enduring strength of unified resolve against the onslaught of the unpredictable sea.

In tough times I have heard managers suggest employees should be glad they have a job. There is truth to that. There is a difference between being able to do what you love and loving what you do. By supporting members of a carefully selected crew, you create a symbiotic relationship. Their love of their craft and having positive impact benefits from removing obstacles and feeling valued. Start with trust.

6. Navigational Foresight

Captain with compass facing stormy waves, symbolizing startup leaders facing uncertainty.

Remain vigilant like a seasoned captain. Foresee changes in the horizon and adjust your sails before the storm hits. Embrace fear as a tool, but steer clear of panic’s treacherous waters. In “Only the Paranoid Survive,” Andy Grove emphasizes the importance of vigilance in business, advocating for constant attention to potential threats and the readiness to adapt swiftly to change. However, it is also important not to panic when a threat appears on the horizon. Fear is healthy, but panic is deadly. It is important to respond thoughtfully, not to react viscerally.

7. Construct a Resilient Vessel to Weather Storms

At the heart of your odyssey is your mission, supported by data and a platform with open architecture. This foundation allows you to adapt your strategies without altering your course.

Illustration of building a resilient ship, metaphor for creating adaptable startup systems.

At BroadVision, we had built a product and underlying platform to deliver videos and movies via broadband. It used a recommendation engine that would look at your preferences, preferences of people that made similar selections etc. It was live and doing ok when dot com hit thanks to a platform with well designed APIs. This helped pivot to delivering internet content and helped build site like American Airlines online. We became the fastest growing software company on Nasdaq. We achieved a $25 billion valuation. This was due to us being able to pivot at the point of an industry paradigm shift.

The “platform” need not be a technical one. Before Covid, the company In Good Taste acquired a patent on nice little glass bottles. The were intended for wine that they were going to sell to airlines and hotels. With Covid , few wanted to fly or stay at a hotel right when they we about to launch. So, no customers. The saw an opportunity to pivot with their platform. The started a virtual wine-tasting when they’d send out these little bottles of wines to various people in a group. They hire wine sommeliers to host virtual wine tastings. We know, because we became avid customers. It seems their business went from a dream to looking like a failure. It pivoted to doing far better in that first year than they ever imagined.

8. A Mosaic of Perspectives

Mosaic symbolizing diversity of thought and perspectives for global startup adaptability.

Diverse Crew

In the tumultuous seas of a world transformed by rapid technological advancements, societal shifts, and environmental upheavals, the ability to adapt, embrace change, and navigate the uncharted waters of the future will be the hallmark of those who thrive. Just as a sturdy ship, guided by a skilled captain and crew, weathers the fiercest storms, so too must we, as individuals and as a collective, cultivate the qualities that will enable us to ride the waves of change.

There are several benefits of having a diverse team in a changing world and a global market. Build a crew of diverse thinkers, as the richness of perspectives is your map to uncharted territories. It’s the mosaic of insights that will illuminate paths to new horizons.

Diversity can help businesses to better understand and meet the needs of their customers.

In today’s global marketplace, businesses need to be able to understand and cater to a wide range of customers from different backgrounds and cultures. A diverse team can bring a variety of perspectives to the table, which can help businesses to develop products and services that are more appealing to a wider audience.

Diversity can help businesses to be more innovative and creative.

Diverse teams are more likely to challenge assumptions and come up with new ideas. This is because they have a wider range of experiences and perspectives to draw from.

Diversity can help businesses to be more successful in the long run.

Companies with more diverse work-forces are more likely to be engaged, innovative, and successful. This is because diversity can lead to a more positive and productive work environment.

A Diversity of Experiences Helps in Weathering Storms

In his book Range, David Epstein argues that generalists, who have broad and varied experiences, are often at an advantage in today’s rapidly changing world over specialists, who have deep but narrow expertise. He cites the example of Roger Federer, who excelled in multiple sports, including tennis, soccer, and basketball, before focusing on tennis full-time. Federer’s varied experiences helped him to develop a wide range of skills and abilities, including athleticism, coordination, and problem-solving skills, which have contributed to his success in tennis.

In contrast, Tiger Woods is a specialist who has focused on golf since he was a child. While Woods is undoubtedly one of the greatest golfers of all time, his narrow focus has also made it more difficult for him to adapt to changes in the game. For example, Woods struggled to adapt to the new rules and equipment that were introduced in the early 2000s.

In today’s ever-changing world, leaders with varied experiences are at an advantage because they are better able to:

Identify and adapt to new trends.
Leaders with a wide range of experiences are more likely to be exposed to new ideas and trends. This makes them better able to identify opportunities and threats early on, and to develop strategies to adapt to change.
Solve complex problems.
Leaders with varied experiences have a broader range of tools and perspectives to draw on when solving problems. This makes them better able to solve complex problems that require creative solutions.
Lead diverse teams.
Leaders with varied experiences are better able to understand and relate to people from different backgrounds. This makes them more effective leaders of diverse teams.

Respected business journals on the benefits of having a diverse team in a changing world with a global market:

“Diversity’s Sweet Spot” by Sylvia Ann Hewlett and Carolyn Buckler

Harvard Business Review (2013) found that companies with more diverse leadership teams were more likely to have above-average financial performance.

“The Diversity Advantage” by Scott E. Page

Harvard Business Review (2007) found that diverse groups were better at solving complex problems than homogeneous groups.

“Why Diverse Teams Are Smarter” by Katherine W. Phillips

Harvard Business Review (2016) found that diverse teams were more likely to challenge assumptions and come up with innovative solutions.

“The New Science of Diversity” by Scott E. Page

Basic Books (2017) found that diversity is not just a matter of fairness and inclusion, but also a matter of economic survival.

“The Power of Diversity” by Josh Bersin

Deloitte Review (2018) found that companies with more diverse work-forces were more likely to be engaged, innovative, and successful.

SAGE Journals – Team Leadership and Team Cultural Diversity

This source discusses how cultural diversity can introduce a variety of information and perspectives, benefiting teams in problem-solving, decision-making, creativity, and innovation, ultimately enhancing team performance.

Harvard Business Review – Why Diverse Teams Are Smarter

This article emphasizes that striving to increase workplace diversity is not just a slogan but a sound business decision. It underscores the smarter outcomes of diverse teams due to varied perspectives and ideas.

SAGE Journals – Managing Diversity for Organizational Efficiency

This journal explores the influence of employee diversity and inclusion on organizational management. It investigates the benefits and constraints of diversity in the workplace and the necessary tools for managing it effectively.

Harvard Business Review – Are You Prepared to Lead a Diverse Team?

Highlighting the importance of developing cultural competence, this article focuses on the need for leaders to understand and appreciate diverse backgrounds and perspectives, especially in managerial roles.

National Center for Biotechnology Information – Diversity Impact on Organizational Performance

This source emphasizes the growth and success of businesses when they incorporate diverse experiences from various age groups within the organization, noting the significance of age diversity in the current business environment.

9. Rituals to Cultivate Growth

In times when tangible rewards are scarce, nurture growth through clear pathways to personal and professional development. This investment turns today’s crew into tomorrow’s captains.

Providing team members with transparency into how the business works both enables them to build better solutions and it broadens their horizons. At a time where money is tight and most folks are happy to have a job, promotions and raises can be out of the picture. However, it is human nature to want to grow. It should never be a mystery of what it takes to advance to the next level. I have always created rubrics of what is expected at what level along different vectors. This helps in review conversations, but it is also useful in career coaching.

As a manager, you help help show someone areas where they have not yet demonstrated their abilities at a higher level. Together with them, you can look for opportunities to learn and/or demonstrate those abilities. That way they are advancing their career even in a company that isn’t growing, promoting or providing raises at the moment.

Consider employee job satisfaction and consider that in a down-turn economy/tough job market. People unhappy in their job may be staying and essentially “quiet quitting.” Motivation really matters. Consider these 38 Employee Turnover Statistics to Know. Also consider: GALLUP: Percent Who Feel Employer Cares About Their Wellbeing Plummets.

This is where small, deliberate practices — what I call Atomic Rituals.

10. Ship Balancing Rituals

Startup crew working together, representing rituals for balancing survival and growth.

Finally, master the art of balancing progress with perseverance. Know the difference between the leaks that demand immediate attention and those that are superficial, for it is this discernment that will keep you afloat and moving forward.

In tough times, it is tempting and perhaps necessary to chose the “quick-and-dirty” solutions. However, those solutions implemented in the past are precisely what may make things less adaptable and resilient. How do you balance keeping your ship sea-worthy and having the crew add/adjust sails to catch the new winds that appear in times of change? When it comes to things like “code-health,” there are often advocates for going in a rewriting systems. This detracts with advancing the business which may be facing challenging times. Two considerations can help find a balance:

1. If it ain’t broke, don’t fix it

All too often, code-quality metrics such as complexity and code-coverage are used to decide which code should be fixed. In my experience, it is much more impactful to the business as well as to productivity to measure (and address) what matters. Consider a stable system that is seeing little-to-no change and has few to none bugs or customer complaints. There is little ROI in improving that system.

2. While you have the hood up, change the spark-plugs and engine-oil

Motorboat with hood open, metaphor for maintaining and improving code health in startups.

Whenever a change to a system needs to be made, some context needs to be set up to ensure the changes are made in the right way and in the right places. This is true for adding features just as it is for improving code quality. It is much more efficient to make both kinds of changes at the same time. When adding an important feature it is helpful to improve the existing code or test coverage while you have the hood up anyhow. Even if there is only time for minor improvements, it will still keep your ship more sea-worthy and adaptable going forward.

The Valley of Death: Navigating Deep Tech’s Greatest Gauntlet

Illustration of startups navigating the Valley of Death, the perilous phase before revenue.

In the journey of transforming groundbreaking research into commercial success, many promising ventures encounter a perilous phase known as “The Valley of Death.” This critical period typically occurs after initial research funding or seed capital is depleted, but before a product or service generates sufficient revenue or attracts significant follow-on investment. For deep technology and hardware-intensive startups, this valley can be particularly deep and treacherous. Navigating it successfully requires acquired learned resilience.

The challenges within this valley are multifaceted:

High Capital Burn

Learned Resilience and The Startup Valley of Death

Developing complex hardware, conducting extensive testing, and scaling manufacturing demand substantial capital. Initial grants or early-stage investments are often insufficient to bridge this gap to profitability.

Extended Development Cycles

Unlike software, deep tech innovations often require longer periods for prototyping, refinement, regulatory approvals, and market validation. This extended timeline can exhaust funds before market traction is achieved.

Revenue Scarcity

Without a fully market-ready product, generating meaningful revenue is difficult. This lack of cash flow makes it challenging to cover operational expenses and attract further investment, as traditional venture capitalists often seek demonstrable market validation.

Investment Hesitation

Investors may perceive high technical and market risks at this stage. Bridging the gap requires patient capital and a belief in the long-term potential, which can be scarce for early-stage hardware companies.

For those attempting to weather these storms and push through this valley, the Learned Resilience, adaptability, and strategic foresight discussed throughout these tenets become paramount. Surviving the Valley of Death demands a robust “Resilient Vessel” (the product/platform) and a “Balanced Ship” (operational efficiency). Crucially, it relies on a “Crew” that is passionately committed to the “Purpose Compass,” willing to confront adversity head-on, and capable of decisive “Course Charting” in uncertain waters. The ability to navigate these existential threats is often the true “rite of passage” for a startup, transforming it into a mature and formidable player.

Research Emerging from Universities

For research emerging from universities, this “Valley of Death” presents an accentuated set of hurdles. The transition from an academic environment, driven by publishing and scientific advancement, to a market-driven commercial enterprise often requires a fundamental shift in mindset, priorities, and skill sets. University spin-outs frequently face the challenge of securing funding for stages of development that fall between academic grants and venture capital appetite, often lacking the commercial acumen and market validation that VCs typically seek. This unique chasm emphasizes the need for specialized support mechanisms – such as venture builders, incubators, and dedicated mentorship programs – designed to bridge this specific gap and help translate groundbreaking discoveries into viable market solutions.

Navigating the Valley of Death: Conversations with Investors

Seeking Funding While in The Valley of Death

When a startup finds itself deep within the “Valley of Death” and requires additional funding, the conversations with potential investors, particularly venture capitalists, become acutely sensitive. The core challenge is to secure essential capital without succumbing to overly dilutive terms or a valuation that undervalues the company’s long-term potential. This requires a strategic and proactive approach:

1. Transparency with a Strategic Narrative

Acknowledge Realities, Present Solutions: Investors understand that startups face challenges. Instead of hiding difficulties, be transparent about the current state, but pivot immediately to the concrete steps and strategic pivots being implemented to address these challenges. Frame the adversity as a test that has improved the company, aligning with the “great companies are improved by crises” philosophy.
Focus on Future Milestones: Shift the conversation from past struggles to a clear, de-risked roadmap of future milestones that the new funding will directly enable. Quantify the impact of achieving these milestones on product development, market traction, or revenue growth.

2. Demonstrate Adaptability and Resilience

Show, Don’t Just Tell: Provide tangible examples of how the team has demonstrated adaptability and Learned Resilience in weathering previous “storms”. Highlight specific pivots, cost-saving measures, or innovative solutions developed under pressure.
Emphasize Team Cohesion: VCs invest in teams. Show how shared adversity has strengthened team bonds and resolve. A cohesive crew that can sail through rough seas is a powerful indicator of future success.

3. Articulate the “Why” and Long-Term Vision

Reiterate Core Purpose: Reinforce the company’s fundamental “Compass of Purpose” – its mission and vision. Passionate founders and teams driven by a strong “why” are more likely to persevere through sustained periods of difficulty.
Highlight Future Market Opportunity: Despite current challenges, re-emphasize the large, long-term market opportunity that the company is uniquely positioned to capture once it emerges from the valley. Link current struggles to the greater potential for disruption or market leadership.

4. Strategically Narrow Your Initial Focus

For startups with ambitious, broad goals, facing the “Valley of Death” often necessitates a tactical retreat to a more focused battlefront. Identify the specific aspect of your grand vision that offers the highest initial Return on Investment (ROI) in terms of immediate success potential, market merit, and appeal to venture capitalists. This involves prioritizing the area with the clearest problem-solution fit, the most defensible intellectual property, or the quickest path to revenue generation or significant de-risking. Frame this narrowing not as abandoning the larger mission, but as a crucial sequencing strategy – a first, highly impactful step in a longer journey. This disciplined approach demonstrates clarity and effective resource allocation to investors, increasing their confidence in your ability to execute and emerge stronger.

5. Tailoring Your Approach for Strategic Corporate Investors

When seeking investment from large, established companies (e.g., pharmaceutical firms for biotech, dominant hardware players for new hardware solutions), the conversation shifts beyond purely financial ROI. These “strategic” investors are often seeking:

Synergy and Strategic Alignment: Explicitly demonstrate how your technology or innovation directly complements or enhances their existing product lines, market strategies, or long-term strategic goals. Show a clear “fit” that goes beyond a simple financial return.
Access to Innovation and New Markets: Highlight how your startup provides them with access to disruptive technologies, novel approaches, or entirely new markets they might otherwise miss. Position your company as a window to the future.
Acquisition Potential: While not the primary focus, be aware that strategic investors often have an eye towards potential acquisition. Frame your company as a valuable asset that could be integrated into their existing operations.
Long-Term Partnership: Emphasize the potential for a long-term strategic partnership beyond just investment. This could include joint development agreements, licensing deals, or other forms of collaboration that benefit both parties.
De-Risking and Validation: Given their expertise in their respective industries, strategic investors will often scrutinize the technology and market validation with even greater rigor. Be prepared to provide detailed technical data, market research, and evidence of early traction.
“Build vs. Buy” Decision: Be prepared to articulate why partnering with or investing in your startup is a more efficient and strategic approach for them than attempting to develop the technology internally (“build”) or acquiring a more mature, and likely more expensive, company (“buy”).

6. Manage Valuation Expectations

Understand Your Leverage: Recognize that being in the Valley of Death often means reduced leverage. Be realistic about valuation expectations, but don’t undervalue the intellectual property, accumulated learnings, and the team’s ability to execute under pressure.
Focus on Strategic Fit: Seek out investors who understand and are aligned with deep tech, long development cycles, and the specific market you are addressing. A strategic investor who brings more than just capital (e.g., industry connections, operational expertise) can justify a different valuation.
Consider Alternative Structures: Explore convertible notes, SAFEs, or tranches that are tied to specific, achievable milestones to de-risk the investment for VCs and potentially improve future valuation.

Navigating funding conversations while in the “Valley of Death” is a true test of leadership and resolve. By maintaining transparency, demonstrating resilience, reiterating a compelling vision, and approaching negotiations strategically, startups can secure the lifeline needed to emerge stronger and achieve long-term success.

Footnote:

This delicate balance between transparently acknowledging challenges and exuding unwavering conviction is paramount. Venture capitalists seek founders who possess the “passion” and “love” for their mission that Steve Jobs described as essential for enduring the “really hard” and “worrying constantly” nature of building a disruptive tech startup. It’s less about presenting an unrealistically rosy picture and more about demonstrating a deep-seated belief and resilience that assures investors the founder will see the company through come what may, turning adversity into a catalyst for improvement and ultimate success. This conviction, tempered by an honest grasp of reality, instills the confidence VCs need to commit capital to ventures in their most vulnerable stages, recognizing the founder’s capacity for Learned Resilience.

Beneath the Operational Crises: The Role of Inner Voices

If you don't own your problems, you can't fix them. - Ray Dalio Founder of Bridgewater Associates

In my time inside high-stakes startups, I held pivotal leadership roles. These were during critical inflection points. I saw firsthand that the greatest threats weren’t only external.

Operational challenges were real. We navigated cash crunches. We faced post-pivot identity crises. Teams were stretched past their limit. But quieter forces were also present. These included mindset shifts and emotional undercurrents. Decision patterns were not on any roadmap. Yet, they shaped everything.

For many high-performing leaders, this is uncomfortable. Suggesting internal voices play a role feels suspect. But this challenge is not new. The tension between external execution and internal distortion has existed for centuries. It spans ancient philosophy to modern business.

Today’s top leaders name it clearly. As Ray Dalio, founder of Bridgewater Associates, puts it:

“If you don’t own your problems, you can’t fix them.”

Barbara Corcoran, investor and entrepreneur, adds a profound insight:

“That nagging voice that pops in your head telling you you’re not good enough… I’ll let you in on a little secret: all great entrepreneurs have imposter syndrome… My success is entirely due to my insecurity.”

This is what the Saboteurs and Allies framework surfaces. It reveals the quiet, internal patterns. These become amplified under pressure. Examples include over-control, urgency bias, isolation, or perfectionism. Left unchecked, they distort judgment. They erode leadership from the inside out. But when recognized, they can shift. This creates room for grounded, resilient, and clear-headed responses.

If you’re navigating a storm, or guiding others through one, it’s worth asking:

Are the forces shaping your decisions only external?
Or are the quieter voices within also playing a significant role—driving urgency, amplifying doubt, or narrowing your view when clarity is most needed?

Explore the Saboteurs and Allies Guide

That nagging voice that pops in your head telling you you’re not good enough… Barbara Corcoran

The Unique Confluence of People that are Strong in Adaptability and Resilience in the U.S., California, and Silicon Valley

The United States, particularly California and especially Silicon Valley are made up of people that are risk takers that persevere through adaptability and resilience. Much of there shared values of resilience and adaptability are prevalent through a tradition attracting and accepting diverse immigrants. These shared values come from a willingness to leave behind the comfort, security and familiarity of home, family, culture to risk leaving that all behind in hope of new beginnings and opportunity. This phenomenon can be attributed to several factors:

1. Risk-Taking for New Opportunities:

Immigrants often leave behind comfort, security, and familiarity in their home countries in pursuit of new beginnings and opportunities. This decision requires a significant amount of risk-taking, a trait that fosters and is inherently linked to Learned Resilience and adaptability.

2. Cultural Diversity in California and Silicon Valley:

These regions are known for their cultural diversity and history of immigration. This environment fosters a melting pot of ideas, perspectives, and resilience, as people from different backgrounds come together, bringing their unique experiences and skills.

3. Entrepreneurial Spirit:

Silicon Valley, in particular, is renowned for its entrepreneurial culture. Immigrants, many of whom arrive with the goal of starting their own businesses or working in tech startups, must be resilient and adaptable to thrive in this highly competitive environment.

4. Adapting to New Cultures and Norms:

Immigrating to a new country entails adapting to different social, cultural, and professional norms. This process of adaptation demonstrates the resilience and flexibility of immigrants as they integrate into their new communities.

5. Economic and Professional Challenges:

Many immigrants face economic and professional challenges upon arriving in the U.S. Overcoming these obstacles often requires a high degree of Learned Resilience and the ability to adapt to new and often challenging circumstances.

6. Shared Experience of Struggle and Success:

The narrative of struggle and success is common among immigrant communities. The journey from leaving one’s homeland to establishing a successful life in a new country is a testament to their resilience and adaptability.

7. Influence on Local Culture and Economy:

Immigrants have significantly influenced the culture and economy of their new locales, particularly in places like Silicon Valley, where their contributions to the tech industry and other sectors have been immense.

The shared values of resilience and adaptability among immigrants to the United States, especially those heading to California and Silicon Valley, are evident. These values stem from their willingness to embrace change, overcome challenges, and contribute positively to their new communities. This phenomenon is a crucial aspect of the American immigrant experience and has been a driving force in the cultural and economic development of regions known for high immigrant populations.

Beyond Silicon Valley: Recognizing Resilience and Adaptability Globally

While the unique confluence of factors in Silicon Valley has fostered a high concentration of adaptable and resilient founders, these critical traits are by no means exclusive to that region. Entrepreneurial ecosystems across the globe are increasingly cultivating environments where such individuals thrive, driven by various local dynamics.

Pockets of concentrated resilience and adaptability are emerging in diverse locations:

European Hubs: Cities like Berlin (known for its vibrant startup scene post-reunification, fostering a lean and scrappy mentality), London (a global financial hub attracting diverse talent and requiring constant innovation), and specific regions in Central and Eastern Europe (such as Prague or Warsaw, where historical shifts have instilled a strong sense of resourcefulness and problem-solving) are fertile ground. Also within the UK, beyond London, cities like Edinburgh are building significant deep tech and AI clusters, drawing on strong university spin-out cultures and a growing network of support that necessitates entrepreneurial grit.
Asian Innovation Centers: In India, tech hubs like Bangalore and Hyderabad showcase immense adaptability driven by rapid market changes and a culture of ‘jugaad’ (innovative improvisation). Similarly, cities in Southeast Asia (e.g., Singapore) or other parts of Asia (e.g., Seoul, Tel Aviv) have cultivated highly resilient founder communities often facing unique geopolitical, resource, or market challenges.

Recognizing founders with these invaluable qualities, regardless of their geographic origin, involves looking beyond conventional resumes:

A History of Overcoming Adversity: Seek out individuals who can articulate specific instances where they faced significant setbacks—personal, professional, or entrepreneurial—and how they navigated through them, thereby cultivating Learned Resilience. The depth of reflection on lessons learned, rather than just the outcome, is key.
Comfort with Ambiguity and Change: Resilient founders don’t just tolerate uncertainty; they operate effectively within it. They display a willingness to pivot strategies, embrace new information, and make decisions without all the facts.
Growth Mindset and Continuous Learning: Look for a demonstrated eagerness to learn from failures (“blameless, 5-why post mortems” ) and a focus on personal and professional development, even when external rewards are scarce. They understand that knowledge is a proxy for the ability to learn quickly.
Passion and Purpose: As Steve Jobs noted, sustained success in a challenging environment requires genuine “passion” and “love” for what you do; otherwise, a “rational person would give up”. This deep commitment acts as an internal compass.
Evidence of Adaptable Leadership: In team settings, these leaders inspire flexibility and encourage diverse perspectives, understanding that a “mosaic of perspectives” is crucial for navigating uncharted territories. They prioritize the “human anchor” of genuine care for their team, fostering unity during difficult times.

By focusing on these core behavioral and philosophical indicators, investors and partners can identify the leaders best equipped to “weather storms” and successfully navigate the inherent challenges of any entrepreneurial journey, regardless of where they began.

Footnote on Diversification

For venture capitalists, actively seeking opportunities beyond traditional hubs like Silicon Valley and the U.S. offers a strategic advantage. It can uncover overlooked talent and nascent ecosystems where valuations might be more attractive, potentially leading to higher returns. Moreover, diversifying investments across different geographical and socio-political regions can help mitigate risk in an increasingly volatile global landscape, fostering a more robust and adaptable portfolio. This approach aligns with the very principles of resilience and foresight discussed in weathering storms, applying them to investment strategy itself.

Combining Resilience and Adaptability with Cultural Diversity

Immigrant-rich communities thrive in VUCA environments through resilience.

The combination of resilience, adaptability, and cultural diversity, particularly in areas with a high concentration of immigrants like California and Silicon Valley, creates a unique environment ripe for innovation, especially in a world increasingly defined by rapid change, volatility, uncertainty, complexity, and ambiguity (VUCA). This synthesis results in a potent mix of qualities and perspectives that are particularly suited to addressing modern challenges such as climate change, advancements in artificial intelligence, and biotechnological innovations.

1. Diverse Perspectives for Complex Problem-Solving:

The confluence of different cultural backgrounds and historical experiences provides a broad spectrum of viewpoints and approaches to problem-solving. This diversity is invaluable in tackling complex issues where single-dimensional thinking falls short.

2. Resilience in the Face of Change:

Immigrants’ inherent resilience, born out of their experiences of adapting to new environments, prepares them well for the rapid changes and uncertainties of today’s world. This resilience is crucial in industries that are constantly evolving, like technology and science.

3. Adaptability to New Technologies:

The adaptability shown by immigrants, who often have to learn new languages and adapt to new cultural norms, mirrors the adaptability needed to embrace and leverage new technologies, be it AI, biotech, or environmental technologies.

4. Innovation Through Cultural Fusion:

The fusion of different cultural ideas, values, and practices often leads to innovative thinking and creativity, which is essential for breakthroughs in fields like AI and biotech.

5. Addressing Global Challenges:

The global nature of challenges such as climate change requires solutions that consider diverse perspectives and experiences. A multicultural community is better equipped to understand and address these issues in a way that is inclusive and globally relevant.

6. Entrepreneurial Drive:

The entrepreneurial spirit, often strong among immigrants who have left everything behind to start anew, aligns well with the dynamic nature of industries at the forefront of dealing with VUCA challenges.

7. Collaborative Synergies:

The collaborative environment fostered by a mix of cultures and backgrounds can lead to synergies where the sum of combined efforts is greater than individual contributions, particularly important in interdisciplinary fields like AI and biotech.

8. Ethical and Inclusive Frameworks:

The diverse backgrounds can also contribute to the development of more ethical, inclusive, and culturally sensitive frameworks in rapidly advancing fields, ensuring that technological progress benefits a broader spectrum of humanity.

In conclusion, the blend of resilience, adaptability, and cultural diversity, especially in immigrant-rich communities, provides a robust foundation for navigating and finding solutions in a rapidly changing, uncertain world. This environment is particularly conducive to innovation and problem-solving in areas affected by technological and environmental shifts. There are certainly also other areas in the world where you can find a confluence of diverse risk takers that are both resilient and adaptable.

There can be leadership challenges in bringing together such diversity much as the opportunity that this presents.

A boat crew analogy of how, as leaders, we can bring the best out of any team is provided by Jocko Willink and Leif Babin. They explain how leadership can directly effect the success of a team. It comes from their first book Extreme Ownership. Afterwards, they realized there were subtle yet critical nuances they had left out of that book which actually created poor leadership practices. So, they decided to write second book to speak to some of these critically important nuances:
The Dichotomy of Leadership. If you’ve only read that book, you missed the boat.

Perspectives on Adaptability and Resilience of Highly Successful Leaders

Collage of business leaders like Nadella, Barra, Bezos, Jobs, symbolizing adaptability in leadership.

As with anything organizational change, we need to start with ourselves. It may help to know what some of the most respected and successful business leaders have to save about adaptability and resilience.

Satya Nadella – Remarks at Microsoft Ignite 2016. Atlanta, Georgia, September 26, 2016.
“In a world that is changing faster than ever before, it’s not the strongest or the most intelligent who will survive, but the most adaptable.“

Mary Barra, CEO of General Motors, in a speech at the MIT Sloan Leadership Conference in 2018.

“I think the biggest challenge for leaders today is to be able to adapt to change. The world is changing so rapidly, and we need to be able to change with it. We need to be able to think on our feet and make decisions quickly. And we need to be able to communicate our vision effectively to our teams.“

Bill Gates, 1998 interview with Microsoft co-founder Paul Allen for the book “Overdrive: The Story of Microsoft” by Steven Levy.

“The most important skill for leaders is to be able to adapt and change. If you’re not willing to adapt and change, you’re going to fail.“

Often attributed to Steve Jobs, the co-founder of Apple Inc. However, there is no definitive source for the quote.

“Innovation is the ability to see change as an opportunity – not a threat“

Sam Walton, Interview with Fortune magazine, November 1993.

“It’s not the strongest of the species that survives, nor the most intelligent that survives. It is the one most adaptable to change.“

Jeff Bezos – 1997 Letter to Amazon Shareholders

“We need to be nimble and adaptable, and we need to be constantly evolving to meet the needs of our customers. If we stand still, we will lose our competitive edge. We need to be willing to experiment and take risks. We need to be open to new ideas and new ways of doing things.“

Mark Zuckerberg – Business Insider, August 2, 2016

“In a world that’s changing so quickly, the biggest risk you can take is not taking any risk.“

Elon Musk – Interview with Inc. magazine, 2014

“Failure is simply the opportunity to begin again, this time more intelligently.“

Sundar Pichai – “Leadership: A Conversation with Sundar Pichai.” World Economic Forum, Jan. 22, 2019

“A leader needs to be able to adapt to change, to be resilient, and to be able to make decisions in the face of uncertainty.“

Larry Page – 2002, August 1 The importance of being open to new ideas. Stanford Engineering Magazine.

“It’s important to be open to new ideas and willing to change your mind when the facts change. You should be comfortable with ambiguity and uncertainty, and you should be able to make decisions without all the information. And you should be able to motivate and inspire others to do their best work.“

Sergey Brin – 2008 interview published by the Wall Street Journal

“You should never be afraid to try new things. If you are afraid to fail, you will never innovate.”

Richard Branson – The Virgin Way: Doing It Your Own Way London: Harper Business, 1998. 12.

“Business is constantly changing. An entrepreneur must be able to adapt to change and be able to bounce back when things go wrong.“

Jamie Dimon – 2014 interview with William J. Ferguson

“Leaders have to be able to adapt to change and be resilient in the face of adversity.”

Jack Ma – Speech at the Alibaba Supplier Conference, Hangzhou, China, September 19, 2009

“Never give up. Today is hard, tomorrow will be harder, but the day after tomorrow will be beautiful. And keep reminding yourself that why you started.”

John F. Kennedy – Address to Assembly Hall, Paulskirche Frankfurt, June 26, 1963

“Change is the law of life. And those who look only to the past or present are sure to miss the future.”

Benjamin Franklin – The Writings of Benjamin Franklin. G.P. Putnam’s Sons, 1907, p. 231.

“The world is constantly changing, and those who are not willing to change with it are destined for failure.”

What ships are best for weathering tomorrow’s storms?

Is it time to refit our ships?

Building resilient ships - metaphor for preparing startups for disruption.

For existing companies, it’s time to start thinking about how we can best integrate newer technology such as Generative AI if we hope to be able to compete and survive in tomorrow’s world.

That requires rethinking current technology stacks and tech debt. Being afraid of what’s coming is healthy. Panicking though is deadly. Instead of reacting, we need to be responding – thoughtfully, selectively making the right changes.

Innovator’s Dilemma, Innovator’s Solution

Building new ships for today to weather tomorrow’s storms.

It will be interesting to see if existing organizations, with existing teams and product market fit will be able to pivot, or whether it will be new upstarts, starting fresh that will win the day.

Crunchbase, October 3, 2023: Greylock — famous for bets on companies such as Airbnb, Coinbase and Facebook announced its 17th fund, a $1 billion vehicle focused on pre-seed, seed and Series A founders. “We expect that every company will become an AI company,” the Greylock blog reads. “While it’s been exciting to watch as the venture community has embraced AI as a thesis area over the last year, Greylock has been committed to AI investing for a decade…”

Can we weather the storms of tomorrow while holding on the values of today?

Of course we want the best of both worlds. An existing, functioning business has an established team, business, customer-base and brand. Yet, that big ship may be as hard to turn as the Titanic. However, starting from scratch comes with so many other challenges. AI itself is supposed to help humans become more effective. Yet learning how to use it and retooling your company is also challenging. Hence the notion of a partner that could help some critical aspect of your business get pulled into the future by leveraging. Although it’s only one part of what we do at Hum Capital to bring structure and normalization into various forms of financial data, it is a critical part. We have engaged a partner, enabling business of experts in Generative AI that is helping us move some of our AI/ML tech into taking advantage of the new capabilities.

Where will all of those Greylock dollars (and those of other VC’s betting on hot, new AI-Tech startups) go? Will it go to companies that look to replace existing businesses at what they do? And/or, will some of it go to enabling tech companies that will help pull some of the existing companies into the future? Could an existing engine of domain knowledge, brand, customer-base, sales and support team etc prove to be an asset worth saving while we put some new wheels on that car?

Glossary of Terms – Weathering Storms in Startups

10x Engineers

A term used in Silicon Valley and global tech hubs to describe engineers who deliver outsized impact compared to peers. More than raw coding ability, true 10x Engineers stand out through adaptability, resilience, curiosity, and a growth mindset — qualities that become critical when startups must weather storms.

Antifragility

A concept popularized by Nassim Nicholas Taleb, antifragility refers to systems that don’t just resist stress but actually grow stronger from it. For startups, this means learning from crises and emerging more innovative and resilient.

Atomic Rituals

Small, repeatable practices that create outsized impact over time. By anchoring growth and resilience in daily habits, Atomic Rituals transform challenges into opportunities for progress.

Blameless 5-Why Post-Mortem

A structured process of asking “why” repeatedly to uncover the root cause of a problem without assigning blame. This approach builds psychological safety and creates learning opportunities after failures or outages.

Crew Selection

A nautical metaphor used to describe the critical process of hiring and retaining the right team. In startups, selecting people with resilience, adaptability, and growth mindsets is often more important than technical knowledge alone.

Edge of Chaos

A concept from complexity theory describing the space between order and disorder where adaptation and innovation thrive. For startups, the edge of chaos is the zone where structures are flexible enough to evolve but stable enough to avoid collapse — the proving ground for resilience and breakthrough ideas.

Forming–Storming–Norming–Performing

A team development model introduced by Bruce Tuckman in the 1960s. It highlights that “storming”—conflict and friction—is an essential stage teams must navigate before reaching high performance.

Learned Resilience

The ability to adapt, recover, and grow stronger after setbacks. Unlike innate toughness, it is cultivated over time through practice, shared adversity, and deliberate rituals that help leaders and teams thrive under uncertainty.

Mosaic of Perspectives

The idea that diversity of thought, culture, and background creates stronger, more innovative teams. Particularly in global hubs like Silicon Valley, Berlin, or Bangalore, diversity helps startups adapt to rapid change and global markets.

Navigational Foresight

The practice of scanning the horizon for early signals of disruption or change. In business, this means staying vigilant to economic shifts, new technologies like AI, and emerging competitors to avoid being blindsided.

Rite of Passage

A metaphor drawn from cultural anthropology, describing how individuals or groups mature through trials. For startups, crises often serve as rites of passage that transform young companies into seasoned organizations.

Saboteurs and Allies Framework

A model that identifies the inner voices and patterns that either undermine (Saboteurs) or empower (Allies) leaders and teams. In startup contexts, recognizing these voices helps leaders avoid destructive biases and lean into the strengths that foster resilience, adaptability, and innovation.

Silicon Valley Resilience

A shorthand for the adaptability and persistence found in California’s startup ecosystem, heavily shaped by immigrant communities. This resilience has made the region a global symbol of risk-taking and innovation.

The Valley of Death (Startups)

The precarious stage between early funding and sustainable revenue when startups are most likely to fail. Surviving this “valley” requires resilience, adaptability, and investor trust to bridge the gap to growth.

VUCA

An acronym for Volatility, Uncertainty, Complexity, and Ambiguity. Originally used in military contexts, it has become a way to describe today’s unpredictable global business environment that startups must learn to navigate.

Weathering Storms (in Startups)

A guiding metaphor for enduring and thriving through crises, downturns, or disruptive change. Just as ships and crews must adapt to rough seas, startups succeed by facing uncertainty head-on rather than trying to avoid it.

Frequently Asked Questions – Weathering Storms in Startups

What does “Weathering Storms” mean for startups?

It’s a metaphor for enduring and thriving through crises such as cash crunches, market shifts, or new competitors. Startups that face these storms directly build resilience and often come out stronger, while those that avoid them risk collapse.

Why do so many startups fail in the Valley of Death?

The “Valley of Death” refers to the stage between initial funding and sustainable revenue. Startups often run out of capital before gaining traction. Those that survive usually combine adaptability, clear purpose, and strong investor trust to bridge the gap.

How do cultural backgrounds influence resilience in business?

Regions like Silicon Valley thrive because immigrant-rich communities bring adaptability, diversity, and risk-taking. Globally, cities like Berlin, Bangalore, and Tel Aviv show similar resilience, proving that cultural diversity creates fertile ground for innovation.

What role do rituals play in startup success?

Rituals — consistent, repeatable practices — anchor teams during uncertainty. Whether through onboarding processes, blameless post-mortems, or Atomic Rituals

Yes — adding both a Glossary of Terms and a FAQ will definitely help with SEO, LLMO, and reader retention for Weathering Storms – The Secret to Startup Success.

Here’s why:

Glossary: Captures semantic and long-tail search terms (like “antifragility,” “Valley of Death,” “Learned Resilience,” etc.), reinforcing topic authority for Google’s Knowledge Graph.
FAQ: Triggers rich search results (featured snippets, “People Also Ask” boxes), boosting organic visibility and time-on-page.

Below are drafts for both, fully voice-matched to your Talent Whisperers style, alphabetized, and aligned with the Learned Resilience framework.

Glossary of Terms — Weathering Storms

Adaptive Challenge Sizing

The practice of choosing challenges that stretch capacity without causing burnout. Often referred to as the “Goldilocks Zone” of growth.

Adversity Loop

A recurring process of facing, learning from, and integrating challenges into higher performance—parallel to the Learned Resilience or THRIVE Loop.

Antifragility

A concept coined by Nassim Nicholas Taleb describing systems that grow stronger through volatility rather than merely surviving it. Startups that thrive on disruption embody this trait.

Black Swan Event

A rare, unpredictable, high-impact event (e.g., COVID-19) that tests an organization’s adaptability and resilience.

Chaos Quotient (CQ)

A measure of how effectively an individual or team can navigate the “Edge of Chaos,” balancing order and adaptability in dynamic environments.

Edge of Chaos

The threshold between order and disorder where innovation, adaptability, and transformation thrive. In startups, this often marks the space between collapse and breakthrough.

Learned Helplessness

A psychological pattern where repeated failure leads to inaction. The opposite of Learned Resilience.

Learned Resilience

The capacity to transform challenge into growth through deliberate cycles of reflection, right-sized risk, and recovery. Defined by the THRIVE Loop.

Post-Traumatic Growth (PTG)

The process of positive psychological transformation following adversity or trauma. In startups, it often follows existential crises that are survived and integrated.

Right-Sized Challenge

A task difficult enough to stretch capacity but not so overwhelming that it causes breakdown—central to building sustainable resilience.

Stress Mindset

The belief system that determines whether stress is perceived as harmful or enhancing. A “stress-is-enhancing” mindset enables growth through adversity.

THRIVE Loop

The foundational Learned Resilience cycle: Tackle, Hypothesize, Reach, Inspect, Value, Energize. It’s how individuals and teams metabolize adversity into growth.

Valley of Death

The perilous early stage in a startup’s life when costs outpace revenue and conviction is tested. A crucible for Learned Resilience.

We Loop

The collective version of the THRIVE Loop; describes how teams and organizations metabolize shared adversity into collective strength and renewal.

FAQ — Weathering Storms: Startup Resilience and Growth

Q1. What does “Weathering Storms” mean in the context of startups?

It describes the process by which founders, teams, and organizations navigate crises, uncertainty, and volatility without losing direction—transforming disruption into disciplined growth.

Q2. How does this connect to the Learned Resilience framework?

Weathering Storms applies the Learned Resilience (THRIVE) Loop to startups and teams. It shows how collective reflection, right-sized risk, and recovery cycles allow organizations to grow stronger after adversity rather than just survive it.

Q3. What is the “Valley of Death” in startups?

It’s the dangerous phase when expenses exceed revenue and survival depends on adaptability, conviction, and teamwork. Most companies fail here—not from lack of ideas, but from insufficient resilience.

Q4. What are examples of “right-sized challenges” for startups?

Right-sized challenges stretch a team’s ability without breaking it. Examples include piloting an MVP, testing new markets, or navigating a funding downturn while maintaining morale and learning velocity. Right-sized challenges also align with Jim Collins’ theory on firing bullets then cannonballs.

Q5. How is Learned Resilience different from grit?

Grit is persistence; Learned Resilience is persistence with reflection. It’s about knowing which storms to enter, when to pivot, and how to recover stronger each time.

Q6. What role does mindset play in resilience?

Mindset is everything. A “stress-is-enhancing” mindset transforms anxiety into focus and growth, while a “stress-is-harmful” mindset leads to burnout or avoidance. Resilient founders use reflection rituals to shift between the two.

Q7. What’s the connection between Learned Resilience and antifragility?

Learned Resilience builds the human and cultural foundations for antifragility. Antifragile systems—like great startups—don’t just withstand shocks; they grow stronger from them.

Q8. How can teams build resilience together?

Through the We Loop: shared reflection, communal recovery rituals, transparent debriefs, and consistent re-engagement after setbacks. It’s resilience as culture, not just character.

Q9. What are the biggest mistakes startups make during crises?

Reacting instead of reflecting, hiding failure, overextending before learning, and neglecting recovery. The absence of structured resilience loops often leads to burnout or learned helplessness.

Q10. What’s one takeaway for founders navigating uncertainty?

Treat every storm as a teacher. Learn from small failures, codify what works, and stay in motion. The practice of Learned Resilience turns volatility into an advantage—and chaos into fuel for growth.

Are Company Crises akin to a Rites-of-Passage?

Two Masai Warriors seen on the rite-of-passage

Consider a disruptive tech startup really only achieving the maturity necessary to succeed after collectively going through challenging times. This reminded me of seeing two young Maasai warriors on my brief time in East Africa with CARE. Is the passing through the storm for a company much like a rite-of-passage? Does a different, more mature company able to achieve success emerge on the other side, or will the battle scars that arose close proximity prove fatal?

“Sometimes, the storm that seems to destroy everything is actually the catalyst for your greatest success.” Sarah Dusek

The Maasai rites of passage not only serve as critical markers of personal growth and responsibility in the Maasai culture but also reinforce social cohesion and cultural continuity. Despite the pressures of modernization and the controversies surrounding some of its practices, the essence of the Maasai rite of passage remains a profound statement of identity and community values.

How you choose your team and how you help them navigate through the storm is perhaps the most critical factor here.

The notion of a “rite of passage” traditionally refers to a ceremony or event marking an important stage in someone’s life, especially a transition from one status to another. This concept is deeply rooted in cultural anthropology, where it is seen as a crucial phase in the socialization of members within the society, often involving significant challenges that must be overcome to gain new status or recognition.

Translating this concept to the business world, particularly to startups, the idea of a rite of passage can metaphorically describe the journey of a company from its nascent stages to maturity. The crises a young company faces can be seen as necessary hurdles or tests that it must endure to emerge stronger, more cohesive, and with a deeper sense of purpose. This metaphor holds that a startup, much like an individual in a traditional rite of passage, only truly matures and solidifies its identity and mission through overcoming significant challenges.

Cohesion and Collaboration

In facing a crisis, team members are often forced to work closely together, rely on each other’s strengths, and cover each other’s weaknesses. This intense period of collaboration can enhance team cohesion, as members unite with a common goal of navigating through the crisis.

Engagement and Commitment

The high stakes and urgency of a crisis can heighten team engagement and commitment. Employees may feel a renewed dedication to the company’s mission and a personal stake in its success, driven by the collective effort to overcome the challenges.

Transparency and Communication

During a crisis, effective communication becomes critical. Leaders must maintain transparency to ensure every team member is informed and aligned with the recovery plans. This openness can foster trust and loyalty, not only during the crisis but as a continuing aspect of the company culture.

Will to Survive and Thrive

Surviving a crisis often instills a strong sense of resilience and a belief in the company’s ability to handle future challenges. This experience can empower the organization, bolstering its will to not just survive but to innovate and excel.

Empirical Validation

Research in organizational psychology supports the idea that shared adversity can lead to “post-traumatic growth,” where individuals and groups that go through difficult experiences often emerge stronger, developing new skills, better relationships, and a greater appreciation for life’s possibilities.

In summary, just as rites of passage in various cultures are intended to foster growth, maturity, and community integration, crises in a business context can function similarly. They test the mettle of a company and its team, forging a mature, cohesive, and resilient organization ready to face future challenges with confidence. This metaphor underscores the value of adversity in catalyzing growth and transformation within startups, suggesting that such experiences, while challenging, are critical to the development of a robust corporate identity and culture.

Studies on Adversity Strengthen Teams

A quote often attributed to Einstein (though there is no credible source for this attribution) states “Adversity introduces a man to himself”‘ In my experience, this also holds for teams.

Research from the Association for Psychological Science, Shared Pain Brings People Together, supports the idea that shared pain and adversity increase group bonding and cooperation. For example, participants who performed painful tasks together reported a greater sense of loyalty and willingness to cooperate compared to those who performed pain-free tasks. This “pain as social glue” hypothesis suggests that shared difficult experiences can enhance group cohesion and collective effort.

A study discussed in “Frontiers in Psychology” found that shared adverse experiences can promote supportive team interactions critical for creativity and problem-solving. These experiences enhance commitment to the group and encourage members to provide mutual support, thereby fostering a cohesive and innovative team environment Shared Adversity Increases Team Creativity Through Fostering Supportive Interaction.

Other parallels of companies going through a rite-of-passage maturation

Tuckman’s Stages of Group Development:
- Bruce Tuckman’s model, which includes the stages of Forming, Storming, Norming, Performing, and Adjourning, is commonly applied to describe the developmental phases of teams within companies. While initially designed for small groups, its principles are often extended to organizational development, illustrating how companies evolve through phases of conflict, adjustment, and stabilization.
Greiner’s Growth Model:
- Larry Greiner proposed a model in the Harvard Business Review in 1972 that outlines six phases of growth punctuated by five crises: leadership, autonomy, control, red tape, and growth. Each crisis requires the company to undergo significant changes in its structure and strategy, much like rites of passage, to advance to the next stage of growth.
Adizes’ Corporate Lifecycle:
- Ichak Adizes’ methodology describes the lifecycle of a company from its inception to its eventual demise in phases such as Courtship, Infancy, Go-Go, Adolescence, Prime, Stability, Aristocracy, Recrimination, Bureaucracy, and Death. Each phase presents unique challenges and requires specific management strategies and changes, analogous to moving through rites of passage.
Eric Ries’ Lean Startup Methodology:
- Although not explicitly framed as a rite-of-passage, Eric Ries’ approach to building startups involves a series of stages where companies learn from their experiences, make adjustments based on iterative testing and feedback, and grow through pivots and new iterations. This process can be seen as a continuous rite of passage where each loop of the build-measure-learn feedback loop tests the company’s hypotheses and business model.

For more thoughts and perspectives from different belief systems on our individual and collective journeys of maturation and evolution, see also www.HumanTransformation.com/Journey.

Crossing the Chasm

“Crossing the Chasm” by Geoffrey A. Moore addresses marketing for high-tech products, particularly the challenges startups face when transitioning from early adopters to the mainstream market. The chasm refers to the gap between these two market segments, often proving to be a critical hurdle for technology companies. This passage too can be seen as going through a storm or a rite-of-passage.

Aligning Moore’s thesis with the concept of a “rite of passage” metaphor for startups facing crises, several key parallels emerge:

Test of Resilience and Adaptability

Moore’s concept of crossing the chasm requires a company to significantly adapt its strategies to appeal to a broader, more pragmatic audience. This transition can be seen as a rite of passage that tests the company’s resilience and ability to adapt under pressure, much like surviving a crisis can.

Maturation of the Company

Just as rites of passage mark the transition into a new phase of life, successfully crossing the chasm signifies a startup’s maturation from a niche player to a mainstream competitor. This stage of growth is critical, as it often determines whether a startup will thrive or fail, similar to how overcoming a crisis can strengthen a company’s operations and team cohesion.

Strengthening Internal Processes

To cross the chasm, companies must often streamline operations, enhance product offerings, and improve customer support. They need to meet the expectations of mainstream customers. This requirement for internal strengthening mirrors how a crisis can force a company to optimize its processes and team dynamics to survive.

Strategic Shifts

Moore argues that crossing the chasm often requires a change in business strategy, including product positioning and market approach. This strategic shift is akin to the transformation a company undergoes during a crisis, where quick, decisive action is needed to navigate through difficult times.

Building and Maintaining Trust While Weathering Storms

In both scenarios—crossing the chasm and navigating a crisis—building trust with customers and within the team is crucial. For crossing the chasm, trust is essential to convince a more conservative mainstream market of the value of a new technology. In crisis situations, trust within the team fosters unity and resilience.

Both concepts emphasize the importance of transformation and adaptation in a company’s lifecycle. They highlight how critical junctures, whether in market expansion or crisis resolution, serve as defining moments that can forge a more robust and focused organization capable of succeeding in subsequent challenges.

Weathering Storms - The Secret to Startup Success

5 thoughts on “Weathering Storms: How Startups Build Learned Resilience and Thrive Through Uncertainty”

Jacqui says:

November 10, 2025 at 10:04 am

I just finished reading your insightful piece on resilience — “Weathering Storms: How Startups Build Learned Resilience and Thrive Through Uncertainty” — and I felt compelled to share how deeply it resonated with me. Your vivid metaphor of a ship navigating turbulent seas beautifully captures the courage and agility required for startups in uncertain times. Your thoughtful articulation of how leaders can build a “crew,” set a “compass of purpose,” and anchor in genuine care for the team speaks with authenticity and warmth.

Thank you for crafting a message that not only informs but also uplifts — it offers hope, encouragement, and practical wisdom for anyone steering through tumultuous waters.

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1. CD says:
  
  November 10, 2025 at 10:08 am
  
  Thanks Jacqui. I’m glad it resonated and landed with you. I hope it can help
  Others weather whatever storms they might face.
  
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