The more things change, the more they stay the same -- especially in business. And that's the problem, according to global business consultant, Rebel Brown.
"As much as we all acknowledge how the world has changed over the last two decades, businesses and corporations tend to continue doing things the same way they've always done them," said Brown, a consultant who has worked with companies as diverse as Silicon Graphics, NeXT and Verity, as well as startups in the U.S. and abroad.
"I can't count the number of times executives have told me, 'Well, that's the way we've always done it.' The truth is that most companies talk about change far more than they actually engage in it. That's because they are afraid of making any change out of fear -- of Big Bang disruption, of the wrong change or of leaving the safety and comfort of the known. We're stuck in the way we've always done it -- and that's a big reason why our economy is stuck in neutral."
Brown, author of Defy Gravity, believes that the key to evolving and prospering is to not only challenge some of our most basic business assumptions, but, in some cases, to reject them outright. Brown has proven through her past client engagements that businesses that let go of the status quo will begin to rise above their competition, defying gravity in a sense. In order to start that process, Brown wants executives to start questioning some of the most common sacred cows of business, including:
It's Our Best and Biggest Seller -- Sometimes clinging to the cash cow can lead to a complacency that prevents new companies from staying in sync with what the market needs. Instead, these companies become slavish to the needs of one client, and ignore the changes in the marketplace. What's worse is that the big seller may represent strong revenue, but all the extra attention this client commands may actually mean that it's big only in revenue, but not in profits. What's worse is that your company may end up completely incapable of surviving if that big seller stops selling, because myopia has prevented them from evolving to meet the changing needs of their customers.
They're Our Biggest Customer -- Are they? Sometimes our best customer commands more attention than the rest, which cuts into the actual profitability of that customer. It may also take our attention away from other customers who could account for as much profit, if the time and effort were taken to help those relationships grow. Moreover, focusing on a very select set of big customers makes us myopic to the changes in our industries, often preventing us from capitalizing on other opportunities for growth and expansion.
It's a Huge Opportunity -- The big deal, the dream client, the huge order -- all things that businesses strive for -- may not wind up being that profitable in the long run. We'll discount, deal, sacrifice strategy, dedicate extra resources and throw out the baby, the bathwater and the tub to get those deals. And once we have them, we celebrate and take our victory lap, but what have we really won? We rationalize that we'll make up whatever we spent to get the deal over the lifetime of the contract. We justify the extra effort by thinking if we can get this big domino to fall, other big ones will follow. But the reality is that those plans aren't always sure things. Remember, huge opportunities aren't always inherently opportunities for success. They can be opportunities for failure, as well.
"Let's face it, two years ago, we never expected the emergence of social media as a way to communicate with and market to our customers and prospects," Brown added. "And five years ago, many didn't expect the web would become the major revenue driver it's become. So, if the world around us is changing so dramatically, so quickly, why do we cling to the oldest ideas in business? If we truly want to defy gravity, we must first untie the tethers that bind us to old assumptions. We can use our innate human abilities to learn to think differently about our businesses by listening to our markets and shifting our perspectives -- from gravity to growth."
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Comments:
Great Article. The status quo and inertia are two of the biggest killers of innovation in any business. It is critical to build support for a new status quo before it will become the normal. Planning any business should take into account the initial inertia and innovation adoption curves.
Yes, yes and yes!
Hey Rebel. Glad you enjoyed my mini-rant :) Oh! You mean "Bet The Farm" huge. I see :) Yes, I know what you mean then. But then again, no matter what the context there's always someone who thinks "get rich quick" is the best plan. BTW, Einstein really was a genius, eh?
Hi Chief Absolutely love those quotes and your thoughts. thanks for adding them here!!! As for the Huge Opportunity - I've seen a large number of companies tank their growth (and their business) because they focused on some huge big deal that killed their business when they won it. All too often ego takes over from common sense when it comes to huge opportunities. we want that big deal so badly we don't care if it's not in the best interest for our business over the long term. I'm not saying don't go after any huge opportunities. I am saying be thoughtful and question until you find the right huge opportunity for your business. Thanks again for the great additions! reb
Hi Ajeva As human beings it's in our nature to be afraid of change. it's also in our nature to be Natural Born Gravity Machines - it's in our DNA. That's because we learn - from our experiences and from others. We use our learning to create our belief systems - about our world and ourselves. those beliefs become knowns and facts, and then the status quo. When times get tough, we hunker down in the safe, comfortable, and known - which is our status quo. Gravity leads us to look for what's safe. But growth doesn't live in the safe zone. So if we want to grow, we have to step forward into the present - which may be scary - but that's where growth lives. Thanks much for stopping by! reb
Thanks for stopping by Jorge. You're absolutely right on - our markets are changing faster than ever before. Either we evolve - or the way we've always done it will leave us in a mess. it's not that difficult to see our businesses differently - the big step is the first step, which is becoming aware of the fact that we need to evolve. thanks much for your input! reb
Its a very good point of view and it is a raw reality. I am a bussiness advisor in México and it is the same thing here, including the entrepenuer and the old one, that want to earn money easily and rapidly. they must change the business vision and becames the directive gestion more profesional and attentive to the market changes
Everybody's scared of change... that's why we're all stuck in our comfort zone for now, watching everyone else. When they made a mistake, we tend to say 'Aha! I knew it! ' I guess, real entrepreneurs would risk getting the ax and risk everything for what he or she truly believes in. This is where innovation starts.
Yup! Couldn't agree more. Naturally, I have some thoughts I'd like to add: => Einstein once said, "Insanity - doing the same thing over and over and expecting different results." I don't think he was talking about business but it is probably the best business quote ever written. => What always strikes me as odd are clients who propose they are in favor of: new, growth, innovation, etc. but then insist on only using their usual tactics and strategies. Change by definition requires change. (Duh?) It's as if they know something Einstein did not. => The most amusing situations arise when they seemingly move forward towards the new all the while maintaining the old. The project bombs and then the excuse is, "See, X wasn't for us...". What they're not willing to admit is their textbook execution of how *not* to do X. Of course it didn't work, as if sand in the tank is just as effective as gasoline. => I'm not so sure "It's a Huge Opportunity" belongs in the list above. While what you say is true, there's only one way to learn and that's "R&D". True, Opportunity A might not pan out well. But all is not lost if the lessons learned help to fully capitalize on Opportunity C or D. I'm not suggesting haste. Only that you win the game you have to be playing.