While many companies are facing closure or significant downsizing, I can share that all my regular clients are GROWING during this terrible Coronavirus time.
“Why?” You might ask. “That’s just lucky”, you might also say. I can tell you it’s not dumb luck, and I’ll show you why in a minute.
In one of my prior blogs I talked about business models that are pandemic resistant. As you might expect, these growing companies each have pandemic resistant models as a main source of revenue. But there’s something that each of these companies does well in addition to choosing a terrific business model. They’ve created their luck with:
The Top 3 Things to Know When Pivoting Your Business:
- State the problem to be solved
- Get in motion now
- Pivot now, before you’re tempted to perfect your response
I’m reminded of what a great pivot is by the famous Jack Welch quote.
When the rate of change on the outside exceeds the rate of change on the inside, the end is near. – Jack Welch
Though Mr. Welch passed on before the Coronavirus, he very well could have been thinking about our current Coronavirus situation when he said it.
Companies that will not survive are likely are having internal discussions sounding something like this:
Rate of change on the outside. “Hmm, rate of change on the outside, that must certainly mean the current pandemic. But when everything goes back to normal, will it really have changed that much?”
Rate of change on the inside. “Oh, I’m ready to change. As soon as I know the right path, I’m going to go for it. I promise you I will.” In another words, when I know the perfect pivot to make, I will commit to starting to act. If I don’t know the right pivot, I will not act.
The first issue here is that these business leaders have not stated a clear problem, so how do they know a good pivot when they see it? Without knowing the problem they’re solving, they won’t see any pivot as the right one. In fact, even after stating the problem, most successful leaders seldom make the perfect pivot. Getting into motion now, they make the best pivot they can with the best information they have at the moment.
Here’s an example from a client company:
Problem. “My employees don’t have the virus protection they need to perform their jobs.”
Get in Motion. “I must provide an ample supply of masks and gloves to my employees. They deserve to be protected.”
Using their procurement expertise, the company secured a supplier able to provide many more masks and gloves than their employees could ever reasonably use.
Pivot Now. “Ok, how do I serve the situation with the masks and gloves that I can purchase? The answer is, “Use my supply chain capabilities to provide these at a fair price to the public through our online partners, such as Amazon. ”
In addition to being a generally good place to work, by having an ample supply of masks and gloves the company has been able to attract workers at a time when many are afraid to leave their homes! And the very modest profits made from the sale of the masks and gloves pay for all of the employee protection! I’d say that the rate of change on the inside is exceeding the rate of the change on the outside at this company!
Last point, this client company has built a culture accepting and leading change, so the need for a pivot is expected, not treated as an exception within their culture.
The leader who earlier in this article said “But when everything goes back to normal, will it really have changed that much?” has not prepared their team for change, any change really. On the contrary, they taught their employees if they wait long enough, things will go back to normal.
My successful clients have seldom waited for an opportunity to come to them. They are active making changes in their businesses every day. Their employees expect change, and as a result, this pivot for the Coronavirus also feels easier to manage.
- What problems have you clearly articulated in your business?
- Are the pivots happening now?
- Is the rate of change on the inside exceeding the rate of change on the outside?
Please be safe and healthy. Also, please share how you’re doing with the changes around us and comment on this article.
Jeff@COOForYou.com
888-588-0357