How to Effectively Communicate a Pivot in Your Business (and Why It's Important) The success of a business pivot heavily relies on effective communication as it shapes stakeholders' perceptions and understanding of the changes.

By Athalia Monae

Opinions expressed by Entrepreneur contributors are their own.

Communicating a pivot in business is crucial for transparency, clarity, alignment and feedback, which can all contribute to the success of the company.

A pivot can be a significant shift in the company's focus or direction, and it's important to communicate the new vision. This ensures that everyone understands the new goals and objectives and can work towards them effectively. By communicating a pivot, everyone in the organization can get on the same page and align their efforts toward the new direction. This helps avoid confusion and ensures everyone is working towards the same goals.

Determine the stakeholders who will be directly affected by the pivot, such as employees, customers, investors and partners. Tailor your communication strategy to address the specific concerns and interests of each group.

Start by communicating the pivot internally to your employees before making any public announcements. Hold team meetings, town halls or workshops to explain the reasons behind the pivot, its potential impact on roles and responsibilities, as well as the new goals and objectives. Encourage questions, and address any concerns to ensure clarity and alignment.

Craft an external communication plan to inform customers, investors and other external stakeholders. Consider using multiple channels such as press releases, email newsletters, social media updates and blog posts. Clearly outline the benefits of the pivot and how it will positively impact your customers or clients.

Related: 4 Tips for Setting Up a Successful Pivot Strategy

The importance of communicating a pivot

Communicating a pivot allows for feedback from stakeholders, which can help refine the pivot and make it more effective. By involving others in the process, the company can benefit from different perspectives and ideas.

In today's fast-paced business environment, pivoting can be a necessity to adapt to changing market conditions or customer needs. By communicating the pivot, the company can signal its ability to adapt and stay relevant, which can be a positive signal to stakeholders.

"Pivoting is not a sign of failure; it's a sign of learning and growth. Embrace it, learn from it, and use it to propel your business forward." — Caterina Fake, co-founder of Flickr

When a business pivots, it's essential to be transparent about the changes happening in the company. Clear communication helps maintain trust with employees, customers, investors and other stakeholders.

It attracts new customers who may be interested in the new products or services resulting from the pivot. It also positions your business as a forward-thinking industry leader, giving you a competitive edge. It opens doors for potential partnerships or collaborations that align with your new business direction.

Well-executed communication protects and enhances your brand reputation during a period of change and can generate positive media coverage, increasing brand visibility.

It also helps ensure legal compliance by clearly communicating changes in policies, terms, or regulations.

Related: 5 Tips to Keep Team Motivation Going During a Pivot

How to effectively communicate a pivot

Although communicating a pivot in business can be challenging, there are some steps you can take to make the process smoother and more effective:

  1. Be clear and concise: Start by clearly explaining what the pivot is and why it's necessary. Keep your message simple and to the point, avoiding technical jargon or confusing language.

  2. Highlight the benefits: Emphasize how the pivot will benefit the business, customers and stakeholders. This will help them understand why the change is necessary and help them buy into the new direction.

  3. Address concerns: Anticipate any concerns or questions that people might have, and address them proactively. Be transparent about any potential risks or challenges and how you plan to mitigate them.

  4. Use multiple channels: Use a variety of communication channels to reach different audiences. For example, use email for employees, social media for customers and press releases for the media.

  5. Provide support: Offer support and resources to help employees and stakeholders adapt to the pivot. This could include training, mentoring or other resources to help them understand the new direction.

  6. Follow up: After the pivot has been implemented, follow up regularly to ensure that everyone is on board and that the new direction is working as intended. Also share milestones, key achievements and any adjustments made along the way. This will help you identify any issues or challenges early on and address them before they become major problems. Demonstrating progress will help maintain confidence and keep stakeholders engaged.

  7. Stay authentic: Throughout the communication process, be authentic and genuine in your messaging. Avoid exaggerations or overpromising. Be open about challenges and setbacks, as well as successes. Authenticity builds trust and credibility.

  8. Don't forget to celebrate wins: When the pivot is successful, celebrate the achievements with stakeholders and employees, and acknowledge the hard work that went into making it happen. This can help build momentum and enthusiasm for the new direction.

Overall, the key to communicating a pivot in business is to remember, effective communication is an ongoing process. Be clear, transparent and supportive. By taking these steps, you can help ensure that everyone is on the same page and that the new direction is successful.

Related: These Are the Core Elements Needed to Successfully Pivot Your Business

Athalia Monae

Entrepreneur Leadership Network Contributor

CEO of Pouches By ALAHTA

Athalia Monae is the founder of Pouches By Alahta, a startup selling a quality hairbrush pouch she created, author of Why the Secrets?, a short story that shows what happens in any relationship when there’s a lack of open, honest communication, advocate and speaker for Feed My Starving Children.

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