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Standing Still or Moving Aimlessly?

Written by: David Liddell

Article Overview: Do not allow your organization to stand still? Do you move with purpose? Examine if your compant is moving forward or standing still.

Standing Still or Moving Aimlessly?

As it relates to running your business, the differences between standing still and moving aimlessly are more nuanced that you would think but the consequences can be equally damaging.

You might consider each scenario and wonder how either could work its way into any respectable business culture. The problem has its roots in what is not being done rather than anything intentional. In fact, intentional acts are easier to identify and fix, but the former sneaks up on you and bites you when you least expect it or need it.

Let's take a closer look using two case studies (no real names) to illustrate a few important points. Carl started his business fifteen years ago and grew the business successfully for the first ten years. He started with a viable, but small, product line, a handful of eager investors, and better than anticipated market demand. As sales grew, so did the organization. Good people were hired, manufacturing capability expanded, and the customer base flourished. Success did not come easily; it was earned through hard work, good decision making, and persistence.

Confidence within the company was high until the leadership team discovered some disturbing trends. A few years ago, revenue hit a plateau, customer retention was in decline, and margin pressure was increasing. It took the better part of two quarters to determine what had happened and how they had been blind-sided. It became obvious, for the prior two years they had been standing still. Complacency had set in; they stopped asking for feedback from their customers, innovation vanished, confidence appeared more like arrogance, and planning had become a pastime occurrence.

On the other hand, Jessica's organization suffered from moving aimlessly with almost identical results. Her father started the service based company over thirty years ago with the credo of "if we take care of our customers, they will take car of us". It was an approach that worked well and produced a very loyal customer base. Growth was gradual from year to year, but predictable, and was fueled by a simple and pragmatic strategic plan which was reviewed and adjusted slightly every year. Every leader in the organization had some involvement in their planning which developed a very clear understanding of their roles and contribution to the company's success.

It wasn't until about five years ago when things started to change. The control of the business was systematically transferred to Jessica over a twelve month period. Her aspirations included rapid revenue growth which involved new service offerings and an aggressive hiring strategy. She moved quickly and deliberately to build out their new capabilities and to capture greater market share.

Complacency was not their problem, it was moving too quickly and in too many different directions. The value provided by the new services was not easily understood by the sales organization which then did not translate well to their customers and prospects. New customer acquisition did not happen as planned and over a period of a few years the legacy customer base shrank. The net result was negligible revenue growth and much higher overhead expenses - not a favorable situation.

Serious dangers exist for both scenarios however they could have been avoided if the leadership for each organization followed a few important guidelines...

1. Do not allow your organization to stand still. Past success does not ensure future success because of a constantly changing marketplace. Customer needs evolve and competitive pressures always grow. Ensure your products and services provide the value your customers require to meet their changing business needs.
2. Do not try to move into too many directions at once. The unique value provided by your organization provides competitive advantage and should be fully leveraged. Stay true to your core competencies. Expand your product and service offerings in alignment with your competitive strategy and market focus.
3. Move with Purpose! Work with your leadership team to develop your strategic plan. Know your organizations value proposition. Create core competencies to support your value proposition. Adjust your plan regularly. Hire the right people. Target the right prospects and customers. Understand what makes your organization successful and what is holding you back. Invest in your employee's professional growth. Be courageous. Minimize your weaknesses, build on your strengths, and celebrate success!

Start today! Examine your organization and the people who are responsible for its success; what most closely represents your current situation?

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Article Tags: create a strategic plan, move with purpose, moving organizations forward



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