Contagion and the Horse Storm

The recent events with the banking industry have mentioned the idea of "contagion". As with many terms, there are varying definitions:

The spread of disease by close contact;

The spreading of a harmful idea or practice;

Emotional contagion, when emotional and behavioral cues lead to similar emotions and related behaviors;

Or in financial contagion, it is the spread of an economic crisis from one market to another.

It is apparent that the strength, or fragility, of the economic conditions, can be primary drivers for the spread of financial contagion. This term is noted from the 1997 Asian Financial Crisis, although cited blame for the Great Depression. Although I am not a financial analyst, these historical incidences are worth review for our current economic climate, as well as getting a better understanding of human behavior.

With emotional contagion, we pick up on others emotions and behaviors which can change our own. Think of picking up your happy child after a long, difficult day, or a big hug from a smiling friend. Emotional transposition from others can impact behavior, positively and negatively.

With both examples, human behavior is a root cause. Each actionable move, each buy/sell decision. There is an underlying theme of fear in many of these actions, and this fear, and subsequent choices, have a ripple effect. This reminded me of a conversation that I had with Jonathan Berent , CEO of NextSense, Inc , regarding building teams. He mentioned standing guard of the "Horse Storm".

JB shared a story about a time in history, dating back as far as 1500 BC, where horses were transported by boat. This practice carried through multiple wars, with conditions that did not experience much change. They were shackled on deck or boxed into compartments below. Keeping the horses calm was no small task. Even in smooth sailing, horses are anxious to travel. This "Horse Storm" can happen to a boat, starting from the restlessness or anxiety of one horse. This energy evoked, as subtle as it may seem, can incite a ripple effect in other horses, causing a dangerous condition and loss of control. This "Horse Storm" is clearly a form of contagion, and one that humans experience in addition to these respected animals.

As we move out of this economic climate, which we will, let us not miss opportunities to reflect and improve on ourselves, as business leaders, and as individuals. How we think, live, and interact with our world have a ripple effect on others around us, and we have every opportunity to move positively.