From a free workspace competition at The Cannon to a tech company's big acquisition, here are some Houston innovation short stories. Courtesy of The Cannon

It's easy to miss some of Houston's innovation news — there's quite a lot coming out across town. From contests launching out of The Cannon to a Houston tech company making a major acquisition, here are some quick news stories you need to know.

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Onit Inc.makes acquisition

Houston-based contract management software company, Onit Inc., announced the acquisition of SimpleLegal, another legal services software company. The terms of the deal were not made public.

"Onit and SimpleLegal share both a passion for both disrupting the legal technology space and valuing product innovation," says Eric M. Elfman, Onit CEO and co-founder, in a release. "Our shared commitment to elevate legal operations technology is an asset for all of our customers – from rapidly growing startups with their first in-house counsel all the way to the largest, most complex organizations. Together, our goal is to help all legal operations professionals achieve operational excellence on their legal technology journey."

According to the release, all product, support and services will go on without any interruption for customers of both companies. Elfman will serve as the CEO of the merged organization, and Nathan Wenzel, who was the CEO and co-founder of SimpleLegal, has been named the general manager of SimpleLegal.

"Today, corporations spend more than $160 billion on their in-house legal teams. The combination of Onit and SimpleLegal is a game-changer for the legal market and the future of legal operations," says Wenzel in the release. "Our teams are uniquely equipped to help shape the technology that is powering legal departments worldwide. Together, we're looking forward to combining efforts and talent to build and bring to market the next generation of legal operations technology."

The Cannon and Insperity launch startup competition

The Cannon's 120,000-square-foot space is on track to open this summer. Courtesy of The Cannon

The Insperity Innovation Scholarship is back — this time the prize of 6 months of free office space inside The Cannon means the new, 120,000-square-foot space that's set to open in West Houston very soon.

"We are so excited that Insperity has chosen to bring back this year's Innovation Scholarship and will be rewarding another lucky Houston area startup with space in our brand new building," says The Cannon's founder and CEO, Lawson Gow, in a release. "As one of our original partners, we are looking forward to another year of working with Insperity to fulfill a mission that we share — providing Houston area startups with all the resources they need to succeed and establish Houston as an exceptional place to start your business." (Gow is the son of InnovationMap's CEO.)

The applications are open from now until June 5. The finalists will be notified on June 7. All of the finalists will pitch their company to a panel of judges on June 13. Companies based in the Houston area with 3 to 8 employees are eligible. Startups can apply here.

New-to-Houston coworking concept in CITYCENTRE breaks ground

FUSE Dynamic Workspace just announced its new 26,000-square-foot project coming to CITYCENTRE. Photo via workfuse.com

The construction process has officially started this month for Texas-based FUSE Dynamic Workspace's second location in CITYCENTRE. The complex will consist of 26,000 square feet of coworking space in two buildings connected by a bridge, and include an additional 5,000 square feet across four outdoor terraces. The space will have 95 private offices, a coworking café and lounge, dedicated desks, and conference space for up to 100 people.

FUSE strives to provide business professional amenities while also giving back to its community. The first location was in Prosper, Texas.

re:3D wins over $700,000 grant

After just opening a new factory and community space, re:3D was awarded a large grant. Courtesy of re:3D

Houston-based re:3D, which just opened its new 7,000-square-foot community space and factory, recently won a six-figure grant from the National Science Foundation.

The SBIR Phase II grant is for $749,111 to further commercialize the company's Gigabot and increase maker manufacturing through 3D printing with reclaimed plastic and direct drive pellet extrusion, according to an email sent to re:3D's community.

Griddy grows with new partnership

Griddy Energy enables customer pricing transparency. Photo via gogriddy.com

Griddy Energy has signed a strategic partnership with EDF Trading Ltd — a subsidiary of low-carbon energy group EDF Group. Through this partnership, EDF will provide support to Griddy as it expands its services.

"We're thrilled to announce this deal because our focus has always been saving Texans money by connecting them directly to the grid for wholesale electricity rates. This partnership means we can bring the power of wholesale to far more people," Greg Craig, CEO of Griddy, says in a release, "In 2018, Texans paid a combined $20 billion to REPs. Had Texans paid wholesale last year, they would have paid just $14 billion. That means Texans overpaid by a staggering $6 billion last year. Our goal is to get as much of that money back into the hands of Texans in the form of savings — and this partnership with EDF will allow us to do just that."

Griddy, which has a huge presence in Texas, provides customers wholesale electricity prices and promises to be open, honest, and transparent. Rather than charging inflated rates, the company only makes a profit from the $9.99 monthly membership fees. Everything else is at cost — no margins, hidden fees, or break fees. Read more about Griddy here.

LetsLaunch and The Cannon team up ahead of a live fundraising event

LetsLaunch, a Houston-based fundraising platform, has teamed up with The Cannon. Courtesy of LetsLaunch

Fundraising for your company could be stressful, but exciting. Now, imaging that process taking place at an event in a face-to-face capacity. LetsLaunch and The Cannon have teamed up to put on a live fundraising event — think of it like a online fundraising platform meets a cocktail party.

The event is set for June 15, and LetsLaunch is taking applications for potential participating startups until May 24. Apply here.

Griddy, lead by CEO Greg Craig, is making a surge in Texas by disrupting the state's outdated electricity plan. Courtesy of Griddy

Electricity startup puts its Houston customers on the grid

Power Player

In 2015, Greg Craig looked into Texas' wholesale energy industry and a light bulb went on over his head. He realized that the way consumers were delivered power was opaque and misleading. The electricity industry is one of the few areas that the tech boom hasn't yet infiltrated. That is, until Griddy came along, launching in Houston in the spring of 2017.

"Technology has changed and bettered everything in life," says Craig, Griddy CEO and co-founder, who compares Griddy to likes of Amazon, Uber, and Costco. "Our thesis was, 'what if we could build a tech platform that would connect the home directly to the grid?'"

Instead of profiting off hidden fees and fixed prices, Griddy provides customers wholesale electricity prices and promises to be open, honest, and transparent. Rather than charging inflated rates, the company only makes a profit from the $9.99 monthly membership fees. Everything else is at cost — no margins, hidden fees, or break fees. This all translates to savings of up to 30 percent, says Craig, who co-founded Griddy with executive chairman, Nick Bain.

Electricity of the future
Griddy customers are connected directly to their smart meter which records electricity use and communicates this information to the home owner's electricity supplier

Customers can download and use the Griddy app and get a by-the-second update of the wholesale price so that they know when the price spikes and it's time to turn off unnecessary energy suckers. The app also offers 36-hour forecast to give consumers an idea of what the wholesale price will be at a specific time.

The mobile aspect of Griddy is a large draw as consumers increasingly use their phones and do everything online or in-app. From the transparent prices to the mobile app, Griddy's features have been well received by millennials, a generation drawn to companies that stand out and are committed to strong corporate values that put the customer first and offer low prices.

This month, Griddy launched a new app, Griddy Guest, that allows non-members a chance to test the benefits of Griddy before becoming a member. "We understand people may be a little cautious of switching to a new type of energy provider so we created Griddy Guest to allow people to access the perks and track their potential savings before completely switching over to becoming a Griddy member," says Craig.

Consumers can use the app for free, view the current wholesale price of electricity and projected prices using your zip code, and receive an estimate of savings from using Griddy in comparison to the average rate for their location, house type, and weather zone.

"We're trying to be disruptive and innovative and do things no one's ever done," Craig tells InnovationMap. "No one's ever done 'we'll tell you exactly what we make,' no one's ever done 'here's real time wholesale,' no one's ever provided mobile app information like this by the second, and now no one's ever done 'be our guest, be our guest, put our service to the test', and now we've done it."

What's next?
Griddy, which is only in Texas, is continuing to spread into deregulated markets with sights set on the East Coast in the first half of 2019, to be closely followed by an international move to the United Kingdom, Australia, and Japan. The company is also pursuing machine-learning artificial intelligence to handle optimal time for power use, a technology that would automatically adjust power use for consumers during price spikes. This type of feature would be connected directly to households, closely monitoring the price of electricity to save consumers even more money.

Overall, Griddy has made a large footprint with its launch in Texas and is currently in 39 different cities within the state. The company hopes to continue to turn consumers to wholesale electricity over traditional overpriced fixed energy plans to disrupt the industry and save individuals money.

Feel the surge

Griddy users can enable push notifications that alert them of surge pricing so they can turn off any large appliances to avoid excess charges.

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CultureMap Emails are Awesome

Houston startup scores $12M grant to support clinical evaluation of cancer-fighting drug

fresh funding

Allterum Therapeutics, a Houston biopharmaceutical company, has been awarded a $12 million product development grant from the Cancer Prevention and Research Institute of Texas (CPRIT).

The funds will support the clinical evaluation of a therapeutic antibody that targets acute lymphoblastic leukemia (ALL), one of the most common childhood cancers.

However, CEO and President Atul Varadhachary, who's also the managing director of Fannin Innovation, tells InnovationMap, “Our mission has grown much beyond ALL.”

The antibody, called 4A10, was invented by Scott Durum PhD and his team at the National Cancer Institute (NCI). Licensed exclusively by Allterum, a company launched by Fannin, 4A10 is a novel immunotherapy that utilizes a patient’s own immune system to locate and kill cancer cells.

Varadhachary explained that while about 80 percent of patients afflicted with ALL have the B-cell version, the other 20 percent suffer from T-cell ALL.

“Because the TLL population is so small, there are really no approved, effective drugs for it. The last drug that was approved was 18 or 19 years ago,” the CEO-scientist said. 4A10 addresses this unmet need, but also goes beyond it.

Because 4A10 targets CD127, also known as the interleukin-7 receptor, it could be useful in the treatment of myriad cancers. In fact, the receptor is expressed not just in hematological cancers like ALL, but also solid tumors like breast, lung, and colorectal cancers. There’s also “robust data,” according to Varadhachary for the antibody’s success against B-cell ALL, as well as many other cancers.

“Now what we're doing in parallel with doing the development for ALL is that we're continuing to do additional preclinical work in these other indications, and then at some point, we will raise a series A financing that will allow us to expand markets into things which are much more commercially attractive,” Varadhachary explains.

Why did they go for the less commercially viable application first? As Varadhachary put it, “The Fannin model is to allow us to go after areas which are major unmet medical needs, even if they are not necessarily as attractive on a commercial basis.”

But betting on a less common malady could have a bigger payoff than the Allterum team originally expected.

Before the new CPRIT grant, Allterum’s funding included a previous seed grant from CPRIT of $3 million. Other funds included an SBIR grant from NCI, as well as another NCI program called NExT, which deals specifically with experimental therapies.

“To get an antibody from research into clinical testing takes about $10 million,” Varadhachary says. “It's an expensive proposition.”

With this, and other nontraditional financing, the company was able to take what Varadhachary called “a huge unmet medical need but a really tiny commercial market” and potentially help combat a raft of other childhood cancers.

“That's our vision. It's not economically hugely attractive, but we think it's important,” says Varadhachary.

Atul Varadhachary is the managing director of Fannin Innovation. Photo via LinkedIn

Houston researcher scores prestigious NSF award for machine learning, power grid tech

grant funding

An associate professor at the University of Houston received the highly competitive National Science Foundation CAREER Award earlier this month for a proposal focused on integrating renewable resources to improve power grids.

The award grants more than $500,000 to Xingpeng Li, assistant professor of electrical and computer engineering and leader of the Renewable Power Grid Lab at UH, to continue his work on developing ways to use machine learning to ensure that power systems can continue to run efficiently when pulling their energy from wind and solar sources, according to a statement from UH. This work has applications in the events of large disturbances to the grid.

Li explains that currently, power grids run off of converted, stored kinetic energy during grid disturbances.

"For example, when the grid experiences sudden large generation losses or increased electrical loads, the stored kinetic energy immediately converted to electrical energy and addressed the temporary shortfall in generation,” Li said in a statement. “However, as the proportion of wind and solar power increases in the grid, we want to maximize their use since their marginal costs are zero and they provide clean energy. Since we reduce the use of those traditional generators, we also reduce the power system inertia (or stored kinetic energy) substantially.”

Li plans to use machine learning to create more streamlined models that can be implemented into day-ahead scheduling applications that grid operators currently use.

“With the proposed new modeling and computational approaches, we can better manage grids and ensure it can supply continuous quality power to all the consumers," he said.

In addition to supporting Li's research and model creations, the funds will also go toward Li and his team's creation of a free, open-source tool for students from kindergarten up through their graduate studies. They are also developing an “Applied Machine Learning in Power Systems” course. Li says the course will help meet workforce needs.

The CAREER Award recognizes early-career faculty members who “have the potential to serve as academic role models in research and education and to lead advances in the mission of their department or organization,” according to the NSF. It's given to about 500 researchers each year.

Earlier this year, Rice assistant professor Amanda Marciel was also

granted an NSF CAREER Award to continue her research in designing branch elastomers that return to their original shape after being stretched. The research has applications in stretchable electronics and biomimetic tissues.

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This article originally ran on EnergyCapital.

Houston expert shares 3 leadership challenges inspired by jazz improvisation

houston voices

Crises, whether supply chain disruptions, natural disasters, or the arrival of an upstart rival, are a revealing moment for leaders. Such scenarios can push companies to the brink of meltdown or usher in dramatic organizational transformation. Whether an organization withers or thrives during a crisis is shaped by its resourcefulness—how it uses its existing resources.

The pandemic decimated many industries, but the performing arts industry faced especially grave challenges: rampant unemployment, limited prospects for revenue, and an existential crisis over the relevance of the arts in dire times. Initially, musicians could not congregate to practice, performance halls were shuttered, and classical music was the last thing on the public’s mind.

As tough as these circumstances appeared to be, what collaborator Kristen Nault and I learned during a multiyear study of two prominent orchestras surprised us: Not only was it possible to survive trying times, but it was also possible to emerge better because of them. The leadership key? Becoming nimbler by thinking more like jazz ensembles and less like classical orchestras.

Business leaders often call this agility, but for a musician, this is the realm of jazz improvisation. Our research found three critical changes in leadership practices that helped leaders facing disruptions act like talented jazz musicians. Leaders in any industry can apply these practices during their organization’s next crisis.

The Resource Paradox During a Crisis

An organization’s most significant challenge during a crisis is that it typically needs resources — including time, money, expertise, equipment, and connections — at a time when activating resources has become more difficult. When faced with high levels of uncertainty, a leader’s first instinct might be to pare down investments to lower the risk of worst case outcomes. Ironically, such defensive behaviors can contribute to the organization’s demise. Threat rigidity sets in, with the leader doubling down on old habits and control mechanisms that make it difficult to harness the full potential of resources.

Instead of fearing crises, leaders can learn to embrace their hidden benefits. And by following the adage “Necessity is the mother of invention,” organizations can unlock the full power of their existing resources to respond to a challenge. Research on resourcefulness finds that when leaders take this approach, they can foster collective creativity to help groups solve problems in adverse times.

During the COVID-19 pandemic, many businesses discovered ways to access more knowledge (to understand how to repurpose products and services), capital (to invest in IT infrastructure), and connections (to identify new markets for revised products and services). Resourcefulness helped businesses pivot: Bakeries pivoted to selling raw ingredients for home chefs, clothing companies to producing face masks, vacuum manufacturer Dyson to designing a ventilator in 10 days, and distilleries to manufacturing hand sanitizer.

A Tale of Two Symphonies — and Leadership Approaches

At the onset of the COVID-19 pandemic, we engaged in a multiyear research study with two of the world’s premier symphony organizations, the Houston Symphony and the Revenite Symphony (a pseudonym because the organization requested confidentiality).

When we began our research, it was an open question as to whether Revenite and the Houston Symphony would survive. Both organizations had struggled financially before the pandemic, with millions of dollars in losses and even more significant budget deficits. Both organizations were also steeped in customs and traditions, which, as any business leader knows, makes change difficult. Yet, crises often produce one valuable resource needed to instigate considerable change: urgency. Urgency makes it possible to rapidly implement changes that might otherwise have taken years (or not happened at all). A lack of urgency dooms many change management initiatives, making its abundance during a crisis an opportunity not to be overlooked. As we interviewed and observed symphony executives, staff members, and musicians, we discovered that the leaders of each organization took very different approaches to addressing the crisis and mobilizing their resources to respond.

Revenite announced a suspension of operations near the start of the pandemic. Its leadership could not envision how to pivot its labor and fixed assets, such as its performance hall, to capture new sources of revenue. As one Revenite executive told me, “I don’t think we had a sense of what the pathway toward restarting the business was going to be. … There were too many unknowns.”

After furloughing all of the musicians and most of its staff, Revenite focused on surviving. The organization radically slashed costs to 25 percent of the pre-pandemic budget and tried to get the remaining skeleton workforce to increase productivity to keep the symphony chugging along. Leaders sought to wait things out until the pandemic subsided. This defensive strategy led Revenite to constrict resources when the organization needed them most.

Afraid to go broke, the organization retreated — at a significant cost. Revenite lost any relevance to its community at this time of great need. Several difficult-to-replace musicians quit the industry. Trust between leadership and all employees, already strained from the furloughs, further deteriorated as Revenite’s leaders centralized control of the organization and focused on squeezing the remaining labor force to do more. Many employees felt burned out from working long hours with little purpose. No one, including executives, understood the “why” behind the work. As one executive said to me, “I’m working to sustain a thing that has no inherent meaning other than its survival. That’s a really weird place to be. … Our mission is to perform orchestral music.”

In contrast, the Houston Symphony made an early commitment during the pandemic to remain open. It abandoned the long-term planning that symphonies typically engage in (measured in years) and shifted to figuring out the next few weeks — for its concert program, staffing, safety practices, and marketing efforts.

At first, congregating in the performance hall was not allowed due to regulations and safety concerns. So instead, the Houston Symphony turned its musicians’ homes into performance venues. The musicians teamed up with musically talented (but not professional) family members, including partners and children. Instead of relying on a huge production team, the makeshift videos in its Living Room Series of performances were created by a minimal number of staff members. Other orchestras that livestreamed performances tried to re-create the symphony experience on Zoom, with 70-plus musicians appearing in tiny square boxes. The Houston Symphony realized that it would inevitably disappoint its customers by trying to transform a rich in-person experience into a mediocre online one. Instead, it reimagined the delivery of its content by inviting customers to learn about musicians and their families in an intimate setting while listening to enjoyable music.

When the Houston Symphony moved to livestreaming full concerts without an in-person audience, it could reach new geographic markets not possible with in-person-only events. It charged an admission fee for the virtual concerts (which was uncommon) and attracted donations from a wider variety of patrons. This brought in additional resources, such as revenue, new supporters, and media attention, as well as an enhanced reputation among industry peers.

Importantly, these decisions also created extra time for the organization to figure out how to safely and effectively return its patrons to the performance hall, which Houston did long before most other symphonies. However, the organization went further, using the pandemic to usher in a more profound transformation.

Instead of making deep cost cuts and unsustainable workforce reductions like Revenite did in the name of resourcefulness, the Houston Symphony took a strategic approach to resourcefulness. Leaders focused not on simply surviving but on strengthening the organization’s long-term outlook — financially, operationally, and in terms of its mission:

  • The need to be more mindful of costs during severe financial distress helped leaders balance the budget, a goal that had proved elusive in years past. The entire organization made a newfound commitment to follow a pathway of greater fiscal responsibility into the future.
  • The organization expanded its donor base beyond Houston and reached customers worldwide with the paid livestreaming product. Although at face value a livestreaming ticket yielded fewer proceeds than an in-person concert, many attendees were first-time patrons. Additionally, a large portion of these people donated money in addition to buying the livestream tickets.
  • The symphony maintained livestreaming performances after returning to a full, in-person concert schedule — earning incremental revenue with little added effort.
  • In a striking change, the organization introduced its patrons, who traditionally heard Bach, Beethoven, and Mozart, to a more diverse set of composers. Prepandemic, the pressure to fill 3,000 seats deterred the Houston Symphony from experimenting with new composers: When programs featured unfamiliar works, filling the theater with ticket buyers was a challenge. But that pressure disappeared when the performance hall was restricted to less than 50 percent capacity. The organization brought in much-needed new voices, and its audiences responded positively — so much so that the symphony upped its efforts. In the year before the pandemic, fewer than 1 percent of the symphony’s classical concerts featured musical pieces composed by members of underrepresented populations or women. In the 2023 fiscal year, and with Houston’s hall at full capacity, that number expanded to 72 percent.

Learning to Get Jazzy: Three Strategies for Leaders

Many organizations, whether a symphony, manufacturing company, or professional services firm, are metaphorically structured like an orchestra. They have conductors (leaders) and rely on sheet music (routines and practices) to coordinate different parts (teams, divisions, or functional areas) of the enterprise. Organizational leaders aim for reliable and standardized performances, much like conductors aim to make the matinee performance of a symphony the same high quality as the evening one. Through many rehearsals (that is, the repetition of behaviors), it is possible to make incremental improvements, but leaders seek output that, by design, is predictable and relatively static. Operating like a symphony orchestra allows organizations to thrive in environments of stability and low uncertainty. But during a crisis, this type of model can be disastrous.

Our research found that the Houston Symphony significantly changed its operating model. It pulled ahead of peers in the industry when leaders changed the operating metaphor to that of a jazz ensemble. As one executive told me, the collective team saw the power of flexibility: “Leadership has come from the admin and staff side and the musician side. … We’ve combined different kinds of music and programs that [we] would never do before. I would say that as a large organization, we’re operating more like a small organization.”

That is the kind of result that many business leaders navigating disruptive crises only hope to nurture within their teams.

How did the Houston Symphony’s leaders inspire the organization to become so nimble? Our research found three critical changes in leadership practices that enabled them to adapt.

1. Keep the music playing.

Like a jazz ensemble, the Houston Symphony tried to keep the music playing, literally and figuratively. While Revenite stopped playing music and functioning as an organization, the Houston Symphony kept playing … anything. For example, the livestreamed Living Room Series was a far different product than a fully staffed professional production with 70 musicians in a 3,000-seat venue. However, those performances brought in new patrons and donors, and nurtured the symphony’s relevance in the community. This experiment also helped build the organization’s experience with livestreaming, which proved to be an important launching point for a more comprehensive virtual offering. Leaders, staff members, and musicians discovered their hidden capabilities around playing different types of music, utilizing novel technologies, and coordinating in new ways.

Without clarity on how the pandemic would unfold, the Houston Symphony focused on short-term decisions, asking “What can we play this week?” instead of trying to have an answer for the rest of the year. This allowed the symphony to have the most relevant information to inform its operations — real-time information that could be used to make decisions today, instead of relying on shaky assumptions about an unknown future. Leaders of any type of organization can understand a crisis by experimenting and then taking stock of lessons learned instead of remaining frozen by fear and uncertainty.

2. Don’t wait to practice transparency.

Houston’s leaders fostered strong trust between management and all employees. As resources become scarce during a crisis, it’s easy for trust to erode if decisions lack transparency. Instead of shrouding decision-making in secrecy, the Houston Symphony invited representatives from the front-line staff to weigh in on critical decisions. Relationships with the musicians’ union strengthened. By revealing sensitive information and disclosing the dire predicament the organization faced early on, leaders built trust and sparked a sense of urgency. Both were required in order for the team to quickly make significant changes.

Trust also came from empowering employees to experiment and not punishing them for making mistakes. For example, the marketing team had to try different campaign messages until they found one that resonated with patrons. The development team turned the mere fact that the symphony was playing into a comeback story—one that donors eagerly supported. The operations team discovered ways to socially distance musicians and audiences and continually modified its plans as the pandemic evolved.

3. Collaborate on a postcrisis identity.

Finally, the Houston Symphony constructed a new postcrisis identity that reflected its leadership role in the community. Instead of trying to return to pre-pandemic norms, leaders expanded the organization’s mission to cater to a wider, more diverse set of community members. The organization committed to experimenting with new types of music and continued with livestreaming to introduce audiences worldwide to a larger repertoire of selections. Expanded educational programs helped it reach underserved communities, providing a stronger foundation to diversify the artistic talent base.

Having helped shape the Houston Symphony’s comeback during the pandemic, employees embraced this community centered vision and rallied to keep the transformation momentum going. Additionally, they all came to see their own skill sets differently. After effectively coping with major adversity and helping to build a stronger organization, employees came to see themselves as capable crisis navigators — which will help everyone during future crises.

A Second Act

As our research progressed into its second year, we grew increasingly certain that Revenite would fold. We turned out to be wrong. As the organization neared the brink of death, Revenite’s leaders stopped waiting for the crisis to abate and ushered in a dramatic turnaround. It began when leaders engaged in updating. Updating is a leadership competency in which prior beliefs are revised to better address problems. It’s often a struggle for leaders to change direction after committing to a course of action, but Revenite’s leaders managed to dislodge their previous views of the crisis as the organization withered. They managed to adapt, as any jazz musician must.

Although the relationship with Revenite’s musicians had been deeply tarnished, leaders restarted a dialogue. The full impact of the furlough and Revenite’s decision to suspend operations became clear. Leaders updated their assessments of employees’ emotional states, gaining a more vivid understanding of how they had suffered economically and emotionally. Musicians explained that they had felt disconnected from their love of performance and struggled to stay sharp without practicing as an entire orchestra. After learning about employees’ hardships, leaders finally felt an urgent need to course-correct.

Revenite’s leaders next updated their assumptions about financial resources. They finally acknowledged that cost cutting was not a viable business strategy or a pathway to transformation. Instead of viewing employees as cost centers, leaders shifted to seeing them as revenue generators. By becoming more strategic with their resourcefulness, Revenite’s leaders could mobilize their existing resources to respond to the crisis more effectively. Musicians returned from furlough and started helping to increase revenues through donor outreach and, eventually, concerts.

Leaders also started noticing more about how other entities were adjusting to the crisis. They found inspiration in the Houston Symphony’s ability to operate during the pandemic — and also learned from Revenite’s musicians’ efforts to create COVID-safe concerts to raise money for themselves during the furlough. These examples showed Revenite’s leaders that operating during a pandemic was possible — something they had thought was insurmountable earlier in the year. By the end of year two of the pandemic, Revenite was well on its way to returning to its precrisis strength.

When a crisis hits, getting jazzy will help leaders in any industry adapt and positively transform their organizations. Instead of fearfully retreating at the onset of a crisis, using resourcefulness as a set of strategic tools can help leaders turn a threat into an opportunity. By unlocking the hidden potential of existing resources, organizations can emerge from a crisis with better financials, stronger operations, higher team morale, and a reinvigorated sense of purpose.

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This article originally ran on Rice Business Wisdom and was based on research from Scott Sonenshein, the Henry Gardiner Symonds Professor of Management at Rice University, author of Stretch: Unlock the Power of Less — and Achieve More Than You Ever Imagined (HarperCollins, 2017), and coauthor (with Marie Kondo) of Joy at Work: Organizing Your Professional Life (Little, Brown Spark, 2020).