Business 2009 – Times They Are A Changin’

The Setting

To grow in this current economy, businesses will have to learn a new mindset with a new set of realities

and develop a strategic response. They face transitions.

FROM		TO
Complaining how bad things are		Reinventing for success
Waiting for the economy to turn around		Change business model; seize new opportunities
Jobs are lost and not being replaced		Find new ways to accomplish old tasks; entrepreneurs surfacing
Advertising once ruled; old media is dying		Conversations are the new media and expanding virally
Waste overflowing		Conservation new ethic
Greed rampant		Generosity new mantra
Pushing people is a trespass		Pulling engaged participants is natural and sustaining
Attention economy focus on interruption		Attraction economy focus on engagement
Brands were created and controlled		Brands grow organically
Employers searching for talent		Talent searching for right culture
Divide and conquer; do it by myself		Collaboration
Unprecedented growth		Record declines
Security		Fear of the future
Taking things for granted		Being grateful for what we have
Oil economy is dying		Alternative fuels are growing
Health care costs out of control		Health care model will change
Baby Boomers had secure retirement		Boomers look to secure their future

Being Strategic

Business transformation is challenging at best. But a well-formulated strategy can leverage the vast opportunities and provide for an orderly transition.

“Any review of history will reveal that the majority of wealth in modern civilizations is more often than not created during times of significant economic crisis. Opportunities abound for those organizations that are truly strategic…” Dr. John Sullivan, The Economic Downturn.

Here are three lessons from corporate transformation efforts that could help:

Transformation doesn’t come from doing what you are currently doing better. Real change requires honestly looking at your business model in the context of current realities. It isn’t just about doing what you are doing differently. It involves a sharp departure from business as usual — stopping some initiatives, and starting others.

1. Start small. Step-by-step change builds confidence.  Get some early successes before expanding efforts.
2. Invest in the human side of transformation.   Don’t challenge employees beyond their capacities. Invest in building human capital. Engage your team – bring in inspiring, fresh mindset and gain agreement on the need for and the approach to  change

Seizing Opportunities

In face of the above changes, progressive businesses are seizing the opportunities. They are looking to innovate, reinvent and use the recession to build their new business model.

Saul Berman, Global Lead Partner of IBM’s Strategy and Change Services suggested:

“Changing times require new business strategies …This is a time to build future capabilities…. The winners are going to reapply certain assets, curtail some things and free up those assets to invest elsewhere.”

Will your company meet the challenge?