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House Rule: Morale & Party Initiative

MORALE RATINGS Morale Description -8 Openly Rebellious -4 Mutinous  -2 Disgruntled -1 Shaky 0 Neutral +1 Motivated +2 Stalwart +4 Determined +8 Fanatical A parties Morale Rating starts at 0. For each factor that decreases the unit’s morale, shift one row up the table. For each factor that improves it, shift one row down.  Factors Affecting Morale • poor treatment by a leader or allies • more than half the party is at half hit points (or less).  • low or no pay • no stake in the battle’s outcome  • incompetent or ill-prepared leadership  • a daunting, overwhelming foe • poor equipment The reverse of any of those factors can improve morale. If the party has elected a leader or been assigned one, add the leaders Charisma modifier to the parties Morale Rating. PARTY INITIATIVE In this campaign we will only use the regular Initiative rules if the party doesn't have a leader or is seperated from their leader (moving more than 60 feet away might count, also if the leader is unable to take actions). The rest of the time, Initiative rolls will consist of: a d20 + the parties Morale Rating + the higher of the leader's Dexterity or Wisdom modifier, as rolled by the leaders of each group. This will determine which leader goes first, at the end of the leaders turn the leader declares which of his allies goes next, at the end of that character's turn the player decides which ally to go next and so until all allied characters have taken a turn. 
The intent behind the party initiative is to mimic the various Cortex Plus Popcorn Initiative systems while also functioning as a side based Initiative system harkening back to various retro D&D rules while also stressing the importance of morale. Failed morale/wisdom checks can turn the tide of battle, ensuring shorter combats, but morale will have a longterm impact on combat prowess. 
Any time one member of a party is reduced to half or zero hp, it forces that party to make a group Wisdom save DC 13, modified by the parties current morale rating. Creatures that fail this save are frightened for 1 round. Unable to attack and only able to flee, frightened creatures effectively skip their turn as result of poor morale. If at least a majority of the party fails this save, their morale rating worsens one step. If a party ends its turn, with a morale rating of shaky or worse and without having hurt their opponents in combat despite attempting to do so, they will have to make a similiar Wisdom save. If the parties leader is reduced to 0 hp, it also triggers a Wisdom check at disadvantage. Spells that cause the frightened condition also cause party morale to worsen, by one step. Some forms of undead, such as skeletons and zombies never test morale unless turned.