All around the world, people clamor for more humanity and compassion in business. But oftentimes, humanity is confused with sentiment and this confusion leads them to an unhealthy attachment to outdated technologies and supply chain models.
Unfortunately, this only guarantees their vulnerability in a world where innovation and creativity are becoming powerful sources of disruption. And as difficult as it sounds, you need to spot these signs of emotional attachment to the old and start weaning your business away from them.
Because if you don’t create innovations that disrupt your business, someone else will. It is an adage that many both in and out of the tech industries firmly follow and one that other businesses in other industries are now just learning about, ignore this only to your own peril.
If you are currently spotting any of the following elements in either your corporate culture or your supply chain network, then it is time to stand up, speak out and model the alternative!
Sign #1: Cannot identify one innovation or disruption in your own supply chain in last 3 months?
If you consider the usual pace of business, in this scenario, you are already behind. Do you really think that everyone else is in your industry has also not moved forward in the last 3 months? Not likely! Revise your values, do you have continuous improvement as a value and therefore a Continuous Improvement Initiative in place across your business. If not, install now! If yes, revise immediately, it’s not effective!
Sign #2: Criticizing the competition without solid facts.
A perfect example would be the attitude of some retailers against the reach of e-commerce giants like Amazon. Rather than leverage or develop your own ecommerce advantage, you pour your company resources into lobbying against the practice of online retail itself and digging up nonsense conspiracy theories about the new type of business.
You start participating in obscure movements like the whole ‘anti-screen’ crusade or talking about the supposed brain damage from shopping online. If this is the sort of culture your company is sinking into, then there needs to be a rude awakening from within. Otherwise, you will all get that wake-up call from your own customers. Focus on facts, not simply speculation or suspicion!
Sign #3: Attaching your bottom line to a smaller, aging and/or declining niche.
This sort of reaction is often prevalent in older businesses who think they have an ‘established brand’ and already have the support of a loyal base of customers. Often feeling they are ‘Invincible’. Well there is a long list of businesses who have failed before you with this same mindset. Quick question: When was the last time you checked the overall population of paying customers? Is this target audience declining over time? Is this age related or simply loss of supposedly ‘loyal’ customers to competitors?
The problem with relying on an aging or declining niche is that you are essentially asking the people in it to fund your entire business to the grave. Some of your most loyal buyers may be willing to go that far but history shows that only innovation and catering to newer markets will keep an enterprise truly alive.
What initiatives do you have in place to grow your target audience or attract new segments?
Sign #4: Putting too much value on ‘personal connections.’
Say you have some suppliers in your network that all work for an old friend of yours. Suddenly, you learn in the news that these suppliers have just been charged and convicted with illegally sourcing materials and violating conservation laws.
Like it or not, you have to disavow and disconnect post-haste. You cannot afford the reputational damage that such associations create. (We see this all the time when sports sponsors leave a troubled sporting club or player in times of scandal!)
It’s not different for other businesses. In fact, one of your biggest advantages in having a digitized and agile supply chain network is that you are not necessarily bound to just one supplier. As the popular Godfather quote goes, “It’s not personal Sonny. It’s strictly business.”
Sign #5: Talking about your ‘historical brand,’ rather than customer benefits.
Contrary to some people’s opinion, wine is aged in oak barrels because the wood itself imparts desired flavors. It is not because it is the ‘historical way’ to do it. Granted, some customers prefer traditional, handmade products and their lengthier production methods but that is actually beside the point.
It is customer demand that dictates how a product is made. More importantly, it is the customer demand which once fulfilled, will provide your bottom line revenue. It is not merely a statistic. It can serve as both a valuable new guideline for production and a launch point for delivering even beyond the customers’ expectations.
Sign #6: Refusing to cannibalize one’s own products even as they are phasing out with better versions.
Remember the iPod? One of Steve Jobs most daring moves was the way he developed the iPhone to cannibalize and outmode the MP3 player during the peak of its sales performance. It was a move that was bold in timing but it also showcased the importance of self-disruption (before the competition disrupts you).
Why is it so difficult to see your current product as a constant WIP? There will always be new ideas being tested out, whether you participate in their research or not. You might as well participate because it is a sure step to keeping the competition from creating a better version of your own product!
To summarize, your only obligation is to keep your enterprise alive by continuously meeting market demand for innovative products and services. As leaders and managers, this is how you take responsibility for ensuring the survival of your company. Don’t try to rescue inefficient partners or salvage outdated business models at your company’s expense! It wont work and will only hold you back. Move your company forward and new opportunities will emerge that you never imagined!
By the way… Ever heard about what happened to a strong brand KFC? If you want to avert that kind of disaster for your business – God forbid – Click HERE. Don’t worry, it’s totally FREE.
Or, maybe you would like to better understand how you can more fully leverage todays’ technology in your supply chain? Click HERE for a FREE ebook. You just might discover the missing piece to get your business back in the lead where it belongs!.
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