Leaders spend a lot of time preparing their teams for anticipated changes like organizational restructuring or a technology upgrade. But what happens when external forces bring about a sudden, unexpected change?

It’s impossible to prepare for every eventuality. That’s why having an established Social Contract is an asset to any team – it functions as a “behavioral north star” during times of upheaval and uncertainty and can be the factor that decides if your team crumbles or pulls together.



What is a Social Contract?

Most organizations have lists of core values and behavioral standards. A Social Contract incorporates those into a robust, team-crafted document that lays out a vision for a dynamic, creative, and supportive working environment. It includes expected behaviors and provides a path to follow when the contract is violated.

That second piece is key, because no one is perfect. Any Social Contract will be violated. But if there is a thoughtful approach to reconciliation that was designed by the group, conflict and discord can be resolved more quickly and fully.

Social Contracts are helpful in day-to-day life at work, but they are crucial when a team is blindsided by unexpected change of various types.

Economic change

Even with top tier analysts, no organization can accurately forecast the state of the economy all the time. Whether the overall economy takes a turn for the worse or a particular industry faces sudden supply chain issues, teams may find themselves facing unanticipated budgetary constraints.

In these scenarios, a Social Contract helps buoy team trust. When there is a sense of scarcity, unprepared teams may begin to experience increased individualism, risk aversion, and turnover. A fear-based culture can stifle creativity and decrease productivity.

Teams with a Social Contract in place, however, can fall back on the behaviors and norms they’ve been practicing all along. When the team dynamic starts to become negative, the contract can be referenced as a reminder that everyone is in this together. If difficult budgeting decisions have to be made, the values in the contract can be used as the guiding force.

Technological change

Planned technology changes often cause great organizational upheaval; unplanned changes can wreak havoc. Take the recent Crowdstrike outage, for example. Companies around the world were brought to a grinding halt, including some airlines. Getting everything back online took far longer than anticipated, stretching customer patience to a breaking point.

In these tense situations, a Social Contract can act as the salve that smooths communication between harried team members. When behavioral standards are inevitably broken, the Social Contract illuminates a clear path toward reconciliation. If a statement needs to be made to the public, the principles and values outlined in the contract can underpin the press release.

Geopolitical change

With an increasing overlap between the public and private sectors and the online and in-person worlds, companies are being forced to navigate complex political, geographical, and global challenges like never before.

Everything from climate disasters to wars to elections can influence the tenor of workplace discourse. Team members may find themselves personally divided based on age, religion, or political affiliation. When a major event occurs, locally or globally, teams without a Social Contract may dread returning to work and face undertones of discord and judgment.

Teams with a functioning Social Contract know that although there may be some disagreement on the team, they will respect one another and continue to work toward their shared goals. They also know that they can hold each other accountable to appropriate workplace behavior and don’t have to suffer in silence.

Be prepared for anything

It’s impossible to specifically prepare for every potential scenario that could disrupt your team. That’s why a Social Contract is so worthwhile. It helps leaders and their teams respond to unanticipated changes with agility, professionalism, and care.

If you want to learn more about what to include in a Social Contract and how to operationalize it, download our free guide, “Achieving Team Excellence: The Power of a Social Contract for Today’s Complex World” today. It includes a four-step process for transforming work culture and real-world examples of Social Contracts in various industries.