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Lisbeth Calandrino
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If You Knew You Would be Out of Business in a Year, Would You Change?

17February12

                      

The answer to this question seems clear. Of course you would change. The thought that obstacles would not occur in life or business is an unreal idea. Ask yourself, “Can I handle obstacles?” Again we go back to, “What would you do if you knew you couldn’t fail.” Lina Sanchez talks about it in her article in the Gwennett Network. We have no choice in life but to handle obstacles; even if we “don’t handle them” we’re handling them!

Companies often wait too long to change. As Eastman Kodak files for bankruptcy, the 131 year old company had a great formula, but couldn’t change quickly enough. Who can forget the Kodak name, the leader of inexpensive cameras? What we don’t know about Kodak is that the company’s own researchers had invented the first digital camera way back in 1976. This put Kodak in a position where they could have dominated the industry and owned every category of cameras, printers, inks and more. Unfortunately it never happened. It’s been said that the Kodak leaders couldn’t imagine a world where pictures weren’t shot on film. This company had the technology, but not the vision with which to use it. Kodak believed in saving family memories by capturing them on film. They were way ahead of the social media revolution. (If you’ve not seen this video on the social media revolution this will be an eye opener!)

Nokia is another company that failed to act despite the fact that they had created a formula for a tablet-shaped handset. They just couldn’t execute the plan. (The Harvard Business Review, November 2011 has many great articles on companies that couldn’t change.)

Being a leader means understanding when things change in the environment, such as in our present economy, the business has to change. Unfortunately making changes in one’s business because of environmental changes is very reactive, and good leadership should be proactive not reactive. As we see, some companies, such as the Neihaus Companies, are flourishing in this economy. Why? It’s because they have a plan and have stuck to it. Having a plan doesn’t mean you can’t be flexible. In fact being flexible and giving yourself “wiggle room” should be part of your plan.

Here are 5 ways that you can help your business and your life be proactive.

  1. Don’t wait for things to happen. Build your business on sound principles, and prepare today for the future.
  2. Stop running in crises mode. If you are constantly reacting, stop and look at what you’re not seeing.
  3. Start goal setting and goal planning, and hold yourself accountable. This should be done yearly.
  4. Include your major customers in your goal setting. How can you upgrade your customer service unless you know what your customers want?
  5. Prepare for changes in the world. Globalization has changed how companies do business, what type of business they will do and where they will do business.

Sorry about Eastman Kodak; they will be missed.


Filed under: Business Practices

2 Responses have been made

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  1. Wes MorganPosted February 18th, 2012 - 1:15 pm

    Kodak was a cash cow for so long maybe it was impossible for them to change. Blockbuster knew threats were on the horizon but just weren’t ready when Netflix offered an better alternative. Cautionary tales indeed. Wanna buy a buggy whip?

  2. Lisbeth CalandrinoPosted February 21st, 2012 - 11:10 am

    Blockbuster got out just in time. The window of opportunity is only often for a short period of time–should you wait too long, bang..and there go your fingers and the opportunity. there is an interesting article in HBR about companies that “knew it but couldn’t do it.”
    I am interested in JC Penny, they are hot on a new trail–I would love to see it work. It would restore my faith in retail. Thanks for your notes Wes, they get my mind thinking.
    I must hava a buggy whip somewhere. :)