Last month,
we wrote about the importance of maintaining focus on the organization’s mission so as to not lose sight of why the organization exists. Without question, the need exists for leaders to change how they think and subsequently act in the execution of their strategies. In this discussion, we use as an outline the ideas from Geoff Colvin’s book,
The Upside of the Downturn: Management Strategies for Turbulent Times. We’ve referred to this book often in our own business and leadership coaching practice for ideas on managing through tough times and it only seemed fitting under current circumstances to go back to it again.
In Chapter 6 of his book, the author lays out three questions to organize the leader’s thinking around how to reexamine what must change and what must remain constant. We will add our own thoughts to each question based on what we are seeing across both our for-profit and non-profit coaching clients.
What is the core of the business? ~ This was really the conversation that began in last month’s discussion around mission. What is it that makes the business unique in the chosen markets or industry? What is the secret sauce that makes the business what it is? It is easy to get caught up in the woulda, coulda, shoulda conversations of the situation and lose sight of the core of the business. Now is the right time to assess the current actions of the business and see if, in fact, those actions truly are in alignment with the core purpose and mission. The core of the business may be anything from being product centric to being a unique business model that delivers products a different way. Whatever it is, the leader’s ability to put it front and center to current ongoing discussions is paramount.
How is today’s environment changing customers/client/donors and their behaviors?
~ One of the best practices we use with our clients is to revisit their environmental scan every six months. We use a combination of PESTEL (Political, Economic, Socio-Cultural, Technology, Environmental, Legal) external environmental scan along with the
SWOT (Strengths, Weaknesses, Opportunities, Threats) Synthesis to help client leaders organize and document their thinking around the true nature of the changing environment. When leaders are diligent in their focus on why their customers/clients/donors make their buying/giving decisions, they are better prepared to understand how to adapt to the changing times affecting those decisions.
Is the change hastening, or even causing, a large-scale restructuring in the industry and, if so, how does it affect the business? ~ The important thinking for leaders in the context of this question is that the changes are not just impacting their business by itself. These changes have a wider impact on entire markets and industries. While at first blush, this may seem onerous, it actually presents new opportunities in how the strategies are executed. Much like the recent pandemic, the question is how will leaders navigate their business to the front of the industry competitive line when conditions change for the better? By using the similar tools in the previous paragraph, (PESTEL and SWOT), business leaders can once again organize, document and effectively communicate their thinking around how their business can adapt quicker than their competition.
Last year, we wrote about the challenges of trying to solve
complex problems with linear thinking. Recent challenges are unprecedented in their complexity as they are happening for the first time in recent history where the solutions may well be ones that are being considered for the first time and without a proven track record. However, like past challenging times, the danger is not the challenge, rather it is thinking and acting on the challenge with yesterday’s logic.
How are you thinking and acting differently to lead your business? If you’re not sure,
we can help!
Lead well!
