Motivate Without Illusions: What the Stockdale Paradox Teaches Us About Crisis Leadership

“Humor & Optimism – We believe in a happy ending for every new story” is one of our core values at Mashup Communications. However, on the roller coaster ride of entrepreneurial life, the arduous climb up the hill weighs heavily on your stomach as you pass by the crisis fairground of pandemic, war, “AI will replace agencies” narratives, and general economic pessimism. It’s not always easy to throw your hands in the air and cheer.

In fact, pure optimism can even be a disadvantage in difficult situations.

The Stockdale Paradox: Why Blind Optimism Can Be Dangerous

James Stockdale, a US admiral, survived more than seven years in captivity during the Vietnam War – enduring torture, isolation, and complete uncertainty. He later reported that it was not the unshakable optimists among the prisoners of war who endured the longest, but rather that they were often the first to break. Those who told themselves, “I’ll be free by Christmas,” experienced bitter disappointment time and again until eventually their hope faded – the Stockdale paradox.

According to Stockdale, the secret to perseverance lies in relentlessly acknowledging the brutal reality – while at the same time not losing the firm belief that you will ultimately emerge victorious. This balance between clarity and confidence is what constitutes true strength and shows why blind optimism sometimes makes you weaker than a sober view of the harsh present.

So let’s take a stoic look at some hard facts from the last half-decade of our agency’s history:

• Number of employees halved
• Office space reduced from 400 sqm to 80 sqm
• Sales down 25%
• Profit: just barely

Not necessarily key figures to show off. How do I communicate these developments to my team? Through storytelling, of course.

Not.

What Role Does Storytelling Play in a Crisis?

“In crises, stories consolidate three things that the team needs: meaning (why we exist), the ability to act (what we are doing now), and stability (what we orient ourselves on when facts change),” ChatGPT summarizes for me.

The problem with this, however, is that despite mission/vision statements and value posters, I don’t always have answers to these questions during a crisis. I can’t always promise a positive future narrative.

But – and here comes my plea for storytelling, as you might expect – in difficult times, we can reflect on many stories that demonstrate the resilience, adaptability, and vigilance of our agency and our team as protagonists of this now 16-year-long heroic journey. These are strengths that we should perhaps incorporate into our value concept.

We would not be alone in this. The Continuity & Resilience Report 2023 also shows that organizations no longer leave crisis communication and resilience to chance: more than half of the companies surveyed now have a dedicated team or roles that deal with business continuity and resilience in a structured manner, rather than just reacting ad hoc.

Our Resilience Stories

After our tax office predicted financial ruin in 2017, two years later we were able to invite the entire team on vacation to Marrakesh and celebrate a flat-rate salary increase for everyone.

While we were praised for our workation offer in a TV report before the coronavirus pandemic, our employees now enjoy trust-based working hours, trust-based vacation, mobile working – work-life balance galore.

That and much more would not have happened on its own.

And yes, the AI visions of Sam Altman & Co. initially made some of us (myself included) tremble with fear. But after initially waiting to see how things would develop, we took up the topic with optimism (yes, it is there after all) and passion from the heart of our team, and we are noticing that our own work is getting an extra boost with the help of AI.

Grieving over constant change, it’s obvious that you would actually like everything to continue as usual. But that would be a pretty boring story.

Resilience Through Honest Stories

Good crisis stories that resist the Stockdale paradox do not promise a happy ending. They state the brutal facts and show a credible path forward. Even though we will continue to tell many success stories, we should also use our corporate campfire as a safe space to tell stories of resistance and growth that reveal our true character, which equips us to face any crisis.

The Stockdale Paradox teaches us that optimism alone is not enough. In times of crisis, we need a balance between brutal facts and confidence—and storytelling as a tool for resilience, meaning, and orientation.

Miriam Schwellnus, storytelling expert and managing director of the PR agency Mashup Communications

Further articles on topics such as crisis and internal communication

• Adidas, Coca-Cola und Co.: Wie gehen Unternehmen mit der Corona-Krise um?
• Krisenkommunikation – In fünf Schritten zu mehr Resilienz
• Storytelling in Internal Communication

FAQ: Storytelling and the Stockdale Paradox in Crises

What does the Stockdale Paradox teach us about optimism in crises?

The Stockdale Paradox shows that pure optimism is not enough. Those who only hope for a happy ending soon will easily lose heart. The decisive factor is the combination: acknowledging reality while believing in a good outcome.

What role does storytelling play in difficult times?

Storytelling is not a fairy tale, but a tool. It conveys meaning, provides orientation, and strengthens the team’s ability to act – especially when external circumstances are uncertain.

Where does true resilience come from?

Resilience does not arise from rose-tinted visions of the future, but from real-life stories of adaptation, perseverance, and success. These experiences make teams crisis-proof.

Why should companies consciously tell their crisis stories?

Crisis narratives are a source of strength. When companies make their moments of resilience and learning visible, they strengthen trust, cohesion, and the ability to overcome future challenges.