Fear Change? Is that holding your business back?
Once an industry leader, Blackberry disappeared from the market, using the same outmoded concepts and tactics while wishing the old market position would return. It never did. The ground rules of the competition had changed.
I advise my clients to embrace change before reaching a dangerous tipping point that could risk the future of their business. But why are so many C-Levels “stuck” whenever significant shifts in the market dynamics are underway? Beyond fearing change, they must see the business environment and the ground rules change.
The “Supply Chain,” a linear business model, was the star and primary area of competitive advantage of the 20th century. In 2020 over 55% of the top-valued companies were business platform based.
The battle of products or services is a war of ecosystems and platforms—an ability to create new markets and tap into new sources of value. Users find better deals on the platforms. If you can change, you avoid becoming antiquated.
CEOs know they must change, but typically they:
- Fear the unknown.
- Are driven by in-comfort zone habits.
- Are convinced the past will reappear and save them.
As a leader, you must not let your past perceptions limit what you “see” in the present. To initiate meaningful change, you must:
Broaden your horizon.
Stop going to only your industry’s trade shows. Check out what other industries do.
Discover weaknesses in competitors’ strengths.
Imagine an Indian car, Maruti, crashing into a Ford bus in a head-on collision. Outcome? A bus with a scratched bumper and an Indian flatbread—Chapatti! A company with much greater resources will likely win when businesses compete head-on. So, how do you go against a company with a significant resource advantage? Look for the vulnerabilities of your larger competitors. Find and attack the inherent weakness in the competitor’s strength.
The hotel industry invests huge capital in buying real estate. Auto rental companies invest millions in fleets. In both cases, the capital requirement is a significant barrier to entry and, therefore, the current players’ primary strength. Enter Air B-n-B and Uber. They attacked an inherent weakness in incumbents’ primary strength. With a platform business model, they leverage the “sharing economy.” There is no need for considerable capital.
But be aware of weak points not inherent to leaders’ strengths. Is the lack of “live person” support an intrinsic weakness of Bank of America? Nope. BOA has the margins for a higher support level but no compelling reason.
When an opportunity shows up, attack a flaw in the leader’s power, not its fault.
Build an innovative culture.
Whenever I conduct a Leadership and Negotiations Skills workshop with C-Level managers, I ask, “How many of you have innovative companies?” They all raised their hands. ALL HANDS GO DOWN when I ask what’s innovative at their companies.
It’s a leap from thinking you’re innovative to being innovative. If you genuinely want to see, feel, and think in new ways, you must fight your desire to stay put. To ignite change, you need to do it yourself first. Then you can roll out the rest of the plan to your company.
I would love to hear about your experiences! Please forward it to those who could benefit from my newsletter. Please share your stories at satishmehtausa@gmail.com. They can subscribe to it here or by clicking on the link below.
Thank you,
Satish Mehta
Author, Speaker, Coach
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