Considering a strategic pivot in your business

There's a YouTube video of author and speaker Simon Sinek leading a team huddle in his business. He tells the team that these are NOT unprecedented times. Despite the illness, lockdowns, scarcity of toilet paper in some parts (?), and interruption of daily rhythms, these are not firsts. They won't be lasts, either. Given that businesses and entire industries have been disrupted repeatedly over the years for a variety of reasons, should this one lead to you consider a strategic pivot?

The Stockdale Paradox and You
Named after James Stockdale, Vietnam POW, and popularized in Jim Collins' book Good to Great, the paradox goes like this:

  • Confront the brutal facts facing you at the moment, while never losing faith that you will ultimately prevail.
This means that you need to be both realistic AND optimistic while looking at your current situation. Don't deceive yourself that if you close your eyes this will all go away and life will return to normal, whatever that was. Real obstacles need to be noticed and examined in their full strength for you to plan for their overthrow. As for optimism, without action it cannot extract you from the mess you're in. But optimism is the necessary fuel that sustains your willingness to act, no matter the odds that you need to overcome.

Identify the Trends
When the going is tough it's easy to become caught in the weeds, entangled by the daily challenges of keeping the wheels turning. There are some gains that can be made by getting better at the little things - saving cost here and growing leaner there.

The strategic pivot opportunities, though, are uncovered by stepping back and looking at the bigger picture. Who is winning? Who is losing? What needs are growing, and which ones are contracting? Are there changes that you observe from which your industry will not return? What is the approaching picture that you see, and what is your company's potential place in it?

Core Competencies and Repurposing
What is it that you are already good at doing that could be directed in a different way? Is there something that you make that can be used for a new purpose? How can you use what you already know to meet the needs RIGHT NOW? And what if this new thing could make a positive change on the trajectory of your business?

A Sprinking of Pivot Examples
The Covid-19 pandemic has impacted most corners of the economy. The needs have changed almost overnight for businesses - and for people. Consider:

  • Remote work and electronic meetings exploding. (ProActive Leadership Group is tooled up to serve clients remotely - and that change opens all kinds of possibilities. )
  • Brick and mortar restaurants deploying food trucks to serve customers self-quarantining at home.
  • Distilleries shifting production of alcohol (the fun kind) to make hand sanitizer.
  • 3-D printing capacity put toward making ventilators.
  • Fashion design houses pivoting toward producing protective masks.
Six weeks into the intensity of the Covid-19 pandemic there is no near end in sight. There will be a break in the lockdowns, either partial or greater, but the possibility of a virus resurgence (even bigger than the first round) is still out there. How can you strategically pivot to meet the urgent needs of the present - and plan for a rosy future for your business?

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