For decades, I have used quippy movie quotes to share what I am seeing in raw data and hearing from primary sources in ways that, hopefully, serve as a catalyst for action. But as I was gathering insight for this issue of the Business Advisory Services Market Insight newsletter and selecting memorable movie references, life, as they say, got in the way.

A few nights ago, I was in my front yard with my fourteen-pound cockapoo Scout. Suddenly, I heard him howl in extreme shock and pain. When I glanced down, I saw a coyote in the process of capturing his prey. Without hesitation, I became the apex predator. I freed my dog from the coyote’s clutches and, after rushing him inside my home, went in pursuit of the startled coyote. It was not good enough that my dog was safe. I wanted the coyote to unambiguously appreciate that any aggression to my pack goes through me first and that his aggression would not be tolerated at any level. An unmentionable vet bill later, I am glad to report that Scout is on the mend, and the coyote has not been seen since.

I have always been fascinated with the concept of Fight, Flight or Freeze but this recent experience got me thinking about how this concept affects both our personal and professional lives. WebMD defines Fight, Flight or Freeze as “the three most basic stress responses. They reflect how your body will react to danger … The fight response is your body’s way of facing any perceived threat aggressively. Flight means your body urges you to run from danger. Freeze is your body’s inability to move or act against a threat.” 

For Scout’s sake, I was glad that I invoked the Fight response. I did not consider Flight or Freeze. Why did I choose Fight without any hesitation as the only option on the table? Why didn’t I consider the downside of extricating my dog from the desperate animal? Why didn’t I consider the downside of chasing a wild predator into the darkness? My response was simple. I did what I had to do to protect my family member. Neither Flight nor Freeze was ever an option.

Now, you must be wondering how this encounter with a coyote can tie into a Business Advisory Services Market Insight. Economic data and leading indicators offer warning signs of storm clouds ahead, akin to an oncoming economic storm. However, we have time to prepare and hunker down. COVID was more like an expected tornado – though it came at us much more quickly, we still had time to plan and hunker down for a prolonged period. In contrast, last decade’s Great Recession was more like an earthquake. We had little warning, and the resulting damage done was protracted, deep, and wide. 

Conventional wisdom tells us bumpier times are ahead, but no one can assure us of its severity and length. As I am in my fourth decade serving clients through the highest and lowest economic cycles, I have marveled at how some business leaders respond to external threats and how often I am wrong in guessing who will opt for Fight, Flight, or Freeze. But while employees (and their families) all assume that their CEO is a Fighter, unfortunately, this is not always the case. My experiences have suggested that Freeze CEOs are not mentally prepared to face the hard choices that need to be made during rough times, and often they are in denial until it is too late. I have only encountered one Flight Executive, who literally walked out the front door and never came back.

So my call to action is as follows: While you have the chance, please give some introspection as to whether you will Fight, Flight, or Freeze when your company faces a shock that can potentially lead to its untimely end – and define best how to prepare to protect your company, your employees and their families who are relying on you for their economic survival.

The good news is that you do not have to prepare to Fight and face the unexpected alone. We have advised hundreds of entities and take immense pride in empowering companies to proactively embrace, and even thrive, during uncertain times. If you are interested in learning more about how you can prepare to Fight for your company’s health, safety and prosperity, reach out to the LGA Business Advisory Team.

Thank you,

LGA BAS Team