Readiness: Gear Up For Change - wendy Dickinson

Show Notes written by Wendy Dickinson, Catalytic Conversation$.

IBGR.Network - PROFIT Radio. Everything a business owner needs to start, grow or exit a business. GROW WITH US.

Introduction:  
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.

• Change is constant and inevitable.  The COVID-19 crisis accelerated many changes across industries, socioeconomics and demographics.
• Owners and executives can estimate the behavioral styles of their teams to plan to mitigate the fallout from reactions while waiting for the executive functioning to come back on line, and responses can be delivered.
• There are nine essential elements of your business model that can be gauged, checked and adjusted in response to changes.

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.  

1. Resistance to change.
2. You have to prepare for the fight, flight or freeze reactions.
3. Weakness within the organization may sabotage your efforts to respond to crisis.
4. Disconnects, blind spots, misalignment with company culture, values, mission and purpose may result in slow, poor decision making.
5. Organizational structure may not lend itself to quick sound decision making, pivots in the business model or modifications to logistics, supply chains or talent management.

​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.

• Agile, flexible organizations are better able to change.
• Leadership awareness leads to greater individual and team productivity.
• From that level of awareness and productivity, the company can establish culture norms and influence organizational behavior which leads to decisive behavior, good communication, greater self-awareness, and a willingness to grow - even in times of crisis.
• Innovation and the readiness for change have a few essential ingredients: diverse perspectives, respect and value for the diversity, norms and processes that can translate the diversity into actionable steps. Racial diversity contributes to a 36% increase in average profit. Gender diversity contributes a 25% greater average profit.
• McKinsey’s January 11th article cite 3 important questions for you and your team to answer:
  • Who are you as a company?
  • How does your company operate?
  • How does your company grow?

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.

1. Identify the purpose of your organization.  This is vital to talent optimization.
2. Clearly state and community your value proposition.  Check it’s alignment to the company values.  Reinforce it at every opportunity.
3. Make culture your “secret sauce”.  Reward behaviors that reflect and reinforce your desired culture.
4. Identify and evaluate the fit between your organizational structure and your business strategies. Shift and course correct in response to changes in the marketplace or organizational culture.
5. Make fast, informed decisions.  Build out a process to facilitate this.
6. Put talent optimization on your priority list.  Determine your organization's current and future, talent needs.  Design a talent optimization strategy that aligns with your business strategies to achieve the desired results.  Identify means to attract and then develop that talent.
7. Create ecosystems that welcomes collaboration, strategic partnerships and offers your company opportunities to make an impact in your industry.
8. Make data part of your decision making.  Utilize data in talent optimization, cost controls, customer journeys and experiences.  Create a data friendly culture that welcomes challenges to assumptions and interpretations.
9. Facilitate learning throughout the organization.  Make learning a part of the culture and ecosystem.  Identity barriers to skill building, cross training, as well as design thinking.

95% of all profit is earned by the top 20% of companies.  If you aren’t innovating, chances are your company is dying.

Resources:

1. Work The Bugs Out: Practices To Work In, & On, Your Business, by Wendy Dickinson, Publish: TBD.  Excerpt: Free Downloadable PDFs to work through.
2. “Organizing For the Future: Nine Keys to Becoming a Future-Ready Company”, by  Aaron DeSmet, Chris Gagnon, Elizabeth Mygatt, Richard Steele ,January 11, 2021, mckinsey.com.

You can connect with Wendy Dickinson on FB, LinkedIn, and Instagram.

​

E3.06.4NA