Show Notes written by Wendy Dickinson, Catalytic Conversation$.
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Case Study: Independent retail store (locally owned & operated). Prior to COVID, 1% of sales online. All classes, events, new merchandise arrivals handled in person through floor displays, sign up sheets, and in person ticket sales. Government recommended shut downs resulting in catastrophic revenue loss.
The owner’s choices were to: ignore the recommendations and reopen, close the store and wait for things to return to normal, or pivot. We saw the fight, flight or freeze impulses of our brains every night on the news, or by word of mouth.
Most owners across the country have made a combination of those choices. Those choices seemed less about science (There wasn’t much data available in the beginning, was there?), and more about an emotional response.
Regardless of whether you believe emotion has any place in business, we know that it plays a role. As the owner or executive, you are called to lead yourself and others through the ideas to get to the results that the business needs to survive. Take a moment and think about how much time, energy, and money you devoted to each of those impulses during the initial phase of COVID.
SHOW OBJECTIVES: THE WHY
Case Study: The owner chose to pivot. This decision was made quickly with the help of the management team, employees and the customers. Their ideas were evaluated, weighed, and then executed. Each experiment was constantly weighed, revised, and then tried again.
KEY ISSUES: Problems You May Encounter:
Case Study: The owner and the team encountered many challenges. The first of which was the necessity of creating an online store. This required a different point of sales system, with a different accountant, which required onboarding new skills. The entire store inventory had to be entered into the new online store. Next, to answer to the reduced revenue from the events and classes, the community needed to become comfortable with the virtual technology. The team from the store had to learn and experiment. Next, they taught their community.
What You Need To Know - THE WHAT:
Case Study: the organizational structure of the store happened to be flat. Each member of the team had a voice in decisions. Each member was cross trained to perform in multiple functions. Every person was aware of the strengths and weaknesses of themselves as well as the other team members. The culture of the store was strong with clearly defined values (customer centric). The strategic objectives were clear - generate revenue and maintain the tight community.
What You Need To Do - THE HOW
Case Study: The store experienced growth on several fronts in 2020: greater geographic reach, more online sales, slight increase in revenue, less inventory “waste”. The efforts of the team to mitigate the impact of COVID was successful. Bonus: The owner increased the overall value of the store by creating systems and processes for generating revenue through innovation and sound decision making. This owner took advantage of the greater connectivity in today’s marketplace.
Though small, this organization “unlocked” their abilities through greater flexibility, purposeful, actionable steps that added to organic growth while creating antifragility. The store can continue indefinitely, meeting every demand for change. The very definition of resilience.
95% of all profit is earned by the top 20% of companies. If you aren’t innovating, chances are your company is dying.
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