The Hidden Battle Between Past and Future

Lessons from James Hennessy on the psychodynamics of organizational memory

Illustration by A Different Lens in Midjourney

“Memory of a particular image is but regret for a particular moment.”

Marcel Proust from In Search of Lost Time

As artificial intelligence transforms entire industries and remote work reshapes the very nature of the workplace, many organizations find themselves caught in an emotional tug-of-war. On one side pulls nostalgia—a longing for simpler times when things "just worked." On the other side tugs what researchers call "postalgia"—an anxious yearning for a radically different future (Ybema, 2004). This invisible battle between past and future may be one of the most critical factors determining which organizations will thrive in our rapidly changing world.

This phenomenon has become particularly acute in the post-pandemic era, where established institutions face mounting pressure to reinvent themselves while employees yearn for the stability and connection they once took for granted. From tech giants grappling with their startup roots to government agencies adapting to digital governance, the same pattern emerges: organizations struggling to balance cherished memories with urgent demands for transformation.

A groundbreaking study by James Hennessy* conducted within a century-old institution reveals how these competing emotional forces—nostalgia and postalgia—shape organizational culture in ways that leaders rarely recognize (Hennessy, 2019, 2023). The findings offer crucial insights for any organization attempting to navigate the breakneck speed of change that characterizes our current reality while remaining true to its deeper sense of purpose.

The Anatomy of Organizational Memory

James Hennessy, an insider who spent nearly three decades within his organization, conducted an extensive study examining how collective memory and future desires influence institutional behavior. Through interviews with 35 current and former employees across all levels of seniority, his research uncovered ten distinct "streams" of feeling that flow beneath the surface of organizational life.

The nostalgic streams he identified will sound familiar to anyone who has worked in an established organization. There's the longing for clearer purpose—that sense of mission that felt so powerful during crises but seems diluted in ordinary times. There's nostalgia for defined roles, when the organization knew exactly where it stood within its ecosystem and felt confident pushing back against external pressures.

Perhaps most powerfully, there's nostalgia for community—for the days when the workplace felt "like a family," offering not just employment but belonging, care, and psychological income that transcended monetary compensation. One former employee interviewed for Hennessy’s study recalled how the organization was once known as "Mother Org," a place that would "take care of you" in exchange for loyalty and dedication.

But alongside these warm memories runs a more troubling current: nostalgia for leadership that could "see around corners," provide strategic vision, and connect personally with employees across the organization.

The study found that employees still idealized a leader from 25 years ago, suggesting a profound hunger for inspirational guidance that the current leadership wasn’t fulfilling (Hennessy, 2019, 2023).

The Struggle to Imagine Tomorrow

While nostalgia flowed freely from research participants, discussions about the future proved far more challenging. Many struggled to articulate postalgic visions—those compelling dreams of what the organization could become. This difficulty, Hennessy discovered, stems from several organizational pathologies that will resonate with leaders everywhere.

First, there's the crisis addiction. The organization had become so accustomed to responding to emergencies that it lost the ability to be proactive. "It's in our DNA to wait and react to things," one employee explained, "and then have great memories of dealing with a crisis." Without external pressure, the imperative for change simply doesn't register.

Fear compounds this reactive stance. In contrast to companies where change is expected and innovation celebrated, this organization had developed what employees described as a "deep-seated fear of change," driven by risk aversion and the knowledge that mistakes would be severely punished. The result? "Even if the old ways aren't giving you what you want, there's a baseline feeling that new ways are bad."

Perhaps most damaging is what researchers might call "operational myopia"—being so consumed with daily tasks that there's no time or energy left to imagine different possibilities. Employees reported being "caught up in the machinery of just doing," with no time to "reset our thinking" (Hennessy, 2019, 2023).

The Hidden Costs of Living in the Past

The study revealed troubling psychological dynamics that plague many organizations struggling with change. Employees engage in what psychologists call "idealization"—attributing unrealistically positive qualities to past experiences while ignoring their negative aspects. This creates a kind of organizational splitting, where the past becomes wholly good and change becomes inherently threatening.

The research uncovered evidence of "chosen glory"—the repeated invocation of past triumphs to boost collective self-esteem. While these stories of institutional heroism did serve important purposes, they also created unrealistic expectations and false confidence about the organization's ability to handle future challenges.

More concerning still, the study found pervasive fault lines dividing employees into "in" and "out" groups. New employees reported that it takes five to seven years before their views are taken seriously, while those who experienced past organizational triumphs maintain higher status than those who didn't. These divisions undermined the unity and collaboration that are essential for successful transformation.

When the Future Feels Forbidden

Despite these challenges, three streams of postalgic desire did emerge from the research, offering clues about what employees truly want from organizational change.

The first is inspiration—a hunger for leadership that can paint a compelling picture of the future rather than simply managing present complexities. Employees yearned for "four or five visionary strategic statements that would resonate and motivate," backed by leaders willing to communicate boldly rather than hiding behind analytical complexity.

The second is belonging—not the paternalistic family model of the past, but a new form of togetherness that includes acknowledgment of individual contributions, psychological safety to speak truth to power, and genuine possibility for positive change. Employees described wanting to bring their "authentic self" to work while contributing to something larger than themselves.

The third and most urgent is the fear of irrelevance. Younger employees in particular expressed alarm about their organization's reluctance to confront emerging threats. "We're totally blinded by the risk of being disintermediated within 10-15 years," one junior employee warned, frustrated by leadership's focus on immediate concerns rather than long-term viability.

Lessons from the Departed

Some of the study's most valuable insights came from former employees—whom Hennessy referred to as "Ghosts." These were all senior officials who had left the organization, sometimes decades prior, but whose influence still shaped it despite their physical absence. Having left the institution and having been able to reflect on all that had transpired, they had achieved something their former colleagues were struggling with: a productive relationship with both nostalgia and postalgia.

When interviewed, one such Ghost described how, when thinking about the current organization, he had shifted from asking "Why are they all acting like this?" to "Is it them or is it me?"—a crucial realization that both they and the organization had evolved. Another spoke about the importance of maintaining core values while accepting that "the things that may be good for the organization now are completely different from what I was once nostalgic for."

These "Ghosts" had developed what Hennessy calls "psychic postures"—ways of thinking that transcend the false choice between past and future. They maintained a commitment to enduring values like service and trusted relationships while accepting that organizational forms must evolve. Most importantly, they had learned to separate their personal identity from institutional identity, allowing them to support change, even when it differed from their preferences.

Building Bridges Between Past and Future

The research suggests that the traditional view of nostalgia and postalgia as opposing forces may be fundamentally flawed.

Instead of battling each other, these emotional currents can inform a more nuanced approach to organizational change—one that honors the past while embracing transformation.

This requires creating what transition theorists call a "transitional zone"—a psychological space where organizations can honestly examine both what must be preserved and what must be abandoned. Rather than dismissing nostalgic feelings as backward-looking sentimentality, leaders need to understand that these emotions reveal what employees truly value about their work and workplace.

Similarly, instead of viewing postalgic visions as unrealistic dreams, organizations should recognize them as crucial signals about emerging needs and threats. The fear of irrelevance that younger employees express isn't generational pessimism—it's often accurate perception of environmental changes that senior leaders haven't yet recognized.

The Path Forward

For organizations trapped between past and future, Hennessy's research suggests several concrete steps:

Acknowledge the whole truth. Stop idealizing past successes and honestly examine both positive and negative aspects of organizational history. This includes recognizing how current challenges may stem from past decisions and blind spots.

Create psychological safety. Employees can't envision positive change if they fear punishment for speaking honestly or making mistakes. Organizations must actively work to reduce the anxiety that prevents learning and innovation.

Bridge generational divides. Rather than dismissing newer employees' concerns about relevance and change, use their perspectives to inform strategic planning. Their outsider status often provides clearer vision about emerging threats and opportunities.

Develop transition skills. Help employees develop the psychological flexibility exemplified by the "Ghosts"—the ability to maintain core values while adapting to new circumstances.

Redefine community. Move beyond nostalgic family models toward more inclusive forms of belonging that acknowledge individual authenticity while fostering collective purpose.

Why This Matters Now

As we navigate an era of unprecedented change—from artificial intelligence to climate disruption to evolving work arrangements—the emotional dynamics revealed in Hennessy’s study become increasingly relevant. Organizations that remain trapped in nostalgic idealization or paralyzed by postalgic anxiety will struggle to adapt effectively.

However, those able to honor their past while embracing their future—not as contradictory impulses but as complementary sources of wisdom—will be able to create spaces where employees can process the grief of letting go while productively envisioning what's to come.

In the end, the choice isn't between past and future. It's between remaining trapped by unexamined emotions or learning to use those feelings as guides toward organizational wisdom and revitalization. The organizations that choose this second path will be the ones still standing when the dust settles on our current era of transformation.

* This article is written in honor of the late James Hennessy and as a vehicle for furthering his important work.

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