It seems all around us, industries are being forced to change. New ways of doing business, new ways of interacting, new ways of organizing our economy. It’s become a sad cliché to say, “change is the new normal.”

Layered on top of this are some daunting new developments in 2023. Everyone is grappling with ChatGPT and how it may (or may not) upend our jobs. Geopolitics hangs over the global economy and could force some wild changes in trade and procurement. More severe climate events are forcing us to adapt in ways we would never have imagined.

Like a lot of challenges in life, the prospect of adapting to unwanted change often turns out to be easier than we thought. Not easy, but easier. Fear of the unknown and the inclination to resist change, tend to ignite negative thinking. What if I can’t adapt? What if I fail? These fears can paralyze us and make adapting harder than it needs to be.

Fortunately, humans are extremely good at adapting. We may not like having to do it, but when put in a situation in which we must adapt, we often do quite well.

In this three-part series, we will explore stories of how the fear of change almost ruined a vacation, destroyed an industry, and shut down a national economy. Instead, each were saved because of our natural ability to adapt. Too often, our fear of change makes situations worse than the actual change itself.

PART I: What’s So Scary About Australia?

In the fall of 2019, just months before the COVID-19 pandemic shut down global travel, my partner and I had the wonderful opportunity to visit Australia. It was our second trip to the Land Down Under, having been to Sydney and Melbourne in 2007. But this time was different: it was a two-week road trip covering some 2,500 kilometres along the northern coast through the state of Queensland along the Great Barrier Reef.

Australia is a beautiful place — but it’s also known for its dangerous wildlife. Everywhere you go, there are warning signs to watch out for the wildlife. I, however, wasn’t too worried about the dangerous wildlife but I was absolutely terrified of something else: driving on the left side of the road.

I’ve been to several other countries where they drive on the left (with a steering wheel on the right), but I was always a passenger on those trips. I had never driven a vehicle in those countries before. It was entirely new. And I was convinced I couldn’t do it. I tried in advance to visualize driving on the left. I even watched some YouTube videos, believing that would help orient me to Australia’s roads.

When we picked up our rented vehicle in Brisbane, my partner was the first to take the wheel. He drove for about four hours, but eventually needed a break. He pulled over and suggested I take the wheel. I looked at him. He looked back. And then he said, “If you think I’m doing all of the driving on this trip, you’d better rethink that!”

Ultimately, I had no choice but to get behind the wheel and start driving. And when I did, I discovered something amazing: it was not nearly as difficult as I thought it would be. After an hour or so, driving on the left side of the road felt surprisingly natural.

Don’t get me wrong, driving on the left side of the road is not the same as driving on the right. It required 100% of my concentration, 100% of the time. Distractions were not allowed. In fact, we joked we were probably safer drivers in Australia than at home because it demanded greater focus and concentration.

The key to adapting — in this case and in every other — is letting go of the old environment and embracing the new. I didn’t spend my time in Australia trying desperately to get back onto the right side of the road. I yielded to the fact that the environment is different. Once you can let go of the past, moving forward and adapting to the future isn’t as difficult as we think.

When sudden and unwanted change comes about, adapting to the new conditions often isn’t as difficult or disastrous as we might believe.

PART II: Rule Britannia?

In 1973, the global economy was rocked by the rise of the Organization of the Petroleum Exporting Countries and a sudden shortage of oil. It may not have been as disruptive as COVID, but the ensuing energy crisis pushed the world into several years of stagflation — an extremely unpleasant mix of economic stagnation and sky-high price inflation.

Britain was not spared from the energy crisis as heating fuels and petroleum prices shot up. At the same time, the economy was being hammered by striking coal miners. Coal was responsible for almost all of Britain’s electricity production in those days. It was a social and economic crisis unlike anything the country had seen in the post-WWII era.

The government responded with several measures, but the most dramatic was moving British workers to a temporary three-day work week during the first part of 1974. This affected almost every worker in the country, from factory workers and office workers to government employees and shopkeepers.

Given the 40% reduction in the hours people were allowed to work, it’s reasonable to expect that the economy would show a commensurate decline. But during the first quarter of 1974, the British economy contracted only about 11%, not 40%.

There are many moving parts to an economy, but a big reason why the decline was not as great as we might have guessed is British workers adapted to the new conditions. Workers understood what work needed to be done and what could wait. As a result, they became more productive and efficient.

There were negative consequences — adapting to change doesn’t mean there are no bumps or bruises along the way. But the point is that, given no warning and no preparation, workers were able to adapt to the new conditions much more quickly and efficiently than many thought they would.

The key to adapting is letting go of the old environment and embracing the new… Once you can let go of the past, moving forward and adapting to the future isn’t as difficult as we think.

PART III: Bar Patrons Pull the Plug?

Between 2000 and 2005, the bar industry in Canada was booming. But early in 2006, sales dropped like a rock, followed by a surge a few months later, another huge drop, then another surge. This pattern continued for a few years. What was driving this unusual instability?

Between 2006 and 2009, provinces and municipalities across the country were introducing no smoking bylaws for bars. Understandably, owners feared their patrons would stay home if they were not allowed to smoke in the bar.

The new restrictions did have a negative impact on bar traffic — but only temporarily. Smokers were more adaptable to the new rules than bar owners thought, and after a few months, they came back knowing they’d have to step outside to smoke.

Note again that adjusting to change didn’t come without some hardship. The new smoking bylaws had a negative impact on the bar industry with total sales ending the decade slightly below where they were at the start. But while there was an effect, it wasn’t nearly as catastrophic as some feared.

Waiting for things to get back to normal and/or fearing the worst are not productive adaptive strategies.

Conclusion

All three of these stories — the fear of driving in Australia, the British three-day work week, and the no-smoking bylaws in Canadian bars — point to the same conclusion: when sudden and unwanted change comes about, adapting to the new conditions often isn’t as difficult or disastrous as we might believe.

Sure, there will be consequences — and some of them will be hard to take. This suggests we have to twist out of the grip of nostalgia if we want to successfully adapt to unwanted change. Waiting for things to get back to normal and/or fearing the worst are not productive adaptive strategies.

Instead, if we embrace the new environment, however uncertain and uncomfortable it may seem, we will find we’re much better adapters than we think.

This is an adapted excerpt from the book Spiders in COVID Space by T.Hirsch and R.Roach, 2021.

Todd Hirsch is an internationally renowned economist, speaker, and author. He’s had a front row seat to key issues transforming the global economy for the past 25 years and delivers dynamic, clear-eyed talks on economics, adaptability, and creativity.

Contact us to learn more about Todd and what he can bring to your next event.