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Netflix, Instagram, Slack. These three corporations have one thing in common: their initial marketing strategy was unsustainable, and they became the powerful corporations they are today because they decided to take a latest direction.
A startup culture pivot is a strategic business decision to change course to make the most of a latest need in the market that your product or service can meet through calculated changes. Effective operation requires high adaptability and organizational flexibility to achieve long-term success.
In a business world that is continually changing, pulling the plug when things don’t go according to plan is the easy way out. However, successful entrepreneurs and investors who truly understand their markets can see revolutionary ways to exploit latest opportunities by improving their current business models.
Is it time for a change in your company? Let’s see when it makes sense, how to do it well, and what it looks like for each success and failure.
It’s time for a change
I’ve lost count of how many corporations I’ve seen that had every thing arrange for success, only to have the market pull the rug out from under them. Even the most enterprising and fastidiously prepared ventures could also be surprised by economic changes.
From market changes to latest technological developments to drastic economic impacts, quite a few external aspects can force corporations to consider changing their business model. Internal aspects, reminiscent of a sharp decline in performance metrics or changes in consumer behavior, may indicate it’s time for a change.
The truth is that few successful corporations get where they are today by following the same strategic plan they began with. While at all times maintaining your core values – what makes your company unique – it is essential to maintain organizational agility. You should at all times prepare for the vital changes that may ensure your company’s position and financial stability.
Decision time
Recognizing the need to change direction and deciding to do so are two various things. There are many aspects to consider and it is likely that several stakeholders will need to log out. Therefore, before deciding on the next steps, it is vital to conduct extensive market research, data evaluation and forecasting.
Some businesses may experience difficult times that may subside with a few adjustments and persistence. For others, a drastic change to the business model could also be vital to survive. There is no immediate solution or easy answer. A call of this importance requires due diligence and faith in your team and product.
An awesome example of change based on conscious decision-making is Netflix.
Initially, in the early twenty first century, it was a mail-order DVD service. Even though it had a foothold in the home entertainment market, it felt the strain of increasing competition. Management looked at current industry trends, but also saw a completely latest, untapped market to conquer.
In 2007, it launched a streaming platform where many of the same movies and shows they used to send by mail were now ready to watch on demand. They pioneered the streaming revolution and continued to adapt as they began to develop latest and original content.
Yes, many others eventually followed suit, but the point is that Netflix executives understood the market and their company so well that they knew when it was time to pivot, and executed it in a way that disrupted their industry and drove profits corporations.
Successful implementation
The next phase of pivoting is to get every thing moving. Implementation will be one of the most difficult features, as your company will likely face scrutiny and backlash from all sides, including from inside.
This is the phase where clear and effective communication becomes crucial. You will feel resistance from your employees who do not feel comfortable with change. Stakeholders who weren’t involved in this decision will feel slighted. Industry experts may find this change bizarre. Your company’s messaging and resolve have to be unwavering, regardless of who says what.
If you have done your research, considered all options and scenarios, and gained the support of the appropriate parties, no other force should change your position unless there is a legitimate threat to the future of your company.
Communicating this change from a standpoint of empathy and care, while respectfully sharing the need for a turnaround and how it will work, is essential to maintaining the stability of the process. Changing the direction of a business is never easy, but effective planning and implementation of the process may result in success.
There are no guarantees
Notice how I said it “might” be successful. Like your initial marketing strategy, it can also go improper, even if it is perfectly crafted and executed.
The unlucky part of business is that it at all times involves risk. Nothing is ever promised. Yes, a transformation can save your company from failure – or it can lead you down a path that seems promising but is yet one other dead end. If this is the case, learn from it. This may mean the end of the road or one other detour on the road to your company’s true potential. Regardless, don’t let a single failure pass without gaining knowledge about improvements or wisdom about what works and what doesn’t.
Failure is sad, yes, but he’s an amazing teacher. Even if your trade is successful, that does not imply you won’t need to remain vigilant and ready to adapt when the market changes again. No business is ever protected. Changes in industries. The competition is getting fierce.
Never stop innovating. Don’t feel comfortable. Focus on the path ahead and be careful for the next obstacle.
Change is not a bad thing. Pivoting is not a sign of weakness or failure. Leaders who are open to changing direction tend to be the most successful. They are the ones who are alert and ready to pounce on the next opportunity before anyone else even knows it exists.
Stay flexible, be ready to adapt, and when the time comes, change well.