The last three years have been unprecedented for businesses, creating a challenging situation for those without leadership coaching. We have seen a black swan event in the form of a global pandemic that forced millions of people to stay home for months. This was followed by several strong headwinds that have turned industries upside down, including inflation, supply chain issues, the recession risk, and the invasion of Ukraine.
In the face of these issues, great entrepreneurs can identify opportunities and the need for pivots and execute the shift successfully. A pivot is a dramatic change in direction; it involves a potential for more profit and revenue. However, it also carries many potential risks. Pivoting can take a variety of different forms, including finding new:
Market segments
Distribution channels
Products
Pricing strategy
Industries to dive into
Real-Life Pivot Examples
We’ve seen some excellent examples of pivoting companies in the last several years. A classic example comes from the streaming giant Netflix, which shifted from providing DVD shipping to offering customers streaming services and experiencing record growth. More recently, when brick abrick-and-mortarnd mortar businesses shifted during the pandemic to e-commerce, they allowed customers to pick up items curbside, providing takeout food, and otherwise adjusting to new shopping patterns.
Businesses facing today's challenging economic landscape need to consider the value of a pivot in their industries. We will explain what you need to know about this process and how you navigate it successfully.
Complications That Lead to a Need for a Pivot
Business owners need to guard against potential complications that can derail their companies. The headwinds that have thrown many organizations off course will continue for the foreseeable future. The time between major geopolitical events also appears to be shortening. In the last three years, we have experienced a series of events that may have once been considered once-in-a-decade events, all condensed into this short timeframe.
This creates a situation where entrepreneurs must prepare to pivot quickly and frequently. This pivoting can help companies navigate a variety of different obstacles, including:
Hitting a revenue plateau
Intense competition in the market space
Poor financial performance
Limited traction within a market
Therefore, knowing how to pivot your organization can help you set yourself up for success.
How to Successfully Pivot Your Company
Planning a company pivot involves re-thinking vital elements of your firm’s strategy. It is critical to align the pivot to your core values. In addition to core values, agile businesses have a great sense of their Big Hairy Audacious Goals (BHAGs) and make sure they stem from the core competencies of the business.
Asking yourself some fundamental questions can help you build a solid plan for your pivot. It will ensure you have all the necessary pieces to thrive throughout the process.
Key areas to investigate
Strengths: Begin by listing and analyzing the top company strengths from the perspectives of strengths, weaknesses, and trends (SWT).
Inventory of skills: List your company's prior experiences and skills that can position you and your team for a pivot.
Observations: List information that will help make decisions and formulate a plan of action.
What’s working: List what works now for your business and can help you move forward.
List potential pivots: Brainstorm and list at least 3 exciting strategic shifts for your organization.
Define immediate actions: Identify 3-5 steps you can take in the next 90 days.
Asking yourself these questions can help you make the optimal decisions regarding your company's future and where you can make changes to maximize your growth and revenue potential.
Pivoting Your Company With Leadership Coaching
The ability to adjust to changes in the market and find areas to thrive has increasingly become a core skill for leaders. Pivoting your company successfully requires considering various angles and aspects of your own company, the broader market, and the competition. In addition to these complications, speed plays a central role in your ability to seize these opportunities. For a prime example of the importance of moving quickly, consider what happened to companies that were slow to react during the pandemic.
To help you navigate this process's challenges and find the opportunities to succeed, work with leadership coaches who can point you in the right direction.
Contact ALTA Consulting for our expert leadership coaching and consulting services. We will help you find and seize the opportunities for pivoting your business so you can maintain your growth and success regardless of the headwinds you face.
