#3 of 3 Great Reasons why what Worked for you Before, isn’t Working Now.

rapid rise and descent of a business strategy

Your strategy was working great, then it stopped? Here’s three reasons why it may have stopped working

It was Working.

Now it’s not working.

Why?

It’s hard to continually grow success. With rare exceptions, the line to the top of the success platform is more often a series of “one step forward, two steps back, a side step, a loop de loop,” and then, finally, “up we go”. One of the most difficult things to come to terms with in both business and personal life is when something that had worked so well for you previously is now not only not working, but may actually be working against you.

So why isn’t it working?

Joined us in the middle? See Reason #1 and Reason #2

Reason #3. Your product is wearing the wrong clothes.

Your product/business/idea may be great, but it may be dressed in the wrong packaging for your intended audience. Now this isn’t usually the main driver, but can be why growth has stalled. What do “the wrong clothes” look like?

  • Your high tech/impulse purchase product isn’t optimized for mobile access, or you created a high tech mobile product for a “not very high tech” audience. You may have reached the saturation point for the people that recognized your product in the space it is in, but you may be missing a much larger market that is playing in another playground.
  • Your choice of market place isn’t reaching the maximum audience.  Are you a retail store? Are you in a indoor mall? How is your foot traffic vs the foot traffic at a strip center (and yes, it was a very different story 10 years ago)? Or maybe you’re a business website with a non-visual based business who is doing all your marketing over on Pinterest.  Blogging when your audience wants podcasts? It may not be that you’re located in a bad place, you just may not be located in the optimal place.
  • Your packaging doesn’t match what your audience’s expectations. Are you a luxury business with a pre-canned, pre-formatted word template for everything from invoices to your website that reeks of beginning Microsoft 101? Is your website loaded with “Coming soon” and a copyright date of 2011 running across the bottom?

 Well that’s just great, Jeanne. So what do I do now, Little Ms. Fix it?

Read our next article, Charging Back Uphill, Blasting out of a Stall. 

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And in the meantime, if you haven’t already done so, subscribe to our free weekly newsletter and get a your copy of “Reading the Terrain, A field guide for speed reading the Corporate landscape” instantly. It may help you identify some critical mismatches between where you think you are and how those on the outside see your business.  And no, we’re not going to sell your email address to others. Or bombard you with insta offers. We’re just going to send your our newsletter that helps you navigate in a time of constant change.

 

 

3 Great Reasons why what Worked for you Before isn’t Working Now. (pt. 1)

rapid rise and descent of a business strategy

Your strategy was working great, then it suddenly stopped?
Here’s three possible reasons why.  

It was Working.

Now it’s not working.

Why?

It’s hard to continually grow success. With rare exceptions, the line to the top of the success platform is more often a series of “one step forward, two steps back, a side step, a loop de loop,” and then, finally, “up we go”. One of the most difficult things to come to terms with in both business and personal life is when something that had worked so well for you previously is now not only not working, but may actually be working against you.

So why isn’t it working?

Reason# 1. The ground beneath you has changed.

Think of little girls in school. Most are rewarded for being quiet, polite, raising their hands, doing their work conscientiously and neatly. This gets them A’s not only in school work but those goofy awards like “Best Friend” “Teacher’s Helper” and, later in life, “Girl most likely to be doing her boyfriend’s homework while he’s off doing whatever cool thing he does that makes her want to date him.” Boys in school are not expected to be as quiet, or as well behaved, and while it might get them a “C” in deportment or behavior (or the more modern version, endless red cards), it doesn’t generally hold him back.

Now move these kids to a different playing field. What happens when these two get into the business world? One has the forward focus of doing what he wants or needs to do to get what he wants. One is a worker bee. Which is more likely to be CEO?

Shift that to a business model. During the recent turbulent times you kept your business super conservative. This helped you survive very rough seas and may have even gotten you some public praise. To be conservative you cut inventory to a minimum, watched receivables like a hawk, cut expenses, minimized staffing and got them to multitask like no one’s business. You “won” the recession. But slowly, maybe without you noticing, things change. As the economy slowly improves, your inventory looks tired, minimal. Your team, exhausted, starts getting other offers. Things start to break down, because you didn’t replace them, or they’re out of date and you’re now doing more creative things to work around the outdated system every day. New competitors (maybe even sinking severance pay into a new business) suddenly appear, shinier, newer, with newer systems, fresh inventory, a fresh perspective. Many will go out of business shortly because they don’t know what you know, but at the same time, they will take their hits on your market share. Some may even survive. Your old staff may work for them, coaching them on the areas they don’t know a lot about. The ground changed beneath your feet, and you are still fighting the war using the tools that worked before.

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Speed Read an Organization with our Easy Guide

Time to reassess. We’ll give you some tools at the end of this series. (If you want to start seeing your business with fresh eyes today, sign up for our free booklet “Reading the Terrain” by subscribing to our newsletter today.)

Our Next Article: Reason #2: One hit wonders…

Uncomfortable Conversation #2: The Project has some Cost Overruns. Big Ones.

Uncomfortable conversations series 2

We’re over budget. Way, way over budget.

The Situation:

You’re three quarters of the way through your project and you’ve just had a major setback. You underestimated the costs to get to this phase but the project is useless if only partially finished. Your cost overruns will be more than 20% of your total project budget, even with the contingencies you built in your initial estimate.

What you would like to say:

  • Perhaps if we didn’t always have to hire the lowest bidder for subcontracted work we might have had a chance.
  • It’s Internal Technology’s fault! (Everybody’s favorite fallback.)
  • If any of the components weren’t already held together with duct tape our idea would have worked.

Needless to say, none of these approaches will win friends and influence people.  And waiting to have this conversation does you no favors. You can bet that those who opposed this project in the first place, or those who just aren’t fans of you or your team, are waiting with knives drawn and absolutely have gotten wind of the overruns. If you don’t “beat” them to the decision makers, you lose.  You want to be the one to tell the story first, because otherwise your detractors will be taking out a billboard to tell it for you.

What you need to be prepared with:

  • A carefully vetted budget for the remaining tasks.
  • Suggestions on the remaining steps which could be cut, created as beta versions or scaled back in order to try to recoup some costs. Would adding time to the expected completion points of various project segments allow you to cut costs? (i.e. reducing overtime costs etc.)
  • Your original cost benefit analysis of the project and a revised version with the new budget figured in.
  • Proof of any additional productivity, sales results, or cost consolidations that have already occurred during the project implementation (which are directly due to the project). Look for numbers, not just “feel good” stories.   Revert to “feel good” stories only if there aren’t any numbers yet.
  • A firm idea of the “why’s” and “how’s” of what happened. Was it a true miscalculation? Were there so many change orders that the project grew or changed in scope? Did you hire the wrong subcontractor or make a mistake in calculating what the cost of each element of the project would be? What steps have you taken to prevent this going forward or are you still moving forward on hope alone?
  • Create a “Lessons Learned” list, making sure you’ve taken all snark or emotion out of it. Do any of these lessons indicate a similar issue may arise as you move towards project completion? Have you identified any potential future risks?

Having the conversation:

  1. Have a meeting first with the Project Sponsor to go over what has happened. Make sure they are fully aware of what you’ve done to correct things, what the new budget looks like, and any wins you have had. Show them the wins on paper or better yet, live. You need a true believer when the going gets rough. If the project sponsor isn’t a true believer, try to locate some of your allies on the management committee and go over your plan with them.
  2. Ask for the meeting with the executive team to apprise them of the situation. Be Calm. Be Factual. Be Precise.  Here is where we are. Here is what went wrong. Here is what is working. Here is how we plan to get it back on track. Here is what we’ve learned and how we will prevent it from happening again. Here is our best estimate of the costs. Here is our expected benefit of this project. Here are some of the savings/revenue/positive changes already resulting from our work.
  3. Use visuals. Clear, simple visuals of the budget, the changes, and the new budget are key. Show the new cost/benefit analysis (with the new charges) as well.
  4. Take responsibility for not catching the issue sooner.  Ask for their support of the new budget.
  5. Shut up.

What to expect:

  • As we’ve said before, once you have the conversation, you have to somewhat relinquish control of the results.
  • Understand that while there may be real consternation at the increased cost aspects of the project, you will also likely get reactions based on the internal politics between the members of the team you presented to.  If they are jockeying for political survival, they may overemphasize the “disastrous” aspects of the costs or may attack leadership or managerial skills, of you, your team or others that were part of the project. Others, surprisingly, may downplay the cost issue, perhaps because your project serves their needs for something they have planned for a later date.  It’s rare that you get a “pure” response in a meeting like this.
  • The best strategy is to have a firm strategy on how to go forward. After the team has had the time to absorb your initial message, ask for their support on the newly renegotiated timetable, budget and plan.
  • Increase communications on the project’s progress in relation to budget as part of your follow up to the committee. Determine if a weekly, monthly or daily update would be appropriate to the current scope of the project and develop a simple “at-a-glance” report that can be sent out.

How have you delivered this sort of bad news before? How did it go? Please share in the comments section!

Tim Ferris believes that “A person’s success in life can usually be measured by the number of uncomfortable conversations he or she is willing to have.” The Uncomfortable Conversations series on 52weekturnaround gives you the tools to have the difficult conversations that you encounter as a change agent. See the series here.

book by Jeanne Goldie

Speed Read an Organization with our Easy Guide

Some great questions to ask yourself and your team about your group’s previous adventures in change are in our Free guide: Reading the Terrain – A Short Field Guide to Understanding the Organizational Landscape. You can get it just for subscribing in the box at right. We don’t share your contact info with anyone else, and you’ll get free updates when this site adds new content.

 

Rule # 9: Change Does Not Occur in a Vacuum

Shadows of change

Great Strategists understand they operate in the shadows of the history that came before.

Seth Godin said this so much more eloquently than I can; he calls it “The People Who Came Before You.”  When you begin to share your strategic plan with your team or your organization, you are standing in the shadow of all the ghosts who enacted change, or attempted to, with the same group. You are standing in the shadow of their experiences in other workplaces, at home and in past relationships.

If cost reduction strategies have always started with massive layoffs in the past, regardless of your words, the team will only hear “layoffs.”  If revenue growth meant giant sales goals that bore no relationship to reality, your “increase sales with our new strategy” will be reinterpreted as “We’re going to get some new scripting to take to the field and then they’ll raise our goal numbers.” Did the last strategic planning session feature a boring four day retreat followed by a zippy new mission statement and a binder that was shelved for all eternity the day after the retreat? Well, your call for a new focus on strategic planning will likely be met with some new mission statement suggestions and a request to vet the hotel location so everyone can set their tee times up front.

Ghosts take a heavy toll on team progress, especially when they are confronting change. Respect that the people you are asking to make that leap are carrying the baggage of many past adventures, the good, the bad, the awful and hopefully, the fantastic.  Having the right team in place before your unleash your plan is an important step. Asking that team about what has happened in the past, will help you unroll your plan to the larger audience in a way that can help people trust you enough to make the leap.

Want to get all 10 Rules for Beginning a Turnaround? Click HERE

What Baggage have you had to address when rolling out new plans? How did you handle it? Please share in the comments below!

P.S. Think you covered all of that and your project still isn’t getting any love? Try here.

book by Jeanne Goldie

Speed Read an Organization with our Easy Guide

Some great questions to ask yourself and your team about your group’s previous adventures in change are in our Free guide: Reading the Terrain – A Short Field Guide to Understanding the Organizational Landscape. You can get it just for subscribing in the box at right. We don’t share your contact info with anyone else, and you’ll get free updates when this site adds new content.

Rule #8: Understand the Art, Science and Use of Duct Tape

box covered in messy duct tape

There is a time for elegance, and there is a time for Duct Tape

There is a time for elegant fixes. Breathtaking strategies that will be the subject of Wharton case studies for generations to come.  And then, there are times when only duct tape will do.

A duct tape fix can be many things. A temporary patch used while working on the elegant solution which will take time and money.  It can also take the shape of a workaround, a set of processes that mimic the structure of a true fix, but are a temporary substitute until you can find the resources for a permanent fix.  It can also be a compromise, when the opportunity cost of a true fix is simply too high.

It’s important to be clear when you are implementing a duct tape fix, to know the rationale behind choosing this option, and how long the tape can hold before rotting away or springing a leak. The danger comes when the duct tape fix becomes permanent, and really can’t do the job.

Just to be clear, duct tape is not a “smoke and mirrors” fix. It’s not meant to fool anyone, just a necessary evil at times. Use your duct tape fixes wisely and selectively.

P.S. Somehow I imagine this book was written by a change agent who decided to toss in the towel on “duct tape” fixes and expand their horizons!

What’s the most creative “duct tape” fix you’ve had to utilize? Share in the comments below!

Want to see all 10 Rules for Beginning a Turnaround? Start here.

book by Jeanne Goldie

Speed Read an Organization with our Easy Guide

Get our Free Guide to seeing your corporate (or non-profit or government agency) terrain with fresh eyes! Don’t structure your turnaround plans until you’re sure you’ve seen the whole chessboard! Just sign up for our free subscription in the box at right and you’ll get emails with the site updates and our fun guide, “Reading the Terrain – A Short Field Guide to Understanding the Corporate Landscape

 

© Jeanne Goldie 2015