'The greatest danger in times of turbulence is not the turbulence—it is to act with yesterday's logic.' — Peter Drucker
With 2025 and the next few years promising to be increasingly unpredictable, no one can blame business owners for preferring to bunker down and sharpen their focus on “doing more of the same” or what Rod Jenkins calls the “perpetual ritual of knowledge”. Not only does that ensure - at least over the medium term - a healthy balance sheet, but it also allows them to retain balance within their own business without any increased demands on their own stretched work-life balance. However, the problem with this approach - especially given the rapidly changing technology and consumer behaviour space - is that it delays the inevitable and leads to a less resilient business.
Getting business owners to understand the need for agility and adaptability isn’t the issue. All of them would want to build a future-ready and resilient business. The challenge is that the advice they are getting on how to get there is disconnected from their operational business realities. It's not about what they can do, they want to know “what should they do”.
Grounded in Reality.
You know your business, customers, people, systems and processes better than anyone else. However, most Agile and Change Management experts would look at your business from a knowledge-based outside-in perspective Although well intended, such an approach can be disruptive and sometimes dangerous. Our advice for managing uncertainty and unpredictability would be to ground it in reality, and follow an inside-out approach based on Simon Sinek’s “Golden Circle”. Such an approach would be structured around four questions:
What kind of changes and uncertainties are you expecting that can potentially impact your business?
Adept at solving problems, most business owners find the process of thinking and speculating around what-ifs frustrating. However, as your advisor, we bring a different perspective that will help you identify and articulate your most pressing concerns and uncertainties. For example, do you expect customers to become increasingly value-driven (more than just price) or to stay brand loyal? Will they be looking for product innovations or rather stick to the familiar? Will finding labour become even more challenging - or will more people be looking for work? Instead of developing a long list of what-ifs, we recommend sticking to the most pressing 4 - 5 items.
Will any of these impact WHY your business is important to consumers?
Most business owners have a clear sense of “why they do what they do” (if you don’t, now is the time to fix it). In addressing your most pressing uncertainties, the idea isn’t to question the “why” of your business but rather to figure out how to effectively communicate your cause and purpose within these market dynamics. Also, don’t be scared to experiment with some messaging elements to see what resonates best with your customers and market. Remember, in times of uncertainty, consumers are increasingly drawn toward clear and relatable human causes.
Will any of these impact HOW do you do what you do?
“How you do what you do” is a complex subject for most businesses, and can consist of capital-intensive technology, equipment or infrastructure supported by a myriad of operational processes. However, unless your capital investments are increasingly out of touch with changing consumer and market demands, our advice is to relook your operational processes from a different perspective. Specifically, learn and understand how the selective adoption of AI can substantially improve marketing, customer service, and administrative processes and help you stay ahead of market and consumer uncertainties.
Will any of these impact WHAT you do, i.e. your products and services?
The conventional marketing approach starts by understanding what consumers want and then developing products or services that fulfill that need. However, within the context of increased uncertainty, consumers value simplified choices. Instead of trying to get ahead of uncertainty through new product development or innovation, our advice would be to focus on how you can specifically improve your current products and services. This goes beyond product quality and customer service and requires a commitment to product delight and authentic and personalized customer experiences.
Actionable Insight.
Although our proposed process sounds simple, be assured that implementing it will challenge how you think about your business, i.e. your “existing logic”. In summary, get ahead of the expected increased uncertainty by taking the following actions:
Why: Experiment and improve how you communicate your cause and purpose. Make sure that it is clearly articulated and humanly relatable.
How: Learn and focus on how you can improve some of your operational processes through the adoption of AI technology. This will help you and your team save time, support more informed decision-making, and start establishing the necessary data foundation for future business growth.
What: Don’t lose focus through increased product development or get caught up in the mantra of “continuous improvement”. Focus deliberately on increased product delight and on delivering a personalized customer experience.
Although we understand the attraction of remaining focused on what you know best, our advice would always be to embrace uncertainty and volatility with an inside-out approach that works for you and your business. Remember, the intent is to build resilience and adaptability - not to increase demands on already stretched resources.
